Telecom Deregulation Focus Centers on Idaho, Minnesota After Other Recent Successes
Telecom deregulation advocates are following up recent successes in four states that passed statutes deregulating aspects of wireline and VoIP services by renewing their push for passage of similar legislation in the Idaho and Minnesota legislatures. Both states are considering bills that would prohibit VoIP regulation: Idaho’s S-1105 and Minnesota’s HF-776/SF-895. Minnesota is also considering HF-1066/SF-736, legislation that would let ILECs be regulated the same as CLECs. None of those bills advanced as far as statutes that passed or were enacted in Kentucky, North Dakota, Pennsylvania and West Virginia. Thirty-two states deregulated wireline service by the end of December, while three others and the District of Columbia significantly limited wireline oversight, said National Regulatory Research Institute Principal Researcher Sherry Lichtenberg.
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Kentucky Gov. Steve Beshear, a Democrat, signed HB-152 Thursday, as expected (see 1503060073). The bill partially significantly reduces the Kentucky Public Service Commission’s wireline oversight and ends its oversight of consumers’ broadband and wireless complaints. Kentucky’s enactment of the legislation means that AT&T has largely completed its push for wireline deregulation, which began in 2010, Lichtenberg said. The North Dakota Legislative Assembly on Wednesday sent HB-1385, which would prohibit the state PSC or other government entities from regulating VoIP or other IP-enabled services, to Gov. Jack Dalrymple, a Republican. The bill would let the state assess any required state high-cost USF fees, 911 and E-911 fees or other taxes on VoIP and IP-enabled services. Dalrymple’s office didn’t comment on whether he would sign the bill, which passed the state House and Senate unanimously.
The West Virginia Legislature has passed SB-576, which would pre-empt the state PSC from regulating VoIP service or deals involving telcos under common ownership, with the state House passing the bill on Tuesday 75-23. The office of Gov. Earl Ray Tomblin, a Democrat, didn’t comment on whether he would sign the bill. The Pennsylvania Public Utility Commission voted earlier this month to deregulate Verizon’s wireline service in its Allentown, Erie, Harrisburg/York, Philadelphia, Pittsburgh and Scranton/Wilkes-Barre service areas (see 1502270053).
Minnesota’s HF-1066/SF-736 has a better chance of passing than HF-776/SF-895, with significant changes, an industry lobbyist told us. Minnesota has repeatedly grappled with deregulation issues and tends to “look very tellingly at these issues,” Lichtenberg said. “They tend to give great consideration to how they should deregulate.” The legislature most recently considered deregulating aspects of wireline service in the state last year (see 1403070035). The Minnesota branch of the AARP opposes HF-1066/SF-736, saying in a blog post March 4 that the legislation would “likely result in the loss of affordable, reliable phone service for seniors, low income families and those living in rural parts of the state.” The legislation will “pave the way for phone companies to discontinue land line phone service and eliminate valuable consumer protections,” the AARP said.
Minnesota Telecom Alliance (MTA) President Brent Christensen said he believes HF-1066/SF-736 has a significantly better chance of passing than previous legislative attempts because it deals with the issue with “an extremely modest touch compared to what other states have done.” MTA has supported legislation “that’s a little more aggressive” but is supporting HF-1066/SF-736 because it has a better chance of being enacted, Christensen said.
The Voice on the Net Coalition supports HF-776/SF-895, as it did with West Virginia’s SB-576, said Executive Director Glenn Richards. He spoke on behalf of both versions of the Minnesota VoIP bill, telling the state Senate’s Jobs, Agriculture and Rural Development Committee Feb. 25 that SF-895 would let Minnesota “launch a new era of broadband-enabled benefits for consumers and businesses in Minnesota by eliminating the threat of conflicting state regulation of VoIP and IP-enabled services. These are the innovative products and applications that are driving Minnesota’s information technology economy.” The bills haven’t made it out of committee, and sponsors are attempting to negotiate amendments that would alleviate issues related to concerns about IP interconnection and 911 service, Richards said. Idaho’s S-1105 also is alive, he said. The bill is working through the state Senate’s State Affairs Committee, the committee said.