New Illinois law relaxes phone regulations

Telephone companies operating in Illinois will face fewer regulations, and consumers could face higher prices under a measure Gov. Pat Quinn (D-IL) signed into law June 15, a move supporters said will encourage investment in broadband and wireless technologies.

Under the new law, companies offering local phone service can change service packages and pricing plans without approval from the Illinois Commerce Commission. Supporters said the outdated regulations, last revamped in 2001, were not doing enough to create competition and profits that will entice companies to expand service and create new jobs.

Consumers can choose from three packages for land-line service: a basic plan that includes 30 local calls a month, one that allows for unlimited local calls or a more advanced plan that includes unlimited local calls and two extra features, such as voice mail and call waiting. Prices range from $3.05 a month for the most basic plan to $19.70 a month for the more advanced, though they are lowest in Chicago and highest in rural areas.

"There is always going to be a battle with telephone companies over pricing," said Jim Chilsen, a spokesman for the Citizens Utility Board. "But now we have protections in place for consumers who want plain old telephone service and want to keep their rates low." The changes go into effect immediately and will be in place for the next three years, when lawmakers would have to revisit the issue.