By Wailin Wong and Monique Garcia | State
legislators approved Thursday a revised version of the Illinois
Telecommunications Act that is designed to bring regulations up to date
with broadband and mobile phone technology.

The Senate passed the bill with a unanimous 59-0 vote after sailing
through the House with a 118-0 vote on Wednesday. The legislation now
goes to the governor’s desk.

The revamped bill frees up legacy landline providers such as AT&T from certain regulations that the industry had deemed overly restrictive and outdated in light of current technological trends. AT&T said the old framework obligated the company to invest in fading landline services instead of pouring resources into wireless and broadband technology. Supporters also said the overhauled legislation would spur additional investment in new technology from other companies, increasing the amount of competition among service providers.

The old law dates to 1985 and was last updated in 2001. It was scheduled to expire at the end of June.

Both Democrats and Republicans praised the plan as one that would create jobs while also protecting consumers.

“This reform allows competition and choice to drive the marketplace for telecommunications,” said sponsoring Sen. Michael Bond, D-Grayslake. “Companies will be able to invest in the infrastructure and technology that best create value in the market place.”
 
As a nod to consumer advocacy groups that voiced concerns about preserving service quality standards for landline customers, the bill freezes three “Consumer’s Choice” rate packages for AT&T subscribers. The price freezes on these basic plans would otherwise have expired next year. In addition, the new telecom bill lowers the price of the Consumer’s Choice Extra plan, which covers unlimited local calls, by $1.00
These moves did not fully placate critics.

“Deregulation of telephone service is bad policy for Illinois consumers,” Robert Gallo, state director for AARP Illinois, said in a statement last week opposing the legislation. He noted that older adults, particularly over 65, rely on basic landline service for emergencies and keeping in touch.

Although the legislation preserves the Consumer’s Choice packages, “there’s little guarantee that customers will be offered these low-cost options, in the wake of higher rates,” Gallo said.

Legislators, however, touted the bill’s potential for investment and creating jobs.

“This is a forward looking advancement for Illinois job creators and by extension and more importantly for the Illinoisans, our constituents, they put to work,” said Sen. Matt Murphy, R-Palatine. “This bill makes a positive difference for the people we represent. This bill keeps people employed in this state, this bill increases the likelihood that we’ll drive down that 11.5 percent unemployment rate moving forward.”