Home > ADVOCACY > Where We Stand > Opposition to Telecom Merger Bill

June 10, 2010


Hon. David Paterson
Governor, State of New York
Executive Chamber
State Capitol
Albany, NY 12224

Dear Governor Paterson:

On behalf of the 2,500 employer members of the Buffalo Niagara Partnership, I urge you to oppose A.2208-C/S.7263, which would direct the Public Service Commission to conduct an in-depth analysis of proposed mergers by telephone corporations and other telecommunication service providers. This directive would place another burdensome requirement on an industry that significantly has invested, created jobs and driven economic growth in Buffalo Niagara.

Ironically, the proposed legislation contains conditions for ratepayer givebacks (40%) for telephone corporations, but does not address other utilities regulated by the Public Service Commission including electric and gas , cable TV or water companies – industries that have also experienced merger and acquisition activity over the past several years. Moreover, this bill fails to address the stark realities of the competitive environment faced by regulated telecommunication providers in New York.

It is impossible to reconcile supporting this legislation and calling attention to the need to boost the state’s economic development efforts by ensuring broadband service throughout New York. Why? Because this legislation stifles broadband infrastructure investment as investors flee from the 40% premium on any potential activity.

A key component to the state’s recovery must be the support of industries that, despite the recession, are investing in our communities, driving innovation and generating economic growth. New York State cannot continue to penalize Buffalo Niagara companies that are doing just that. For all the above, the Partnership strongly urges your opposition to A.2208-C/S.7263.

Sincerely,

Andrew J. Rudnick