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Telecommunications |
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Regulatory Overview
OVERVIEW AND STATUS: Over the last decade, the Public Service Commission of Wisconsin (Commission) has aggressively initiated and implemented policy to rely upon competition rather than regulation to determine the variety, quality and price of telecommunications services. Since the enactment of 1993 Wis. Act 496 (Act 496) and the Telecommunications Act of 1996 (1996 Act), the Commission's regulation of the telecommunications industry has been drastically changed. In implementing both the state and federal law, the Commission has opened and completed numerous investigations and rulemaking proceedings. A discussion on several of these proceedings follows including contacts for further information. LOCAL COMPETITION: Responding to the Telecommunications Act of 1996, the Commission conducted an investigation which established standards to promote the development of local exchange competition, implemented interim procedures for negotiated and arbitrated interconnection agreements, and required Ameritech and GTE to file tariffs so that new competitors could interconnect with them to provide alternative local service. The Commission has resolved several interconnection disputes through arbitration between new entrants and incumbent local exchange companies. The Commission has also approved numerous voluntary interconnection agreements and has authorized a number of new entrants to compete in the local exchange market. The Commission has developed alternative dispute resolution rules for mediating, arbitrating and approving interconnection agreements; and for resolving disputes under interconnection agreements. Rules are also being developed to open individual contracts to new entrants (often referred to as fresh-look). New rules are also anticipated on the level of regulation for new entrants, including application for certification and reporting requirements, and issues affecting small telecommunications providers. Finally, the Commission is implementing a consumer education program to provide customers with the information they need to make informed decisions.
UNIVERSAL SERVICE: Pursuant to Act 496, the Commission has established a Universal Service Fund Council (USFC) that provided valuable input to the Commission to develop rules to manage the transition to a competitive marketplace without compromising the concepts of universal service. The rules first became effective on May 1, 1996, and have since been modified. The rules govern the provision of universal telecommunications service and the establishment of a Universal Service Fund (USF). Programs funded by the USF include assistance to low income customers with telephone connection and service charges (Link-Up and Lifeline), high rate assistance credits, special needs equipment vouchers, grants for non profit organizations, grants for telemedicine and some programs of other state agencies, including TEACH Wisconsin. For more information contact: Chela O'Connor, (608) 266-2307 (e-mail: Chela O'Connor) PRICE REGULATION: In 1993, Wisconsin Act 496 allowed companies to elect a reduced form of regulation called price regulation. Telecommunications utility price regulation is a method of regulation established by Act 496, whereby the average prices for basic local exchange services are limited by a formula based on inflation, as adjusted for a productivity offset, and incentives and penalties for infrastructure investment and service quality performance. Price regulation also requires reductions and other limitations for intrastate access charges, but eliminates most of the Commission's authority to review rates for all other services. Each year, the Commission sets the amount by which each company may increase or must decrease its rates. For more information see "What restrictions are there on rates charged by AT&T and Frontier" or contact: Chris Larson, (608) 267-9508 (e-mail: Christopher Larson) ALTERNATIVE REGULATION: Act 496 directed the Commission to regulate with the goal of developing alternative forms of regulation and to develop and approve an incentive regulatory plan for each telecommunications utility. The Commission to date has approved alternative regulatory plans for 26 companies. These plans have generally allowed for increases in local exchange rates, within specified limitations, and decreases in access rates paid by long distance companies, and included provisions to facilitate a transition to competition, and guarantee maintenance of service quality and infrastructure improvement. For more information contact: Chris Larson, (608) 267-9508 (e-mail: Christopher Larson) |
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