Texas Telecom Policy Expert Available to Comment on Legislature's Sunset Commission Hearing of the PUC

7/8/2004

From: Sonia Hoffman of the Institute for Policy Innovation, 972-874-5139 or shoffman@ipi.org.

DALLAS, July 8 -- The Texas Sunset Advisory Commission will resume hearings on Tuesday, July 13, to review the role of the Public Utility Commission's (PUC) jurisdiction over the telecommunications industry in Texas.

"We have made the case for the economic and service benefits of deregulating much, if not all, of the wireline industry", says Barry M. Aarons, telecom policy expert at the independent, Dallas-based Institute for Policy Innovation (IPI).

"The Texas Commission can encourage massive new investment resulting in tremendous capital formation, more jobs creation, more research and development, more new product development and deployment and more consumer choice at lower aggregate prices by dramatically reducing its regulatory oversight in the wireline industry."

Aarons testified in March at the House Regulated Industries hearing, suggesting at the time that three questions be asked when considering the regulation of an industry:

-- Whether the public health and safety requires it,

-- Whether consumer protection with regard to pricing and product availability calls for it, and

-- Whether competitive balance mandates it and whether there is open entry and exit into the markets.

Likewise, when regulators are making decisions on the extent and application of their regulatory authority, there are further issues that need to be addressed:

-- Whether the regulatory action is essential and not otherwise achievable in protecting public health and safety,

-- Whether the regulatory authority will advance the protection of consumers not already covered by existing anti- trust and predatory pricing laws,

-- Whether the regulatory authority will improve the competitive balance and encourage open entry and open exit above what the market place can provide, and

-- If the regulatory oversight be reduced and not stand in the way of the market place.

"We believe that when the state asks and answers these questions they will find in favor of deregulating the PUC's authority over much or all of wire-line telecommunications. It will be a win for the state, but most importantly, a win for consumers," concludes Aarons.

The Institute for Policy Innovation is an independent public policy organization in Dallas, Texas. For copies of Aarons' telecom research, visit http://www.ipi.org and view "Don't Call, Just Send Me An Email" and "Time to Deregulate Wireline Communications."

To book interviews, contact Sonia Hoffman, 703-912-5742.