XO Responds to FCC Ruling

RESTON, Va. -- The following statement may be attributed to Heather Gold, senior vice president of Government Relations at XO Communications.

"The Telecommunications Act of 1996 was designed to foster facilities- based competition for the monopoly Bell operating companies in order to bring more choices for millions of small businesses and consumers. However, over the past eight-and-a-half years, the Bells have methodically sought to dismantle key provisions and rewrite rules in order to protect their monopolies.

While we applaud the FCC's decision to freeze rates while it considers final rules, we are disappointed that a framework was not developed more quickly to preserve facilities-based competition. XO calls upon Chairman Powell and the Commissioners to live up to their commitments to continue to require the Bells to unbundle high capacity loops and transport facilities at cost-based rates. XO is concerned that inaction will only embolden the monopoly Bell operating companies to further delay or derail a constructive process for safeguarding competition and to impose substantial rate increases to the detriment of small businesses and consumers. As one of the few facilities-based carriers that have invested billions of dollars to bring choice for millions of small businesses and consumers, XO has always been committed to working with the FCC to ensure permanent rules are quickly put in place that are fair and achieve the Commission's goal of preserving facilities-based competition."

XO Communications Inc.