Posted on Tue, Jul. 20, 2004


Telecommunications bill would release market’s powers


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.





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