| Groups debate effect of bill A South Carolina telephone bill that needs only the governor's signature to become law will boost competition, buoy consumer choice and bring down phone rates. Or it could have exactly the opposite effect. It depends on who is asked about H3080, better known as the telephone deregulation bill. The bill would remove pricing regulations on so-called "bundled" services, which phone companies package and sell at a discount. A typical bundle would be a phone line plus caller ID or call waiting. Prices for individual services and bundles are regulated by the Public Service Commission. Deregulation would subject bundle prices to market forces. BellSouth and the older rural phone carriers say that's a good thing. Newer competitors disagree. "Let's let the marketplace determine how much people should pay, not regulators," said Marcia Purday, a spokeswoman for BellSouth in South Carolina. "Competition is a good thing, and it's time we did regulations that are holdovers from the days of phone monopolies." Some, such as AT&T spokesman Gene Regan, say those days aren't gone just yet. He says BellSouth still commands a major market share. "This is high school economics," Mr. Regan said. "Any company with that much power can kill off competitors by underpricing below market rates. Once the competition is gone, they can charge what they want." Under the bill, the Public Service Commission would no longer be able to settle disputes between carriers or rule certain behaviors illegal. "It essentially says go out and fight it in the federal courts if you think there's an antitrust issue," said Frank Knapp, the president of the Small Business Chamber of Commerce in South Carolina. "But do you know how long and how much money it takes to slug it out in the courts? The Bells have deep pockets. Not everyone does," Mr. Knapp is also concerned about a new pricing formula in the bill that would give incumbent rural telephone companies, such as Williston Telephone Co. in Barnwell County, more wiggle room to raise prices. Though the move is intent on freeing phone companies up to better compete with cell phone upstarts, he said it hurts small business. "More and more people may be choosing cell phones, but not businesses," he said. "Small businesses use the main land-line carrier. It's not fair to them to raise rates." Still, the Public Service Commission will maintain the authority to accept or deny petitions to raise rates in the rural counties. Gov. Mark Sanford could wait until early next year to decide on what to do. Though he can sign or veto the bill at any time, he can also do nothing, which would allow the bill to become law after five legislative days. Because the next legislative session doesn't begin until January, the bill could collect dust until then.
Reach Matthew Mogul at (706) 823-3352 or matthew.mogul@augustachronicle.com.
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