By Jamey Dunn
The Illinois House voted today to make some tweaks to the state’s Telecommunications Act and extend the law until 2015.
The law is due to sunset this year. It was last rewritten in 2010, and telecommunications leaders say that it was time for some tweaks. “When it was last rewritten, just to put it into perspective... that was exactly when the first tablet, the first iPad, came out. Now look around; look at how many people have iPads and tablets. ... The pace of change is accelerating,” Paul La Schiazza, president of AT&T Illinois, told Illinois Issues earlier this year as negotiations were taking place. “It’s absolutely clear that regulation cannot keep up with how people are using these technologies and how they are communicating, so I think it’s absolutely overdue to address this again given what’s happened in the marketplace.”
AT&T was seeking rollbacks on the amount of video network capacity that they were required to build, as well as in investments in older copper wire infrastructure, which is associated with traditional land-line telephones. Senate Bill 1664 does the first but not the latter. It also would allow Internet and video service providers the same access to condos and apartments as cable providers. The bill contains the same so-called safe harbor protections that guarantee customers access to land line phones. Telecommunications companies would prefer to focus their investments in broadband and infrastructure associated with newer technologies, but sponsor Rep. Kelly Burke, an Evergreen Park Democrat, said “the industries have worked diligently” with consumer protection groups “to make sure consumers continue to be protected.” The bill also has support from unions and business groups.
Scott Musser, AARP Illinois associate state director, said his organization supports the bill because he says it would “make sure people continue to have affordable, reliable access to their land line telephones.”
The measure would also extend legislation regulating 911 emergency services for a year and create a task force that would work with the Illinois Commerce Commission on a plan to properly fund 911 services. Current funding comes from fees paid by telephone customers, but some call centers are in danger of closing. “We need to extend the 911 act. Without it, 911 as we know it goes away,” said Rep. Don Moffitt, a Republican from Gilson.
Moffitt, who headed an Emergency Medical Task Force that held hearings throughout the state, said the issue came up at many of the group’s hearings. “We really need to get to the point of having funds available and increase some funding. ...We have some 911 call centers in the state of Illinois that are on the brink of shutting down,” he said. If call centers close, their duties are taken on by the Illinois State Police.
All House members in attendance today voted in favor of the bill, but some said it would not go far enough to loosen regulations on telecommunication companies as they seek to upgrade the state’s technological infrastructure. “This is a start, but beyond today we must begin immediately to go farther if we want to increase business opportunities investment in broadband and wireless. We must go further than what we’ve done today,” said Mundelein Republican Rep. Ed Sullivan Jr. “I want to put those on notice that this is only a beginning, and if you think that this is the end, you have just shut out business in the state of Illinois.”
However, Musser said other states have opted to keep safe-haven requirements in place. “What we know from other states is, in 2012 about 10 other states rejected similar proposals by AT&T, so it is certainly not the case that we’re an outlier here.” He said that right now, cell phone service is too spotty in some areas of the state to expect residents to give up land lines. “Who knows? Maybe in two years cell phone technology is better, and there is access all across the state.” But he said for now, many areas, especially in southern and western Illinois, have inadequate service.
Supporters were optimistic that the measure would help spur economic growth in the state. “The bill removes obstacles for private-sector wired-broadband investment in the state,” said Rep. Arthur Turner, a Chicago Democrat. “It creates jobs to build a network, then it creates jobs through the power of broadband. And it creates jobs in every area of our economy. ... This bill encourages more private sector investment in broadband without a tax credit, without a tax incentive and without taxpayer dollars.”
The legislation now goes to the Senate. Since the measure has support from groups on all sides of the issue, it will likely sail to Gov. Pat Quinn’s Desk. Quinn supports the bill.
Showing posts with label telecommunications. Show all posts
Showing posts with label telecommunications. Show all posts
Wednesday, May 29, 2013
Wednesday, August 01, 2012
Illinois becomes second state to bar employers from asking for social network passwords
By Jamey Dunn
Today Illinois became the second state in the nation to bar businesses from asking employees or potential employees for their social media profile passwords.
“It is important that we understand that even though we live in an information world—a very fast paced world where we can get information in split seconds—there’s some information, if [it] belong[s] to the person, that belongs just to the person. That’s their choice. If they want to share it, that’s their business, but privacy is a fundamental right,” Gov. Pat Quinn said today before he signed House Bill 3782 at a Chicago news conference.
According to the National Conference of State Legislatures, more than a dozen other states are considering bills that would restrict employers from asking for information from employees’ profiles on social media networks, such as Facebook and Twitter. Maryland Gov. Martin O'Malley signed his state’s ban in May.
Nationally, some U.S. senators have asked the U.S. Department of Justice to determine if employees who ask for social network information are violating any federal laws. Facebook has come out against employers asking for passwords and users sharing their passwords with others. “If you are a Facebook user, you should never have to share your password, let anyone access your account, or do anything that might jeopardize the security of your account or violate the privacy of your friends. We have worked really hard at Facebook to give you the tools to control who sees your information.
"As a user, you shouldn’t be forced to share your private information and communications just to get a job. And as the friend of a user, you shouldn’t have to worry that your private information or communications will be revealed to someone you don’t know and didn’t intend to share with just because that user is looking for a job,” said a written statement from Erin Egan, Facebook’s chief privacy officer.
Lori Andrews, director of the Chicago-based Institute for Science, Law and Technology, said that Illinois’ new law puts the state at the “forefront” of online privacy rights. “Over 900 million people are on Facebook. If it were a nation, it would be the third largest nation in the world after India and China, and yet it’s very unclear what your rights are in that venue,” said Andrews, who is also a professor at the Chicago-Kent College of Law.
