The cost of basic phone service in South Florida may jump $3 to
$3.50 a month over the next two to four years if a proposed
telecom bill passes in Tallahassee, according to an analysis by a
House panel.
The analysis by the House telecommunications subcommittee,
which is to take up the legislation again next week, also notes
that rates could increase as much as 20 percent per year after the
initial two- to four-year period.
The bill also could mean an elimination of customer-service
standards and create smaller calling zones -- and that could
translate into more long-distance fees for consumers.
Representatives from BellSouth, AT&T and the Florida Cable
Telecommunications Association maintain that the telecom bill
would give the Florida Public Service Commission the authority to
prohibit any rate increases if certain conditions aren't met.
Rate increases, they say, aren't automatic.
The bill, a revised version of legislation that was passed last
year but that got a strongly worded veto from Gov. Jeb Bush,
requires the local phone companies to lower network access fees to
about a penny.
These fees, which range from about five cents per call to just
over 10 cents, are charged to long-distance companies for
intrastate calls that terminate in a local phone company's
network.
The long-distance companies, such as AT&T and now
BellSouth, would have to pass on their savings to their
residential and business customers.
The analysis points out that customers who make lots of
intrastate long-distance calls would benefit.
But it doesn't note the flip side: Those who make few
long-distance calls get no savings. Those who just buy basic
service could pay much more for local phone service.
The local phone companies would be allowed to raise basic local
phone rates to make up for the lost revenue.
Those companies claim that these rates are artificially low in
Florida because they're subsidized by revenue from the network
access fees.
When asked if her company was likely to petition the PSC to
raise its basic service rates to make up for lost revenue because
it had to lower access under this proposed legislation, BellSouth
spokeswoman Marta Casas-Celaya said: ``We'll cross that bridge
when we get to it. This is an industrywide bill, and it sets up a
framework for the PSC to address industrywide issues.''
Mike Twomey, who runs Florida Utility Watch, a
Tallahassee-based consumer watchdog group, contends that the
requirements the phone companies must meet are almost ''a given''
because they assume that reducing the access fee will increase
competition in local phone service and benefit consumers.
The way the bill is written, he added, the PSC's authority is
nothing more than ''a rubber stamp'' on these rate increases.
Kevin Bloom, a PSC spokesman, said the PSC believes it would
have authority over rate increases. But he added that the bill was
``still a work in progress.''
The analysis notes that, once the local phone companies have
lowered the access rates, they can ask the PSC to hold them to the
same service-quality requirements now used for competing firms.
That would mean no requirements: The PSC hasn't regulated the
rival firms, fearing that regulation might stymie competition.
This complex bill didn't begin to make waves in Tallahassee
until last week, about midway through the Legislature's six-week
session. Yet a shell bill -- with no real text -- had been filed
in the Senate as a placeholder. In the House, it's still being
considered as a proposed committee bill.
However, a coalition of phone and cable companies -- not the
norm in Tallahassee -- began drafting the bill late last year.
''It takes a long time to get competitors to sit down and get
some consensus,'' said Charles Dudley, who represents the cable
association.
The deadline for filing bills in both houses was March 4.
Consumer advocates who oppose this proposed bill are upset that
the House and Senate versions of the bill haven't been readily
available for review.
Senators on a subcommittee that voted on the bill Tuesday got
printed copies late Monday, and the Senate version isn't available
online.
The House staff analysis wasn't made available to the public
before or during a House subcommittee hearing on the bill
Wednesday morning.
Sen. Anna Cowin, R-Leesburg, who cast the one opposing vote on
the Senate subcommittee Tuesday, said she felt that this
legislation would benefit only the big phone companies.
''My job as a senator is to represent my people and vote on
legislation that I can stomach,'' Cowin said. ``This one doesn't
pass the stomach test.''