Letters from Our Readers

As BellSouth prepares to once again submit evidence to the Georgia Public Service Commission (PSC) purporting to who it has opened up its local phone service monopoly, Georgians should ask what's different from the last two submissions. More importantly, they should ask what's not different.

The Telecommunications Act of 1996 was designed to provide consumers and business customers with the benefits of competition and choice in all areas of their telephone service. Long distance companies would be allowed to offer local service, and local monopolies like BellSouth could enter the long distance market.

The only condition was that the local monopolies had to open their markets first before they could enter the long distance business. This was to ensure that local phone companies wouldn't abuse their monopoly status and power to reduce, rather than broaden, consumer choice. It's a 2-step process, with state PSC's giving their opinions, followed by the Federal Communications Commission.

Unfortunately, in spite of the fact that BellSouth will attempt to show otherwise, there's little evidence that local competition exists in Georgia:

·BellSouth still has 98 percent market share in its service territory. It's still a monopoly, and competitors haven't been able to break into the business in any meaningful way which means small businesses and all consumers still have no real choice in local phone service.

·BellSouth still doesn't have the capacity to switch large numbers of customers over to competitors. As long as consumers and small businesses have concerns about disruptions in their service if they switch - they'll avoid that risk and stick with the monopoly. This psychological and physical barrier must be overcome if competition is to succeed - it has to be easy and as risk-free to switch local companies as it is to switch long distance companies.

·And BellSouth has continued to hinder competitor's access to the switching facilities necessary for new facilities-based competition as required by law.

For the most part, state officials nationwide are taking their responsibilities extremely seriously in determining whether the local phone monopolies are genuine in opening local markets to competition. They have set tough but reasonable standards to prod the Baby Bells to take concrete steps to promote competition. Recently the Texas, Florida, and California commissions have all determined that the local phone monopolies have fallen far short of what's required to open their markets to competitors. Last year the Georgia PSC ruled twice that BellSouth had failed to meet these standards.

Now BellSouth has decided to go to bat in front of Georgia regulators once more, hoping that the third time will be the charm. How will the Georgia Public Service Commission react to BellSouth's newly-recycled claims that there's real competition for local phone service in Georgia in spite of its 98 percent market share?

The stakes are high for the state's small businesses and consumers. If properly implemented, phone competition will bring better prices, improved service, more jobs, an increase in innovation, and big investments in Georgia's telecom infrastructure. That's been the experience in every industry where competition has been introduced. It will happen with phone service as well.

The Small Business Survival Committee urges the Georgia PSC to require real progress and uphold its rigorous standard in reviewing whether true competition can flourish in the current environment before it gives any special consideration to BellSouth. Wearing down the Commission through another round of BellSouth applications, does not, in itself, make competition a reality.

Our 50,000+ members are instinctive in their belief of the benefits of competition. It will bring big dividends to businesses and consumers alike. Small businesses compete in the market every day. It's time to ensure that monopolies like BellSouth play by the rules and face the same type of real competition we all do. All of us will benefit if they do.

Karen Kerrigan
President, Small Business Survival Committee