HCS SS SCS SB 237 -- TELECOMMUNICATIONS REGULATION

SPONSOR:  Klindt (Rector)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Utilities
by a vote of 14 to 0.

Currently, each telecommunications service of an incumbent local
exchange telecommunications company will be classified as
competitive in any exchange in which at least one alternative
local exchange telecommunications company has been certified and
has provided local telecommunications service in that exchange
for at least five years.  This substitute specifies that two
non-affiliated entities providing basic local telecommunications
service to business customers within the exchange are required in
order to be classified as competitive.   The Missouri Public
Service Commission is required to determine the weighted
statewide average rate of non-wireless basic local
telecommunications services as of August 28, 2005, two years
thereafter, and five years thereafter.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill will lower rates for
basic telephone service by allowing companies to offer special
rates to existing customers in addition to new and former
customers.  The bill will eliminate costly regulation and allow
traditional local telephone companies to enjoy pricing
flexibility.

Testifying for the bill were Senator Klindt; Sprint; Coalition
for Fair Competition; CenturyTel; SBC Missouri; Missouri
Telecommunications Industry Association; and Trip England.

OPPONENTS:  Those who oppose the bill say that it gives incumbent
companies multiple chances to keep their customers before new
companies can talk to them.  In doing so, the bill does not
foster a fair and competitive marketplace for consumers.

Testifying against the bill were Missouri Cable
Telecommunications Association; Cablevision; Galaxy Cablevision;
SEMO Communications; Sebridge Communications; Socket; Big River
Telephone Company; and AARP.

Kristina Jenkins, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm