roundtable: NASUCA Opposes Telecom Bill

roundtable: NASUCA Opposes Telecom Bill

NASUCA Opposes Telecom Bill

Anthony E. Wright (aewright@cme.org)
Fri, 10 Nov 1995 14:03:14 -0400 

Message-Id: <v02120d01acc90adeda49@[205.197.91.5]>
Date: Fri, 10 Nov 1995 14:03:14 -0400
To: roundtable@cni.org
From: aewright@cme.org (Anthony E. Wright)
Subject: NASUCA Opposes Telecom Bill


NASUCA RELEASES ANALYSIS AGAINST THE TELECOMMUNCATIONS BILL
-----------------------------------------------------------
Yet Another Reason to Oppose the Anti-Consumer Telecom Bill


Attached is the summary of the position of NASUCA, a major consumer voice
on telecommuncations issues, on the Telecommunications Bill currently in
conference committee. The bill is expected to come to the Senate and House
floor sometime in December.

For the full position paper, send a message to bill@cme.org with the
word "NASUCA" in the subject line. You can also visit the ad hoc Web Site
Against the Telecom Bill, at http://www.access.digex.net/~cme.

--


Summary of NASUCA's Position on Federal Telecommunications Legislation
**********************************************************************

The National Association of State Utility Consumer Advocates (NASUCA)
opposes the current versions of proposed federal telecommunications
legislation.

These bills will deny consumers the benefits of competition and raise
prices for basic telephone service.  Unless legislation is substantially
changed in conference committee, NASUCA urges a Presidential veto of the
legislation.

We are concerned about the effect of this legislation on telephone
consumers.  Here are five problems with the legislation that must be
addressed in order to serve consumer interests:

  (1)  Elimination of Consumer Protections From State Ratemaking Authority

The bills abolish consumer rate protections before competition arrives.
Deregulation without competition will lead to rate increases for basic
telephone service.  Important consumer protections have been removed and
must be put back into these bills.

  (2)  Telephone Company Buyouts of Cable Companies

The bills would repeal existing laws and, in many cases, permit telephone
companies to purchase the cable TV companies within their regions.  If
these two monopolies are allowed to combine they will not have to compete.
Consumers will be denied their best chance for competition for local
telephone service and cable television service.

  (3)  Preemption of State Policies Implementing Competition

The bills preempt long-standing state regulatory authority and tie the
hands of state regulators.  In some cases, pro-competitive actions by
states are blocked or even reversed by these bills.   Managing local
competition and setting local rates are jobs for the states, not Congress.

  (4)  Universal Service Policy

Universal service should be a primary goal of federal telecommunications
legislation.  The legislation should make a stronger commitment to
universal service and involve consumer representatives in critical
decisions on universal service.

  (5)  RBOC Entry into Long Distance

The Bell Companies should be allowed to enter long-distance markets only
when they cannot use their market power to restrict long-distance
competition.


--
Anthony E. Wright                       aewright@cme.org
Coordinator, Future of Media Project    Center for Media Education

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