Make time to examine PSC stance on telecom deregulation

(Rochester Business Journal)

In the past I have written of Labor's views on the subject of deregulation, from trade policies to public services.  If you haven't had enough of deregulation shifting billions in costs to taxpayers from the airlines bailouts and other private industries defaulting on pensions, you are certainly seeing it in the last four years in energy and oil.  The promises that deregulation would generate competition and thus lower energy prices proved empty and deregulation has in fact  resulted in just the opposite, an 11 billion dollar rip off of taxpayers, consumers and businesses from fraudulently inflated Gas and Electric costs in California with Enron at its center.  Current escalating energy prices with an overburdened electric grid, which will only be fixed by putting more burden on taxpayers.  Public utilities are not investing in the grid because that puts them at a competitive disadvantage with their competition.  Even the political party of business recognized early in the 20th century that public utilities and other important industries and services, must be regulated, they were just too important to be left to market forces.  One had to look no further than John D. Rockefeller and Standard Oil for an example.  
   

For those who haven’t had quite enough of the Corporate deregulation agenda and its effect on all us lowly civilians -  get ready for the loss of quality of phone services and an increase in telephone costs.  The Public Service Commission (PSC), charged with regulating the telephone industry to provide universal quality service at fair prices for all, is in the process of making an end run around the state legislature.

There are two administrative proceedings that have begun and could radically change the cost and quality of telephone service and may even effect the ability to receive emergency assistance by dialing 911.

The first proceeding to approve the merger between Verizon and MCI is underway.  You may have recently read about the FCC approving this merger, which will still require approval in the state.  The FCC approval required that the merged entity lease lines to competitors that run to buildings, mostly businesses, in only eight metropolitan areas throughout their vast multi state territory.  In NY State the PSC has determined that universal deployment of broadband access is not an essential service and has no proposals to make broadband available to all residents of NY State, regardless of income or geography.  Keep in mind that the United States is ranked 16th among countries for broadband penitration and sinking.  The approval of the merger of these two giants in telecommunications, without any service, quality, or price conditions will give this merged company a large competitive advantage that could raise prices to consumers and cause tax revenue losses to local governments.

In the second proceeding the PSC is attempting to deregulate the entire telecommunications industry in ways similar to what it did to electricity about 6 years ago.  Historic goals of universal, affordable telephone service, especially to rural and high cost areas of our state are in danger.

It should be noted that in previous mergers PSC set conditions that included service quality standards, setting goals for repair of the Verizon telephone network, and reversing Verizon's downsizing of its workforce.  The PSC's current plan on the merger eliminates the consumer rebate and penalty plan and the requirement that Verizon reinvest in this traditional telephone networks.  The PSC for example has already allowed the Verizon Incentive Plan to lapse as of February 2005.  This plan had resulted in fines for Verizon's failure to provide adequate telephone service and the financial penalties had a positive effect on Verizon's behavior.

The proposals by the PSC will not create a level competitive playing field, but will simply relax regulations for the dominant carriers while failing to extend any regulation, service quality standards, and basic consumer protections to the wireless and cable based providers.  Currently wireless and cable based providers who are dependent on interconnection with the publicly switched telephone network (the PTSN) do not share in the cost of the upkeep of that network, an unfair advantage.

These plans will accelerate the deterioration of the traditional network and service as well as job losses from the lack of investment.

Basically we need universal quality, affordable service and high speed communications networks.  These also insure quality jobs that continue to disappear with this type of corporate pushed deregulation that gives us less career quality jobs and a more lower paid contingent workforce, often employed by subcontractors with little or no benefits and no job security.  This type of workforce puts further strain on taxpayers.

The PSC intentions to completely overhaul the regulation of our telecommunication system over a short time line without careful deliberation and the participation by our elected representatives is not acceptable and not in the interests of consumers, taxpayers, business and Labor.  This overhaul could be completed right after the New Year.  Now is the time to contact your state Legislators on this issue.