Andrews said research has shown that about 75 percent of employers browse potential employees’ public social network profiles, and about one third say they have opted not to hire employees based in part on what they found. But Andrews said that allowing businesses to access information on social sites that has not been shared to the general public would open the door to potential discrimination. “It could reveal things about your religious beliefs or your political affiliations or your sexual preferences.” She said that employers might be able to access information about topics such as family medical history or family planning decisions, which are legally barred from asking job applicants about in interviews. “If your employer can go on the private side of your Facebook page, your potential employer might find out that you’re planning to get pregnant or that you liked the American Cancer Society,” she said. “So this bill will protect employees and potential employees by preventing them from having to cough up this very personal information.”
Illinois’ law will bar employers from asking for passwords to social media accounts or making employees log in to their account and show it to the employer. It will also keep employers from making workers or applicants grant them access to information on the site that is blocked by privacy settings. However, under the new law an employer could ask for user names and view any information that a worker or job candidate chooses to make public.
Senate Minority Leader Christine Radogno, who sponsored the law, said the ban would help to protect young people who are active on social media sites. “This was kind of a fun bill to work on because we pass a lot of bills in Springfield that many people, especially young people, don’t feel really affect their lives or they can relate to personally, and this is one that people definitely relate to and understand. I know I got a lot of ‘likes’ on my Facebook page when we talked about this bill. But Radogno said that as a mother, she felt the obligation to warn young people to be careful about what they post online. “Please remember that they can’t ask for your password, but be discrete and be smart about what you put out there on the Internet because it is still out there and it can affect you.”
The law goes into effect next July 1. Businesses that violate the ban would be subject to a civil penalty of between $100 and $300 for a first offense.
Today Illinois became the second state in the nation to bar businesses from asking employees or potential employees for their social media profile passwords.
“It is important that we understand that even though we live in an information world—a very fast paced world where we can get information in split seconds—there’s some information, if [it] belong[s] to the person, that belongs just to the person. That’s their choice. If they want to share it, that’s their business, but privacy is a fundamental right,” Gov. Pat Quinn said today before he signed House Bill 3782 at a Chicago news conference.
According to the National Conference of State Legislatures, more than a dozen other states are considering bills that would restrict employers from asking for information from employees’ profiles on social media networks, such as Facebook and Twitter. Maryland Gov. Martin O'Malley signed his state’s ban in May.
Nationally, some U.S. senators have asked the U.S. Department of Justice to determine if employees who ask for social network information are violating any federal laws. Facebook has come out against employers asking for passwords and users sharing their passwords with others. “If you are a Facebook user, you should never have to share your password, let anyone access your account, or do anything that might jeopardize the security of your account or violate the privacy of your friends. We have worked really hard at Facebook to give you the tools to control who sees your information.
"As a user, you shouldn’t be forced to share your private information and communications just to get a job. And as the friend of a user, you shouldn’t have to worry that your private information or communications will be revealed to someone you don’t know and didn’t intend to share with just because that user is looking for a job,” said a written statement from Erin Egan, Facebook’s chief privacy officer.
Lori Andrews, director of the Chicago-based Institute for Science, Law and Technology, said that Illinois’ new law puts the state at the “forefront” of online privacy rights. “Over 900 million people are on Facebook. If it were a nation, it would be the third largest nation in the world after India and China, and yet it’s very unclear what your rights are in that venue,” said Andrews, who is also a professor at the Chicago-Kent College of Law.
Andrews said research has shown that about 75 percent of employers browse potential employees’ public social network profiles, and about one third say they have opted not to hire employees based in part on what they found. But Andrews said that allowing businesses to access information on social sites that has not been shared to the general public would open the door to potential discrimination. “It could reveal things about your religious beliefs or your political affiliations or your sexual preferences.” She said that employers might be able to access information about topics such as family medical history or family planning decisions, which are legally barred from asking job applicants about in interviews. “If your employer can go on the private side of your Facebook page, your potential employer might find out that you’re planning to get pregnant or that you liked the American Cancer Society,” she said. “So this bill will protect employees and potential employees by preventing them from having to cough up this very personal information.”
Illinois’ law will bar employers from asking for passwords to social media accounts or making employees log in to their account and show it to the employer. It will also keep employers from making workers or applicants grant them access to information on the site that is blocked by privacy settings. However, under the new law an employer could ask for user names and view any information that a worker or job candidate chooses to make public.
Senate Minority Leader Christine Radogno, who sponsored the law, said the ban would help to protect young people who are active on social media sites. “This was kind of a fun bill to work on because we pass a lot of bills in Springfield that many people, especially young people, don’t feel really affect their lives or they can relate to personally, and this is one that people definitely relate to and understand. I know I got a lot of ‘likes’ on my Facebook page when we talked about this bill. But Radogno said that as a mother, she felt the obligation to warn young people to be careful about what they post online. “Please remember that they can’t ask for your password, but be discrete and be smart about what you put out there on the Internet because it is still out there and it can affect you.”
The law goes into effect next July 1. Businesses that violate the ban would be subject to a civil penalty of between $100 and $300 for a first offense.
Wednesday, February 08, 2012
Community groups wait for details on Quinn's infrastructure plans
By Ashley Griffin
Gov. Pat Quinn announced new infrastructure projects during his State of State address last week, but so far his plans are short on details.
