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1 1 Section 1. NEW SECTION. 476.95 LEGISLATIVE INTENT.
1 2 It is the intent of the general assembly to do all of the
1 3 following:
1 4 1. Authorize and encourage the Iowa utilities board to
1 5 permit all forms of entry into the market for
1 6 telecommunications providers.
1 7 2. Direct the board to regulate telecommunications
1 8 providers based upon the respective market power of a
1 9 provider. A provider which the board finds has little or no
1 10 market power should be regulated to a lesser degree to
1 11 encourage the provider's entry into the market. Providers
1 12 with greater market power should be regulated appropriately to
1 13 prevent any abuse by such provider in hindering the growth of
1 14 competition, and to permit pricing flexibility where
1 15 appropriate to foster the growth of competition in the
1 16 relevant market.
1 17 3. Establish a universal service policy for the state.
1 18 Sec. 2. NEW SECTION. 476.96 DEFINITIONS.
1 19 For purposes of section 476.95, this section, and sections
1 20 476.97 through 476.100, unless the context otherwise requires:
1 21 1. "Basic exchange service" means telecommunications
1 22 service which provides voice grade, single line, single party
1 23 access to the first point of switching in a local exchange
1 24 network with usage within a local calling area, touch-tone
1 25 capability, and access to 911 and E911 service, operator
1 26 services, directory assistance service, and telecommunications
1 27 relay service.
1 28 2. "Dominant telecommunications provider" means a provider
1 29 of basic exchange service that is able to affect changes in
1 30 the relevant market with respect to such service through the
1 31 use of the provider's market power.
1 32 3. "Market power" means the ability to increase and
1 33 maintain prices at levels that are above those which would be
1 34 charged in a competitive market.
1 35 4. "Network element" means the smallest telecommunications
2 1 network function that is capable of being tariffed and offered
2 2 as a separate service.
2 3 5. "Nondominant telecommunications provider" means a
2 4 provider of basic exchange service that is not a dominant
2 5 telecommunications provider.
2 6 6. "Total service long-run incremental cost" means the
2 7 forward-looking cost of a telecommunications service, relevant
2 8 group of services, or network element, using the least-cost
2 9 technology that can reasonably be implemented based upon
2 10 currently available technology, or alternatively, the total
2 11 cost that the telecommunications provider would incur if it
2 12 were to initially offer the service, group of services, or
2 13 network element for the entire current demand, given that the
2 14 telecommunications provider already provides all of its other
2 15 services and network elements.
2 16 Sec. 3. NEW SECTION. 476.97 STATEMENT OF BUSINESS
2 17 OPERATIONS BY TELECOMMUNICATIONS PROVIDER.
2 18 1. A telecommunications provider seeking to provide
2 19 services to the public may do so upon filing a statement of
2 20 business operations with the board, as defined in subsection
2 21 2. This section does not apply to a telecommunications
2 22 provider already providing service within the state as of July
2 23 1, 1995.
2 24 2. A statement of business operations shall include all of
2 25 the following:
2 26 a. The business address of the telecommunications
2 27 provider.
2 28 b. A customer service telephone number for the
2 29 telecommunications provider.
2 30 c. A contact person for purposes of regulatory matters.
2 31 d. A brief description of the service, group of services,
2 32 or network functions to be offered.
2 33 Sec. 4. NEW SECTION. 476.98 REGULATION OF
2 34 TELECOMMUNICATIONS PROVIDERS.
2 35 1. CLASSIFICATION OF PROVIDERS. A telecommunications
3 1 provider that offers basic exchange service within this state
3 2 pursuant to a certificate of public convenience and necessity
3 3 issued pursuant to section 476.29 before July 1, 1995, is
3 4 deemed to be a dominant telecommunications provider. A
3 5 telecommunications provider authorized to provide services
3 6 pursuant to section 476.97, subsection 1, is deemed to be a
3 7 nondominant telecommunications provider. The board, after
3 8 notice and hearing, may reclassify a telecommunications
3 9 provider as dominant or nondominant as the board deems
3 10 appropriate, based upon the provider's market power.
3 11 2. ALL SERVICES TO BE TARIFFED. A telecommunications
3 12 provider authorized to provide service shall file and maintain
3 13 tariffs with the board for each service offered. The tariffs
3 14 shall describe each service offered, list all terms and
3 15 conditions related to each service, and specify the price,
3 16 rate, or rates to be charged for each service.
3 17 3. REGULATION OF NONDOMINANT TELECOMMUNICATIONS PROVIDERS.
3 18 Existing and proposed tariffs of nondominant
3 19 telecommunications providers shall not be regulated or
3 20 otherwise reviewed by the board.
3 21 4. REGULATION OF DOMINANT TELECOMMUNICATIONS PROVIDERS.
3 22 a. Existing and proposed tariffs of dominant
3 23 telecommunications providers must satisfy all of the
3 24 following:
3 25 (1) Contain rates that are just and reasonable.
3 26 (2) Not unjustly discriminate in favor of any users of a
3 27 service, including the dominant telecommunications provider.
3 28 (3) Further the public interest.
3 29 b. The board may suspend and, after notice and hearing,
3 30 reject an existing or proposed tariff of a dominant
3 31 telecommunications provider if the provider's existing or
3 32 proposed tariff fails to satisfy the requirements of paragraph
3 33 "a".
