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June 9, 2010

Rural phone cos. protected from competition

The Maine Public Utilities Commission has voted to maintain exemptions that allow five rural telephone carriers to keep their systems closed to competitors.

The commission voted unanimously yesterday to uphold the exemption for Unitel, Oxford and Oxford West telephone companies, while a majority voted to maintain the exemption for the Lincolnville and Tidewater telephone companies, according to a press release. The exemptions, part of the federal 1996 Telecommunications Act, allow small telephone companies to avoid the cost of opening their systems to competitors. County Roads Communications previously filed a petition with the PUC to request the five rural companies be required to negotiate in order to allow Time Warner system access for digital phone service.

As a result of the PUC's decision, the companies will remain the sole providers of landline phone service in their geographic regions. PUC Chairwoman Sharon Reishus said maintaining the exemptions will ensure residents in the rural areas will be guaranteed a phone service provider and access to emergency services, and that "selective competition would undercut the ability of the rural companies to fulfill their provider of last resort obligations," according to the release.

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