The Debate Over State vs. Federal Regulation
By Michael Fickes
As the discussion in Washington continues over what revision of the nation’s telecommunications laws might be necessary, a recent ruling by the U.S. Court of Appeals for the Eighth Circuit illustrates the continuing and perhaps growing debate about the appropriate balance between federal and state regulation and legislation with regard to wireless communications.
In December, 2005, a three-judge panel of the 8th Circuit Court of Appeals struck down several provisions of a Minnesota law aimed specifically at wireless service, preempting the state’s attempt to legislate and regulate wireless rates and service. Such activity is prohibited under federal law, and the decision provides a clear legal precedent regarding the state-federal relationship in wireless regulation.
The Minnesota statute was hardly an anomaly, as mostly every state is
considering various versions of wireless legislation and regulation. According to StateScape, a state legislative tracking service, more than 1,000 pieces of wireless-related legislation were introduced in states in 2005. A similar tracking service, Focus, reports an additional 600 pieces of state legislation being introduced in the first two months of 2006. It is in this climate that various state public utility commissions now find themselves deciding the degree to which they should involve themselves in wireless issues.
The perspectives of state regulators provide an informative backdrop in the evolving telecom debate on Capitol Hill, as the wireless industry advocates a lightly and federally regulated framework is the best way for the industry to meet consumers’ growing demand for innovative wireless products and services. The industry maintains that states have an important role to play by enforcing their laws of general applicability for all businesses, and not in creating prescriptive wireless-specific rules and regulations.
What is the state of state regulation of the wireless industry? How many states favor reg-ulatory oversight and how many do not? How do state regulators view the wireless industry and the influence they should have in key regulatory issues such as universal service, truth-in-billing, early termination fees, intercarrier compensation, and others?
States Differ on Regulation
One of the key organizations following trends in state regulation is the National Association of Regulatory Utility Commissioners (NARUC). Back in 2003, NARUC surveyed its members on the subject of wireless regulation. Members in all 50 states were polled; responses came from members in 35 states.
