CSE Questions AT&T’s Marketing Freeze in Seven Key States

In a decision that is unusual for both its timing and selection, AT&T today announced that it was not going to market consumer phone service in seven states: Arkansas, Louisiana, Missouri, New Hampshire, Ohio, Tennessee and Washington. The states have little in common in terms of current wholesale rates and are widely viewed as battleground states in this year’s Presidential election.

CSE’s Chief Economist, Wayne T. Brough, Ph.D., made the following comments:

“It’s a fair question to wonder if the timing, publicity, and the choice of states is for business or political reasons. The fact that AT&T won’t embrace the process and at least negotiate commercial rates is a disservice to everyone trying to create fair and rational telecommunications policy.”

“Despite AT&T’s announcement, the Bush Administration’s decision not to appeal was the right call. The courts are rejecting a failed regulatory approach, and that will be good for everyone involved. Indeed, AT&T could also benefit from the new marketplace once it starts to focus on consumers instead of regulators.”

“CSE is leading a nationwide grassroots educational campaign that calls for the complete deregulation of America’s telecommunications markets, and we’re going to defend the Bush Administration’s deregulatory policy. AT&T needs to abandon the failed regulatory policy of the past and negotiate in the marketplace.”