Two recent developments have highlighted just how important it is to get telecommunications regulation right for broadband consumers in Pennsylvania. One is beneficial to consumers and providers, the other just the opposite.
On the pro-consumer side is the recent issuing of a co-sponsor memo by State Senator Kristin Phillips-Hill (R-York) announcing the reintroduction of her bill modernizing the monopoly-era regulations which remain on the books in the Public Utility Code despite the highly competitive environment which exists in Pennsylvania and throughout the country.
The memo recognizes that “at a time when we are exploring alternatives to incent broadband deployment by private sector entities, a regulatory framework which diverts resources away from that investment and towards meeting antiquated regulatory requirements must be addressed. This is especially important at a time when Pennsylvania is in receipt of more than $1 billion dollars of federal tax dollars for the deployment of broadband. That should not be slowed down because of an overly excessive regulatory framework.”
Phillips-Hill has introduced this forward-looking, consumer-friendly legislation in the past several sessions of the General Assembly and twice it has passed the Senate. Consumers not only benefit from the freeing up of capital to deploy advanced services in rural parts of the commonwealth, but also from a less contentious complaint process before the Pennsylvania Public Utility Commission.
On the other side of the spectrum is recent correspondence sent to the Federal Communications Commission seeking to expand regulatory oversight of broadband service providers. The initiative was led by Pennsylvania Attorney General Michelle Henry and, among other things, supports the federal government getting involved in telco company training of customer service representatives, what credits should be for customers in cases where there are service issues, and how to handle service appointments. In a monopoly environment, these intrusive measures may have had a place. But those days are so far gone they don’t even show up in the rear-view mirror.
Instead, what we have is a highly competitive environment which, according to the most recent Broadband Pricing Index, has driven broadband prices down 41 percent over the past decade while all other consumer goods and services rose more than 32 percent; all while speeds for broadband service increased significantly over that period.
Countless analyses have concluded that competition is not only widespread, it drives prices down and innovation forward. It also makes outstanding customer service mandatory. Today, if you’re a broadband service provider and you’re not providing adequate customer service, your customers can readily walk away and find an alternative provider. “Customers vote with their feet” is a phrase fully ingrained into how Pennsylvania’s rural local telcos interact with their customers every day. Federal intrusion into these interactions is not only unnecessary, it’s counterproductive.
There is a better way to ensure excellent customer service for all Pennsylvania broadband customers and it’s not more regulation. A modernized, streamlined regulatory structure like that provided for in Senator Phillips-Hill’s legislation is a much better approach.