One plan that Quinn announced was a $6 million competition to build ultra-high speed broadband networks across Illinois neighborhoods. According to a statement from the governor’s office, the $6 million is actually not new spending. The money would come from funding included in the 2009 capital construction bill for information technology and broadband infrastructure. The fund is managed by the Department Of Commerce & Economic Opportunity.
However, House Speaker Michael Madigan warned during an appearance at Elmhurst College in January that there will not be enough money for all the spending laid out in the capital bill because the revenue projections the bill was based on have not proved true. Madigan said the slow implementation of a plan to allow video poker at some bars and restaurants is partially to blame. He said he would like to support new infrastructure projects but asked, "Where do you find the money to pay for it?”
Although Quinn’s office would not release its plans for the competition, Quinn said during his address it would help communities all over the state. “Through this challenge, we want our neighborhoods to become gigabit communities with Internet connections more than 100 times faster than today,” Quinn said. “Our goal is to build smart communities that will foster the job engines of the future.”
John Kersh, visiting urban project planner for the Urbana-Champaign Big Broadband project, also known as UC2B, said: “In the most general terms, there are many individuals who represent organizations that would love to have funds available to provide low- or no-cost computer equipment or other digital devices, while others would love funding for youth and adult training to increase digital literacy. Others would appreciate funds for publicly accessible computer labs.”
UC2B has the goal of installing 293 miles of fiber-optic cables in the Urbana-Champaign area. The group was able to establish an open-access broadband network throughout the area from a $3.5 million grant in 2010 from the state of Illinois and a $22.5 million grant from the U.S Department of Commerce’s National Telecommunications and Information Administration.
“I’m sure we’ll all be waiting anxiously to see how, when, if this program takes shape,” Kersh said of Quinn’s proposed competition.
In his State of the State address, Quinn also called for water infrastructure investments, such as replacing broken water mains, upgrading sewers and building sewage treatment plants though his Illinois Jobs Agenda for 2012.
“Clean Water is the lifeblood of our people and our communities,” Quinn said. “Illinois is blessed with abundant water from Lake Michigan, to the Illinois River, to the mighty Mississippi. But many Illinois residents are living with aging water mains that are nearly 100 years old.”
He added, “Working with mayors from Chicago and the suburbs to every part of downstate, we must invest in our Clean Water Initiative.”
A spokesperson from the Illinois Municipal League declined to comment about the need for such improvements or Quinn’s proposal until the governor’s office provides more details. Lawmakers have expressed concerns about whether there is money in the state’s tight budget for the projects.
“At a minimum — as we just went through the numbers very quickly — he has advocated spending an additional $500 million dollars. We don’t have any money. All these things sound good, but we can't afford them. I think that’s what disturbing,” said House Minority Leader Tom Cross.
But despite Illinois’ budget situation, some support such investments.
“Water systems run under the ground. For most people, it’s out of sight, out of mind, but in fact, those systems do need to have added investment,” said Doug Whitley, president of the Illinois Chamber of Commerce. “The Illinois Chamber is willing to step up and be a partner on many of the themes that were in the State of the State message.”
For more on the business community reaction to Quinn's State of the State speech, see Illinois Issue Blog Feb. 1, 2012.
Gov. Pat Quinn announced new infrastructure projects during his State of State address last week, but so far his plans are short on details.
One plan that Quinn announced was a $6 million competition to build ultra-high speed broadband networks across Illinois neighborhoods. According to a statement from the governor’s office, the $6 million is actually not new spending. The money would come from funding included in the 2009 capital construction bill for information technology and broadband infrastructure. The fund is managed by the Department Of Commerce & Economic Opportunity.
However, House Speaker Michael Madigan warned during an appearance at Elmhurst College in January that there will not be enough money for all the spending laid out in the capital bill because the revenue projections the bill was based on have not proved true. Madigan said the slow implementation of a plan to allow video poker at some bars and restaurants is partially to blame. He said he would like to support new infrastructure projects but asked, "Where do you find the money to pay for it?”
Although Quinn’s office would not release its plans for the competition, Quinn said during his address it would help communities all over the state. “Through this challenge, we want our neighborhoods to become gigabit communities with Internet connections more than 100 times faster than today,” Quinn said. “Our goal is to build smart communities that will foster the job engines of the future.”
John Kersh, visiting urban project planner for the Urbana-Champaign Big Broadband project, also known as UC2B, said: “In the most general terms, there are many individuals who represent organizations that would love to have funds available to provide low- or no-cost computer equipment or other digital devices, while others would love funding for youth and adult training to increase digital literacy. Others would appreciate funds for publicly accessible computer labs.”
UC2B has the goal of installing 293 miles of fiber-optic cables in the Urbana-Champaign area. The group was able to establish an open-access broadband network throughout the area from a $3.5 million grant in 2010 from the state of Illinois and a $22.5 million grant from the U.S Department of Commerce’s National Telecommunications and Information Administration.
“I’m sure we’ll all be waiting anxiously to see how, when, if this program takes shape,” Kersh said of Quinn’s proposed competition.
In his State of the State address, Quinn also called for water infrastructure investments, such as replacing broken water mains, upgrading sewers and building sewage treatment plants though his Illinois Jobs Agenda for 2012.
“Clean Water is the lifeblood of our people and our communities,” Quinn said. “Illinois is blessed with abundant water from Lake Michigan, to the Illinois River, to the mighty Mississippi. But many Illinois residents are living with aging water mains that are nearly 100 years old.”
He added, “Working with mayors from Chicago and the suburbs to every part of downstate, we must invest in our Clean Water Initiative.”
