Not so long ago, North Carolinians typically had a work phone and a home phone. Not only did BellSouth provide the lines, the company actually rented out the telephones, as well. In return for its monopoly, BellSouth has had to share decision-making authority with the N.C. Utilities Commission.

Now, saying the telephone business has changed is like saying a whale is a big fish. The telecommunications industry is bigger than any one company and does a lot more. As The N&O's John Murawski reported Friday, the company contends that the changes call for it to have greater autonomy.

Tar Heel consumers respectfully disagree. The Utilities Commission is the only reason many people have phone service they can afford.

As BellSouth sees it, competition will protect consumers' interests as effectively as state regulators can. True, wireless service providers, such as Cingular and Verizon, are cutting into BellSouth's customer base. Cable TV companies, such as the Triangle's dominant provider Time Warner Cable, would like a slice of the same pie. In just 2 1/2 years, Time Warner has won over 100,000 phone service customers in its Raleigh division.

BellSouth's competitors don't have to answer to regulators. Nor do they have to hire the personnel to handle regulatory issues. To encourage development of telecommunications, federal regulators have stood on the sidelines intentionally and watched the industry's phenomenal growth.

In recognition of the changes, the Utilities Commission already has loosened restrictions on BellSouth's prices. The company can raise residential phone rates 10 percent, plus inflation, without the commission's approval.

If rates are to go higher than that, the public deserves a hearing. If BellSouth wanted to cut rates to under-price its competitors, a lower rate could take effect within seven days of notifying the commission.

The problem for many people outside North Carolina's urban areas is that competitors aren't exactly lined up to offer them phone service without frills. Many rural areas aren't fully covered by wireless networks. Others, in the mountains for example, are costly for cable companies to serve. And Internet phone service requires an expensive broadband connection.

Yet phone service for everyone has been a state priority since the 1930s. For that to continue, as it should, the state needs regulatory clout.

All phone customers benefit, too, from the commission's oversight of quality. Because of it, BellSouth must make repairs in a timely way, answer consumer complaints and meet other quality standards.

In a competitive market, companies vying for BellSouth's customers must meet the same standards. To make its case for deregulation, the company is going to have to show public benefits outweighing the harm. Count on the commission's Public Staff to hold BellSouth to that high standard.

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