HCS HB 1750 -- TELECOMMUNICATIONS EXCHANGE ACCESS RATES

SPONSOR:  Emery (Jones, 89)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Utilities
by a vote of 12 to 0.

This substitute requires certain incumbent local exchange
telecommunications companies to reduce, by December 31, 2010, and
annually thereafter, both its composite originating and
terminating intrastate switched exchange access rates by 5% of
the difference between its current composite intrastate and the
interstate switched exchange access rates.  By December 31, 2019,
the originating and terminating composite intrastate switched
exchange access rates must be 50% of the difference between the
original rates and the current rates.

Certain small incumbent local exchange telecommunications
companies serving fewer than 25,000 access lines as of January 1,
2010, and rural alternative local exchange telecommunications
companies that meet the specified criteria will be exempt from
the provisions of the substitute.

FISCAL NOTE:  No impact on state funds in FY 2011, FY 2012, and
FY 2013.

PROPONENTS:  Supporters say that the bill will result in greater
cost savings to a majority of Missouri citizens.  Intrastate
telephone rates in Missouri are some of the highest in the
country.  If intrastate rates were reduced to interstate rate
levels, there would be a $200 million savings.  Firms should not
be forced to subsidize their competitors by paying large
intrastate access fees that greatly exceed the maximum
permissible interstate charges.

Testifying for the bill were Representative Jones (89); AT&T;
Missouri Cable Telecommunications Association; Sprint Nextel;
Associated Industries of Missouri; Socket Communications,
Incorporated; U. S. Cellular; Verizon Wireless; and St. Louis
RCGA.

OPPONENTS:  Those who oppose the bill say that it deals with only
one side of the problem.  Some companies are forced to bear
additional costs for the carrier of last resort services by the
Missouri Public Service Commission.  There should be a universal
service fund to correct this problem.

Testifying against the bill were Centurylink; and Michael
Balhoff, Balhoff/Williams.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:11 pm