MUNCIE, Ind. — The last decade has seen a wave of changes to telecommunications regulations across the country, providing broadband access to millions of new customers, says a new report from Ball State University.

“Telecommunications Deregulation: A Policy Program Report by Ball State’s Digital Policy Institute (DPI) found that about half of the states have revised telecommunications.

These changes include adjustments to pricing regulations, changes in the flexibility of pricing, authorization of statewide franchising of cable access television and deregulation of alternative services of broadband such as wireless and voice over Internet protocol (VoIP).

“From this early analysis, it is clear that the states that have endorsed policy changes are seeing real results — more subscribers, better coverage and more choice,” said Michael Hicks , a DPI member and director of Ball State’s Center for Business and Economic Research (CBER). He co-authored the study with fellow DPI member Cecil Bohanon an economics professor.

Indiana lawmakers used DPI’s research in 2006 when they approved comprehensive telecommunication deregulation legislation (HEA 1279), considered the template for other states to follow. DPI also has provided research on deregulation to lawmakers in Illinois, Michigan, Ohio and Texas.

The latest DPI study points out that allowing telecommunication firms to provide services statewide, rather by municipality, created millions of dollars in investment in new technologies for cable television, telephone services and Internet access.

Across the country, advocates for statewide franchising generally have been large telecommunications firms wishing to offer cable television and other services across an entire state. Opponents have included existing local cable providers.

The study found that permitting statewide franchising increased new subscribers by 6 percent or about 5.1 million across the nation, including 1.5 million in California, 450,000 in Florida, 400,000 in New Jersey, and about 300,000 each in Michigan, North Carolina and Virginia.

Bohanon said that as a result of deregulation, new telecommunications firms have increasingly offered bundled broadband services, blurring the lines among cable, phone and Internet providers.

“This deregulation effectively was a recognition of technological changes that permitted a wide variety of access technologies for cable television,” he said. “The primary benefit of statewide franchise reform was the expansion of opportunity and competition within the realm of video and cable services.”
Source: Ball State University