Ameritech proposes plan to fix problems

Under pressure from the Indiana General Assembly, Ameritech has proposed a plan to resolve complaints about poor service, including disconnected phone lines.\nAccording to Federal Communications Commission statistics, Ameritech Indiana's average repair time was 28.9 hours for residential customers -- longer than any other major phone company in the United States.\nAnd the state utility commission reported a record number of customer complaints, 509 in the month of September alone. Some complained of going months without service.\n"What we saw this summer was disastrous," said Dave Menzer, the utility campaign organizer of the Citizens Action Coalition.\nAmeritech spokesman David Bear said cutbacks in staff brought about the difficulties. Response to a new retirement buyout package were higher than expected, he said.\nBeyond resolving problems with phone service, Bear said Ameritech's new plan should also improve Internet connection speed. \nBut the plan is under fire in public hearings in Indianapolis, where consumers, state representatives and lawyers such as Michael Mullett of the Citizens Action Coalition are firing questions to Ameritech about its specifics.\nThe $1 billion plan -- called Opportunity Indiana 2000 -- proposes to upgrade existing infrastructure, investing millions in schools, libraries, hospitals and other community connections. \nIn a compromise with a legislature talking about regulation, Ameritech would voluntarily pay penalties up to $30 million per year if it fails to meet established goals. \nAnd Ameritech's plan would reduce residential charges by $62 million, provide a one-time $20 million credit to consumers and reduce business charges by $106.36 million, Bear said.\nDespite the reach of the plan, consumers still have doubts about Ameritech and issues with the plan.\n"The money that they are offering now is money they should have been offering all along," Menzer said. "And it doesn't go far enough.\n"In 1997 we ordered $40 million in credits, and this plan only offers $20 million. Also, rates should be reduced by $180 million, not $62 million, to really benefit consumers."\nThe consumer advocate group opposes the plan, which does not give the state regulatory commission the power it needs to impose fines or penalties. Under current law, the state regulatory commission can only address the rate, but cannot impose fines.\nThe General Assembly is considering several bills that would increase the the commission's powers to regulate utilities.\nBear said Opportunity Indiana won't affect what happens if the legislature enacts the pending utility legislation.\nMullett said the plan needs to be stricter for Ameritech to improve its service, because of the commission's current lack of power.\n"They've touted the penalties in the plan," said Mullett. "But because of a feature called 'pooling of points,' Ameritech only has to meet six of the eight standards to not be penalized."\nAmeritech spokesman Mike Marker couldn't comment on the point-pooling system.\n"Regarding penalties, it is all part of the comprehensive $1 billion plan," said Marker, adding that the plan benefits consumers in all facets.\nBut Mullett questions whether the plan benefits consumers or Ameritech. \n"The first two days of hearings showed that this deal is not a good deal for consumers and is being advertised as something it's not," he said. "As much as 40 percent of the profits Ameritech will gain from this plan is coming from consumers." \nMarker counters that Ameritech has long invested in Indiana and has the state's best interests at heart.\n"Ameritech has made significant investment in schools, hospitals, etc., and we will fulfill the $1 billion plan to benefit Indiana," Marker said. "The coalition shares a common interest to make sure that Hoosiers get the best use of resources available, and that's what we are going to do"