LANSING – Most of the current regulation would be removed from local telephone service under legislation being considered by the House Energy and Technology Committee.
As currently drafted, the bill (HB 4314 ) would essentially leave state licensing of wireline telephone providers, 911 service and Lifeline service for low-income residents. But it would eliminate all quality of service and price regulation.
AT&T officials said the changes are needed because wireline service is losing in competition with wireless and other communications technology.
They said there are currently few customers on the rate regulated service, and she said the rate regulation is no longer needed because the market is driving rates for most services.
While the bill would remove service quality regulation, AT&T and other phone carriers would then fall under the Consumer Protection Act, company officials said.
But Joe Gallan with the Michigan Internet and Telecommunications Alliance said the bill needs to be sure to retain Public Service Commission oversight of the interconnection contracts.
“Their ability to reach their customers is critically dependent on the contracts the commission oversees,” Gallan said.
He also urged that voice over Internet protocol not be considered a competing service. It is a way of carrying calls, but is not a service in itself, he said.
The bill as drafted would allow VOIP and wireless to be considered when determining if there is sufficient competition in a market to allow the incumbent provider to discontinue service to an area.
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