Regulation Briefs, June 2006

A practicing law office provides key updates on telecommunications regulation across the U.S.

by Kristopher Twomey and Andrew Ganz of The Law Office of Kristopher E. Twomey, P.C. [July 27, 2006]

We reprint a portion of the LoKT newsletter providing updates on key legal issues. The Law Office of Kristopher E. Twomey, P.C. serves ISP, CLEC, corporate, long distance carrier, and other clients.

Headlines:

State imposed intercarrier access charges reviewed
The First Circuit Court of Appeals addressed two important issues in their recent review of Global NAPS v. Verizon. First, the Court determined state regulatory agencies gain implicit jurisdiction over telecommunications disputes via the Telecommunications Act of 1996. Second, the Court declared that "the FCC [has] not expressly preempt[ed] state regulation of intercarrier compensation for non-local ISP-bound calls." This decision leaves state level regulatory commissions with a free hand to impose access charges for such calls under state law.

Tennessee Regulatory Authority imposes interconnection rates
In a related matter, the Tennessee Regulatory Authority voted to regulate the interconnection rates that BellSouth imposes on local carriers. BellSouth contends that the Authority lacks jurisdiction in the matter and that only the FCC should have such authority. Pat Miller, the Director of the Tennessee Regulatory Authority, indicated that a there is a pending BellSouth petition before the FCC to pre-empt state commission oversight. Should the FCC choose to pre-empt, Miller stated that the Authority will abide by the decision.

Additional state by state news:

AK: The Alaska Regulatory Commission is accepting proposals for broadband expansion projects until July 17, 2006. The state is willing to provide grants covering up to 75 percent of deployment costs. To qualify for these grants, projects must be capable of extending broadband to unserved parts of the state at rates similar to those in Anchorage, Fairbanks, and Juneau.

CA: California legislators seek to explicitly permit municipalities with the right to provide wireless broadband services. SB-1803 would provide that no private organization would have a right to provide broadband service in place of a willing municipality.

California's PUC also set rules for Broadband over Power Line (BPL) deployments within the state. Regulators hope that by providing loose regulation of the BPL industry, they will encourage new investment and widespread development of the new technology.

CO: PUC officials voted to deny Qwest's petition for less stringent regulation. Qwest sought to be held to the same regulatory and reporting standards as the non-incumbent telephone providers within the state. Not convinced that market forces can effectively regulate the incumbent, PUC officials did not feel that the time was right to make such a move. The PUC indicated a willingness to reconsider this decision in the future.

IL: AT&T filed suit against seven Chicago area municipalities which have been slow to grant the telecom giant right-of-way access for its Project Lightspeed deployments. Municipal officials explain that AT&T should have to apply for a local video franchise before being permitted to upgrade its networks to provide video services.

MA: State regulators are reviewing the state's retail telecom billing and regulation legislation which dates back to 1977. The commission seeks to address the implications of CLEC competition and emerging VoIP technology.

ME: PUC Commissioner Stephen Diamond resigned after eight years on the commission citing old age.

MI: AT&T Michigan, formerly SBC Michigan, is seeking release from its designation as toll provider of last resort for about 30 communities within the upper peninsula of Michigan. In so doing, the former baby bell will exit those markets and allow customers to choose among several other IntraLATA contenders including the parent AT&T Corporation.

NV: AT&T entered into a two year agreement to provide service for all of the state's voice and data traffic for all executive branch agencies.

NC: The North Carolina Utilities Commission is reviewing comments filed regarding a BellSouth request to remove certain unbundled network elements from the state's quality enforcement program. BellSouth contends that sufficient competition is in place to ensure against abuse and that regulatory review is no longer necessary.

OR: An Oregon state appeals court upheld a decision that the PUC has authority to set penalties against those that make unauthorized pole attachments. Shortly after this ruling, the commission began work on new rules regarding utility poles and attachments.

VA: The VCC refused to reconsider its earlier decision in which it denied Verizon a waiver on its price cap on local rate increases. The Commission stated that granting such a waiver would set a precedent through which CLECs throughout the state would be able to raise rates.

WA: Seeking to hasten the processing of minor regulatory affairs, the UTC proposed delegating some portion of its review power to administrative judges within the state.

Copyright 2006 The Law Office of Kristopher E. Twomey, P.C.
An excerpt from the LOKT Newsletter is reprinted with permission.

To download the LOKT newsletter in .pdf format and to peruse back issues, visit the publications section of the LOKT website. The LOKT newsletter is available to LOKT clients and friends before the excerpt is published on the ISP-Planet website.

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