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| ATIC > Committees > Elections > Position > ACC Candidates > Question | 1 | 2 | 3 | 4 | 5 | 6 | 7 | | |||||||||
Arizona Corporation Commission (ACC) Candidates Question 1
What is your vision of the state of the telecommunications industry in Arizona over the next 2 to 4 years, and what can the Arizona Corporation Commission do to encourage further development and expansion of healthy competitive telecommunications markets?
George Cunningham (Democrat, Clean Elections Candidate, 2 Year Seat, http://www.cunningham2002.com/)
(about George Cunningham...)
I believe that infrastructure, including the telecommunications infrastructure is the foundation of any advanced economy. Without it, Arizona would be the economic equivalent of a third world country. For the past two years, the telecommunications industry has been in the throes of a significant industry shakeout. Both large and small companies have fallen prey to an array of problems, including under-funded business plans, over-zealous capital expansion leading to over-capacity in certain facilities and services, diminished consumer demand, poor management and ill-fraught accounting schemes. The result has been the collapse of stock prices, a rash of bankruptcy filings by large and small companies alike, and fire sales of excessive telecommunications plants and equipment.
I agree with most analysts' predictions that the financial turn-around for the telecommunications industry is probably still a year or so away. I further expect the surviving companies to be those that can stabilize their balance sheets and income statements by reducing debt loads and lowering operating costs, while also expanding customer base by exceeding consumer expectations through top notch service quality. In other words, they will return to sound, fundamental business practices. The industry will likely undergo further consolidation with some companies exiting the market altogether and others being acquired or merged with other companies.
This state of affairs will present opportunities for the best managed companies, and for growing numbers of consumers gaining access to advanced communications services. I firmly believe the actions of the Corporation Commission will be essential in establishing a regulatory environment in which the competitive telecommunications industry can thrive. Specific actions include:
Mike (Lowell) Gleason (Republican, Clean Elections Candidate, 2 Year Seat)
(about Mike (Lowell) Gleason...)
The telecommunication industry should increase in size, diversity of product, ease of use and user friendly products by use of strategic planning and market size prediction. The Corporation Commission can promote healthy competition without red tape, which would stifles the innovation and certainly of new product development. This will create jobs and give the ratepayer better service and products.
Jeff Hatch-Miller (Republican, Clean Elections Candidate, 2 Year Seat, http://www.hatch-miller.org/)
(about Jeff Hatch-Miller...)
To be successful, Arizona requires a twenty-first century telecommunication system. Such a system requires capable providers and significant capitol investment. Unfortunately, current progress to that end is hampered by a general malaise in the telecommunications industry, and specific current events. Qwest, the major provider of telecommunication systems in Arizona, is under significant financial pressure and faces investigations of wrongdoing. Build out of broadband internet service to Arizona's schools is only partially completed while costs far exceed projections. Worldcom, which calls itself "the pre-eminent global communications company for the digital generation," faces likely bankruptcy. If only for these three reasons, the next two to four years will be difficult for all concerned.
Arizona must foster competitive entrants into the telecommunications marketplace. Where competitive forces do not foster such a system the Commission must take the leadership to identify the specifications for such a system and aggressively seek providers. This is particularly relevant to areas outside of Maricopa and Pima Counties.
The Commission must work with all interested parties and inventory Arizona's telecommunication needs. Promised infrastructure improvements should be completed by incumbent providers and then areas of additional deficit identified. Whenever possible, all government entities in a region should coordinate telecommunication system purchases, not only to obtain economies of scale, but to make projects more attractive to potential providers.
Qwest should be allowed to sell long-distance services in Arizona when all competitive requirements have been met and when allegations of improper influencing of testimony related to their application (to become a long-distance provider) have been resolved.
Jim Irvin (Republican, Clean Elections Candidate, 4 Year Seat, http://www.jimirvin.org/)
(about Jim Irvin...)
As most people are aware, the telecommunication industry has been in a steady decline for the last couple of years. Companies that were once considered strong and viable are now facing bankruptcy. Since 1996 when I was first elected to the Corporation Commission, I have been working on strengthening the competitiveness of the market by supporting policies that require Qwest to provide affordable, reliable and fair access to their competitors. For instance, as a Commissioner, I voted in favor of reducing the access rates a competitor must pay Qwest by nearly 50%, significantly improving. the current regulatory environment for increased competition in Arizona. It has never been better.
That being said, many factors outside the control of the Corporation Commission will play a large role in what the competitive market will look like in Arizona in the next two to four years. The ability of the telecommunications industry to secure the necessary financial resources will be the largest factor in whether a healthy competitive market will emerge from what I now believe is the most favorable regulatory environment Arizona has seen.
Roland James (Democrat, Clean Elections Candidate, 2 Year Seat, http://www.rolandjames.org/)
(about Roland James...)
The Commission should be wary at this time in light of the $1.5 trillion telecommunications implosion and the probable bankruptcy of many more telecommunications companies, possibly even Qwest. Sometimes, especially in a time of rapidly changing technology, it is best to let the market that has been developed shake itself out.
Qwest should be allowed into long distance, but any profit that Qwest would gain from long distance is dwarfed by the $2.3 billion that the top two executives have pulled out of this company as its stock has slid from $90 to $1+ --leaving Qwest workers, shareholders, and consumers holding the empty bag. Now Qwest seems to be cannibalizing itself by possible sale of Yellow Pages, ...
The controversy over Qwest and long distance is a tempest in a teapot. The relative benefits are problematic:
It is time for strong and fair regulation of companies that provide public utility services. Local basic phone service and open access to the Internet are the two areas of telecommunications that require such regulation; other areas of telecomm should only have the light hand of regulation, at the most.
Local public telephone service is as close to a natural monopoly as anything else. Don't we want integrated, unified, and universal local public phone systems? The competition envisioned by the 1996 Telecommunications Act is the strangest competition that I have ever seen. Comparably, it is like saying to Basha's, which has a monopoly in some parts of Arizona, that they have to lease out part of their stores and warehouses to competitors.
If the quality of service is bad from the local phone company, how will that service be improved by requiring that local company to lease out part of its system to competitors? The incumbent local phone company will still handle most service problems.
James Walsh (Democrat, Clean Elections Candidate, 4 Year Seat, http://www.jamespwalsh.com/)
(about James Walsh...)
Mergers, acquisitions and bankruptcies in telecommunications- as well as some pretty fantastic technological advances - have made this industry a rapidly evolving one, and it will remain so in the coming years. The Telecommunications Act of 1996 aimed to create a framework for competition and growth in the telecommunications industry, but implementation of that law has fallen woefully short of its goal. Here in Arizona we need to establish the kind of regulatory environment that will encourage real competition, technological advances, better service and lower prices for our consumers. It is essential that the Corporation Commission encourages an advanced telecommunications infrastructure, creates appropriate regulations that support new technologies, and pries apart the monopolistic chokehold on local service competition.
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For the ACC candidates' responses to the Arizona Republic's questions please see
http://arizonarepublic.com/special43/articles/corpissues.html