Immediate implementation of the results of an FCC urban rate survey (CD March 21 p14) would lead to a dramatic increase in the residential phone rates that many small eligible telecom carriers (ETCs) in Washington state and across the U.S. must have in place by July 1, said the Washington Utilities and Transportation Commission (http://bit.ly/1hvLUzF). The ETCs must have the rates in place to continue to receive the full level of high-cost loop support (HCLS) provided from the Connect America Fund (CAF). The contemplated increase in the urban rate floor from $14 per month to $20.46 monthly would be a dramatic price increase implemented within a very short period of time, said the Washington commission in comments posted Tuesday in FCC docket 10-90. It said implementation of the new urban rate floor should be delayed and then phased in. The Public Utilities Commission of Ohio (PUCO) also expressed concern (http://bit.ly/Pe6biP) about the $6.46 rate floor increase, saying standalone phone service is price-regulated in the state. ILECs that have received basic local exchange service (BLES) pricing flexibility may increase their BLES rate by no more than $1.25 during any 12-month period, leaving them short of meeting the threshold to receive full-level HCLS, said PUCO’s comments also posted in the docket Tuesday. “If the benchmark rate continues to increase at a proportionately higher level than Ohio ILEC BLES rate increases, these carriers will never reach the benchmark rate, resulting in many of Ohio’s small, rural ILECs losing an ever-increasing amount of the high-cost support upon which they heavily rely to provide quality telecommunications services."

A California bill requiring that smartphones and tablets sold in the state include theft-deterring technology passed the Senate Energy, Utilities and Communications Committee by a 6-2 vote on Tuesday. SB-962 (http://bit.ly/1i0TKOj), sponsored by Sen. Mark Leno, a Democrat, requires that smartphones and tablets sold beginning Jan. 1, 2015, come with a kill switch that would render them useless if stolen. “Smartphone robberies have become epidemic in cities across California, mainly because there is a financial incentive to steal and then resell these valuable devices on the black market,” Leno said in a news release. More than 65 percent of all robberies in San Francisco, and 75 percent in Oakland, involve the theft of a mobile device, it said.

Kentucky’s HB-391 (http://1.usa.gov/1ffha5p), which would increase prepaid wireless fees to help fund 911 services, would “sock” poor state residents, said Consumer Action and the Community Action Partnership in a news release (http://prn.to/1dKEKZ9) Friday. The measure would raise the prepaid fees from 70 cents per $50 of service to $1 for each $20 of service. The Kentucky League of Cities and law enforcement organizations support (http://bit.ly/1gHQuuY) the bill, saying landline and wireless fees that fund 911 services have declined as more people phase out landlines. The fee’s wireless portion hasn’t been raised since 1998. “Consumer Action and the Community Action Partnership support the work of Kentucky police officers, firefighters, and other emergency responders and E-911,” the news release from the consumer organizations said. “But a punitive tax on prepaid cell phones that would disproportionately harm Kentucky’s senior citizens (particularly those on fixed incomes), veterans, the disabled, and low-income residents seems like the wrong solution to the challenge of paying for E-911.”

New York telecom companies have made improvements to maintain or restore service after natural disasters like Superstorm Sandy, said a report Thursday to the New York State Public Service Commission. From the Department of Public Service, the report cited the companies’ use of newer technologies like Facebook to communicate with customers, and improved communications between the telcos and utilities. The actions address findings made by the Moreland Commission on Utility Storm Preparation and Response created by Governor Andrew Cuomo (D). “New York’s telecommunication companies have been working steadily to improve future restoration and response efforts during and following storms and other emergencies,” said PSC Chairwoman Audrey Zibelman in a news release (http://tinyurl.com/p2eylaj). “As part of this continuing effort, the Commission will work to enhance communication and coordination between the communications companies and electric utilities to ensure rapid emergency response and service restoration."

A Colorado bill that would set the stage for telcos to be excused from carrier-of-last-resort (COLR) obligations in two years, if the state Public Utilities Commission deems an area competitive, passed the House Business Committee Tuesday. Under HB-1331 (http://tinyurl.com/o2fse9x), sponsored by state Rep. Angela Williams, a Democrat, the PUC would also no longer have regulatory authority over issues like service quality in areas deemed competitive. In areas not deemed competitive, and where the PUC provides support, providers would still be subject to COLR obligations, but could meet the obligation by providing voice service through any technology, not just traditional landlines. The bill is one of several deregulation measures in state legislatures this year (CD March 19 p12). HB-1331 is among five Colorado telecom bills that passed the committee Tuesday (http://tinyurl.com/ppmvw5g).

The National Association of Telecommunications Officers and Advisors (NATOA) applauded FCC Chairman Tom Wheeler’s announcement (CD Feb 24 p1) that the commission may examine restrictions on cities and towns to offer broadband services (GN Docket No. 14-28) (http://tinyurl.com/ndck8d3) Wednesday. “As we have seen, robust broadband networks bring economic vitality and a wealth of new services to the communities they serve. But state barriers to community broadband initiatives prevent municipalities from working with private broadband providers, or developing networks themselves, to provide these services to their residents and businesses,” NATOA wrote in its FCC filing.

