BREAUX-NICKLES BILL DOESN'T REFLECT STATE AUTHORITY, NARUC SAYS
NARUC told Sen. Breaux (D-La.) July 1 that state regulatory agencies still have some jurisdiction over DSL broadband services. NARUC was replying to questions Breaux had for Assn. in May 22 Senate Commerce Committee hearing on broadband. Robert Nelson, vice chmn., NARUC Telecom Committee, and member of Mich. PSC, said Breaux-Nickles broadband bill (S-2430) presumed FCC and courts already had determined scope of state jurisdiction over broadband, which they hadn’t. Comment deadline was Mon. in FCC rulemaking to affirm its tentative decision to classify broadband as information rather than telecommunications service (see separate story in this issue). Ruling broadband is information service would make it exempt from unbundling and regulatory oversight by PUCs, particularly in regard to consumer protection enforcement, NARUC said.
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NARUC opposes Breaux-Nickles bill, saying it would transfer to FCC consumer service and protection responsibilities that currently were under state jurisdiction. “Such a shift in the customer complaint resolution process may pose significant financial and administrative burdens on the agency,” NARUC said. “We do not believe this is the intent of your bill, nor do we think this approach will stimulate demand in broadband services.” Letter said FCC had “confirmed” on numerous occasions that state commissions, not FCC, should assist DSL customers with their complaints. It said Cal. PUC Pres. Loretta Lynch said in hearing testimony May 22 that FCC regularly referred written complaints to PUCs. Lynch said the Cal. PUC had received more than 750 complaints against SBC Pacific Bell alleging fictitious charges, overcharges and misleading promotions.
Bill also could preempt state authority over voice telecom services as well as broadband services, letter said. Nelson said: “Your bill says that any facilities and equipment used for broadband, which include the same facilities that are used for voice, would not be subject to the jurisdiction of any state.” He said that provision would limit states’ oversight of voice traffic and undermine their ability to create competition in voice telephone markets.
NARUC also said traffic migration to broadband platform could have an effect on both state and federal universal service funding. FCC assumes traffic migration will occur, letter said, which could eliminate all common carrier rules for voice traffic, and Nelson urged Breaux to consider potential effects, particularly on state and federal universal service funds. “As carriers begin to shift the bulk of their voice traffic over broadband Internet platform, the universal service funding obligations assigned to carriers that provide traditional circuit-switched voice traffic will diminish,” letter said. Breaux’s office didn’t return call for comment.