Telecommunications Law CLE
State Deregulation at the PUC
December 2014
Pete Kirchhof
Colorado Telecommunications Association
Overview
• HB 1327 Sales Tax Exemption/Permitting
• HB 1328 Creation of Broadband Fund
• HB 1329 VoIP Deregulation
• HB 1330 Update Telecom Definitions
• HB 1331 Voice (Basic Service) Deregulation
• Pending Issues
HB 1327 Sales Tax Exemption/Permitting
•
Creates a state rebate of state sales and use taxes paid on broadband equipment
installed in target areas of the state up to a cap of $1m per year and will be
prorated if providers submit claims for more than the cap
•
Requires local government permitting of broadband facilities and certain wireless
service facilities to adhere to new statutory deadlines, and to allow consolidation
of applications for small cell networks
•
Requires state and local government agencies, including coordination by the
Department of Transportation, to provide notice of trenching activity to
broadband providers, except in emergencies, and to regulate other aspects of
trenching; and clarifies that broadband service providers may utilize public rightsof-way for broadband facilities to the same extent as other telecommunication
providers
Source: April 21, 2014 Legislative Council Fiscal Note.
HB 1328 Creation of Broadband Fund
•
Authorizes the Commission to repurpose a portion of the $54M state high cost fund to
advance broadband in unserved areas (currently defined as providing less than 4Mbps down
and 1Mbps up but must be equal to the FCC definition if faster)
•
As the Commission determines geographic areas that have effective voice competition and
are no longer eligible for support for basic service, the funding for those areas will be
eliminated with the majority of the savings going into the broadband fund
•
The balance (5-20% phased in four steps from 2016-2023) will be returned to ratepayers
through a decrease in the annual surcharge that is used to fund these programs
•
A sixteen person board appointed to govern the fund including approving applications for
funding
– Appointments were made by Governor and Legislature representing the state, industry
and local communities
•
First broadband transfer pending Commission decision from initial effective competition
review
HB 1329 VoIP Deregulation
• Deregulates advanced services, premium services, interLATA toll,
intraLATA toll, private line, non-optional operator services
• Codifies deregulation of Internet protocol (IP) enabled services and
VoIP service
• The bill explicitly retains Commission Part 3 regulation over
Switched Access and does not change existing interconnection
obligations or Commission authority over wholesale services
• No change in Commission authority to regulate Basic Emergency
Services (911)
HB 1330 Update Telecom Definitions
• Amends statutory terms used in telecommunications
regulation
• Definitions are added or modified to reflect current
practices related to competitive markets and types of
telecommunications service providers
• The bill also eliminates obsolete definitions and references,
such as transitional provisions for the implementation of
competitive markets in 1996
Source: March 24, 2014 Legislative Council Fiscal Note.
HB 1331 Voice (Basic Service) Deregulation
•
Voice services (basic local exchange service) are deregulated as of May 9, 2014
•
Legislation requires that an ILEC/RLEC remain subject to obligations as provider of
last resort and must charge a uniform price (subject to the FCC urban rate floor
adjustments) for basic service throughout its service territory until July 1, 2016
•
For basic local exchange providers that accept high cost support, the Commission
retains the authority to designate POLRs, determine a maximum price for basic
service and prohibit the discontinuance of basic service
•
Commission may consider re-regulation after July 1, 2018 (claw back)
•
Maintains existing Commission authority to impose fees related to the high cost
fund, 911 and Telephone Relay Service
Pending Issues
• Rulemaking to revise and/or eliminate telecom rules
– Regulation only remains for 911, high cost support/recipients,
wholesale
• Providers could withdraw and/or modify tariffs to comply with new
statutes
• Regulatory issues to be addressed include but are not limited to:
–
–
–
–
Carrier registration
Reporting
Numbering
Fixed Utility Fund assessments
• Effective Competition Analysis (ECA) to determine high cost funding
– Pending high cost rulemaking dockets could impact voice/broadband
– POLR must be automatically eliminated in an ECA
Pending Issues (cont.)
• State decisions must consider federal issues
• No CAF for RLECS
– Need data only broadband CAF funding from FCC
– Pricing for broadband only service skewed by old regulations
• FCC Urban Rate Floor Transition
• FCC Docket on IP Transition
• Government owned networks (State and Federal issue)
Closing
• Questions or comments
• Contact
– Pete Kirchhof 303 507-9587 petek@colotelecom.com