Ohio has not yet addressed the subject of access charge reform for the Small Local Exchange Carriers (SLEC) telephone companies, but it has for the large telephone companies in the state. It is critical that the PUCO take action now to address this issue for the SLECs and their rural customers just as they have done for all the rest of the large companies serving Ohio consumers.

Don't Let Ohio Fall behind!

• Don't let Ohio abandon rural consumers and communities that have retained a small local telephone company. Ohio has 34 SLECs in the state and they serve in total less than 1% of the population. These companies have remained independent for many reasons; 1) their pride of community service 2) their commitment to the rural areas and 3) their services areas were so rural and sparsely populated the large companies had no interest in committing investments to these areas.

Consolidation from 1940 thru 1970s was the era when consolidators like GTE and United bought over a hundred of Ohio independent telephone companies. Recently, GTE and United have sold these properties off, BUT before they did they were able to address access reform. United Telephone DBA Sprint in Case No. 00-0127-TP-COI filed a stipulation with the PUCO and OCC where they addressed their intrastate access rates. Out of concern for their rural customers, the small independent telephone companies now want their turn.

• SLECs have Provider Of Last Resort (POLR) obligations as mandated by law and their history of serving customers for over 100 years. While the small companies do in most cases serve a village or small community they also serve large geographic areas consisting of rural customers. SLECs have an obligation to serve all customers regardless of the cost of investment or the customer's ability to pay and the SLECs have lived up to that obligation. Wireless and cable companies do not have this responsibility, nor have they made the investments or commitments to serve areas as rural as the SLECs have.
  
  
• SLECs are progressive companies constantly evolving as most now also provide video and internet access and have become the primary broadband provider in their service area. We have not stood still - even though - we have remained independent. SLECs have deployed video; all provide Internet access and most have triple play service to their customer base. Our goal is evolve to broadband companies and having access reform properly addressed will facilitate that goal.
  
  
• SLECS are vital to their communities and serve a niche rural customer base that other larger companies never wanted to serve. Rural Communities served by independent telephone companies are at risk and their destiny is tied closely to the communities they serve. History has created a vital and important business partner as the SLECs have grown up supporting and serving its customers and villages.

Who's impacted?

• Rural customers may be faced with significant price increases
• Jobs and investment in rural Ohio - rural economic investment and development may suffer
• Integrity of the network - who provides the connectivity to cell towers in our areas and makes the PSTN truly Public...SLECs do.
• AT&T and long distance companies may walk away with millions of dollars while rural customers suffer

The Bottom Line:

The risks posed by doing nothing means the end of service to those customers in rural areas that need service the most.

• Consumers, workers and their rural communities will bear the risks. Traditionally, when companies run into problems they cut capital expenditures, lay off workers and attempt to increase rates. Access reform done right will address the changes in our industry and in Ohio. Rural service providers will be able to continue to take care of their customers and retain jobs and the vitality that sustain many of Ohio's small communities.
  
  
• The Do Nothing option is NOT an option. Unless access reform is completed and put in place this year, the independent telephone companies and their customers will be steam rolled by regulatory uncertainty and ambivalence. The surges of change in our industry such as disruptive technology are enough of a challenge to contend with. Combine these challenges with the fact that, in Ohio, it is only the SLECs that have not been afforded the regulatory

"Neither a wise man nor a brave man lies down on the tracks of history to wait for the train of the future to run over him."

--Dwight D. Eisenhower, 34th U.S. president