Senate sends AT&T bill to governor’s desk By RONNIE ELLIS CNHI News Service The Independent Online

FRANKFORT The State Senate gave final passage Monday to a bill that will allow telecommunications companies to drop basic landline service to some customers despite pleas from rural areas and consumer advocates.

The so-called “AT&T bill” passed the Senate 30-3 after a four-year effort by Sen. Paul Hornback, R-Shelbyville, though in this case the bill sent to Gov. Steve Beshear was actually sponsored by Rep. Rick Rand, D-Bedford.

Telecommunications companies, led by AT&T and its Kentucky division president Hood Harris, say deregulating the industry will allow companies to invest in modern and emerging telecommunications technologies such as broadband and wireless communications.

The bill prevents companies from dropping landline service in exchanges of less than 15,000 – but customers in those areas may not be guaranteed landline service if they move or drop land line service and subsequently want it back. There is a provision that gives consumers 60 days to ask for basic service to be restored after switching.

Hornback has led the effort to pass the measure for the past four years and he filed Senate Bill 3 this year to deregulate the industry. But he said Monday when explaining Rand’s bill, which passed the House last week, that he worked out an agreement with Rand and the House to pass the measure and so held off on his own bill.

The bill was opposed by consumer groups and the Kentucky Resource Council’s Tom Fitzgerald, who fear the newer wireless technologies aren’t as reliable as basic landline service. They point out that cell service is difficult in some rural regions, especially in parts of the mountainous eastern Kentucky region. Cell phones are also less reliably located by 911 emergency services they say.

Countering that argument, Hornback and AT&T’s Harris, said Monday during a committee meeting that such deregulated markets already exist in 17 states without problems and the move will allow communications companies to invest more in broadband and Internet services.

Hornback said Kentucky’s lagging behind other states in such services is hindering business recruitment and development.

The bill will now go to Beshear who has said he will sign it.

Previously, the measure ran into stiff opposition in the House, especially from rural and eastern Kentucky lawmakers. But with the changes this year, restricting the deregulation to exchanges of more than 15,000, the bill easily passed the House.

For decades, major telephone companies enjoyed monopoly status as a public utility but in exchange they were deemed “carriers of last resort,” requiring them to provide basic services to residential customers.

But with the advancement of Internet and wireless technology, the companies complain those services require resources that are needed to reinvest in technology and services demanded by consumers – including those in rural areas.

Voting against the bill were Democrats Robin Webb of Grayson and Denise Harper-Angel of Louisville and Republican Albert Robinson of London.

Webb said the bill is simply a deregulation bill for a company that has done “quite well” and removes consumer safeguards.

Robinson worked both sides of the issue, saying he thinks it’s a good bill but his constituents oppose it.

RONNIE ELLIS writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort .