Keep Telecommunications Competitive in Ohio

Source: AARP.org | December 10, 2003

SBC/Ameritech is said to be planning to introduce legislation that would raise its wholesale rates and effectively end competition in the telecommunications market in Ohio.

If similar to the company's approach in Illinois, the legislation would give the Ohio legislature the authority to set wholesale rates for telephone lines without going through the Public Utilities Commission of Ohio (PUCO). This would mean SBC/Ameritech could double their wholesale rates without hearings and without allowing consumers and competitors to voice concerns. SBC/Ameritech spokespersons informed AARP that the proposal in Ohio would merely establish timeframes the PUCO must adhere to during rate reviews.

"If SBC/Ameritech is successful, their wholesale rates could rise from $13.63 to $28 per telephone line," said AARP Ohio State President, Mary Davis. "That's an increase of $14.37 or more per month for residential telephone customers."

A similar campaign was run by SBC/Ameritech in Illinois this year. The Illinois legislation passed, but was struck down by a federal court. The court's ruling cited that federal law specifically designates the Federal Communications Commission (FCC) or state commissions - not state legislatures - to perform the function of authority over rate setting.

Please help stop this Ohio legislation before it gets introduced. Contact your state legislators and tell them:

  • Do not to agree to carry SBC/Ameritech's legislation
  • Federal law designates the PUCO - not the Ohio General Assembly - as the authority to set utility rates

"We need to urge the Ohio General Assembly not to interfere with the setting of rates between the PUCO and the FCC," Davis said. "Affordable phone service is a matter of survival for Ohio's seniors."


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