NC Lawmakers May End Local Phone Company Oversight

EMERY P. DALESIO

RALEIGH, N.C. (AP) — The North Carolina House decided to free local telephone service providers from state regulation that for decades made sure the companies justified their prices, responded to consumer complaints and maintained service standards.

The House on Wednesday voted 102-11 to allow 16 providers that cover the state to cut loose from state Utilities Commission conditions setting the rates, terms, and quality of their landline services.

Supporters said the phone companies need price deregulation because their former monopoly positions have been eroded under competition from wireless, Internet and cable television companies that are not regulated.

"It ensures that all (companies) are playing by the same set of rules," said Rep. Hugh Holliman, D-Davidson.

Market competition, not state oversight, would pressure big companies like AT&T Inc. and Embarq Corp. and small companies like Ellerbe Telephone Co. and Pineville Telephone Co. to keep prices low and quality high, supporters said.

Opponents said while it was clear how companies benefited, it wasn't clear what consumers got from the bargain.