A spokesperson from the Illinois Municipal League declined to comment about the need for such improvements or Quinn’s proposal until the governor’s office provides more details. Lawmakers have expressed concerns about whether there is money in the state’s tight budget for the projects.
“At a minimum — as we just went through the numbers very quickly — he has advocated spending an additional $500 million dollars. We don’t have any money. All these things sound good, but we can't afford them. I think that’s what disturbing,” said House Minority Leader Tom Cross.
But despite Illinois’ budget situation, some support such investments.
“Water systems run under the ground. For most people, it’s out of sight, out of mind, but in fact, those systems do need to have added investment,” said Doug Whitley, president of the Illinois Chamber of Commerce. “The Illinois Chamber is willing to step up and be a partner on many of the themes that were in the State of the State message.”
For more on the business community reaction to Quinn's State of the State speech, see Illinois Issue Blog Feb. 1, 2012.
Tuesday, June 15, 2010
Quinn signs telecom rewrite
By Jamey Dunn
Gov. Pat Quinn signed a rewrite of the telecommunications law in Chicago today that business leaders and industry insiders say will help bring jobs to Illinois.
The laws will loosen regulations on basic telephone services. The bill also guarantees that the state will not regulate newer technologies, such as cable telephone systems and broadband, for at least three years.
The bill will give companies more flexibility in price and the service packages they offer. Before the change, telecommunications companies had to get approval from the Illinois Commerce Commission (ICC) to change rates or offer a new package of products, such as Internet access coupled with local phone service. They then had to wait up to 45 days after approval to change a rate or launch a new promotion.
They can now do those things immediately. Companies claimed they needed the flexibility to compete in a fast-paced market. If one company releases a new promotion, its competitors would have to wait more than a month to catch up with similar offerings.
When asked whether telecommunications companies’ newfound ability to quickly shift rates and offer different service combinations might upset some consumers, James Zolnierek, director of telecommunication for the ICC, said they could always opt for the most basic packages because those prices are protected by the new law.
“There are safe harbor packages that the prices cannot be increased on. So consumers will always, at least for the life of the bill, will have the choice of going to those safe-harbor packages, where the rates cannot increase. It’s on the more dynamic products like the package services where you buy a lot of features and package it with other products where they will have more flexibility to do things quickly — lower prices, increase prices in some instances,” he said at the Chicago news conference.
Quinn said he would not have supported the bill without such “safe-harbor” protection for “basic, lifeline, low-cost phone service” with fixed prices. “We in Illinois, if we’re going to be prosperous, need to make sure that we have a modern, up-to-date, well-connected telecom system that includes broadband deployment and wireless technologies that are state of the art. But at the same time, we want to protect consumers. People who may be very happy with the phone services they have now, the landline phone. “
Pual La Schiazza, president of AT&T Illinois, says the law will help the industry create jobs, during times that are financially trying for for residents and state government, without any financial support from the public sector. “It will create jobs. It will keep jobs, and it makes Illinois competitive with its neighboring states. … It does incent more broadband investment; it helps to keep and create jobs. But it does it without any subsidies and without any tax credits. It’s good public policy that can be an economic engine for the state of Illinois.”
However consumer advocacy groups such as the Citizens Utility Board, which Quinn helped create, said the law might hinder rural areas’ access to technologies such as broadband.
For a comprehensive look at the telecommunications rewrite, see Rachel Wells’ article in the current (June) Illinois Issues on page 31.
Gov. Pat Quinn signed a rewrite of the telecommunications law in Chicago today that business leaders and industry insiders say will help bring jobs to Illinois.
The laws will loosen regulations on basic telephone services. The bill also guarantees that the state will not regulate newer technologies, such as cable telephone systems and broadband, for at least three years.
The bill will give companies more flexibility in price and the service packages they offer. Before the change, telecommunications companies had to get approval from the Illinois Commerce Commission (ICC) to change rates or offer a new package of products, such as Internet access coupled with local phone service. They then had to wait up to 45 days after approval to change a rate or launch a new promotion.
They can now do those things immediately. Companies claimed they needed the flexibility to compete in a fast-paced market. If one company releases a new promotion, its competitors would have to wait more than a month to catch up with similar offerings.
When asked whether telecommunications companies’ newfound ability to quickly shift rates and offer different service combinations might upset some consumers, James Zolnierek, director of telecommunication for the ICC, said they could always opt for the most basic packages because those prices are protected by the new law.
“There are safe harbor packages that the prices cannot be increased on. So consumers will always, at least for the life of the bill, will have the choice of going to those safe-harbor packages, where the rates cannot increase. It’s on the more dynamic products like the package services where you buy a lot of features and package it with other products where they will have more flexibility to do things quickly — lower prices, increase prices in some instances,” he said at the Chicago news conference.
Quinn said he would not have supported the bill without such “safe-harbor” protection for “basic, lifeline, low-cost phone service” with fixed prices. “We in Illinois, if we’re going to be prosperous, need to make sure that we have a modern, up-to-date, well-connected telecom system that includes broadband deployment and wireless technologies that are state of the art. But at the same time, we want to protect consumers. People who may be very happy with the phone services they have now, the landline phone. “
Pual La Schiazza, president of AT&T Illinois, says the law will help the industry create jobs, during times that are financially trying for for residents and state government, without any financial support from the public sector. “It will create jobs. It will keep jobs, and it makes Illinois competitive with its neighboring states. … It does incent more broadband investment; it helps to keep and create jobs. But it does it without any subsidies and without any tax credits. It’s good public policy that can be an economic engine for the state of Illinois.”
However consumer advocacy groups such as the Citizens Utility Board, which Quinn helped create, said the law might hinder rural areas’ access to technologies such as broadband.
