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The Ohio General Assembly is currently considering legislation aimed at modernizing telecommunications regulation in our state. House Bill 276 and Senate Bill 162 are bipartisan proposals that proponents say will help Ohio consumers and employers by enabling more technological innovation and increased competition for telecommunications services. SB 162 passed the Senate in December by a margin of 29-3 and HB 276 passed the House in March by a vote of 95-0. However, both bills are awaiting action in the opposite chamber before telecommunications reform would take effect. Some telecommunications services in Ohio are still governed by outdated regulations that existed prior to the days of multiple carriers, wireless access, the modern Internet, and other advances in technology that were unimaginable in the past several decades. Some of the obsolete rules are applied to one class of telecommunications providers in Ohio, and not their competitors. The goal of the Ohio Telecom Modernization Act is to recognize the competition in today’s marketplace, and bring traditional local phone service in line with other competing services. Proponents of the legislation say that it would create a fair marketplace and eliminate unnecessary costs and inefficiencies. Those resources could then be better utilized for investment, new technologies and other innovations that benefit consumers and the economy. Successful efforts to modernize Ohio’s telecommunications infrastructure would benefit Ohio’s economy and workers and consumers throughout our state. Telecommunications is already a critical component of our state's economy, generating nearly $4 billion annually and employing more than 16,000 people. Studies show that in states bordering Ohio and across the nation where similar legislation has been enacted, thousands of new jobs have been created and hundreds of millions of dollars in infrastructure investments have resulted.
Some opponents of the legislation want regulatory modernization to address all competitors, including new entrants in the telecommunications market, to protect competition. They encourage a more global view of how all telecommunications products and services are regulated and want to address all of the regulatory disparity that exists today between telephone companies, cable companies, satellite companies, and wireless companies, instead of just addressing one segment of the telecommunications regulatory structure. In addition to seeking clarity on the application of regulations by the Public Utilities Commission of Ohio (PUCO), which proponents say is being addressed through amendments to the bill, cable communications providers also want to be sure the bill goes even further in promoting competition and investment by ensuring that rules affecting 'carrier-to-carrier' or wholesale transactions don’t disadvantage parts of the telecommunications industry and marketplace. Representatives from Ohio’s cable industry maintain that modernization should take into account issues facing both the incumbents and the competitive market entrants. These providers say that the investment they have made to telecommunications infrastructure, which is bringing jobs and new technology to customers, was done without the cable industry seeking legislation before investing in Ohio.
Telecommunications providers agree that regardless of the technology involved, competition helps to ensure a good consumer experience. True competition in a fair marketplace is the catalyst for lower prices and technological advancements in all forms of telecommunications. Proponents of HB 276 and SB 162 hope that this legislation will be enacted to help create and preserve that competition and benefit all telecommunications consumers in the Ohio. If Ohio is to benefit from any effort to reform telecommunications regulation, the legislature must act quickly so that Ohio does not lose major new investments and jobs to other states with a more favorable regulatory climate.
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