ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, April 23, 1996 TAG: 9604230118
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
Lawmakers differed on whether the proposed $23 billion Bell Atlantic-Nynex merger will help local telephone customers.
Rep. Edward Markey, D-Mass., whose state would be served by the merged company, said Monday the answer will depend on new Federal Communications Commission rules aimed at spurring local and long-distance competition.
``It will be good or bad, depending upon whether or not Time Warner, MCI, Sprint, AT&T and Continental Cable can join in the fun of ruthless competition for local telephone customers,'' Markey said. ``If they can't, it won't be a good deal for consumers.''
The FCC's action will carry out Congress' wishes in the new telecommunication law, which frees local, long-distance and cable companies to go into each other's businesses.
Sen. Larry Pressler, R-S.D., a primary author of the law, was optimistic the proposed union would benefit customers and would not discourage new local phone competitors.
``I think that it will probably be good in the long run,'' Pressler said. ``I think it may well prove to benefit customers.''
Some critics of the proposed union, however, assert that the colossus company would make it harder for potential local phone competitors to provide service along the East Coast, a core part of the merged company's region.
Pressler noted that in the last month, a number of new small- and medium-size local telephone companies have emerged as potential Bell competitors.
``In the long run, these huge companies will not be nimble enough to compete with some of the smaller and medium-size ones coming forward,'' Pressler said. ``I'm not concerned about it at this stage.''
An aide to Rep. Thomas Bliley, R-Richmond, another major author of the new telecommunication law, said Bell Atlantic and Nynex will be watched closely.
``To cross-fertilize the various states within the combined companies' region, Bell Atlantic and Nynex will have to bend over backward and make clear'' that they are not going to discourage local phone competition in any way, said the aide, speaking on condition of anonymity.
On jobs, Pressler and Markey said the merger could end up creating many more positions through new businesses such as cable television and long distance than the jobs that are expected to be cut.
LENGTH: Medium: 51 linesby CNB