The FCC and the state public utilities commissions continue to apply 19th century rules to the 21st century communications industry, said Walter B. McCormick, President of the U.S. Telecommunications Association, speaking at the opening of his organization’s annual conference. McCormick observed that even as competition has grown, the scope of economic regulations have increased — a situation that he argues is more befitting of the old Soviet Union central planning committees. The USTA is promoting a vision of a competitive communications marketplace governed less by “the heavy hand of regulators and more by the choices of consumers and the business decisions of individual companies.” Allowing the free market to evolve without this heavy hand, said McCormick, would result in $50 billion in new industry investment and create 1.2 million new jobs over the next 4 years without spending tax payer money.
In his view, the role of the government should be to ensure that policies are non-discriminatory across platforms, to ensure a “pro-investment” climate, and to ensure universal service — although in this area too he saw substantial need for reform. McCormick cited a list of telecom companies who are pursuing the “triple play” of voice, video and data services as evidence that the telecom industry is positioning itself for the future. In the long run, he believes technology convergence plays to the strength of local phone companies.
USTA Outgoing Chair Margaret Greene, President of Regulatory and External Affairs at BellSouth, was quick to warn, however, that the forward progress of technological innovation absent a corresponding modernization of the rules that govern the marketplace could be a significant destabilizing force. One such threat is Skype, the recently launched, free VoIP service from the developers of Kazaa, that was highlighted in an article from Sunday’s edition of The New York Times. Some 1.3 million people have downloaded Skype so far.
The USTA Telecom 03 conference is roughly twice the size as last year and exhibit space was sold out.
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- Brian H. Strom is the incoming Chair of the United States Telecom Association. Strom also serves as President and CEO of SureWest Communications.
