Competition for telecom providers (new law)

Telecommunications customers in Greater Minnesota, where technology needs are growing and capacity expansion is seen as an important factor in economic development, may now benefit from more competition that includes regional companies.

A new law eliminates what many regional and mid-sized telephone and telecommunications companies consider outdated regulations affecting their ability to compete with larger companies. The law, signed by Gov. Tim Pawlenty May 11 and effective the next day, is sponsored by Rep. Al Juhnke (DFL-Willmar) and Sen. Dan Sparks (DFL-Austin).

The modified regulations include:

• expanding the definition of a competitive area for four-line business phone lines, formerly limited to an exchange in the Twin Cities metropolitan area, St. Cloud or Duluth, to include all of Minnesota;

• regulating telecommunications carriers in the same way as telephone companies with respect to promotions and bundled services, such as removing 90-day and nine-month limits on some aspects of promotions; and

• eliminating tariff rules that no longer serve the industry or its customers.

The regional telecommunications industry says the law is a positive step that eliminates “artificial constraints” on promotional practices and provides flexibility to telecommunications companies while leaving consumer protections against predatory pricing in place.

“I come from an old-fashioned traditional phone company which has adapted to a fast-paced competitive environment,” HickoryTech Regulatory Affairs Manager Carrie Rice said during a committee hearing.

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