The Association for Local Telecommunications Services today declared its shock at the FCC's recent determination to count an investment from New York City-based Verizon Communications in now bankrupt data CLEC NorthPoint Communications towards Verizon's obligation to compete out of region, as stipulated by the Bell-Atlantic/GTE merger. Verizon deposited $150 million in NorthPoint, but then withdrew its offer to purchase the firm, which ALTS claims drove NorthPoint into bankruptcy.

"Verizon fabricated a patently absurd argument in its merger obligations to avoid having to compete out-of-region, and the FCC bought it," said Jonathan Askin, general counsel for ALTS. "Even if Verizon has satisfied some absurdist literal reading of its merger commitment, it has certainly violated any reasonable interpretation of the spirit of that commitment and has made a mockery of the FCC process and the bargain that Verizon struck."

NorthPoint eventually sold its assets to New York City-based AT&T, so Verizon has never used any of NorthPoint's assets to compete out of region.

"Like the child who killed her parents and sought mercy from the judge because she’s an orphan, Verizon wants to be rewarded for killing off its competitor," Askin claimed.