E-Update: Update Telecom Law to Keep Up With Technology May 6, 2011

Dear friends, Over the past several weeks, we have been working in the State Legislature on issues important to the 33rd Senate District. As you know, work continues on Governor Walker’s budget proposal, and the legislation to require photo identification in order to vote is making good strides forward. I hope we will finally pass the photo I.D. bill in the very near future There are many other issues that I will highlight for you in the weeks ahead, but today I wanted to focus on a less publicized but truly important item I am working on to modernize the telecommunications industry. State Representative Mark Honadel (R-South Milwaukee) and I, along with Governor Walker, have introduced Special Session Senate Bill (SS-SB) 13 in order to minimize burdensome, job-killing regulations in the telecommunications industry. In doing so, we can increase competition in a continuously growing field and in turn create jobs. I know the economy improves the most when unnecessary government intervention is minimal—and this legislation is yet another step taken to improve Wisconsin’s economic climate. Below is a column I wrote and submitted to the media, along with Rep. Honadel, to explain just how SS-SB 13 will bring Wisconsin’s telecommunications industry into the 21st century: Whether it has been lawsuit reform, regulatory reform, or efforts to rein in state spending in order to keep taxes down, legislative proposals aimed at promoting economic growth and creating jobs made front page news often this year. But, beyond the issues that grab headlines, other less attention getting efforts are also underway to boost our state’s economy. One of those issues that has been somewhat below the radar, telecommunications policy, is about to get new attention. No one can deny the enormous role technology has come to play in our daily lives. Small businesses, schools, and families all have come to rely on technologies that once seemed possible only in science fiction. And although our use of high tech gadgets utilizing wireless communication and high speed broadband seems high already, almost no one is predicting they will be less important in the future. That is why, to stay competitive, we must ensure that our telecommunications infrastructure can keep up with marketplace demands. Unfortunately in this race for innovation and investment, state law hasn’t kept up. Wisconsin’s telecom law was last reformed in 1994, at a time when traditional landline telephone companies dominated the market and regulations were there to control existing monopolies. Since then, it is not an overstatement to say the technology world has undergone a complete metamorphosis. Mobil communications have become ubiquitous, voice over internet protocol (VOIP) calling has become inexpensive and widespread, and the technology needed to stay on the cutting edge seems to change almost daily. While we have seen growth in Wisconsin, there is little doubt we could do better. Existing state laws and regulations force the old monopolies to invest in out-dated land line technologies. Company to company subsidies, which were a focal point of the monopoly era regulations, now simply sap money away from possible job creating investments and drive up costs. If we are to keep up with other states, we cannot afford to waste the resources we have. We need to stop subsidizing ancient technologies and free providers to better meet the demands of today’s consumers. That is why we are proposing legislation, built off of a bipartisan proposal that passed the Assembly last year, that will finally end monopoly era regulations and help meet the demand for new wireless and broadband technologies. Since the beginning of the year, Governor Walker has laid out a clear goal of getting our state’s telecommunication laws modernized to encourage investment in our state. We have worked with him for the past several months to craft a proposal that is right for our state, good for consumers, and a boon for job creation. Our legislation will drive down company to company subsidies so that consumers and cutting edge technologies win out, not outdated monopolies. Our proposal revamps outmoded regulations so that telecommunications providers are not forced to invest in antiquated technologies and are free to meet consumer demands. It doesn’t make sense to force companies to invest in the technologies of the past if we are to remain competitive in the future. The marketplace is showing a clear need to expand access to broadband and wireless to help attract job growth. Our proposal is targeted at ensuring Wisconsin can do exactly that.

Sen.Zipperer@legis.wisconsin.gov State Capitol Room 323 South - P.O. Box 7882, Madison, WI 53707-7882 Telephone: (608) 266-9174 Fax: (608) 282-3573