Governor Jeb Bush of Florida

CU asks Gov. Bush to veto anti-consumer phone bill in Florida (May 2003).

TALLAHASSEE, FL -- Consumers Union is urging Gov. Jeb Bush to veto a bill approved by the Florida legislature that would as much as double residential local telephone rates in Florida while lowering service quality standards.

Consumers Union opposes the measure -- SB 654 -- along with AARP and other Florida consumer groups. Most major newspapers have editorialized against it. A similar bill passed in 2002 — an election year — but was vetoed by Bush. This time around, millions of dollars in campaign contributions by the telecom industry have poured in — along with about 200 lobbyists — making the odds to stop the measure even more formidable, according to newspaper accounts..

In a May 5 letter to Bush, CU senior policy analyst Janee Briesemeister said: "Only a veto will show you are listening to consumers who are telling you they cannot afford hefty increases in monthly phone bills and don't want more deregulation of phone service."

Bush has been quoted in the news media in support of the legislation, stating that it gives the Florida Public Service Commission authority over rate increases and that the bill will ultimately make the telephone market more competitive. But CU strongly disagrees that the bill accomplishes either goal.

"PSC authority under this bill is a façade," Briesemeister wrote. "Contrary to assertions that the PSC will have power to make determinations over rates, the bill specifically prohibits the agency from doing anything more than checking the phone companies' math. The PSC's role under SB 654 is not to protect consumers, it is to protect the phone companies by ensuring that all reductions in access charges are fully offset by increases in prices of residential and small business phone service."

Bill supporters claim that higher local phone rates will bring in competitors to the state. But Briesemeister noted the logic is twisted, saying such arguments boil down to "consumers must pay so competitors will play. High prices help corporations, not competition, particularly as more and more consolidation in the telecommunications industry means fewer and fewer choices for consumers."

The bill is flawed on other counts as well, including quality of service considerations. While billing problems comprise a significant portion of consumer complaints against long distance companies in Florida, the new law would make it harder for the PSC to adopt and enforce fair practices. In addition, at the very same time other states are taking steps to increase consumer rights and improve service quality in the telecommunications market, SB 654 includes provisions to eliminate the current quality of service standards for incumbent local exchange companies.

Finally, SB 654 does nothing new to help low income consumers weather higher phone bills. The expansions of Lifeline eligibility in the bill are marginal at best.

"No mere promise of competition will offset the all too real hit in the pocketbook as local phone rates skyrocket," Briesemeister said.