HispanicBusiness

MONROVIA, Calif., June 10 /PRNewswire/ -- Yesterday, Administrative Law Judge ("ALJ") Simon released a decision in the action brought by competitive carrier Telscape Communications, Inc. against SBC for anticompetitive and discriminatory behavior.

ALJ Simon found that SBC unjustifiably discriminates against some of its California customers by refusing to process orders for customers who wish to switch to a competitive carrier for their local voice service but keep their DSL service. ALJ Simon also found that SBC acted unlawfully when it erroneously charged its competitor Telscape for certain transactions necessary to switch a customer that has chosen Telscape as its local phone carrier.

The ruling orders SBC to "cease this anticompetitive and discriminatory behavior," as well as refund Telscape for improper charges.

ALJ Simon's ruling sends a strong message to SBC -- stop engaging in unlawful and discriminatory tactics because it harms consumers and violates State laws.

"We are in the process of reviewing the decision, but at first glance, it appears that ALJ Simon took a strong stance against the illegal tactics of SBC," said Jeff Compton, Vice President of Carrier Relations of Telscape Communications, Inc.

"This case brought to light a few of the many examples of SBC's style of using discriminatory practices that are unlawful, undermine regulators, and harm consumers and competitors," added Compton, whose company provides local, long distance and international phone services catered to the Hispanic community.

The complaint, filed by Telscape over a year ago, described SBC's discriminatory billing practices, anticompetitive "winback" activities and unlawful refusal to provide DSL service to customers who chose a competitor for local phone service.

"We filed the complaint because we had to take a stand on behalf of our customers and all Californians who ultimately pay the price for SBC's tactics," said Ruben Garcia, President and CEO of Telscape. "We are happy that the decision holds SBC accountable for its unlawful behavior," added Garcia.

The decision rejects SBC's attempts to explain away its behavior and clearly responds favorably to competitors' examples of SBC's unlawful and discriminatory behavior. The ALJ found that "[t]he harm to the customer is SBC-CA's frustration of the customer's intention to take advantage of competitive services in the local voice marketplace...."

"The ALJ was not blinded by SBC's typical smoke and mirror campaign," remarked Compton.

Reporting close to $2 billion in profits for the first three months of 2004, SBC maintains almost 94% share of the residential phone market in its region of California.

"Clearly, SBC wants to keep a grip on the telecom market and has been willing to do whatever it takes to maintain its stranglehold on the California phone market," said Compton. "We hope that this marks an end to SBC's ability to manipulate the market, Californians and the regulatory process," added Compton.

Telscape Communications, Inc. is a facilities-based phone service provider that caters to the Hispanic community and maintains the nation's only fully bilingual network. The company has over 75,000 customers in Southern and Central California and plans to expand into Nevada and Arizona during the latter part of this year. For more information, please visit http://www.telscape.com/ or call Leah D. Williams at (415) 348-6252.

For more information, please contact Leah D. Williams, Strategies, LLC

(415) 348-6252 Telscape Communications, Inc.

Web site: http://www.telscape.com/