IPI: Time to Deregulate State PUC Jurisdiction Over Telecom 5/18/2004
From: Sonia Hoffman of the Institute for Policy Innovation, 703-912-5742 or shoffman@ipi.org WASHINGTON, May 18 -- A publication by the Institute for Policy Innovation (IPI) reveals why dramatically scaling back or completely eliminating state Public Utility Commission's (PUC) jurisdiction over telecommunications would not compromise consumer protection but would instead provide for greater communications competition. "Unfortunately, there is a misconception that the PUC exists to protect the consumer," says Barry Aarons, IPI research fellow and author of 'Time to Deregulate Wireline Communications.' "Well, it doesn't -- under the guise of protecting consumers, the PUC in today's world actually protects the regulated service provider from the competitive service provider (and vise versa), and protects both of them from the consumer!" The end result is that technological advancements are being hampered by regulatory purview. Consider, for example, a comparison between innovation in unregulated or lightly regulated communication fields like cell phones, Internet access, or Voice over IP (VoIP), vs. heavily regulated fields like wireline communications. The new innovations are exploding and revolutionizing traditional telephone service. Why? Because there is no heavy regulatory structure in place. Not surprising, there has been a lack of innovation in wireline communications because of heavy regulation-regulation that may have been appropriate at one time, but today is an anachronism. "The days of transmitting messages over two way voice grade distribution systems is as antiquated as the slide rule," continues Aarons. "Entry and exit into the markets, transmission and distribution of services and pricing should be governed by market forces, not by pervasive regulation." -- The Institute for Policy Innovation is an independent, public policy organization. For publication copies, visit http://www.ipi.org or contact Sonia Hoffman at 703-912-5742 or shoffman@ipi.org. The author is available for interview. |