Lansing MI – July 1, 2010
The Michigan Internet & Telecommunications Alliance ( MITA) strongly endorses the No Choke Points Coalition’s point of view enunciated in its press statement released June 29th. The No Choke Points Coalition is a national organization that represents consumer advocates, Internet companies and competitive telecommunications providers that rely on AT&T’s high-capacity lines to connect their customers to the Internet.
The No Choke Point Coalition’s press release called attention to the fact that as of today (July 1st ), price regulation of AT&T’s wholesale high-capacity broadband lines will be lifted and high-capacity Internet users will likely see Internet connection prices skyrocket.
High-speed broadband lines are used by nearly every sector of the U.S. economy every day, from ATMs, retail outlets, businesses, and government agencies. MITA members provide competition in this sector of the economy which results in lower prices and innovative service. AT&T raising of its wholesale rates will impact the entire sector and undoubtedly result in higher retail prices for everyone. Removing these price controls will be a setback for the Broadband economy according to John Liskey, spokesperson for the Michigan Internet & Telecommunications Alliance.
Liskey questioned how AT&T can claim the wholesale marketplace is competitive when they raise prices in a market with declining costs. According to Maura Corbett, spokesperson for the No Choke Points Coalition, this rate increase was announced three years ago. (see http://www.nochokepoints.org/latest-news )
AT&T’s wholesale rate increases will also frustrate the National Broadband Plan according to Liskey. The Plan was intended to accelerate broadband deployment in unserved, underserved, and rural areas and to create jobs or provide significant public benefits. In Michigan, many competitive carriers have received grants and loans to further deploy broadband networks throughout the state. “This AT&T rate increase is tantamount to erecting a tollgate on the Information Highway. By increasing its connection charges, AT&T increases costs to Michigan’s residents and businesses at a time they can least afford it,” Liskey said,
Relief could be on the way as current FCC Chairman, Julius Genachowski, has stated his intention to address this issue when he spoke to Congress earlier this year. The Commission has scheduled a workshop on July 19th to begin the process. “Now is the time for the FCC to help Michigan create jobs and foster technological innovation by taking quick action,” Liskey concluded.
About the Michigan Internet & Telecommunications Alliance:
The Michigan Internet & Telecommunications Alliance is a group of Internet Service Providers and competitive telecommunications company that have substantial business in Michigan. It is the goal of the Alliance to showcase the innovative technology that these companies are deploying and encourage policymakers to establish a regulatory framework for future growth that brings high-tech, communications-based jobs to Michigan and maximum choice to Michigan residents and businesses.
To learn more about the Michigan Internet and Telecommunications Alliance, please visit www.mita1.net
To learn more about the No Choke Points Coalition or the National Broadband Plan, please visit
http://www.marketwire.com/mw/release.do?id=1283439
For More Information Contact:
John Liskey
517-913-5109
