Traditional landline service could be at risk in Illinois

CHICAGO (WLS) -- The ABC7 I-Team investigated the possible war being waged on your landline phone service. It's an expected move that some watchdog groups say could inconvenience those with spotty cell phone service, and put others at risk.

Telecommunications giant AT&T says if the critics had it their way, Illinois would remain a "rotary dial state" in a broadband and wireless world.

But two different non-profit organizations say that more than 1 million landlines in Illinois could be at risk, and that the people who need them the most, could be left behind.

Could Illinois be cutting the cord? The state's telecommunications act is up for review this spring and phone companies like AT&T are expected to try to eliminate their legal obligation to provide traditional landline service. That worries South Side resident Barbara Flournoy.

"The landline is going to always be your best source," Flournoy said. "I keep a phone that actually has the old plug in cord and go right to the source to get a hold of people."

The consumer watchdog group, Citizens Utility Board and the American Association of Retired Persons say some of Illinois most vulnerable citizens depend on that traditional, inexpensive landline service - especially during a power outage.

"Those citizens include seniors who need a secure link to key services like 911 and medical monitoring, rural residents who often suffer from unreliable cell phone service and families with fixed incomes," said CUB Executive Director Dave Kolata.

But the President of AT&T fired back Tuesday afternoon.

"If there is a wire going into someone home that wire needs to be capable of accessing the internet at high speeds, providing voice data and video. A line that just does voice is old technologies that nobody really wants anymore," said AT&T Illinois President Paul La Schiazza.

La Schiazza admits what people think of as a traditional landline could go away, but that there will still be wires - just different wires, using other technologies like voice over IP.

"Eighty-two percent of households in Illinois have already moved on to modern technologies. There is only 18 percent of households that just have plain old landline services," said La Schiazza said.

AT&T says pricing would remain competitive but CUB and AARP also say if laws change, specially priced landline plans could also be cut for seniors, like Schaumburg resident, Ken Voight.

"To me the landline service is much more reliable. I have cell phone, computer, cable TV - of all of those, landline has proved to be most reliable," Voight said.

"I think I would be lost if they told me I could not have a landline," said Flournoy.

And Frontier, the other large provider of landlines in Illinois released this statement saying: "... Frontier is investing in upgrading its infrastructure in Illinois ...and the state's legacy telecommunication law, needs to be updated to permit new, digital services..."

AARP contends a survey it helped conduct showed that 64 percent of customers want to protect traditional landline service.

Additional information:

Link to voice concern about landlines: www.SaveOurPhoneService.com

Full AT&T Statement:

Statement attributable to AT&T Illinois President Paul La Schiazza:

If CUB and AARP get their way, Illinois would remain a rotary dial state in a broadband and wireless world.

CUB gets it wrong. The issue isn't about taking anything away, it's about delivering more of the modern communications services that consumers are demanding.

The state's telecommunications laws expire in 2015 and state policymakers have a choice: join other states in preparing for the digital future or cling to outdated policies designed for 100-year-old technology.

Illinois consumers are demanding and choosing new communications technologies, and so is every sector of our state's economy: education, health care, public safety, transportation, banking and manufacturing.

The facts conflict with the claims made by CUB and AARP:

-About 82 percent of Illinois households in AT&T's wireline service territory already moved to new technologies - voice over broadband or wireless.

-In fact, in AT&T's traditional telephone service area, more consumers get their voice service from the cable company than traditional AT&T wireline.

-CUB gets it wrong again. There are better values in the marketplace than the statutory packages first established in 2001. In fact, less than about 6 percent of households in AT&T traditional wireline service territory service subscribe to the statutory local- only packages.

-More than 90 percent of the people who are buying the statutory local-only packages CUB references are in prime earning years, aged 45-64.

-2.5 percent of households with a statutory package are 65 or older.

-The Illinois law is outdated. Neighboring states have already updated to modern communications laws, including Wisconsin, Michigan, Indiana and Missouri.

Full CUB Press Release:

FOR IMMEDIATE RELEASE:

Dec. 16, 2014

CONSUMER ADVOCATES IN ILLINOIS PREPARE TO BATTLE BIG TELECOM,

AS POLLING SHOWS STRONG SUPPORT FOR TRADITIONAL HOME PHONE SERVICE

Top consumer advocates on Tuesday united to block an expected legislative push by big telecom companies that would allow for the elimination of low-cost home phone service in Illinois, as polling conducted on behalf of AARP shows strong support for Springfield leadership to protect reliable and affordable home phones.

