AT&T, Consumer Advocate Agree on Deregulation in Illinois

AT&T, CONSUMER ADVOCATE AGREE ON DEREGULATION IN ILLINOIS
[SOURCE: Chicago Tribune, AUTHOR: Jon Van jvan@tribune.com]
A deal enabling AT&T to deregulate consumer phone service in Illinois was reached Wednesday with the Citizens Utility Board that includes a four-year rate freeze available to residential customers for basic service. If approved by the Illinois Commerce Commission the deal would also require AT&T to expand availability of its high-speed Internet connections using digital subscriber lines to 99 percent of Chicago-area customers. Under terms of the settlement the ICC would retain some oversight of consumer phone rates, even though it would give up the close regulatory control it now has. "When you compare it to what's happened in nearby states, this deal is infinitely better for the Illinois consumers," said David Kolata, CUB executive director. The agreement virtually assures that deregulation of consumer phone rates in Illinois will take place, meaning the marketplace will set phone rates without any approval required from regulators. Deregulation is a trend across the country, brought on by the rise of cable television-provided phone service and the popularity of mobile phones. Last year AT&T, the dominant phone company in Illinois, declared its traditional residential phone service to be competitive, a move that effectively removes most state regulatory controls. The Illinois Commerce Commission is scheduled to decide whether to approve the deregulation by later this summer. Regulatory bodies in Indiana, Wisconsin, Michigan, Ohio, Missouri and elsewhere have already approved similar deregulation.
http://www.chicagotribune.com/technology/chi-0605110206may11,1,2123358.story?coll=chi-business-hed