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Tuesday, May 17, 2011

Telecommunication deregulation: an economic boost or technology divide for Wisconsin?

The Wisconsin Assembly recently approved a telecommunication deregulation bill that would limit the Public Service Commission's ability to investigate consumer complaints and oversee phone rates. The changes, which mimic business-driven changes in several neighboring states including Ohio, Indiana, Illinois and Michigan, "would mark the first updates to Wisconsin's telecommunications statutes in nearly 20 years," Todd Richmond of The Associated Press reports. However, many question whether the law will lead Wisconsin into the telecommunications revolution or create a larger divide between rural and urban communities.

Supporters "insist the plan will eliminate outdated red tape, create more competition and encourage providers to invest in wider access to broadband," Richmond writes. The Wisconsin Technology Council and Wired Wisconsin claim deregulation could create or retain 50,000 jobs and add $2.6 billion to the economy, BizTimes Daily reports.

Opponents believe deregulation would result in "higher phone bills with little in return" and providers would focus broadband efforts in more populated urban areas neglecting rural areas, Richmond reports. Sen. Kathleen Vinehout of Alma said during Senate negotiations, "We're pitting urban against rural. The consumer has absolutely no recourse under this bill." (Read more)

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