For a comprehensive look at the telecommunications rewrite, see Rachel Wells’ article in the current (June) Illinois Issues on page 31.
Wednesday, May 05, 2010
House approves telecom rewrite
By Rachel Wells
Telecommunications companies are a little closer to assurance that advanced technologies will not be regulated, at least until 2013, and that old technologies won’t drain their resources.
The House today approved a rewrite of the 1985 law regulating telecommunications companies operating in Illinois. The act was last updated in 2001.
Under the measure, SB 107, broadband and Internet-based phone providers would be guaranteed for the life of the law that those services would remain unregulated. Internet-based phone services would be required to register with the Illinois Commerce Commission but would only have to provide very basic information. That information would allow the state to map where Illinois does and does not have adequate broadband adoption.
Regulations on landline service providers would also be loosened. Instead of requiring repair of landline service within 24 hours, the measure would allow a 30-hour window. The threat of a $30 million fine for companies such as AT&T for failing to meet service quality standards would also disappear if the bill became law.
They would, however, still be subject to fines of up to $200,000 for each offense. Other service quality standards would include installing service to customers within five business days and keeping appointments with customers. Failing to meet those standards would result in consumer credits.
The measure would also fix costs for three levels of basic phone service for the next three years.
Proponents say loosening regulations and providing regulatory certainty will encourage telecommunications companies to invest in broadband in Illinois, which in turn would bring more jobs in other sectors to the state.
The consumer advocacy group The Citizens Utility Board says the bill contains no provisions requiring telecommunications companies to invest in broadband throughout the entire state, including rural and low-income areas, nor does it guarantee jobs.
“You can not guarantee the unguaranteeable,” said Rep. Kevin McCarthy, an Orland Park Democrat. “But we can guarantee the way we’ve been going up until now, has been nothing but losing jobs.”
The House approved the measure with unanimous support.
Telecommunications companies are a little closer to assurance that advanced technologies will not be regulated, at least until 2013, and that old technologies won’t drain their resources.
The House today approved a rewrite of the 1985 law regulating telecommunications companies operating in Illinois. The act was last updated in 2001.
Under the measure, SB 107, broadband and Internet-based phone providers would be guaranteed for the life of the law that those services would remain unregulated. Internet-based phone services would be required to register with the Illinois Commerce Commission but would only have to provide very basic information. That information would allow the state to map where Illinois does and does not have adequate broadband adoption.
Regulations on landline service providers would also be loosened. Instead of requiring repair of landline service within 24 hours, the measure would allow a 30-hour window. The threat of a $30 million fine for companies such as AT&T for failing to meet service quality standards would also disappear if the bill became law.
They would, however, still be subject to fines of up to $200,000 for each offense. Other service quality standards would include installing service to customers within five business days and keeping appointments with customers. Failing to meet those standards would result in consumer credits.
The measure would also fix costs for three levels of basic phone service for the next three years.
Proponents say loosening regulations and providing regulatory certainty will encourage telecommunications companies to invest in broadband in Illinois, which in turn would bring more jobs in other sectors to the state.
The consumer advocacy group The Citizens Utility Board says the bill contains no provisions requiring telecommunications companies to invest in broadband throughout the entire state, including rural and low-income areas, nor does it guarantee jobs.
“You can not guarantee the unguaranteeable,” said Rep. Kevin McCarthy, an Orland Park Democrat. “But we can guarantee the way we’ve been going up until now, has been nothing but losing jobs.”
The House approved the measure with unanimous support.
Tuesday, April 13, 2010
Stakeholders air telecom rewrite concerns
By Rachel Wells
Lawmakers in the coming weeks will work to tweak legislation that would revamp a 25-year-old law, last updated in 2001, that regulates part of the rapidly evolving telecommunications industry. While consumer groups urge caution, most of the telecommunications industry and business sector call the rewrite a jobs creation measure.
HB 6425 would modernize Illinois’ Telecommunications Act and provide opportunities for investment both from the industry and businesses that rely on high-tech telecommunications, proponents of a rewrite say. And more investment means more jobs and more revenue for the state.
“How you resolve [the state’s budget crisis] is certainly paramount on everybody's mind,” said Jeff Mays, president of the Illinois Business Roundtable. “That's another reason that this should happen. This doesn't require the public sector to spend anything, and it also puts out a very strong message ... [It] puts the state out there that we want innovation, we want investment, we want to grow jobs in these areas.”
Paul La Schiazza, president of AT&T of Illinois, one of the major forces behind the call for a rewrite, said that 20 of the 22 states the company serves have already updated their telecommunications laws and that Illinois should do the same.
“[The 1985 law] focused, rightfully so at the time, on opening up markets to competition. It focused on breaking vestiges of a monopoly and providing choice to consumers,” La Schiazza said, adding that it was then “the most forward-thinking” telecommunications law in the nation.
But the world of telecommunications has changed dramatically since then, and competition is now robust, La Schiazza said. He cited AT&T’s decreased market share – from more than 91 percent in 2000 to its current share of 48 percent – in wire line phone service. Its share of emerging technology services is even lower, La Schiazza said.
“This is just a demonstration of the choice that consumers have in all segments of the market,” La Schiazza said. “To those who might say, ‘This is a risky proposition’ … the risk has already been taken out of the question. I believe the time is now. I believe we should stop losing jobs to neighboring states.”
But AARP Illinois says AT&T’s share of basic telecommunications services, those that the elderly and low-income populations are more reliant on than others, is still highly noncompetitive, and some areas only have a choice between the standard local telephone service and a cable service.
