A new telecommunications bill that would remove several long-standing regulations on telecommunications companies in Wisconsin is working its way through the state Legislature.
During a hearing Tuesday before the Joint Committee on Energy and Utilities, Sen. Jeff Plale, D-Milwaukee, stressed the importance of regulations keeping up with “21st-century reality.”
“We’ve come a long way from the day when the phone was just a simple box on the wall,” he said at the hearing.
He added telecommunications have gone through enormous amounts of innovation over the years, and regulations need to be updated to accommodate that innovation.
Professor of telecommunications at the University of Wisconsin Barry Orton said the bill would basically remove regulations that have been in place on telecommunications companies since the 1930s.
These regulations, Orton said, were initially put in place to protect the consumer from monopolies and to make the telecommunications companies accountable to the state for how they make money.
He added under the new provisions of the bill, the Public Services Commission would have less power to regulate and get information from telecommunications providers about their service.
Rep. Josh Zepnick, D-Milwaukee, also testified in favor of the bill at the hearing Tuesday.
“This bill is important for creating a fair playing field and a regulatory environment that matches the conditions of the 21st century,” he said at the hearing.
Proponents of the bill such as Plale and Zepnick argue that current regulations are restricting the ability of large telecommunications companies such as AT&T to compete with smaller companies in Wisconsin.
Zepnick testified at the hearing that the bill would “create regulatory framework that treats all providers fairly and preserves the interests of all Wisconsin consumers.”
Orton cautioned too much deregulating of industries could hurt consumers. He said the bill would leave two large loopholes in regulations, allowing large telecommunications industries like AT&T to end up essentially unregulated.
According to Orton, one of the major loopholes would allow a telecommunications company to brand itself as an “alternative telecom utility,” essentially freeing it from oversight by the Public Services Commission.
He added when looking through the notes on how the bill was drafted, all the requests came from telecommunications industries, and there was no consumer input in the bill.
He explained with large companies being less accountable, the state would not be able to ensure all rural areas were provided with adequate service.
“The phone companies argue that because of competition, they shouldn’t have regulation anymore,” Orton said. “[They also argue] if consumers don’t like their service, they can go to another provider. But the problem is that in some places there aren’t any more providers.”