de-regulate this 7 of february, 1997 by johnmichael patrick monty monteith

The Telecommunications De-Regulation Act of 1996 was supposed to revolutionize the electronics communication business. When passed, the idea was that any one of the businesses could compete on the other’s front, thereby increasing competition. Usually, when competition increases, prices drop. Not this time.

Bills to be passed by Congress used to be written by tax payers, or even the politicians we elected to office. Not the Telecommunications Act. It was written by those unknown names of AT&T, US West, and TCI, to name a few. Unfamiliar with these companies? Yeah, right. Needless to say, if you thought this de-regulation act was about increasing competition and lowering your rates, you must have missed who the authors were. After looking at the authors, if you guessed this bill was going to cost you big-time, you hit the proverbial nail on the head. It has. Already.

Less than six months after this communications act was signed, over two thirds of the local telephone providers and television cable companies made attempts to raise rates on their customers. Does this sound like a bunch of companies gearing up for fierce competition? Hardly. Since the bill was signed, you can guess how many cable companies have offered local telephone service (none). Or how about the local telephone companies that have offered cable service (none). In truth, when it gets to the bottom line outcome of this regulation, it had only one effect: the Telecommunications De-Regulation Act of 1996 was an excuse for companies to be able to raise their rates.

Checked your bills lately? Local telephone service rates are up over 8% in one year. Television cable rates had an increase of over 10%. Even the digital satellite revolution has not cut into their bottom line. At least, not enough that they might consider only increasing rates to match inflation.

The reason these businesses were regulated by the government in the first place was because it would be so easy for them to price gouge their customers. Anyone who lives under US West knows just how well they have accomplished this goal. Or how about TCI Cable customers. Do you really believe it costs that company anywhere near half of your monthly rate? Consider the amount of expensive hardware the digital satellite providers give you and manage to offer far better service at a lower price. Does this give you an idea of the inflated cost?

About the only folks that are continuing to make out well on the current communications front are Internet users. Because most of us are tied to local phone lines, we have managed to increase the average length of phone calls in the U.S. to well over double their previous rate in just a few years. The longer we are on the phone browsing the web, the more it costs the Baby Bells to provide the service. So, as you are putting in that second phone line to have 24 hour Internet connection for the cost of a single line, be proud that you are one of the few that is getting their money’s worth since the Act passed. Although, also be aware that the Baby Bells are petitioning to be able to charge Internet customers more for exactly this reason. After all, if you do not contribute to their 200% profit line, than you are not good business.

Remember when the cable companies and even the Baby Bells were promising high speed Internet connections when the bill was signed? Neither have managed to materialize yet. The only way to connect to the Internet at full speed is ISDN or satellite, neither of which are what I consider affordable (especially at US West prices and service). If you are considering getting a high speed connection to the Internet within the next couple of years, be prepared for a shocker. Despite all the promises, I seriously doubt that the majority of Internet users will be switching from copper until next century. In the world of computers, the speed at which we are reaching the fast lane is amounting to little more than a Sunday drive.

These companies are not interested in helping America move into the next century with fast Internet connections and cheap cable and phone service. They are interested in the bottom line and being able to afford their fat television marketing commitments. Some of these companies never had any intention of brining increased competition to the market. From day one, the interest has been bottom-line profits. And, currently, the Telecommunications De-Regulation Act of 1996 has done little but make the bottom-line fatter and fatter, while draining our pocket books and hopes.