FCC
FINDS VERIZON UNREASONABLY DELAYED
INTERCONNECTION WITH CORETEL
-- Annapolis, Maryland-Based Carrier May Now Seek Damages --
Annapolis,
MD, April 24, 2003 -- The Federal Communications Commission (FCC)
yesterday found that Verizon's Maryland subsidiary "unjustly and unreasonably"
delayed interconnecting its network with the network of Core Communications,
Inc. in the Washington, D.C. metro area. According to the FCC, "Verizon
had a duty to interconnect with Core under the terms of a state-approved
interconnection agreement, as well as the Telecommunications Act of 1996."
According
to company officials, Core may now seek damages it suffered as a result
of the delay.
"I
am encouraged by the FCC's findings yesterday," said Core president and
CEO, Bret Mingo. "Competitors and competition alike will fail without
vigorous enforcement of the 1996 Telecommunications Act, the FCC's rules,
and carrier-to-carrier interconnection agreements. It's simply a matter
of devoting resources and having the political willpower to stand up to
the incumbent monopolies."
According
to Core general counsel, Chris Van de Verg, "Not only did the FCC find
that Verizon delayed the interconnection, it provided a helpful roadmap
for the damages phase. For example, the FCC noted that 'where interconnection
is delayed, a competitive LEC's resources may be wasted, and its reputation
may suffer permanent damage because it does not provide the promised service
in a timely manner.'"
Core
was represented in the proceeding by Mike Hazzard of the Washington, D.C.
office of Kelley, Drye & Warren. Mr. Hazzard noted the FCC ruling was
significant in that, for the first time ever, the FCC found that an incumbent
monopoly carrier, such as Verizon, had violated the interconnection requirements
set forth in the Act. "This is a watershed case," said Hazzard. "Before
yesterday, it was not clear whether and how the FCC intended to enforce
the terms of the 1996 Act. Now we know that they can and will."
Core's
complaint, filed in March, 2001, alleged that Verizon unreasonably delayed
the Core interconnection by routing competing carrier traffic - including
Core's traffic - through a congested set of cross connect machines that
were not adequately monitored or upgraded. The FCC agreed with Core that
Verizon essentially permitted the cross connects machines to run out of
capacity. The agency went so far as to note: "The Washington Hub bottleneck
substantially stunted the growth of facilities-based competition in the
Washington Metropolitan LATA."
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About
Core Communications, Inc.
Core Communications,
Inc. ("CoreTel") is a Competitive Local Exchange Carrier (CLEC) headquartered
in Annapolis, Maryland. CoreTel competes directly with Verizon - Maryland, Inc.
and other CLECs in the highly contested data communications marketplace. CoreTel
relies on its expertise with integrating the Internet and telephone networks
to provide targeted services to data-focused customers. As a CLEC, CoreTel is
the product of the Telecommunications Act of 1996, which deregulated local exchange
telecommunications nationwide, as well as the pro-competition policies of the
Maryland Public Service Commission. CoreTel's investors include Charles Ross
Partners, LLC. For more information, please visit CoreTel's web site at www.coretel.net.
FOR MORE
INFORMATION CONTACT:
Christopher
Van de Verg
Core Communications
443.794.4943
Robin Buckley
Buckley & Kaldenbach, Inc.
703.533.9805 |
