TRENTON — Most of the state’s regulation of basic cable and land line telephone service would come to an end under a controversial bill that passed the state Assembly on Thursday. Supporters of the "Market Competition and Consumer Choice Act" (A3766) say it removes outdated rules that go back to the era of Ma Bell. But Stefanie Brand, the...
Assemblyman Jon Bramnick (R-Union), a sponsor of the Market Competition and Consumer Choice Act.TRENTON — Most of the state’s regulation of basic cable and land line telephone service would come to an end under a controversial bill that passed the state Assembly on Thursday.
Supporters of the "Market Competition and Consumer Choice Act" (A3766) say it removes outdated rules that go back to the era of Ma Bell.
But Stefanie Brand, the state ratepayer advocate, said in a letter to lawmakers that it would leave New Jersey residents "at the mercy of cable and telephone companies."
And local officials are complaining it allows Verizon to go back on pledges it made to towns in exchange for getting a statewide franchise in 2006 so that it would not have to negotiate town-by-town to offer its FiOS service.
Currently, companies offering basic telephone and land line services have to get the okay from the Board of Public Utilities before they can raise rates. The bill, which passed 66-7 with four abstentions, would eliminate that oversight.
It would also roll back rules requiring cable companies to give credits to customers whose service is out for more than four hours, correct billing errors and protect customers from "slamming," in which their telephone company for local or long distance service is switched without their permission.
"This is a competition bill," said Assembly Majority Leader Joseph Cryan (D-Union), a sponsor. "The telecommunications industry is one of the industries we can point to where deregulation actually works."
Another sponsor, Assemblyman Jon Bramnick (R-Union), called the current rules "archaic micromanagement" of an industry that has gone through a major change since they were put in place.
But Brand, the ratepayer advocate, said the 3 million households that have the most basic form of cable and 1.4 million with telephone service would be affected. "Those are the services that the poor segments or our population would tend to have," she said.
Verizon New Jersey President Dennis Bone said his company will still have to provide low-income residents with deeply discounted phone lines under the state’s Lifeline program.
"These regulations were put on us back in 1911, one hundred years ago this year. What their arguments completely dismiss is this industry has changed inside and out. That this is a competitive industry," he said.
The League of Municipalities opposes the bill because it rolls back some of the things Verizon guaranteed towns in 2006, when it won its statewide franchise. League Executive Director Bill Dressel said it "unduly restricts" cable companies’ obligations to provide free internet access for municipal and school buildings. The bill now advances to the state Senate.
Previous coverage:
• N.J. Assembly passes bill to deregulate telecommunications industry
• N.J. Senate panel clears bill that decreases regulations on telecommunications companies