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Consumer Protection Underlined

Wisconsin Groups Push Telecom Revamp

Deregulation advocates in Wisconsin are pushing to update state telecom laws even before the new state legislature and governor take office in January. Groups like Wisconsin Technology Council and Wired Wisconsin cited recently updated telecom laws in other Midwestern states, saying modernizing the law would create or retain 50,000 jobs, in addition to having a $2.6 billion economic impact.

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Some 60 Wisconsin businesses and organizations sent a letter to Gov.-elect Scott Walker (R), incoming Senate Majority Leader Scott Fitzgerald (R) and incoming Assembly Speaker Jeff Fitzgerald (R), supporting new legislation that would modernize telecom regulations, Tom Still, president of the Wisconsin Technology Council (WTC) told us. AT&T is a member of the group, which advises the governor and the Legislature. It’s a matter of moving away from the legacy system and into the broadband and wireless era, said Thad Nation, executive director of Wired Wisconsin, whose partners also include AT&T. Legislation to remove several longstanding regulations was introduced in the Wisconsin Legislature during the last session, but failed to pass. Opponents of the bill said the proposal would hurt consumers through increased rates and reduced quality.

"My Administration will seek to update telecommunications laws” to encourage competition and lower prices through a fair and competitive market for all telecom providers, Gov.-elect Walker said in a statement. Walker has suggested he’s open to new telecom legislation, said Bill Esbeck, head of the Wisconsin State Telecom Association. Walker understands the importance of telecom infrastructure and the need to modernize telecom regulation, Esbeck said.

Other Midwestern states, including Indiana, Illinois, Michigan and Ohio, have updated their telecom statutes within the past few years, WTC’s Still said, citing a recent study by his group and Wired Wisconsin. The study said Indiana, which passed its legislation in 2006, has seen thousands of new jobs, nearly $1.5 billion in new telecom infrastructure, and expanded high-speed Internet service to more than 100 additional rural communities, according to Illinois state Rep. Eric Koch, one of the bill’s co-authors. Among other provisions, the new law removes regulations on companies that provide landline services and is intended to better reflect emergent communication technologies.

The Wisconsin Public Service Commission hasn’t seen any proposed legislation and so has no comment, said Gary Evenson, administrator of the telecom division. But in past sessions, the commission has noted a continuing PSC concern that any bill would protect consumers, preserve and promote competition and not hinder the continued and improved availability of broadband, he said. The Citizens Utility Board of Wisconsin, a consumer advocacy group, has been a vocal opponent, saying deregulation would remove consumer protections, open the door to higher rates, lower quality or even lead to loss of landline service. “Consumers would still have a high level of protection, and the increased competition from updated rules would allow Wisconsin residents to have more choices for telecom services,” Still said.