Telecommunications
bill would release market’s powers
By HARRY
LIGHTSEY Guest
columnist
The way people communicate has changed drastically since the laws
that govern telecommunications were passed. Most of the
communications that took place over traditional telephones now take
place using cell phones, e-mail, instant messaging, text messaging,
voice over the Internet and other means of communications unheard of
until a few years ago.
The S.C. Public Service Commission does not regulate the
wireless, cable, satellite or Internet providers that offer these
new types of communications services, but it does regulate telephone
companies that are competing with these companies. Telephone
companies such as BellSouth are subject to regulatory requirements
that make it difficult for them to offer consumers the same level of
choice, innovation and value that their competitors do.
Clearly the government, and not the consumer, is in charge of how
telephone companies like BellSouth compete. A bill awaiting the
governor’s signature will take an appropriate, important step toward
putting the customer in charge by removing only the most competitive
of communications offerings — bundled offerings and contract
offerings — from these regulatory requirements. Under this bill,
telephone companies such as BellSouth could offer bundles and
contracts to customers in the same way that wireless, cable,
satellite and Internet providers do.
This means that telephone companies will be able to quickly and
effectively respond to the numerous offerings with which they
compete (including offerings from wireless, cable, satellite, and
Internet providers). This also means that businesses and individuals
who purchase communications services will be able to bargain for a
better, more competitive deal with telephone companies just as
quickly and efficiently as they have been able to bargain with other
companies that are offering communications services. The customer,
rather than government, will be in charge.
Purchasers of communications services — including large and small
businesses — will enjoy all the benefits of vigorous market-based
competition for their communications services. These benefits will
create more jobs in the state, increase investment in the state and
lower prices.
These are the same benefits we saw in South Carolina when the
local communications markets were opened to competition, when
certain aspects of the regulation of some telephone companies were
relaxed, when BellSouth was allowed to provide long distance service
and when government regulation of broadband Internet services was
prevented.
Every step of the way, the same companies who oppose this latest
bill raised the same scare tactics they are using today. And every
step of the way, what we saw come about was what always happens when
markets are allowed to work without government intervention: lower
prices for consumers, more choices and more investment by companies
in South Carolina. This bill will lead to the same thing.
Finally, this includes significant protections to every business
and every person who buys service from a telephone company. These
protections include fines for companies that unlawfully change a
customer’s chosen telecom provider. Customers who choose to keep
government-regulated services can continue to do so. The PSC will
enforce the terms of a bundled offering or a contract offering if
there is a complaint by the purchaser.
A legislative committee will monitor the impact of this
legislation. If the fear, uncertainty and doubt raised by the
opponents to this bill actually materialize, they will be addressed
by this legislative committee.
History has proven time and again that consumers are best
protected by vigorous market-based competition rather than when the
government is allowed to choose winners and losers. This is a
foundation of a free market economy. When companies compete for
consumers, consumers reap the benefits of better pricing, improved
service and increased product innovation. These are exactly the
rewards that consumers are entitled to under this bill.
Mr. Lightsey is president of BellSouth in South Carolina. |