ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, February 7, 1996 TAG: 9602070033
SECTION: EDITORIAL PAGE: A-6 EDITION: METRO
CONSUMERS will have to take something of a leap of faith to hail the long-overdue overhaul of America's telecommunications laws. But in the long run, they can expect to benefit greatly from the spread of innovative technologies at competitive prices.
There are no built-in guarantees. But that's the way with market forces, which now will more freely drive the direction of the promised telecommunications revolution. Indeed, the greatest flaw in the bill passed last week is one place where it adds regulation, in attempting to censor the Internet.
What to expect? The bill, which President Clinton has promised to sign, will throw local and long-distance phone companies, cable TV companies and possibly even electric utilities into a free-for-all competition for customers of telephone, video and high-speed data communications services.
Long-distance rates probably will continue dropping and, if competition emerges, some local phone service may cost less. Consumer groups predict that ending government price controls on cable will mean higher rates. Local phone service charges also might go up in markets where there is little or no competition.
Most cable rate controls, however, will continue for three years - time, in theory at least, for competitors to challenge cable monopolies and create market price controls. Those competitors aren't likely to be other cable companies, either, but satellite broadcasters and telephone companies.
With no barriers protecting any telecommunications field, competition is free to come from any direction, some never imagined when the old telecommunications laws were written more than half a century ago.
Small communities with relatively few customers may never see a second phone company challenging the local service. But then, voice communication by computer might provide the competition that keeps prices under control - or makes today's push-button phones as obsolete as the old hand-crank models.
Meantime, the day when technology will combine all or most of the formerly differentiated fixtures of television, telephone, stereo, video, cable, satellite, computers, information networks and newspapers - not to mention home security and at-home shopping - draws ever nearer, with yet no indication as to which industries or new enterprises might end up selling the things.
Revolutions are chaotic and tend to take unexpected directions. This one will be no different. But telecommunications laws that impeded change have been swept aside, and that's good.
LENGTH: Short : 50 linesby CNB