AT&T representatives said the Illinois Commerce Commission has twice declared the company’s landline services competitive. But AARP’s Mary Patton said the rewrite proposal’s definition of competitive – important because the state applies price protection measures where competition does not exist – sets the bar too low.
She said the bill would reduce the authority of the Illinois Commerce Commission, which currently regulates basic telecommunications services, and eliminate some reporting requirements she feels are necessary because telecommunications is one of the most complained-about services to consumer advocacy groups.
“The level of regulation and consumer protection must be appropriate to the actual level of competition in the market, including appropriate consumer protection to address … insufficient competition,” Patton said.
Other concerns from various stakeholders include:
Lawmakers in the coming weeks will work to tweak legislation that would revamp a 25-year-old law, last updated in 2001, that regulates part of the rapidly evolving telecommunications industry. While consumer groups urge caution, most of the telecommunications industry and business sector call the rewrite a jobs creation measure.
HB 6425 would modernize Illinois’ Telecommunications Act and provide opportunities for investment both from the industry and businesses that rely on high-tech telecommunications, proponents of a rewrite say. And more investment means more jobs and more revenue for the state.
“How you resolve [the state’s budget crisis] is certainly paramount on everybody's mind,” said Jeff Mays, president of the Illinois Business Roundtable. “That's another reason that this should happen. This doesn't require the public sector to spend anything, and it also puts out a very strong message ... [It] puts the state out there that we want innovation, we want investment, we want to grow jobs in these areas.”
Paul La Schiazza, president of AT&T of Illinois, one of the major forces behind the call for a rewrite, said that 20 of the 22 states the company serves have already updated their telecommunications laws and that Illinois should do the same.
“[The 1985 law] focused, rightfully so at the time, on opening up markets to competition. It focused on breaking vestiges of a monopoly and providing choice to consumers,” La Schiazza said, adding that it was then “the most forward-thinking” telecommunications law in the nation.
But the world of telecommunications has changed dramatically since then, and competition is now robust, La Schiazza said. He cited AT&T’s decreased market share – from more than 91 percent in 2000 to its current share of 48 percent – in wire line phone service. Its share of emerging technology services is even lower, La Schiazza said.
“This is just a demonstration of the choice that consumers have in all segments of the market,” La Schiazza said. “To those who might say, ‘This is a risky proposition’ … the risk has already been taken out of the question. I believe the time is now. I believe we should stop losing jobs to neighboring states.”
But AARP Illinois says AT&T’s share of basic telecommunications services, those that the elderly and low-income populations are more reliant on than others, is still highly noncompetitive, and some areas only have a choice between the standard local telephone service and a cable service.
AT&T representatives said the Illinois Commerce Commission has twice declared the company’s landline services competitive. But AARP’s Mary Patton said the rewrite proposal’s definition of competitive – important because the state applies price protection measures where competition does not exist – sets the bar too low.
She said the bill would reduce the authority of the Illinois Commerce Commission, which currently regulates basic telecommunications services, and eliminate some reporting requirements she feels are necessary because telecommunications is one of the most complained-about services to consumer advocacy groups.
“The level of regulation and consumer protection must be appropriate to the actual level of competition in the market, including appropriate consumer protection to address … insufficient competition,” Patton said.
Other concerns from various stakeholders include:
- Preservation of quality standards for basic, copper line service, which according to the Illinois attorney general’s office is still desired by 40 percent of Illinoisans
- Continued maintenance of payphone networks which emergency responders often rely upon.
- Rural access.
- Guarantees that a rewrite will actually result in increased investment, or jobs, in Illinois.
Wednesday, February 17, 2010
Telecommunications rewrite on the horizon
By Rachel Wells
Rebuild the state’s Telecommunications Act and new jobs will follow, one industry group predicts.
The Illinois Technology Partnership, a coalition of business, technology and telecommunications organizations, today called on the General Assembly to modernize the regulatory legislation. The Act was first drafted in 1985 and updated in subsequent years but not enough to keep pace with new technologies according to the partnership.
“Since that time significant advancement in technology has been made, but the legislation is still focused on the regulatory climate in 1985,” said Lindsay Mosher, ITP executive director. “The act is focused on copper line and wire line technologies when the rest of the world has moved over to fiber optic and mobile.”
Mosher, who was backed by the Illinois Chamber of Commerce and several technology-based businesses, said new companies are passing over Illinois in favor of states such as Indiana and Ohio, which have already addressed their telecommunications frameworks.
Mosher wouldn’t specify what changes she thinks are needed to modernize the act.
Sen. Michael Bond, a Grayslake Democrat who heads the Telecommunications and Technology Committee, agreed the act needs updated.
“That is a top priority this session,” Bond said. “If you look at the current telecom act, it’s really a mid-80s sort of act.” He added that technology these days – cellular phones and Internet-based phone service, for instance – can be unrecognizable from that available more than 20 years ago.
Bond said conversations with interested parties – such as cable, wireless and traditional technology companies – will start next week, and he hopes to push a few related bills through the legislature this spring. What exactly that legislation will include is still an unknown, but he said it will require balancing the interests of both the telecommunications industry and consumers.
Bond expects much of the early conversation with industry representatives to focus on free-market strategies, while dialogue with consumer groups will likely center on vulnerable populations – those without ready access to high-speed wireless Internet and those, like the elderly, who are unlikely to switch to newer technologies.
Rebuild the state’s Telecommunications Act and new jobs will follow, one industry group predicts.