3 34 c. The board may waive the application of
3 35 antidiscrimination and unbundling requirements imposed
4 1 pursuant to this chapter, or delay the applicability of such
4 2 requirements for good cause, as determined by the board, after
4 3 notice and hearing, for a dominant telecommunications provider
4 4 having less than fifteen thousand customers and less than
4 5 fifteen thousand access lines.
4 6 Sec. 5. NEW SECTION. 476.99 ALTERNATIVE PLANS FOR
4 7 REGULATION.
4 8 1. A dominant telecommunications provider may petition the
4 9 board for an alternative form of regulation. The board may
4 10 approve a plan for an alternative form of regulation, after
4 11 notice and hearing, providing that it finds all of the
4 12 following:
4 13 a. The plan is in the public interest.
4 14 b. The dominant telecommunications provider has filed and
4 15 received approval for a tariff for each network element
4 16 offered by the provider.
4 17 c. The plan will produce fair, just, and reasonable rates
4 18 for telecommunications services, based upon the board's
4 19 determination that existing rates at the time the plan is
4 20 approved are fair, just, and reasonable.
4 21 d. The plan accounts for changes in technology and the
4 22 structure of the telecommunications industry.
4 23 e. The plan must specify how customers will benefit from
4 24 any efficiency gains, cost savings out of the regulatory
4 25 change, and improvements in productivity as a result of
4 26 changes in technology.
4 27 f. The plan will maintain the quality and availability of
4 28 telecommunications services.
4 29 g. The plan contains adequate safeguards against
4 30 discrimination to ensure that the dominant telecommunications
4 31 provider does not discriminate in favor of itself or any other
4 32 telecommunications provider in the provision and pricing of
4 33 any telecommunications service.
4 34 h. The plan ensures that the dominant telecommunications
4 35 provider does not degrade the quality of access or service, or
5 1 offer inferior dialing arrangements or connections.
5 2 i. The plan contains adequate safeguards to ensure that no
5 3 service is receiving a subsidy, unless such a subsidy is
5 4 necessary to promote universal service.
5 5 2. Unless the board approves a plan for alternative
5 6 regulation pursuant to subsection 1, all prices or rates for
5 7 services offered by a dominant telecommunications provider
5 8 shall be set so that the dominant telecommunications provider
5 9 recovers its costs plus a reasonable return.
5 10 Sec. 6. NEW SECTION. 476.100 UNIVERSAL SERVICE POLICY.
5 11 1. BOARD AUTHORIZED TO PURSUE A UNIVERSAL SERVICE POLICY.
5 12 The board may pursue the establishment of a universal service
5 13 policy with the federal communications commission or any
5 14 federal and state joint board according to the principles
5 15 specified in subsection 2.
5 16 2. UNIVERSAL SERVICE POLICY PRINCIPLES. The board, in
5 17 implementing a universal service policy, shall consider all of
5 18 the following:
5 19 a. Universal service should ensure that residential basic
5 20 exchange service is available and affordable to residents of
5 21 the state.
5 22 b. The amount of a subsidy to maintain universal service,
5 23 if a subsidy is deemed necessary, should be based on the
5 24 difference between the national average rate for residential
5 25 basic exchange service and the long-run incremental cost of
5 26 providing residential basic exchange service rather than on
5 27 the historic costs of the dominant telecommunications
5 28 provider.
5 29 c. A subsidy necessary to support universal service should
5 30 be separately funded from a universal service fund,
5 31 administered by a neutral universal service fund
5 32 administrator.
5 33 d. Funding for the universal service fund should be
5 34 derived from all telecommunications providers, based on a
5 35 percentage of net operating revenue derived from intrastate
6 1 telecommunications operations of such providers.
6 2 e. The universal service subsidy from the universal
6 3 service fund shall be available to all eligible customers,
6 4 irrespective of which basic exchange service provider the
6 5 customer chooses to use.
6 6 f. As a new subsidy mechanism is implemented, a dollar-
6 7 for-dollar reduction should be made in the revenues generated
6 8 from the current direct charges and above cost rates of the
6 9 dominant telecommunications provider.
6 10 EXPLANATION
6 11 This bill authorizes the utilities board to establish
6 12 alternative forms of regulation for telecommunications
6 13 providers.
6 14 New section 476.95 establishes the legislative intent,
6 15 including encouraging the board to permit all forms of entry
6 16 for telecommunications providers and to regulate
6 17 telecommunications providers based upon the respective market
6 18 power.
6 19 New section 476.96 creates the definitions of terms used in
6 20 the bill.
6 21 New section 476.97 provides that a telecommunications
6 22 provider may provide services to the public upon filing with
6 23 the board a statement of business operations.
6 24 New section 476.98 provides for the regulation of
6 25 telecommunications providers. The section provides for the
6 26 classification of such providers as dominant or nondominant
6 27 telecommunications providers.
6 28 New section 476.99 provides that a dominant
6 29 telecommunications provider may petition the board for an
6 30 alternative form of regulation. If a plan for alternative
6 31 regulation is not approved, the rates for services offered by
6 32 a dominant telecommunications provider shall be set so that
6 33 the dominant telecommunications provider recovers its costs
6 34 plus a reasonable return.
6 35 New section 476.100 authorizes the utilities board to
7 1 pursue the establishment of a universal service policy.
7 2 LSB 1081YH 76
7 3 mj/sc/14
Text: HF00263 Text: HF00265 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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