BELL LONG DISTANCE WOULD LOWER RATES, ADD SERVICE

Have you ever wondered why computers become more advanced and more affordable every day, but cable television and long-distance telephone service prices continue to rise? The answer: The computer industry has something that cable TV and telephone markets don't: Full competition.

While the booming computer industry is one of America's least regulated, communications is one of America's most. The industry -- which includes cable TV and local and long-distance telephone service -- is ensnared in a maze of government regulations left over from the days when radio was the cutting edge of high tech. These regulations result in inflated costs to consumers and needless delays in technical innovation.

It's time to cut communications loose from federal micromanagement. Current regulations that prevent local, long-distance and cable companies from competing with each other are clearly outdated. Freed from outmoded regulations, this multibillion-dollar industry could easily be performing more like the computer industry, adding millions more jobs and billions more dollars to our economy while lowering rates to consumers.

The WEFA Group, a well-respected economic forecasting firm, recently released an in-depth study that outlines in detail what is at stake. The study found that if full competition were begun in telecommunications immediately, the economy would gain 3.4 million jobs over the next 10 years and $1.8 trillion more real Gross Domestic Product. That translates into an average growth in disposable income of $850 for each household in the United States.

Consumers would reap dramatic benefits too, saving $333 billion in lower long-distance rates by 2005, $78 billion in lower cable rates and $32 billion in lower local phone rates.

Fortunately, we now have the best chance in more than half a century to reform our communications laws. The new Republican majority in Congress is committed to boosting the economy by cutting red tape and letting the marketplace work. Leaders in both houses have made communications reform a priority.

The WEFA study outlines how important it is for Congress to keep focused on full, immediate competition. WEFA's figures show that for each year full competition in communications is delayed, the economy misses out on up to 500,000 jobs; consumers have to pay an average of $55 billion a year more in higher phone, cable and other telecommunications rates; and delays in the deployment of new services alone costs the economy more than $110 billion each year.

These economic benefits may be just around the corner. The Senate Commerce Committee just passed a bill that moves in the right direction by chipping away at existing regulations. Both the House and the Senate are scheduled to take up the issue. Clearly, telecommunication reform is on the top of the agenda.

However, the long-distance telephone giants are digging in their heels against full competition, arguing that entry into the long-distance market by the local Bell companies should be delayed. By keeping the local Bell telephone companies out of long distance, the rules help guarantee that AT&T, MCI and Sprint will continue to control almost 90 percent of the long-distance market. This market dominance allows the Big Three to raise their prices in lockstep the way they have for the last four years.

If Bell company entry is delayed, consumers will continue to pay inflated rates, and the communications industry will continue to stagnate.

The House and Senate have the opportunity to make substantial, positive changes in telecommunications regulations. If they take advantage of these opportunities, consumers will see lower prices, increased services and technological changes that parallel those in Silicon Valley. If Congress does anything less, the full benefits of competition may never be realized.

Craig Felzein is the Southwestern Bell Telephone area manager in Cape Girardeau for external affairs.