Consumer groups: Veto phone bill
Legislation to let rates for landlines rise would hurt many, foes say.
Consumer advocates COLUMBUS — are calling on Gov. John Kasich to veto a controversial bill that would allow telephone companies to increase rates for basic landline service something heavily
— used by elderly, poor and rural customers.
House Bill 402 is backed by business interests such as AT&T, the Ohio Telecom Association, Ohio Chamber of Commerce and others, which argued that current regulations are archaic and updates are needed to encourage telecommunications companies to invest in broadband and cell service in Ohio.
“Rotary phones are now a relic of the past, but Ohio’s telecommunications providers operate under a set of rules and regulations built for that era,” said Ohio Chamber lobbyist Keith Lake in written testimony on the bill. “Every year, fewer and fewer
people use landlines and instead rely solely on wireless service. We live in the age of the Internet, and it’s time we adopt legislation that reflects that.”
But the Ohio Consumers’ Counsel, Ohio Poverty Law Center, Pro Seniors Inc. and others see it differently. The groups testified against the bill, saying it could result in dramatic price increases for Ohioans’ basic wire-line telephone service.
“Many Ohioans still want this type of service. Basic service customers are often the elderly, who are on fixed incomes, or the poor, who are able to afford the service through discounts provided them from the federal Lifeline program. Rural custom- ers who have limited phone service options also can bene- fit from basic phone service,” the consumer groups testified.
In Ohio, there are 2 million landlines, 12 million mobile phones and 4.3 million voice over internet phone lines, according to FCC data from June 2017, the most recent available.
The Ohio Telecom Association said 70 percent of Ohio homes are wireless-only and no longer have landlines.
Currently, companies are allowed each year to increase monthly charges by $1.25. Under some circumstances, they’d be allowed to increase monthly charges by $2 under the bill. After four years, there would be no limit on increases to monthly charges for basic phone service provided by most local companies.
The bill also would change state policy to no longer require that all Ohioans have access to adequate basic phone service, they said. And it would strip out consumer protections designed to make sure customers don’t face lengthy service outages.
On Monday, AARP Ohio Director Barbara Sykes called on Kasich to veto the bill.
“It is unfortunate that this bill removes consumer protections that will allow rate increases of any amount, at any time and offers no protections from massive increases for Lifeline subscribers ...,” Sykes said in a written statement.
There is no indication yet whether the governor will sign, veto or let the bill go into law without his signature.