Phone Service Cost, Quality Up for Debate
By: Source: AARP.org Date Posted: 2003-10-22 11:07:00
Phone Service Cost, Quality Up for Debate
The cost and quality of local telephone service in Pennsylvania may hinge on the outcome of legislation the Assembly is considering to reauthorize a key state law.
AARP is urging approval of a bill introduced by Rep. Brett Feese, R-Lycoming County, to reauthorize Chapter 30 of the Public Utility Code, the state law governing local telephone service. It is due to expire Dec. 31. Basic telephone service is essential for all people, particularly older people. Nonetheless, 10 percent of low-income, older households and 12 percent of all households with annual incomes below $10,000 do not have telephone service. Overall about five percent of US households do not have telephone service.
AARP strongly supports the provisions in HB 1669 for many reasons. First, HB 1669 keeps local telephone rates affordable. The vital nature of this service makes it imperative that policymakers ensure that telephone service remains affordable. HB 1669 will limit rate increases for basic local telephone services provided by large local telephone companies. We all suffer and the network declines in value when consumers drop or lose basic telephone service because they can no longer afford it. We are pleased to see that HB 1669 addresses this concern.
HB 1669 also requires good service from providers. Service quality rules for telephone service have not been updated in our state since 1988. Yet telecommunications services have changed dramatically in just those few years. HB 1669 requires local telephone companies to report service complaints to the PUC. It requires local telephone companies to give consumers mandatory credits when the company misses installation or service appointments. Local telephone service must be installed within a maximum time period and local telephone companies must give credits to consumers if the company misses the deadline. Finally, HB 1669 requires local telephone companies to restore service on all out-of-service complaints within a maximum time frame and local telephone companies must give credits to consumers if they miss the deadline.
These are all important provisions for older folks who depend on the telephone as their lifeline. What good is affordable telephone service if the service itself is lousy? HB 1669 ensures important PUC oversight of service quality and at the same time provides restitution to consumers when the service they receive is poor.
HB 1669 also implements important assistance programs for telephone service, thus expanding its affordability. According to AARP's report, "Energy and Telephone Assistance in the States," 21 percent of Pennsylvania's households that are headed by someone age 50 or above have income at or below 150 percent of the federal poverty guidelines, which in 2002 was $13,290 per year for a one-person household and was $17,910 per year for a household of two or more people. Yet only 5.5 percent of those eligible for Lifeline service are actually receiving the benefit. That's correct - more than 95 percent of those eligible for Lifeline service do NOT receive the benefit.
HB 1669 goes a long way in resolving this terrible situation. The bill requires the PUC to implement automatic enrollment for Lifeline telephone service. A number of other states have implemented automatic enrollment for this service with great success. Automatic enrollment simply requires computer matching of those eligible for other assistance programs with those who have telephone service, thereby enrolling these customers in the program automatically. The bill also requires the telephone companies to advise customers about the availability of Lifeline and Link-up assistance. HB 1669 requires companies to inform customers about Lifeline and Link-Up discount programs when negotiating payment arrangements with a customer.
The bill also appropriately follows up on the current version in Chapter 30. This bill requires an inventory of the availability of high speed telecommunications services throughout Pennsylvania. This inventory will be publicly available and updated annually. The bill also ensures that broadband service is available throughout our state by December 31, 2008 by focusing on areas of Pennsylvania that are un-served, underserved or lack sufficient access to broadband services. Finally, the bill provides grants for planning activities, for high speed access training programs, and for high speed access infrastructure.
AARP is pleased to be able to support HB 1669. The bill is pro-consumer and pro-senior. We look forward to working members of the Assembly to ensure this bill becomes law.
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