LANSING – The full Michigan Senate will consider an amendment to the Telecommunications Act resulting in additional deregulation of the state’s telephone industry, though opponents argue it could possibly result in cutting some residents off from 911 emergency service.

The Senate Energy and Technology Committee voted unanimously Tuesday to report the Senate substitute for HB 4314 over the concerns the Michigan Townships Association and the Michigan Association of Counties.

At issue, as more and more conventional phone users are turning exclusively to cell phones, is the provision that could allow a telephone company to discontinue service to a certain area it no longer deems profitable as long as there are at least two other alternative providers of basic local exchange service, or one or more providers of toll service. For example, a company supplying service via land lines could withdraw from an area that is covered by two or more cellular systems or a cellular system and a two-way voice system over the Internet.

The landline company couldn’t end service if there is only one other provider of basic local service. A telecommunication provider proposing to discontinue a regulated service would be required to notify the Public Service Commission, publish a notice in the general-circulation newspaper within the exchange and send a notice to each of its customers, by first-class mail or with its periodic billing statement. Within 90 days of the notification, the PSC may initiate a proceeding to determine if a discontinuance of service is authorized under the act.

David Bertram, the townships association legislative liaison, said his organization opposes the bill and testified that spotty cell service could leave customers, primarily in rural areas, at risk.

“We think (the substitute) attempts to provide a competitive approach by having at least more than one provider for basic local exchange, and that’s positive,” Bertram said. “We think the notification requirement is also a positive step for consumers to understand their service could end. But we still have concern that under the two-way comparable service, even with two providers, you could have two cell companies providing for the area. If a person’s landline, basic service is ended, they could be in a situation where they don’t have a workable phone.”

The townships association is proposing language that would ensure comparable functionality throughout the affected area. Bertram cited “pockets” throughout the state in rural, but also some urban, communities where cell service cuts out.

“I think we’ve all been driving through areas of the state where you can find your service is gone,” Bertram said. “That same thing can happen in rural areas where you have a home. The problem is, even if a hearing was to take place, you’d probably pull in a cellular phone company that probably will tell you, ‘Yeah, we actually provide in that area.’ But you can have in that area local topography that causes problems: a lot of trees, a lot of hills, just a different lay of the land. It becomes a safety issue for people calling 911 to get someone to their house for an emergency.”

Sen. Mike Nofs (R-Battle Creek), the committee chair, said the PSC would have the authority to step in if a discontinuation of service would impede 911 access.

“The Public Service Commission obviously can hold a hearing if that’s the case,” Nofs said. “If someone brings it to their attention, they can make a determination and not let the withdrawal of service go forward.”

Ben Bodkin, the counties association’s director of legislative affairs, echoed Bertram’s proposal to verify whether an area has adequate 911 coverage before a provider can withdraw service.

“We are pleased that changes were made to allow for a PSC hearing and that kind of thing, but we would prefer and support a change that would require the PSC to make sure that 911 is functional for residents of whatever area is proposed to switch over,” Bodkin said. “We are hopeful PSC will make 911 their foremost priority as they’re looking at these kinds of things around the state.”

Nofs said the county would be able to approach the PSC on behalf of a resident who found access to 911 disrupted, but that could be after the fact.

“I’m hopeful both the county and the citizen himself or herself would do so,” Bodkin said. “But I think 911 is an important enough issue that we can’t get it wrong.”

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