NYNEX calls judges' recommendation 'an important next step' for New York's economy

Business Wire, March 14, 1995

NEW YORK--(BUSINESS WIRE)--March 14, 1995--NYNEX said today that the Public Service Commission administrative law judge's recommendation issued today is "an important next step in advancing New York's economic vitality."

The proposed seven-year plan would foster competition and change the way the company is regulated in New York.

"New York is the most information-intensive economy in the world, and telecommunications networks -- which transport this information -- will spur economic development in the state," said Stanley Fink, senior vice president - Regulatory and Government Affairs for NYNEX in New York. "With an advanced telecommunications infrastructure, a number of industries can, and should, flourish in New York: health care, financial services, information technology, research and development, educational services, entertainment and real estate. Unlike other transportation infrastructures -- such as our roads, bridges, airports and harbors -- telecommunications does not generally require government funding.

"Instead, telecommunications is an infrastructure that requires an economic climate that fosters competition and investment."

Fink added, "We believe that the plan, as proposed by NYNEX and 16 other parties, creates such an economic climate. The plan breaks new ground after decades of old-style regulation that doesn't fit the modern competitive environment."

Earlier today, two PSC administrative law judges -- who have overseen more than two years of debate on proposed new regulation for NYNEX -- gave a positive evaluation of the plan's concept and suggested that, "with some modification, it can provide a sound regulatory regime." The PSC is expected to decide on the proposal in April or May, following public statement hearings later this month.

Fink said that NYNEX questioned some of the judges' concerns relating to service and pricing and added that some of the judges' suggestions would "undo the negotiated settlement, which carefully balanced the needs of investors, consumers and competitors."

Fink said, "We may be able to accept some of the judges' suggestions, and we may not be able to accept others -- based on our analysis of what these changes would do to the structure of the negotiated settlement."

He added, "Economic development flourishes best in a climate of stability and certainty, under a long-term plan such as this that gives the industry an opportunity for growth and provides stability for the individual consumer. Therefore, we hope that this Commission will carefully review many of the ALJ's individual recommendations."

The plan -- which has been endorsed by 17 parties representing consumer, government and industry interests -- calls for a freeze in basic telephone rates and reductions in calling charges and other fees that, over the life of the agreement, will save consumers nearly $2 billion. The plan would also accelerate competition in the industry.

NYNEX filed the proposal with the PSC on Sept. 26, 1994, following a two-year proceeding that included negotiations among 40 parties and public hearings across the state. In addition to rate cuts, the new regulatory framework would create a regulatory environment that will encourage NYNEX to invest in new technologies and further improve service.

CONTACT: NYNEX

Mark Marchand, 800-698-0198 (Albany)

or Bob Varettoni, 212/395-0500 (New York)