Madison River Communications

For Immediate Release: June 21, 2001
Mebane, North Carolina

NORTH CAROLINA UTILITY COMMISSION STAFF SEEKS "SHOW CAUSE" AS TO WHY AT&T SHOULD NOT BE FINED FOR ITS TREATMENT OF CUSTOMERS OF MADISON RIVER COMMUNICATIONS

Madison River Communications' CLEC operations have experienced extreme difficulty in collecting switched access charges from AT&T. Rather than making good faith the undisputed portion, AT&T has refused to pay any portion of the bill, has requested Madison River Communications (MRC) to block all calls from its network to AT&T, block all calls from AT&T's network to MRC and has directed MRC to not presubscribe any of its customers to AT&T.

In responding to AT&T and other IXC's past due switched access bills, MRC requested payment and threatened termination of service for non-payment. All carriers, except AT&T, paid at least the non-disputed portion of the bills. AT&T's lack of good faith payment resulted in MRC terminating access services to AT&T. To our knowledge, MRC is the only LEC which has acted on the courage of its convictions and taken such action.

In preparing to terminate access services to AT&T, MRC personnel prevented any negative impact on its customers presubscribed to AT&T. Each and every AT&T-presubscribed customer was contacted and alternative arrangements made for long distance services. MRC also communicated its actions and situation to the North Carolina Utilities Commission.

According to Bruce Becker, President and COO of Madison River Communications, "We need to collect money due us from IXCs, but we will not put our customers in a position of not being about to dial long distance."

Steve Vanderwoude, CEO of Madison River Communications added, "While most CLECs have been reluctant to deal aggressively in collecting past due amounts from IXCs, we have decided that if they don't pay, they don't get service. AT&T believed that if it didn't pay anything, we would settle for less than what was due us. That didn't work. As a result, we now have what may be the best IXC access agreement in the Industry. And we achieved this without negative impact on our local customers."

On June 20, 2001, the North Carolina Commission announced that its staff requested the Commission to issue a "show cause" order as to why AT&T should not be fined for its refusal to pay MRC switched access invoices, and its preventing MRC's local customers from presubscribing to AT&T's long distance services.

As described by the North Carolina Utility Commission staff in their filing, AT&T directed Madison River Communications to:

(1) stop routing traffic to AT&T's network,

(2) not complete calls from AT&T's network, and

(3) stop presubscribing Madison local customers to AT&T's long distance service.

Commission Staff further noted that in response to AT&T's lack of payment, Madison stopped routing traffic to AT&T network and presubscribing its local customers to AT&T's long distance service. Madison didn't stop completing calls from AT&T's network.

AT&T "gave excessive weight to its own financial concerns and inadequate consideration" to its customers, the staff said. "AT&T's conduct is 'particularly egregious' because it failed to notify its own customers and the commission," the staff said. "If AT&T believed that Madison's intrastate access charges were too high, it should have filed a complaint with the commission." the staff said. "AT&T's 'heavy-handed tactics' shouldn't be tolerated." the staff concluded. (Docket no. P-140, sub 79)

News of the Commission's actions has been carried by national Industry media, in a manner which vilifies AT&T's actions and exonerates MRC.

In June, MRC reinstated the ability for its customers to choose AT&T as their long distance carrier. MRC has negotiated the general terms of an access agreement with AT&T, which will be executed as soon as several contract terms are finalized.

Article contributed by Michael Skrivan