Telecom Competition Would Spur Economy

“AT&T; Challenges SBC’s Bid to Double Wholesale Phone Rates” (Oct. 23), which reports that one major telecom competitor, AT&T; Corp., has invested $750 million in California, paints only half the picture.

Dozens of other competitive telecommunications companies, many of which are members of Caltel, are likewise invest- ing heavily in California’s tele- com infrastructure. Such investments, both large and small, are crucial to the growth of California’s economy.

The existence of viable competition in California prods telecom monopolies such as SBC Communications Inc. into investment instead of profit taking and job cutting. Historically these monopolies have promised more investment and seldom delivered in the absence of competition.

California regulators soon will have the opportunity to reinforce the benefits of competition for consumers when they set permanent wholesale rates for local competitors later this year. If the regulators want to get our economy moving again, they will do so in a way that optimizes telecom competition.

Nikayla Nail

Executive Director

California Assn.

of Competitive

Telecommunications

Companies

San Francisco