Printer Friendly

NEW STUDY REPORTS SIGNIFICANT JOB GAINS FOR OHIO

 CHICAGO, July 22 /PRNewswire/ -- Ohio would gain more than 150,000 new jobs over the next decade if telecommunications law and regulation were changed to allow free and open competition, according to a study released in Washington, D.C., July 21.
 The study concluded that a total of 3.6 million jobs would be created throughout the United States over the next ten years if the Bell companies were permitted to compete in long distance telephone service, telecommunication equipment manufacturing, design and development and video programming and retained their freedom to offer information services. These new jobs would be across the country and in every industry. In addition, lifting the current restrictions on Bell company competition would bring dramatic reductions in rates for telecommunications and cable TV services, which also would have a ripple effect throughout the economy.
 The study, which was conducted by the prestigious WEFA Group, utilized sophisticated econometric models to forecast the economic impact of Bell company entry into these currently restricted lines of business on the national and state economies.
 According to the study, Ohio will be one of the top ten beneficiaries in terms of total jobs gained. Lifting the Bell company restrictions would generate 150,934 new jobs in Ohio alone by the year 2003 -- 2.7 percent more than the state could otherwise expect by that time from normal economic growth. More than two thirds of those jobs -- 104,256 -- would be created in the first five years after the restrictions were lifted. More than a third of the job creation -- 54,735 new jobs -- would take place in manufacturing.
 "This study confirms what Ameritech has been confident of for some time -- that open competition in the telecommunications marketplace would allow us to offer innovative services and to contribute significantly to economic growth and job creation for the people of Ohio," said Jacqueline F. Woods, Ohio Bell president.
 In addition to creating 3.6 million new jobs, the study predicts that the ripple effect of Bell competition would include:
 -- an additional $247 billion increase in the gross domestic product;
 -- improvement in America's balance of trade of $33 billion;
 -- federal deficit reductions of $150 billion; and
 -- an increase in consumer spending of $137 billion by the year 2003.
 All of these results are based on comparisons with WEFA's baseline forecast, which projects the development of all aspects of the American economy through 2003, but assumes no line-of-business relief.
 WEFA further predicts that consumers would save almost $630 billion by 2003, which averages $63 billion each year, as a result of lower telecommunications and cable TV rates. The rate declines include: long-distance and local toll call rate decreases of 50 percent as compared to the baseline forecast, saving consumers more than $490 billion by 2003; local rate increases of less than one-half the amount of the baseline forecast, saving more than $30 billion over the ten-year period; and, cellular rate decreases of 15 percent (including toll charges) over five years, saving more than $25 billion by 2003. Average cable TV prices decrease almost 5 percent when local telephone company entry is granted, versus an increase of 27 percent in WEFA's baseline forecast, saving consumers nearly $75 billion.
 "These predictions are consistent with the benefits we expect to see from implementation of our Advantage Ohio plan and would further increase that plan's positive contributions to our state's economic growth," Woods said. "The combination of increased investment in Ohio's communications network and vigorous competition in all areas of this industry would bring unparalleled benefits to Ohioans."
 The regional Bell companies were excluded from participating in long-distance services, telecommunications equipment manufacturing and information services as part of the court-supervised break-up of AT&T in 1984. The 1984 Cable Act prohibited Bell companies from providing video services to customers in their regions. In 1991, the information services restriction was lifted by Federal Court.
 The WEFA Group was created in 1987 through the merger of Wharton Econometric Forecasting Associates and Chase Econometrics.
 -0- 7/22/93
 /CONTACT: Mary Lou Ringle of Ohio Bell, 216-822-2311, or Peter Lincoln, of Ameritech, 202-955-3058/
 (AIT)


CO: Ohio Bell; Ameritech ST: Ohio IN: TLS SU:

SM -- CL015 -- 4459 07/22/93 10:55 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 22, 1993
Words:699
Previous Article:CF BANCORP REPORTS RECORD 4TH QUARTER AND FISCAL YEAR PROFITS
Next Article:SURGING IMPORTS OF SPECIALTY STEEL
Topics:


Related Articles
NEW TECHNOLOGY CAN SPUR ECONOMIC DEVELOPMENT, EDUCATION AND HEALTH CARE, OHIO BELL PRESIDENT SAYS
New Report on Trends in Central Ohio's Population, Education, Income and Employment, Housing, Health and Safety Released at Gathering of Community...
Professional and health care occupations expected to dominate long-term job growth.
THREE OF THE FIVE LARGEST MANUFACTURING INDUSTRIES IN NORTHEAST OHIO INCREASED BOTH EMPLOYMENT AND GROSS REGIONAL PRODUCT FROM 2004 TO 2006.
Chamber Analysis Shows OSU Medical Center Leads Area Job Growth.
Academic Medicine Means Business for Ohio: $37.2 Billion Economic Impact for the State.
Ohio Ranks Best in the Midwest, Among Top Five in the Nation for Job Growth in a 'Clean Energy Economy'.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters