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Illinois 31st State Senate District
Legislature Advances Rewrite of Telecommunications Act
Bond spearheads effort to modernize telecommunications industry in Illinois
SPRINGFIELD, IL— State Sen. Michael Bond (D-Grayslake) and members of the Senate voted today to send an overhaul of the existing Telecommunications Act to Governor Quinn for his approval. The modernization of the Act will promote competition among telephone carriers, spurring job creation and economic growth throughout the state.
The previous Act was written in 1985 and focuses on wire-line residential telephone service, as it was the standard at that time. Senate Bill 107 levels the playing field for telephone carriers and changes the emphasis to the more modern technologies of wireless and broadband. Under Bond’s proposal, telephone carriers can opt-in to a new form of regulation, at which point they are considered "Electing Providers". The money freed up from the new regulation standards will allow the carriers to invest in broadband and other technologies, creating many jobs in the process and updating the state’s existing infrastructure.
"This legislation is the key to opening up investment in the telecommunications industry in Illinois," Bond said. "By modernizing our system, we are showing providers that we are worthy of their investment. Telecommunications has become a leading industry for job growth in recent years and this bill will help us gain a significant advantage over neighboring states."
Important consumer protection clauses are built into the legislation and create a regulatory framework that provides certainty in telephone services. These measures ensure that consumers do not face severe increases to their existing service. The "Safe Harbor" packages are designed to protect consumers who rely solely on landline service for communication. These packages range from 30 calls a month, to unlimited calls with additional features. All three plans will cost consumers less than $20 a month. These rates are guaranteed for the full-term of the newly crafted Act. Lawmakers will revisit the Act in three years to ensure that it is reflective of the current technology.
"Protecting Illinois consumers who use landline telephones was a top priority during the negotiation of this legislation," Bond said. "With the advice and consent of the Attorney General’s office, we have developed affordable and reasonable service packages for all citizens of Illinois. These rates are locked-in for the next three years, until we revisit the Telecommunications Act again."
Additional consumer protection safeguards include service quality requirements. If these requirements are not met, consumers will be given financials credits to offset any delays or interruptions of services. The Illinois Commerce Commission maintains authority to impose penalties on providers who do not comply with these requirements.
"The bill was crafted in a manner that strikes an important balance between market competition and consumer protection," Bond said. "It is a winning solution for innovation in industry, and job growth. We know that for every billion dollars in telecom investment, we see a return of one-hundred thousand jobs. This is an important step in reducing unemployment and ensuring a successful future in the telecommunications industry."
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