GTE files antitrust complaint against cable companies and their affiliated ISP, @Home

WASHINGTON, D.C. - October 25, 1999 - Today, GTE filed an antitrust lawsuit against TCI (AT&T's cable unit, which is now called "AT&T Cable Services"), Comcast, and their affiliated Internet service provider (ISP), @Home, alleging that the defendants are illegally exploiting their economic power over high-speed Internet access to deprive Americans of their right to choose their ISP.

According to the suit filed in federal court in Pittsburgh, Pennsylvania, the defendants illegally force their cable modem subscribers to buy the @Home ISP service. Customers who prefer another ISP - such as GTE, AOL, or MindSpring - can get the service only if they also pay for the @Home service, according to the complaint.

"The Internet has exploded because of competition and has become the ubiquitous marketplace for the new millennium," said William P. Barr, executive vice president and general counsel of GTE. "Today, Americans can choose among thousands of ISPs when they sign up for Internet access with the telephone companies. But in the high-speed Internet access world of TCI and Comcast, consumers don't have a choice. They are forced to accept @Home as their only on-ramp to the Internet."

The complaint alleges that the companies' practice of compelling customers of high-speed data access to purchase the @Home ISP service is an unlawful tying arrangement. The suit also contends that the relationships between the cable companies and @Home are unlawful exclusive dealing arrangements and that the companies have entered into a concerted refusal to deal by agreeing that they will not provide high-speed data transport services over their cable facilities to unaffiliated ISPs.

The complaint was filed by GTE's Internetworking subsidiary. GTE is a leading ISP with approximately 500,000 customers. The complaint seeks injunctive relief as well as damages.

Although technologically possible, the cable companies named in the complaint have refused to open their networks in the same way as the telephone companies have.

"The cable companies have given us one excuse after another to deny their customers the right to choose an ISP," said Barr. "First, they said it was not technically possible. Then, it was too expensive. GTE has debunked these excuses through a demonstration of an inexpensive solution on our cable system in Florida. Now, through this suit, it is time to preserve American consumers' right to choose their ISP."

About GTE

With 1998 revenues of more than $25 billion, GTE is a leading telecommunications provider with one of the industry's broadest arrays of products and services. In the United States, GTE provides local service in 28 states and wireless service in 18 states, as well as nationwide long-distance, directory, video and internetworking services ranging from dial-up Internet access for residential and small-business consumers to Web-based applications for Fortune 500 companies. Outside the United States, the company serves customers on five continents. Additional information about GTE can be obtained at http://www.gte.com.