By now, it is apparent to almost everyone who uses a telephone that
the much-touted Telecommunications Act of 1996 hasn't produced the results Congress was
looking for. Instead of competition, we have mergers. Instead of lowering the cost of
services, we are seeing price rises in everything from basic phone service to cable and
Internet access. In most communities, residential phone customers are no closer to having
a choice of service providers than they were three years ago.
Consumer advocacy organizations like the
Consumer Federation of America, Consumers Union, and state-based Citizens Utility Boards
have researched the legal and economic issues, and argued the consumers' case in formal
regulatory proceedings. But their resources are limited, their opponents' pockets are
deep, and they don't always have the "people power" to demonstrate widespread
support for their positions. That's where our community-based groups can make a
difference. By speaking out in support of consumer needs, we can help to ensure that the
benefits of structural changes in the telecommunications industry don't stop at the door
to the corporate board room, but reach all the way into the neglected corners of our
communities.
Right now, there is an important decision
pending where community groups can make a difference the proposed takeover of
Ameritech by SBC. The Illinois Commerce Commission, as well as the Federal Communications
Commission (FCC), are weighing the pros and cons through late June. By voicing our support
for consumer positions, we can make a difference.
There are lots of reasons why the merger is a
bad idea. SBC has a reputation for being the most anticompetitive of the Regional Bell
Operating Companies (RBOCs) and has vigorously opposed efforts to ensure that savings from
takeovers are passed on to consumers. Also, the company's track record after previous
takeovers has been poor.
If the merger is approved, it will have
immediate impacts in the regions where SBC and Ameritech provide service. But over time,
it will also affect telecommunications services including affordable access to
technology in the rest of the country. Like the telecommunications infrastructure
itself, it's all connected.
If the FCC does approve the merger, public
interest groups have recommended that the approval be subject to various conditions
intended to promote increased access to telecommunications services, including information
technology.
The Benton Foundation and OMB Watch have
recommended that approval of the merger be subject to conditions which would help close
the "digital divide," prevent delays in bringing high-bandwidth services to
low-income communities, as well as increase the number of households receiving basic
telephone service.
The Illinois Citizens Utility Board (CUB) and
other consumer groups are recommending that the merger be subject to a requirement that
local phone service be opened to competition. Long distance companies are asking that
federal access charges be significantly reduced, with the savings passed on to consumers.
These access charges cost consumers more than $15 billion annually, and reducing them
would help promote local phone competition in addition to saving consumers money.
The consumer arguments have been made. In
cases like this, a letter, a phone call, or an email message to key decision makers can be
helpful.
If the decision has not yet been made when
you read this, comments can be emailed directly to the FCC Commissioners at the following
addresses, with this subject line: "Comments on CC Dkt. No 98-141."
Chairman William Kennard: wkennard@fcc.gov
Commissioner Susan Ness: sness@fcc.gov
Commissioner Harold Furchtgott-Roth: hfurchtg@fcc.gov
Commissioner Michael Powell: mpowell@fcc.gov
Commissioners Gloria Tristani: gtristan@fcc.gov
The following web sites have information
about the concerns that consumer groups have raised regarding the SBC-Ameritech merger:
Benton/OMB Watch: www.benton.org/Policy/FCC/fcc042999.html
FCC info: www.fcc.gov/ccb/Mergers/SBC_Ameritech/welcome.html
Illinois CUB: www.cuboard.org/merger.html
UCAN: www.consumernet.org/ucan/sbc_ameritech.shtml
Consumers Union: www.consumersunion.org/other/sbcmerdc399.htm
For information on how to send email comments
to the FCC more formally, see www.fcc.gov/e-file/email.html
.