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Home / Washington Business - November/December 2006 / Chair's Corner: Telecom laws need updating and streamlining |
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Chair's Corner: Telecom laws need updating and streamlining |
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Written On: November/December 2006 |
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Written By: by Kirk Nelson - Chair, Board of Directors |
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Kirk Nelson is state president for Qwest Communications International. Nelson is the company’s business and policy leader in Washington, responsible for all state operations, including legislative and regulatory advocacy.
As I reflect on my 27-year career with Qwest and its predecessor companies, I feel privileged to be part of an industry that has played such a vital role in the development of the telecommunications network that is so critical to the economic viability of our state.
Looking back, I’m amazed at how dramatically the telecommunications industry has changed, and how the changes continue at an ever-increasing pace.
The early years — up to about 1996 — could easily be described as a slow evolution of communications-related technology with minimal competition. Then came the Federal Telecommunications Act of 1996, a painful attempt by Congress to rewrite the nation’s telecom laws that dated back to 1934. The primary intent of the federal legislation was to open the telecommunications market to competition, specifically the markets served by the seven Regional Bell Operating Companies that emerged from the breakup of the old Bell System in 1984.
Although true competition sputtered for the first few years as regulators and the major telecom players worked to implement the new law and understand the economic and technical realities, it is certainly thriving now and growing stronger every day.
It’s important to understand, however, that when the 1996 Telecom Act was debated and passed, it was based on the technologies and industry structure at that time. Commercial applications and public use of the Internet were in the very early stages of development, so the legislation did not address the Internet.
Wireless technology was still relatively primitive and pricey, with limited consumer acceptance and use. Cable television companies provided video service, but little else. Long distance companies offered long distance calling only — a very lucrative business to be in at the time — while local phone companies primarily provided local service. Satellite technology was simply fun to dream about. In short, the industry was fragmented and very specialized in their products and services, and many of the new technologies deployed today were not available then. Consequently, consumers had little choice but to deal with separate providers to acquire the various products and services necessary to satisfy their individual communications needs.
Fast forward 10 years to 2006. The Internet is a household staple for families and businesses. Personal computer processors are screaming fast and affordable. There are now more wireless phone users in Washington than traditional wire line users, and cable TV companies now offer a variety of services including voice and high-speed Internet. Long distance companies are effectively a thing of the past, and companies like Qwest are offering a full range of services. In short, today there are multiple providers offering similar services using different technologies, and aggressively competing for the same customer base.
Wow, what a difference in just a few short years! That’s not the end of the story.
The future of healthy competition and customer choice depends on a healthy regulatory climate that allows all companies to compete on a level playing field and sustain the level of investments that enable continued technological improvements.
Unfortunately, the laws and regulations that govern the telecommunications industry have not kept up with the changes and are in dire need of a major overhaul. Currently, the government jurisdiction and the degree of regulation for each company depends more on the technology used than the service provided. That’s simply a carry-over from the days when the industry was very specialized and fragmented. However, those days are history.
Now is the time for new streamlined laws and regulations at all levels of government that recognize the dynamic changes in this revolutionary period of technology convergence and competition. The future of healthy competition depends on it.
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