![[Top]](/images/nav-top.gif)
![[Back]](/images/nav-back.gif)
![[Home]](/images/nav-home.gif)
April 27, 2005
Rochelle Athletic Center, University of Wyoming
Laramie, Wyoming
Senator Curt Meier, Co-Chairman
Representative Pete Illoway, Co-Chairman
Senator John Hanes
Senator Charles Scott
Representative Bruce Barnard
Representative Ross Diercks
Representative Keith Gingery
Representative Frank Latta
Representative Marty Martin
Representative Del McOmie
Representative Monte Olsen
Senator Wayne Johnson
Senator Jayne Mockler
Representative David Miller
Lynda Cook, Staff Attorney
Please refer to
Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.
Co-Chairman Curt Meier called the meeting to order at 1:15pm. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee Meeting Agenda.
The committee met immediately following the Telecommunications forum at the University of Wyoming. The only topic on the agenda was the future of telecommunications regulation and the 1995 Telecommunications Act. The committee took testimony from the following committee members and attendees:
Senator Scott congratulated the sponsors of the telecommunications forum on a job well done. He stated that he agreed with the governor, that citizens want reliable and affordable land line communications. He wants to see deregulation of retail services with a cap on basic service rates that is set at the current rate. He would like to see the Public Service Commission have authority to revisit the rate cap at some point in the future. He sees the Universal Service Fund is an obstacle to destructive competition. Any new regulation should continue to treat wireless as a supplemental service, that the Public Service Commission should regulate wholesale transactions and referee disputes, and that legislation should include a sunset date in order to force the committee to revisit the issue at a time certain.
Mr. Ellenbecker recommended the committee proceed on two parallel paths. First, the committee should not worry about new high technology features in the telecom industry and should not redefine essential services. The committee should maximize available technical expertise and work with the Wyoming Telecommunications Council to further the goal of providing broadband throughout the state. Second, the committee should appoint a Task Force of select legislators who can work with people with technical expertise and experience. The Task Force should be given guiding principals to build into any potential legislation. Those guiding principals should include converting from price to cost based service for the Universal Service Fund, be conservative about what is "essential services", and dispose of TSLRIC as the basis for prices. Price caps should be implemented, with a mechanism for adjustment of price caps, and prices below the price caps should not be regulated. Mr. Ellenbecker further suggested that wholesale transactions should occur in a regulated framework, with the Public Service Commission acting as a referee for disputes between carriers. Mr. Ellenbecker agreed with Senator Scott that it should be the legislature's policy to remove barriers to wireless and satellite communications as long as they do not drive up prices. Mr. Ellenbecker agreed to provide the committee with further information about the quality of satellite communications technology. Finally, Mr. Ellenbecker suggested that there are filings with the FCC regarding costs that could be used to set a cost based Universal Service Fund, and that the subsidy provided from the USF should be portable with the client.
Senator Case testified that the 1995 Telecommunications Act has evolved in some respects and has failed to evolve in others. Senator Case testified that the use of TSLRIC as a floor for pricing was intended to be a temporary mechanism to encourage competition. He testified that TSLRIC is now too cumbersome and that the goal now should be to lower prices. On the USF, Senator Case believes that it is poorly distributed and should be technologically neutral and portable. He suggested that one mechanism for distributing the USF would be to issue coupons to customers directly that could be used by the customer to pay for whichever carrier they prefer. Additionally, the USF should be based on cost rather than price.
The Committee recessed from 3:15 to 3:30 pm.
Dr. Egan began by warning the committee not to get dragged into the details of creating a new cost recovery basis for interconnection services. He further testified that the Council should be responsible for telecommunications policy for the state. Dr. Egan made several recommendations regarding telecommunications regulation. Those recommendations are attached as Appendix 3. The WTC has been focusing on bringing broadband to the state but that their funding is depleted with the study. Senator Meier volunteered to meet with the WTC at the appropriations committee meeting to work on funding.
Bruce Asay representing the Telecom Association supported decreased regulation and supported Mr. Ellenbecker's suggestion of creating a task force directed to draft legislation based on the committee's fundamental principals.
Steve Mossbrook representing Wyoming.com supported Dr. Egan's model for USF distribution and pricing and supported the task force concept.
John Gibbs with Bresnan Communications promised to send a written presentation and report from his company's regulatory counsel for the committee to review. He stated that his company could at this time provide a Vonage type service via cable, but because they want to provide a better service they are concerned about entering a regulated market. He supported the concept of deregulation.
Liz Zerga representing CLEC clients agreed with the concept of a task force and handed out an overview of telecommunications she prepared. (Appendix 4).
Brett Glass of Lariat.net was concerned that business customers were not represented at the forum. He suggested expanding the work of the committee to looking into increasing access to wireless and satellite providers on existing infrastructure.
Don Jackson of Tri County Telephone agreed with the concept of a task force and suggested that four meetings would be necessary to craft any legislation.
Tim Summers and Coralette Hannon from the AARP reiterated that their clients were interested in ensuring quality service at an affordable price. Their members are concerned whether current competition was truly effective competition, and that there should be effective competition before deregulation. They supported maintaining the USF and stated that they were open to changing to price caps for a while, but to study whether competition truly exists. If competition does not truly exist, they support continued regulation.
Bryce Freeman representing the Public Service Commission, Office of Consumer Advocate, reminded the committee that the task force could give them advice, but it would be the responsibility of the committee to set the policy objectives. The idea of a rate cap has intuitive appeal, but it is most important to ensure quality of service. He believed the Public Service Commission should have continued regulatory oversight of wholesale interactions.
Jody Levin and John Ceballos of Qwest testified that deregulation was preferred. They provided a matrix of products available from Qwest (Appendix 5) and a schedule of USF distributions (Appendix 6). Ms. Levin later provided additional presentation materials (Appendix 7 and 8).
Rob Hurliss from the Public Service Commission offered the assistance of the PSC in helping to explain any technical aspects of telecommunications.
Representative Barnard felt that the key issue is essential services and that we need to wean away from subsidizing rural customers. He felt that we should not be transferring costs from one group to another.
Chairman Illoway asked Mr. Ellenbecker to prepare his presentation in written form and submit it to the committee. That presentation will be provided at a later date. (Appendix 9).
Representative Gingery expressed concerns over e-911 collections and distributions.
Representatives Latta, Martin and McOmie and Senator Hanes all supported the concept of a task force made up of all stakeholders.
Chairman Meier asked that a task force be started. He additionally asked staff to provide each legislator with the list of interim topics approved by the Management Council. (Appendix 10). Legislators were also provided with copies of the handouts form the Telecommunications forum. (Appendix 11).
The next meeting was set for June 16 and 17 in Sheridan. Another meeting will be set for August 15 in Cheyenne.
There being no further business, Co-Chairman Curt Meier adjourned the meeting at 5:15 pm.
Respectfully submitted,
Curt Meier, Co-Chairman