Virginia Dismisses Bid To Split Verizon

Communications Today, June 29, 2001

By Rodney L. Pringle, rpringle@pbimedia.com

Maybe AT&T [T] has a Plan B.

On Tuesday, the Virginia State Corporation Commission rejected a request by the giant telco and three other companies seeking structural separation of Verizon Communications [VZ] into separate and wholesale operations.

The commission said that no Virginia law gives it specific authority to split the dominant local telecommunications provider. The order also said the commission is considering several issues, including pending legal cases, that would help accomplish competitors' goal of getting Verizon to provide fair access to its network.

In April, AT&T, along with Cavalier Telephone, Covad Communications [COVD] and Network Access Solutions [NASC], filed a petition with the commission against Verizon to "ensure consumer choice, competitive prices and innovative products and services."

If AT&T's tactic sounds familiar, that's because it is.

The giant telco and friends have filed numerous suits against Verizon and other Bell companies seeking structural separation. As of yet, no state has concurred.

Analysts have said AT&T hopes its numerous lawsuits and formal complaints against the Baby Bells will slow their entrance into the long-distance market and stem AT&T's declining market share.

"The SCC's decisive action should send a clear signal to AT&T: Stop wasting everyone's time and energy on these foolish filings in Virginia and across the country and start competing for local phone service as so many other companies are doing today," said Robert Wolz, president of Verizon Virginia, in a statement. >TK Microsoft [MSFT]: Qualcomm [QCOM]: Research in Motion [RIMM]: Openwave Systems [OPWV]: AOL Time Warner [AOL]: EarthLink [ELNK]: