XO Communications CEO Carl Grivner Urges State Regulators to Push Thorough Review of the SBC-AT&T and Verizon-MCI Mergers Address to NARUC Cites Market Concentration, Higher Prices and Less Choice for Consumers and Businesses Resulting from Mergers AUSTIN, Texas, July 25 /PRNewswire-FirstCall/ -- XO Communications, Inc. CEO Carl J. Grivner today urged state regulatory utility commissioners to join with the competitive telecommunications industry and consumer advocacy groups in seeking to block the proposed mergers of SBC-AT&T and Verizon-MCI, unless the merging parties offer and implement remedies that will ameliorate the substantial competitive harms that have been shown to occur. Addressing state policymakers attending this week's meeting of the National Association of Regulatory Utility Commissioners (NARUC) in Austin, Grivner labeled arguments favoring the mergers a "house of cards" that will collapse under close scrutiny by regulators. Grivner echoed concerns raised in a New York Public Service Commission staff white paper released earlier this month. "The New York PSC staff warns that the Verizon-MCI merger will significantly increase market concentration in New York, reducing competitive choices and leading to higher prices," Grivner said. "In their view, these mergers can be accepted only if they are reined in by strong counter-measures that include divestitures, strict price controls, quality controls and contract performance measurements. Other members of NARUC should heed these words." Grivner termed the Baby Bells' pro-merger arguments a blatant inversion of the facts. "It is disingenuous for SBC and Verizon to claim that the elimination of their two largest competitors, AT&T and MCI, will somehow increase competition, and it is misleading to say the lessening of competitive pressure will have no effect on pricing. These proposed mergers will create intense market concentration for the Bells, and deal a 'losing hand' to customers in the form of higher prices and fewer competitive choices." Grivner cited research projecting the dramatic increase in market concentration following approval of the mergers: * In Chicago, SBC's market share will rise from 83.2% to 88% * In Cleveland, SBC's market share will go from 88.3% to 90% * In New York, Verizon's market share will increase from 84.3% to 86.3% * In Philadelphia, Verizon's market share will increase from 91.7% to 92.9% The full text of Carl Grivner's speech is available at http://www.allianceforcompetition.com/. About XO Communications XO Communications (OTC:XOCM.OB) (BULLETIN BOARD: XOCM.OB) is a leading provider of national and local telecommunications services to businesses, large enterprises and telecommunications companies. XO offers a complete portfolio of services, including local and long distance voice, dedicated Internet access, private networking, data transport, and Web hosting services as well as bundled voice and Internet solutions. XO provides these services over an advanced, national facilities-based IP network and serves more than 70 metropolitan markets across the United States. For more information, visit http://www.xo.com/. DATASOURCE: XO Communications, Inc. CONTACT: Chad Couser of XO Communications, +1-703-547-2746, or Web site: http://www.xo.com/ http://www.allianceforcompetition.com/

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