Competition and Fair Play

[Commentary] The free market and competition alone will take care of all of rural America’s communications needs. So says Sen Ron Johnson (R-WI). The facts? Well, they say otherwise.

“If you have a company that doesn’t have very good [phone] service, don’t you think customers are going to switch to another company?” Sen Johnson asked rhetorically. “Don’t you think that competition would do a better job of guaranteeing that [service] than heavy-handed government trying to guarantee that?” That’s great in theory, but in practice it leaves something to be desired, especially in rural areas. Without an even-handed set of rules, lots of consumer information and some good choices, real competition frequently doesn't make it to rural America.

There's no better illustration of this point than the very matter Sen Johnson was referring to -- the problem of rural call completion. Some of these “least call routing” companies have faked unanswered calls, sent calls into endless loops and dropped them outright. The problem got so bad that the Federal Communications Commission got involved at the request of some rural phone companies, state utilities commissions and other consumer advocates.

For competition to hold down prices and ensure quality service, consumers need information -- they need to know what the problem is. And they need choices -- they need an alternative to the company that is charging too much and providing too little. And they need companies to stay above board and play by the rules.

The FCC’s action -- which has bipartisan support -- shows how a public intervention can improve the marketplace for us all. There ought to be a lesson here as we continue the transition from our old phone system to the new, Internet-based system of the future.