Thursday, May 13, 2004

AT&T Proposes Binding Arbitration for UNE Negotiations

AT&T expressed frustration at the lack of progress in reaching commercial agreements on UNE issues with the four Bell companies. AT&T is asking Verizon, SBC, BellSouth and Qwest to each agree to a binding arbitration process that results in long-term commercial agreements.



"The industry is fast approaching the witching hour and something must be done now to bring these negotiations to a successful close," said AT&T Chairman and Chief Executive Officer David W. Dorman. "Private one-on-one negotiations and even a mediated process have not resulted in the desired outcome. We are frustrated by the lack of progress in negotiations to date, and the absence of any positive response to our offer to move to our own facilities."http://www.att.com

  • In late April 2004, AT&T issued a public proposal to the each of the four Bell companies offering a new roadmap to facilities-based local competition. AT&T is proposing increases in the price of UNE-P by at least $3 in phases over the next 2 1/2 years so as to impose a financial penalty on competitors that continue to rely on UNE-P. In exchange, however, competitors would be able to obtain operational and economic access to "last-mile" loop facilities on terms that are reasonable and fair. AT&T said it would support UNE-P price increases in exchange for reasonable reductions in the costs and necessary improvements in the provisioning required to support facilities-based competition. The framework also provides incentives for AT&T to accelerate deployment of its own facilities.