State Senate panel votes to remove SBC from regulation

<br>OKLAHOMA CITY (AP) _ A Senate committee voted Thursday to remove SBC Oklahoma from regulation by the Oklahoma Corporation Commission, despite warnings the move could increase the cost of telephone

Thursday, February 12th 2004, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) _ A Senate committee voted Thursday to remove SBC Oklahoma from regulation by the Oklahoma Corporation Commission, despite warnings the move could increase the cost of telephone service.

Officials of SBC, formerly known as Southwestern Bell, said the measure will bring parity to the retail telephone marketplace in Oklahoma.

Donald Cain, SBC president, said his company now only has 40 percent of the marketplace, compared to more than 80 percent 20 years ago and it is time ``to regulated all technology the same in regard to retail services.''

Proponents said the change will mean millions of dollars in extra technology investment in Oklahoma.

Opponents, including Cox Cable and AT&T, said it will give SBC an unfair advantage because the company still owns almost 90 percent of wire lines in the state.

They also said it could lead to higher telephone bills and charges assessed on Internet use.

The measure, by Sen. Jay Paul Gumm, D-Durant, was approved on a 9-0 vote and now goes to the Senate floor for consideration.

Dave Bialis, vice president and regional manager of Cox, said the bill could lead to ``predatory pricing'' because of SBC's strong position in the market.

``This is not a parity bill because there is not parity of competition,'' he said.

``I think this bill in its present form is bad business for Oklahoma,'' said Wauneta Browne, representing AT&T, the long-distance carrier that was once the parent company of SBC.

SBC officials said Senate Bill 1119 had the support of the Oklahoma State Chamber and the Communications Workers of America, Local 6009.

The bill passed on a 9-0 vote in the Senate Energy, Environment and Communications Committee and now goes to the Senate floor for consideration.

Some senators who voted for the bill said many questions about the legislation still need to be answered.

A representative of the Corporation Commission said commissioners are studying the bill and its effect on the telecommunications industry.

Sen. Kevin Easley, D-Tulsa, said Commissioner Jeff Cloud had told him he had reservations about the bill.