The Regulatory Mix, TMI’s daily blog of telecom related regulatory activities, is a snapshot of PUC, FCC, legislative, and occasionally court issues that our regulatory monitoring team uncovers each day. Depending on their significance, some items may be the subject of a TMI Briefing.
FCC
At its July 14, 2016, Open Meeting, the FCC adopted a Declaratory Ruling, Second Report and Order, and Order on Reconsideration establishing new rules for discontinuing legacy TDM-based voice services. The text has not yet been released, but based on the News Release it appears that, under the new rules, an application to discontinue legacy TDM-based voice service in a technology transition would be automatically granted in 30 days if the applicant meets a three-pronged test. The test expedites transitions in which:
(1) Network performance, reliability and coverage is substantially unchanged for customers
(2) Access to 911, cybersecurity and access for people with disabilities meets current rules and standards; and
(3) Compatibility with a defined list of legacy services still popular with consumers and small businesses, including home security systems, medical monitoring devices, credit card readers and fax machines, subject to sunset in 2025, is assured.
The test is voluntary; requests for discontinuance can also be reviewed through the FCC’s normal adjudicatory channels.
The Order on a Petition for Reconsideration addresses a technical correction suggested by TelePacific regarding the timing of service discontinuance for competitive service providers when the local phone company transitions away from copper networks and the competitor relies on the ILEC’s network. It is not clear exactly what action was taken.
The Declaratory Ruling section of the item grants a petition by the United States Telecom Association and reduces regulatory burdens for traditional local voice providers by finding that they are no longer dominant in the market for connecting local callers to long-distance networks. The finding was based on the increasing popularity of mobile wireless, cable VoIP services and regulatory changes combined to erode the dominant position of local carriers in the market for interstate switched access. Again, it is not clear exactly what action was taken.
CFA Report on Arbitration Clauses
The Consumer Federation of America (CFA) and the North American Consumer Protection Investigators (NACPI) released a new Report about the top consumer complaints received last year by state and local consumer agencies. According to the Report, banning forced arbitration clauses in consumer contracts was the most frequently made suggestion for a new law that would better protect consumers. The report notes that studies have shown that consumers do not fare as well in private arbitration hearings as they do in court and that outcomes of such f proceedings have no legal effect on companies’ future behavior. It notes that several federal agencies, including the Consumer Financial Protection Bureau, are considering restricting these clauses.
The survey also listed service problems or billing disputes with phone, cable, satellite, Internet, electric and gas service as number three on the top ten list of consumer complaints. Do not call violations, cell phone sales, and aggressive sales tactics for solar power and electricity made the list of fastest growing complaints.
TMI Fall 2016 Telecom Regulatory Seminar & Workshop in Maitland, FL - October 18 - 19.
