Statement by Ralph Nader on Worldcom/MCI merger
Source James Love
Date 99/05/01/02:22

> /* Written 4:14 PM Mar 10, 1998 by in igc:list.roundtabl */
> /* ---------- "Statement by Ralph Nader on Worldco" ---------- */
> Statement by Ralph Nader on Worldcom/MCI merger
> March 10, 1998
> We have asked the Department of Justice to stop the
> Worldcom/MCI merger. The merger would hurt consumers in
> many ways, and would offer them no benefits whatsoever. It
> would make long distance telephone service less competitive
> than it is today. Among other things, the market segment
> served by discount resellers would be harmed by the merger.
> Secondly, and perhaps more important, the merger would give
> a single telephone company control over half or more of
> Internet backbone services. Worldcom and MCI have both
> said they want to impose new usage based pricing on
> Internet backbone services. This did not happen in the
> competitive market, but experts say it will be more likely
> once a single firm wields far more control over the
> Internet's backbone. Worldcom is already being accused of
> a number of anticompetitive practices in Internet peering,
> and this would give Worldcom even more power to eliminate
> small ISPs who now compete with Worldcom.
> There are many reasons to oppose the merger. There is no
> reason to support the merger. The FCC and the Department
> of Justice need to stop this merger cold, so consumers
> can benefit from competition, rather than suffer
> unnecessarily from monopoly.
> --
> James Love
> Consumer Project on Technology
> P.O. Box 19367, Washington, DC 20036
> |
> 202.387.8030, fax 202.234.5176

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