Sponsor Statement for HB 416

Telecommunications Competition

House Bill 416 requires the Alaska Public Utilities Commission (APUC) to adopt regulations permitting local telephone competition by December 31, 1998. History has proven competition gives consumers lower costs, increased technology and more choices.

In 1996, Congress passed the Telecommunications Act allowing and promoting local telephone competition nationwide. The APUC recently exempted the local phone company in Fairbanks and Juneau from full local competition because of fears that competition might harm the existing phone company (PTI). PTI was purchased last year by Century Telephone, which has its headquarters in Louisiana. The purchase of PTI made Century the 10th largest phone company in the United States.

The bill will bring benefits to both rural and urban users of the public airways. The fears that promoted the APUC to delay full competition in Fairbanks and Juneau are the same fears that caused the APUC to delay long distance competition in Alaska for many years. As we have all seen, those fears were unfounded and long distance competition produced better quality, new services and lower prices for consumers throughout the state.