“At the time, wireless carriers seemed sur-prised that state commissioners were interested in regulation. But it turned out to be very healthy.”
“Today, some problems continue, and I think there is a role for state government on a limited basis for consumers. That role has evolved now. The states have now developed a relationship with the FCC and that needs to always be there because we are the first people to deal with problems and we do get back to people. The role of states today is to represent consumers. But I don’t believe we belong in some areas where we have traditionally been involved on the wireline side.”
What Issues Do States Regulate?
State regulators consistently mention a handful of issues that attract their attention. While there are other issues, those of particular interest include eligible telecommunications carrier (ETC) applications for Universal Service Funds, intercarrier compensation, truth-in-billing, and consumer protection.
The Washington State Utilities and Transportation Commission is currently developing rules about ETC applications, according to Commissioner Philip Jones, after an FCC report in March, 2005, suggested states take a more active role in that function.
Following the enactment of the federal Telecommunications Act of 1996, Washington State routinely granted ETC designations to wireline companies. When wireless companies began applying in 1999, many state regulators took the position that wireless companies could help in reaching the goals of universal service by putting up cell sites and extending the communications network into sparsely populated areas.
The new rulemaking proposal will aim to harden Washington State’s regulatory approach to ETCs. “We are insisting on more accountability from wireline and wireless companies using Universal Service Fund money,” Jones says.
If put into effect, the new rules would require companies using the Universal Service Fund to make regular reports on how much they spend and how they spend it, as well as service outages. Companies will also be required to provide evidence that the money is being spent to further the goals of Universal Service.
While states such as Washington review their ETC regulations regarding accountability, other states’ regulators wrestle with the nature of Universal Service and might differ on their philosophical approaches to granting ETC status. Boyle notes that rural carriers have strong lobbies and see wireless carriers as threatening competition, adding that one reason the rural carriers’ arguments are “starting to stick at the FCC is that in a very small community, does it make sense to provide funding in the name of competition.”
