Illinois House approves new telecommunications measure that lifts regulations on land lines

By Sophia Tareen, AP
Thursday, May 6, 2010

Illinois House approves rewrite of telecom bill

SPRINGFIELD, Ill. — A plan to modernize Illinois telecommunications law and create jobs unanimously passed the Illinois House on Wednesday, despite warnings from consumer groups that it may mean higher prices and poor service.

The bill lifts most state regulations on companies that provide telephone landline service with the idea that they will invest in newer technology, like the development of broadband services, and bring jobs.

“We are hoping the industry will see it as a leveling of the playing field,” said Rep. Kevin McCarthy, D-Orland Park. “We are overregulated. This is a great step forward.”

The bill passed 118-0 and heads to the Senate.

AT&T Inc., which controls much of the landline telephone service in Illinois, was instrumental in leading the rewrite of the 1985 law. The company says Illinois has lost out on opportunities for modernization because of its outdated regulations.

But the biggest critics of the bill, including the Citizens Utility Board and the AARP, have both said deregulation could pave the way for poorer service for landline customers and rate hikes, particularly for those who need it most.

While use of cell phones is exploding, land lines remain a reliable link for many to reach 911 emergency services, CUB said. And those over 65 are more likely to rely on land line service more than any other group, AARP said.

Opponents have also claimed any new jobs would be brought to the Chicago area, so other portions of the state would see little benefit.

The bill, which lifts caps on landline costs to customers in some areas, does offer some consumer protections. AT&T would, for instance, have to offer three basic, low-cost service plans to ensure consumers who want land lines have affordable options.

Those protections would be in place for at least three years, and then the law would be revisited, McCarthy said.

But opponents criticize the protections, calling them vague at best.

The telecom law, which would have expired this year, was written well before the widespread use of cell phones.

Discussion on Wednesday focused on the benefits of the development of new technology in Illinois, with several legislators calling it “a jobs bill.”

“It’s clear to everyone that we’re struggling to keep jobs,” said Rep. Mike Bost, R-Murphysboro.

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