A bill moving through the Ohio General Assembly would relieve phone companies from their responsibility to provide basic phone service for all residents even when unprofitable. Senate Bill 271 would allow companies to discontinue basic landline service beginning in 2013 if the area is deemed “competitive” by the Public Utilities Commission of Ohio.
The bill’s sponsor, Sen. Frank LaRose, R-Fairlawn, said the measure frees phone companies from outdated regulations and allows them to spend their time and money on new, high-speed connections.
“Although telecom companies have vast resources, it’s not unlimited when it comes to their infrastructure decisions,” LaRose said. “Those resources are being wasted on vintage services customers are walking away from.”
The Office of the Ohio Consumers’ Council has lobbied hard against SB 271, saying Ohio isn’t ready to scrap landlines and deregulating these companies would put people in greatest need of emergency connections at risk.
“Not all customers have service options that are reliable and affordable,” said Amy Kurt, the group’s director of government affairs. “Just because a company isn’t making as much money off these customers doesn’t mean they can ditch these customers.”
The bill quickly passed the Senate Public Utilities Committee, whose members received nearly $40,000 from telephone political action committees in 2011 according to a Dayton Daily News analysis of campaign finance records.
The bill passed the Senate, 30 to 3, and awaits a hearing in the House.
Similar legislation has emerged in other states. The Indiana Legislature, which fully deregulated phone companies in 2006, passed a bill in just six weeks. A Kentucky senator killed his deregulation bill earlier this month after public criticism and concerns from elderly and rural citizens.
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