Good for all
In the ever-changing world of technology, businesses must change with the times or get left in the dust. This certainly is true with the telecommunications industry.
In the past 10 years the Internet has exploded, cell phones have taken the place of traditional phone connections, and cable TV providers have found innovative ways to get in the phone business.
Let's face it, it's a competitive environment.
Southwestern Bell, now AT&T, is asking for a level playing field in the communications industry. They want the Legislature to allow them to set their own rates.
That's where Senate Bill 350 for telecom reform comes into play.
The bill would remove pricing regulations of bundles or packages statewide. These are services sold together at one price, such as unlimited long distance, caller ID, and a monthly line charge. Services also might include broadband communication.
The bill also removes pricing regulations in Wichita, Topeka, and Kansas City metropolitan areas.
In other words, the passage of the bill would allow AT&T to compete with cable TV companies and cell phone companies for a bigger share of the communications pie.
Astute consumers know market pricing works. Who doesn't like competitive prices and better selection? That's what consumers will get if the Legislature passes SB 350.
Consider that from 1984 to 1999, long distance calls were as high as 32 cents a minute. Today, unlimited calling is about $20. In 1994, wireless calls were 47 cents a minute. Now those calls are less than 10 cents a minute. In 2000, DSL service was $50 a month. Today it's less than $20. None of these services face pricing regulation.
Long distance usage has increased in the past few years. The number of wireless customers has grown more than 80 percent since December 2000. The number of broadband customers has increased 463 percent. Meanwhile, companies like AT&T, a price regulated industry, has seen customer numbers decrease 29 percent.
Competition is good for everyone. If the Legislature allows AT&T and the market to set its own rates, it's a win-win situation. AT&T gets the opportunity to compete on a level playing field with other communication companies. Consumers get more choices and better prices. Everyone gets an updated law that accurately reflects today's competitive environment in the telecommunications industry.
Win-win-win.
— DONNA BERNHARDT