Strengthened state merger laws reportedly being considered by New York Gov. Andrew Cuomo, a Democrat (http://tinyurl.com/nmlzyx7), wouldn’t be a “meaningful new hurdle” for Comcast’s plan to buy Time Warner Cable, wrote analyst Paul Gallant of Guggenheim Partners in a research note Wednesday. The New York State Public Service Commission would have more authority to block the deal, and the development may be worth monitoring “simply because New York has historically been effective at regulating various sectors when it views federal authorities as insufficiently protective of consumers,” Gallant wrote. A new burden of proof that the transaction would be in the interest of state residents would be higher than present law, but would be the same burden of proof to win FCC approval, Gallant wrote. “The FCC is likely to approve the merger with conditions because (in our view) there is no clear competitive harm from this merger. This is just as true in New York -- consumers post-merger will have the same number of pay TV and broadband choices.” Any new law may force bigger concessions from the companies “but would not increase the chance of outright deal rejection by the NY” PSC, he wrote. Gallant also said Comcast’s NBCUniversal is a major unionized employer in the state, “which we expect will be a very helpful political consideration as New York regulators evaluate the Comcast-TWC merger.” Cuomo’s office on Thursday told us state law now puts the burden of proof on companies to show a gas or electric transaction would be in the public interest. For cable deals, the burden is on the PSC to show it would cause harm. The proposed change would shift the burden to cable companies as well. “This measure brings the PSC’s authority over cable mergers in line with its existing powers to regulate gas and electric company mergers. By doing so, we're modernizing New York’s laws to reflect the realities of New York’s marketplace,” an administration official said in a statement. Cuomo, in a recording of a news briefing released by his office, denied the proposed change was spurred by the proposed Comcast/Time Warner Cable.

Comptel backed the Michigan Public Service Commission decision Tuesday (CD March 19 p19) requiring AT&T Michigan and Sprint to file an interconnection agreement with the agency. “By requiring IP interconnection agreements to be publicly filed and enabling others to simply opt into them, the Michigan PSC is fulfilling its role under the Telecom Act, making it easier for carriers to focus on their core business of serving consumers and ensuring that AT&T cannot discriminate in the marketplace,” said Comptel CEO Chip Pickering in a statement Wednesday (http://tinyurl.com/pls5mda). “Simplifying and speeding the process of interconnection will save carriers time and money, and ultimately benefit consumers.” He called the ruling “a defining moment as the communications industry transitions to IP technology” that “sets a precedent for other states to follow.” The PSC rejected a proposed interconnection agreement between the companies to resolve an IP interconnection dispute (http://tinyurl.com/nmuglcw) in which Sprint had sought a ruling saying AT&T was obligated under the 1996 Telecom Act to interconnect to it. “Sprint appreciates the work conducted by the Michigan Public Service Commission on IP Interconnection issues,” is “closely reviewing” the decision and will respond shortly to the agency, said a spokesman in a statement Tuesday. An AT&T Michigan spokesman declined comment.

The Alabama Public Service Commission didn’t track whether the roughly 750 complaints it received last year about phone companies were resolved to the satisfaction of the customer, a PSC spokeswoman told us Wednesday. Explaining a recently approved Alabama measure (http://bit.ly/PucWgY) stripping the PSC’s authority to follow up on consumer complaints, the measure’s author, Republican State Rep. Mike Hill, told us the PSC was essentially acting as an “answering service” by simply forwarding complaints to the companies (CD March 18 p10). Asked whether the PSC had been able to resolve the complaints it received, its spokeswoman said in a statement: “All complaints are resolved one way or the other and many of these are resolved in the customer’s favor.” Many “complaints result from consumer misunderstanding about service terms, rates, and conditions or misinterpretation of prior oral or written communication with company marketing representatives,” she said. “Such conflicts may be resolved to the consumer’s satisfaction but not necessarily in their favor."

Verizon has been allowing its copper network to deteriorate in an attempt to push landline customers to its FiOS and Voice Link services, The Utility Reform Network (TURN) alleged in an emergency motion filed (http://tinyurl.com/oyhclhx) with the California Public Utilities Commission Tuesday. The motion seeks a CPUC order requiring Verizon to repair the service for copper-based landline phone customers who have requested repair or wish to retain the copper services they were cut off from. “Verizon is deliberately neglecting the repair and maintenance of its copper network with the explicit goal of migrating basic telephone service customers who experience service problems,” the motion said. “These migrations are often without the customers’ knowledge or consent. Moreover, Verizon is migrating these customers to a largely deregulated fiber-based telephone service that is inferior to basic phone service in certain key respects.” The motion noted VoIP services are susceptible to power outages. “The CPUC should not turn its back on basic phone customers, or allow Verizon to renege on its obligations to provide reliable service,” said TURN Telecommunications Director Regina Costa in a news release. “It should not permit Verizon to maximize profits while minimizing the service Californians receive.” Verizon “remains focused on providing our customers with the best possible service over the platforms that we have available to them,” said a spokesman by email. “Where our all-fiber network is available, it provides a reliable platform that can support anything ranging from traditional telephone service to next-generation technology services, depending on the customer’s needs. We are reviewing the filing and will respond as appropriate to the California Public Utilities Commission.” A CPUC spokeswoman wasn’t immediately available.