Some observers do worry that a growing wave of deregulation regarding universal service obligations on dominant telcos is going to be bad for consumers. In Kentucky, for example, Senate bill SB88 repeals statewide service obligations on incumbent telcos regarding landline services, which formerly had to be provided statewide.
Under provisions of the new bill, incumbents must continue providing basic local exchange services to residences where those residence currently exist, and when such residences are located in areas with less than 5000 housing units.
Incumbents do not have to provide basic local exchange services when the carrier offers an alternative telephone service, when there are at least two providers offering telephone services in the area or when there is at least one provider of broadband service that is capable of delivering telephone service.
It might not be coincidental that AT&T has announced it now will spend between $600 and $800 million during 2013 to 2015 to support its current network capabilities and expand access to broadband services in Kentucky.
Perhaps observers should not worry so much. There appear to be no shortage of third party, independent service providers more than happy to compete for customers in Kentucky and elsewhere.
If the fear is that AT&T will withdraw from some markets, that only increases the market opportunity for other providers eager to fill the gap. One only has to spend time with wireless ISPs to understand that.
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