Editorial

PHONE COMPETITION

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After five years of intense debate and wrangling, both behind the scenes and through broadcast ads, a bill to bring competition to the telecommunications industry has passed the Missouri Senate and appears likely to become law. Senate Bill 507, which is in the House for consideration, is a compromise worked out between sponsor Wayne Goode, D-Normandy, and other lawmakers, state regulators and telephone and cable companies. Goode says the bill will bring competition among the phone companies in the local service market, plus companies providing cable and computer data services.

Senate passage comes on the heels of landmark federal legislation passed earlier this year that permits local phone companies such as Southwestern Bell to enter the long-distance markets from which they have been barred since the 1984 breakup of the old AT&T monopoly. Likewise, long-distance carriers such as AT&T will be permitted entry into the local markets that have been the exclusive domain of the Baby Bells.

Since 1984, Americans have benefited greatly from the intense competition resulting from deregulation of long-distance service. Rates have fallen dramatically. New carriers such as MCI and Sprint have arisen, and new fortunes have been made. If Sen. Goode's bill is as good as most observers say it is, then Missourians could be on the verge of taking a huge step into the exciting frontiers of the Information Age. Other states such as Michigan and Illinois have already acted. House members should scrutinize the bill closely, improve it if possible, but act on the measure. This may be our best opportunity to begin reaping the benefits of competition in the local telecommunications marketplace.