Wisconsin Telephone Deregulation Redux

We already saw this movie more than two years ago.  State legislation that sweeps aside longstanding telecommunications regulation because "technology and marketplace changes make government oversight obsolete and increased competition will save consumers money and create jobs." AT&T and its industry cohorts write the legislation and everyone finds out what it means later. Then, after it goes into effect, surprise, the benefits flow to the industries, not to the consumers. And more jobs go away.

The Capital Times calls the story "Deregulation without representation:"

For the second time in less than three years, telecommunications giant AT&T is involved in crafting major deregulation legislation at private meetings in the state Capitol. Consumer advocates, meanwhile, appear to lack a seat or voice in the process.

The situation seems similar to the role AT&T and other cable providers played leading up to the cable deregulation bill of 2008. The company had a key role in drafting that bill, then entered the cable market soon after with its U-verse package that includes digital cable.

Now, the telecommunications company is working with primary sponsor Sen. Jeff Plale, a Milwaukee Democrat, to craft a bill that will essentially bump it and other telephone utilities to a less-stringent rung of the regulatory ladder.

The bill, SB 469, would strip much of the Public Service Commission's oversight over old-fashioned landline telephone service from the statutes by creating loopholes through which even the largest phone providers could fit.  The Capital Times' Jessica Van Egeren, new to the Capitol beat, nailed this story, citing the drafter's notes from the Legislative Reference Bureau and identifying the specific fingerprints on the bill.

A meeting Nov. 11 in Plale’s office included Andrew Petersen, director of external affairs and communications with TDS; William Esbeck, executive director of the Wisconsin State Telecommunications Association (WSTA); that group’s attorney, Judd Genda with the law firm Axley Brynelson; and AT&T attorney David Chorzempa. Plale is the sponsor of the Senate version of the bill and Rep. Josh Zepnick, D-Milwaukee, is the sponsor of the Assembly version. Records do not indicate whether Zepnick was in attendance at the November meeting.

E-mails and other correspondence between those at the meeting and Plale’s staff show slashes or check marks next to sections of the proposal that attorneys for AT&T and the WSTA suggested should be changed.

“It’s like lawmakers looked around and said, ‘These are the companies affected. So sit down with the drafters and make a bill,’ ” says Barry Orton, a UW-Madison telecommunications professor. “The public interest isn’t represented. How could it be? Nobody was there to represent them.”

...If approved by lawmakers, the bill would give AT&T the option to no longer be classified as a “telecommunications utility,” a designation that means AT&T and other “TU’s” would no longer be obligated to provide service to all areas of the state, would no longer have to report profits and expenses to the Public Service Commission, and would no longer have to receive rate-change approval from the PSC.

Essentially, businesses founded as landline telephone companies would no longer be regulated — as they have been for more than 100 years — as utility companies.

...Opponents argue that while technology is changing and more companies now provide more bundled services that include phone, Internet and cable, the legislation would mean consumers who are older, less affluent or in rural areas with spotty cell phone coverage will not be guaranteed service. They also argue that full regulation of an industry and the ability of consumers to file a complaint with the Department of Agriculture, Trade and Consumer Protection over poor service, for example, are drastically different levels of consumer protection.

“This bill just isn’t appropriate given the number of people that still use phone (land) lines,” says Charlie Higley, executive director of the Citizens Utility Board. “It’s great that people in many areas can use and have access to new technology. But there are still plenty of areas where cell phone use is spotty and people need (traditional) phone service.”

Much more to come on this. (Sigh.)

- Barry Orton

Comments

[nonheroicvet]

Isn't this the same Josh Zepnick who approved no limit on interest rates charged by loan Sharks? And AT&T Execs can't make any quick moves lest they break Jeff Plale's arm because it is so deep into their pockets. Does anyone know when the increased competition will start from the last "reform" brought to us by Plale and AT&T? Those two are lower than pond scum.

[Tim M.]

Deja vu all over again.....

[Yortly]

As an advocat of good government and all that jazz, shouldn't you disclose your connections to those opposing the bill? Rowen and Christofferson do it all the time and it is helpful as readers understand the motivation of your posts.

[Brian (neaguy)]

A,T and T should never get what they want. The more regulation of large corporations the better.

Unless you like the collapsing economy.

[jim guilfoil]

Thanks to Barry for all the work in behalf of PEG's which the Cable companies are trying to eliminate. They bargained to get into the communities which need the PEG's and now they're buying lobbyists to undo ther 'good faith' efforts to help local communitiess.
Corporations lie in all 'bargaining'...it's the nature of the beast.

[jim guilfoil]

Thanks for all your work to continue PEGs and to show how the cable co.s work to undo what they bargained 'ingoodfaith' for to get into our communities. Corporations lie...as all power groups do to secure their ideologies.