Bill keep phone
protections for those who want them
By J.D.
PATE Guest
columnist
Before my 94-year-old mom moved into a retirement home last year,
she lived alone. She had two primary safety devices in her home, a
smoke alarm and her telephone.
The telephone was the most versatile because it linked her not
only to the fire department but also to the police, her doctor, the
drug store and local friends and neighbors. Her access to basic
local telephone service was guaranteed to her not only by the
commitment of her local phone company but also by federal and state
laws and regulations.
Legislation pending in the S.C. Senate will maintain those
guarantees and also foster lower prices for her and all of us by
increasing competition in South Carolina’s already-competitive
telecommunications market. (There are more than 120 phone companies
competing with one another in South Carolina, not to mention phone
service now offered by cable TV companies and wireless
companies.)
Because local telephone service is so critical to the safety and
welfare of the public, laws and regulations are in place that ensure
every citizen has an opportunity for access to basic telephone
service. Laws require the 25 traditional local phone companies in
the state to provide service to any person requesting it regardless
of the location or cost to provide it. On the other hand, the
roughly 100 competing local exchange carriers and the cable TV and
wireless companies don’t have to. They can pick and choose whom they
serve.
It’s no wonder that these companies have used scare tactics in
opposing pending legislation that would create more competition
against them.
The legislation under consideration gives customers even more
choices, more innovations and better prices while continuing the
tradition of guaranteeing service and consumer protections to every
South Carolinian.
Under the plan, all competitors would be able to offer bundles or
packages of services at discounted prices without first getting PSC
approval. Bundles or packages are similar to a beauty shop
discounting the combined price of a trim, color and perm that sold
separately would cost more, or a tire dealer reducing the combined
price of new tires, balance, alignment and a brake job.
Currently, the discounted price for telecommunications packaged
services must be filed with, and in some cases approved by, the PSC
before it can be offered to customers. This regulatory process
requires a lot of paperwork, which slows down new services and
better prices getting to customers. The legislation under
consideration would not require the companies to go through these
regulatory processes before customers can take advantage of
discounted prices.
Customers who may not want a bundled or contract offering can
continue to buy the same products and services as they do today at
rates, terms and conditions that remain under PSC oversight.
Opponents to the bill are the same companies who opposed every
other attempt to move South Carolina to a more competitive
marketplace in the telecommunications field. Often these companies
used telemarketers to call and frighten folks like my mom to protect
their own competitive advantages.
These companies opposed new competition in the S.C. long distance
market. But competition was approved, and long distance prices have
come down. They opposed new competition in the broadband
data/Internet service business. When the law deregulating broadband
was passed, the price of broadband service declined and the service
became more widely available.
While the recently enacted PSC reform bill put new, additional
safeguards in place for consumer protection, this legislation offers
even more protection by capping prices, providing consumer mediation
and maintaining PSC oversight over tariffed services.
However, the biggest advantage offered by the bill is that the
customer gets the option of discounted prices and telecommunications
service bargains that will emerge faster as more competition is
created, new products are developed and new services are offered.
The 25 local phone companies in the state feel this is good for
telecommunications competition, good for business but most
importantly good for the consumers of South Carolina.
Mr. Pate is the executive director of the S.C. Telephone
Association. |