The Illinois Technology Partnership, a coalition of business, technology and telecommunications organizations, today called on the General Assembly to modernize the regulatory legislation. The Act was first drafted in 1985 and updated in subsequent years but not enough to keep pace with new technologies according to the partnership.
“Since that time significant advancement in technology has been made, but the legislation is still focused on the regulatory climate in 1985,” said Lindsay Mosher, ITP executive director. “The act is focused on copper line and wire line technologies when the rest of the world has moved over to fiber optic and mobile.”
Mosher, who was backed by the Illinois Chamber of Commerce and several technology-based businesses, said new companies are passing over Illinois in favor of states such as Indiana and Ohio, which have already addressed their telecommunications frameworks.
Mosher wouldn’t specify what changes she thinks are needed to modernize the act.
Sen. Michael Bond, a Grayslake Democrat who heads the Telecommunications and Technology Committee, agreed the act needs updated.
“That is a top priority this session,” Bond said. “If you look at the current telecom act, it’s really a mid-80s sort of act.” He added that technology these days – cellular phones and Internet-based phone service, for instance – can be unrecognizable from that available more than 20 years ago.
Bond said conversations with interested parties – such as cable, wireless and traditional technology companies – will start next week, and he hopes to push a few related bills through the legislature this spring. What exactly that legislation will include is still an unknown, but he said it will require balancing the interests of both the telecommunications industry and consumers.
Bond expects much of the early conversation with industry representatives to focus on free-market strategies, while dialogue with consumer groups will likely center on vulnerable populations – those without ready access to high-speed wireless Internet and those, like the elderly, who are unlikely to switch to newer technologies.
Wednesday, October 24, 2007
Video competition: Phone vs. Cable
The phone giant AT&T officially can compete with cable companies on a statewide level to offer high-tech video services to customers. But that doesn’t guarantee the company will build out those services in all areas of the state any time soon. See Crain’s Chicago Business story here.
This comes after the Illinois General Assembly approved changes to state law in May. The new state law allows such phone companies as AT&T and Verizon to offer video services anywhere in the state without having to go through each individual municipality as cable companies previously had to do.
Three of four members on the Illinois Commerce Commission, a state panel, voted Wednesday to approve AT&T’s application to provide the video services (the fourth commissioner was absent). But the law stops short of giving the commission the ability to regulate what happens after the application is approved, says Beth Bosch, commission spokeswoman.
The measure originally sparked controversy but was rewritten with consumer protections that allowed the bill to win near-unanimous support in the Illinois House and Senate. Among the biggest changes is the requirement for video service providers to extend a certain percentage of their services to low-income neighborhoods within three years of earning the so-called statewide video franchise.
The new law expires in six years, meaning the General Assembly will have five years to evaluate whether it actually creates competition as touted. The law does bring Illinois in line with Indiana, which approved a statewide video franchise in March 2006.
For more background, check out my previous telecom blogs, and for a lot more context and potential outlook, see my May 2006 article, “A playbook for competition.”
This comes after the Illinois General Assembly approved changes to state law in May. The new state law allows such phone companies as AT&T and Verizon to offer video services anywhere in the state without having to go through each individual municipality as cable companies previously had to do.
Three of four members on the Illinois Commerce Commission, a state panel, voted Wednesday to approve AT&T’s application to provide the video services (the fourth commissioner was absent). But the law stops short of giving the commission the ability to regulate what happens after the application is approved, says Beth Bosch, commission spokeswoman.
The measure originally sparked controversy but was rewritten with consumer protections that allowed the bill to win near-unanimous support in the Illinois House and Senate. Among the biggest changes is the requirement for video service providers to extend a certain percentage of their services to low-income neighborhoods within three years of earning the so-called statewide video franchise.
The new law expires in six years, meaning the General Assembly will have five years to evaluate whether it actually creates competition as touted. The law does bring Illinois in line with Indiana, which approved a statewide video franchise in March 2006.
For more background, check out my previous telecom blogs, and for a lot more context and potential outlook, see my May 2006 article, “A playbook for competition.”
Thursday, May 31, 2007
Overtime
Plan to work into June, said House Speaker Michael Madigan at 7:20 p.m., less than five hours before the constitutional deadline to wrap up the regular spring session. He just told lawmakers that the House would work Friday, leave for an early weekend and pick up Tuesday, June 5. Gov. Rod Blagojevich could still call a special session any minute given that neither chamber has advanced a state budget to his desk. I had an idea lawmakers conceded to an overtime session because no one seemed pressured by a deadline Thursday. While late committees are scheduled and could bring up gaming, shoulders are shrugging about what could happen before the midnight deadline. We’ll keep you posted.
Video competition?
The telecommunications measure allowing cable and phone companies to compete in providing video services slid through the House Thursday night without the controversy that held it in limbo all session. Months of negotiations paid off for Rep. James Brosnahan, the Evergreen Park Democrat whose measure won unanimous support with two lawmakers voting present.
The proposal would allow phone companies, AT&T and Verizon being two of the major forces, to get Illinois Commerce Commission approval to offer video services anywhere throughout the state without having to go to each individual municipality as cable companies have to do right now.
The bill started with lots of opposition from the cable industry, municipalities, public access channels and consumer advocate groups that feared loss of local control, erosion of customer service standards and “cherry picking” in affluent communities rather than offering the video services to low-income areas. Stalled for months in a House committee, the bill was rewritten by the Illinois attorney general’s office. It now requires the video service providers to extend a certain percentage of their services to low-income communities within three years of earning the so-called statewide video franchise. It also empowers local governments to decide where the video provider could construct rather large utility boxes around neighborhoods, a former point of contention. And the state attorney general would have the power to enforce consumer protection standards and investigate violations.