The poll findings were released as AARP Illinois and the Citizens Utility Board (CUB) launched a "Save Our Service (SOS) Campaign" ahead of the General Assembly's 2015 session. The Illinois Telecommunications Act is up for review, and the telecom industry is expected to renew efforts to scrap state requirements to provide access to affordable home phone service. There are more than 1 million landlines in Illinois, according to the Federal Communications Commission (FCC), serving some of Illinois' most vulnerable citizens.

CUB and AARP held news conferences in Chicago, Champaign, Decatur, Peoria, Rockford and Springfield. They urged Illinoisans to visit www.SaveOurPhoneService.com to send a message to legislators about this issue.

AT&T, which made $18 billion in 2013, has led the charge in Illinois for phone deregulation. Nationally, the phone industry has pushed a business model that would allow it to stop providing landline service, leaving customers with substitutes that tend to be more expensive and less reliable, such as AT&T's computer-based U-Verse or wireless alternatives. As part of that strategy, AT&T will likely seek an end to the CUB-created Consumer's Choice calling plans, which are Illinois' best local phone deals.

According to the survey conducted on behalf of AARP by Hart/North Star Opinion Research, 64 percent of respondents said they wanted the governor to "protect reliable, affordable landline service in Illinois." Almost half of the respondents-48 percent-said they use traditional phone service nearly always or most of the time. That rose to 53 percent for Illinoisans 65-74, and up to 71 percent for older consumers. The survey, conducted in July, polled 802 Illinois residents aged 50 and older who were likely to vote in the Nov. 4 election.

"Landlines are lifelines for countless older Illinoisans and their families," said Gerardo Cardenas, AARP communications director. "This summer, Illinois voters sent a clear message regarding traditional home phone service, and we urge policymakers in Springfield to ensure consumers have access to quality, affordable, reliable landlines, regardless of where they live."

"Smartphones are wonderful technology, but they don't come cheap and anybody who has travelled across Illinois knows they're not always reliable," CUB Executive Director David Kolata said. "Traditional home phone service is the most affordable, reliable option for millions of people and we shouldn't take away that choice."

Consumer advocates are concerned that a revision of the state's Telecommunications Act would:

Scrap the "Obligation to Serve" requirement. This mandates companies provide home phone service throughout Illinois. Lifting it would mean top local phone companies, such as AT&T and Frontier, could abandon areas they deem "unprofitable."

Abolish "Safe Harbor" calling plans. Currently, Illinois mandates that AT&T offer the no-frills

"Consumer's Choice" plans, which range from about $3 to $20 per month and were originally created by CUB under a legal settlement with AT&T. Designed to match the way most callers use the phone, these plans are under a price freeze mandated by the General Assembly and have saved Illinois consumers an estimated $10 million a year.

Forcing consumers to use computer-based or wireless substitutes as their primary home phones could subject them to higher bills and service degradation that still plague such options, including lack of service in extended power outages, checkered reception, dropped calls and high connection charges (up to $199 for computer-based phones).

For many Illinoisans, a landline is still synonymous with home phone service, particularly among older and more rural demographics. Even in households that also use mobile phones, traditional home service can be the most reliable and affordable lifeline to family, friends and vital services such as 911, home security systems and some medical monitoring devices.

Given 2014 developments in the Internet and cellphone industries, consumer advocates also are concerned about the impact of eliminating key consumer protections in the Telecom Act. Recently, Verizon agreed to pay about $64 million as part of a class action lawsuit accusing it of overcharging customers on its Family Share Plan. T-Mobile has been sued by the Federal Trade Commission (FTC), which accused the company of making "hundreds of millions" of dollars off of fraudulent "cramming" charges added to wireless bills by unscrupulous third parties. AT&T this year entered into a $100 million settlement with federal and state officials, including Illinois Attorney General Lisa Madigan, on the cramming issue-and it has been sued by the FTC for allegedly improperly slowing Internet speeds for customers.

In addition, last month the Federal Communications Commission (FCC) began a rule-making process that raises concerns about how to protect residential and small-business customers, including their ability to call 911 during an extended power outage. With such concerns being addressed federally, consumer advocates said it's premature to make a major revision to the Illinois Telecommunications Act.

AARP is a nonprofit, nonpartisan organization, with a membership of nearly 38 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment and income security, retirement planning, affordable utilities and protection from financial abuse. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Learn more at www.aarp.org.

CUB is Illinois' leading nonprofit utility watchdog organization. Created by the Illinois Legislature, CUB opened its doors in 1984 to represent the interests of residential and small-business utility customers. Since then, CUB has saved consumers more than $20 billion by helping to block rate hikes and secure refunds. For more information, call CUB's Consumer Hotline at 1-800-669-5556 or visit www.CitizensUtilityBoard.org.