At risk of sounding too good to be true, Brosnahan said on the House floor that the measure would lay the policy needed to spur competition that would drive down prices. And AT&T has committed to investing $750 million and creating 2,000 union jobs in spreading its video services around the state.
One of the concerns left unaddressed, according to lawmakers who spoke on the floor, was that constituents needed to know that even if Brosnahan’s bill became law, it wouldn’t guarantee competition or availability of the high-tech video services in their areas. If approved by the Senate as expected and if signed by the governor, the plan would be immediately effective and sunset six years later. That would allow the General Assembly could reevaluate if the policy succeeded in creating competition, Brosnahan said. We’ll include more reaction from the cable industry as we get it.
Video competition?
The telecommunications measure allowing cable and phone companies to compete in providing video services slid through the House Thursday night without the controversy that held it in limbo all session. Months of negotiations paid off for Rep. James Brosnahan, the Evergreen Park Democrat whose measure won unanimous support with two lawmakers voting present.
The proposal would allow phone companies, AT&T and Verizon being two of the major forces, to get Illinois Commerce Commission approval to offer video services anywhere throughout the state without having to go to each individual municipality as cable companies have to do right now.
The bill started with lots of opposition from the cable industry, municipalities, public access channels and consumer advocate groups that feared loss of local control, erosion of customer service standards and “cherry picking” in affluent communities rather than offering the video services to low-income areas. Stalled for months in a House committee, the bill was rewritten by the Illinois attorney general’s office. It now requires the video service providers to extend a certain percentage of their services to low-income communities within three years of earning the so-called statewide video franchise. It also empowers local governments to decide where the video provider could construct rather large utility boxes around neighborhoods, a former point of contention. And the state attorney general would have the power to enforce consumer protection standards and investigate violations.
At risk of sounding too good to be true, Brosnahan said on the House floor that the measure would lay the policy needed to spur competition that would drive down prices. And AT&T has committed to investing $750 million and creating 2,000 union jobs in spreading its video services around the state.
One of the concerns left unaddressed, according to lawmakers who spoke on the floor, was that constituents needed to know that even if Brosnahan’s bill became law, it wouldn’t guarantee competition or availability of the high-tech video services in their areas. If approved by the Senate as expected and if signed by the governor, the plan would be immediately effective and sunset six years later. That would allow the General Assembly could reevaluate if the policy succeeded in creating competition, Brosnahan said. We’ll include more reaction from the cable industry as we get it.
Tuesday, May 29, 2007
Stay tuned on cable bill
A measure posing AT&T against local cable and telephone companies could come to light soon in a House committee, where it’s been stalled for more than a month. The House Telecommunications Committee met Tuesday morning but recessed to “the call of the chair,” allowing sponsor Rep. James Brosnahan, an Evergreen Park Democrat, to reconvene the committee as soon as the compromise language is ready to go. He said he hopes that would happen in the next two days.
Then again, the urgency of state budget negotiations between Gov. Rod Blagojevich and the top Democratic leaders could delay Brosnahan’s proposal into the fall veto session, says Gary Mack, lobbyist for the Cable Television and Communications Association that opposes the measure.
The proposal would basically allow such telephone companies as AT&T and Verizon to compete with cable providers that have enjoyed a monopoly in providing high-tech video services. AT&T wants to change the way video providers get authorization to build a video franchise using broadband, fiber optics and Internet protocol technology to supply those services. AT&T can do that right now, but it would have to do the same as cable companies and go through individual municipalities to get approval to provide the service. Brosnahan’s measure would allow providers to get a statewide video franchise through the Illinois Commerce Commission instead. But the original language in his measure limits the commission’s power to approving or denying applications to provide the service, so it stops short of giving the commission the ability to regulate what happens after that, says Jim Zolnierek of the commerce commission.
Attorney General Lisa Madigan wants the commission to have more regulatory power. Her office joins other opponents — cable providers, public access channels and consumer advocates — in arguing that the legislation opens the door for a deregulated industry and doesn’t adequately protect local control, public access channels or customer service standards.
Supporters say the proposal would boost competition and benefit consumers by giving them more choice. Stay tuned. A revised telecom bill could drop back into committee at any time.
Then again, the urgency of state budget negotiations between Gov. Rod Blagojevich and the top Democratic leaders could delay Brosnahan’s proposal into the fall veto session, says Gary Mack, lobbyist for the Cable Television and Communications Association that opposes the measure.
The proposal would basically allow such telephone companies as AT&T and Verizon to compete with cable providers that have enjoyed a monopoly in providing high-tech video services. AT&T wants to change the way video providers get authorization to build a video franchise using broadband, fiber optics and Internet protocol technology to supply those services. AT&T can do that right now, but it would have to do the same as cable companies and go through individual municipalities to get approval to provide the service. Brosnahan’s measure would allow providers to get a statewide video franchise through the Illinois Commerce Commission instead. But the original language in his measure limits the commission’s power to approving or denying applications to provide the service, so it stops short of giving the commission the ability to regulate what happens after that, says Jim Zolnierek of the commerce commission.
Attorney General Lisa Madigan wants the commission to have more regulatory power. Her office joins other opponents — cable providers, public access channels and consumer advocates — in arguing that the legislation opens the door for a deregulated industry and doesn’t adequately protect local control, public access channels or customer service standards.
Supporters say the proposal would boost competition and benefit consumers by giving them more choice. Stay tuned. A revised telecom bill could drop back into committee at any time.
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