State commissioners again will weigh in on regulatory matters affecting their constituents, during a 50-minute session on Tuesday.
Over the past two years, independent consultant and economist Joe Gillan has made a point to get states’ views in front of COMPTEL attendees.
“Some in Washington forget how important state regulators – and the issues that they decide – are to the competitive industry,” said Gillan, who is slated to be joined by Sharon Gillett, head of the Massachusetts Department of Telecommunications and Cable; Betty Ann Kane, commissioner for the Washington, D.C. Public Service Commission; and Katrina McMurrian, commissioner for the Florida Public Service Commission.
Gillan, who runs Gillan Associates, hopes to address at least three important topics.
First, there’s a gray area when it comes to states’ regulatory role under Section 252 of the Telecom Act that’s growing more critical as packet-based networks replace circuit-switched networks, Gillan said.
“Even AT&T acknowledges that ‘IP is inevitable,’ but they never publicly acknowledge what that means for interconnection,” said Gillan. “Existing interconnection agreements assume traffic is exchanged between circuit-switched networks; as packet replaces circuit-switched transport networks, the logical next step is for interconnection agreements to be modified to incorporate traffic exchange in packet form. Obviously, that will involve, at least in some instances, state commissions.”
Second, there’s growing interest in bringing UNE rates under price cap plans to maintain balance between price and cost.
Gillan explained: “Cost studies are very expensive and require resources that disadvantage every party other than the ILEC. State commissions over the next couple of years will be addressing this issue as well and it will be important to hear what these influential state regulators think.”
Finally, as Gillan put it, “Universal Service is the issue that will not go away.” States want to ensure the wide availability of broadband, which means USF reform involving high-speed access “is very likely.” Indeed, an FCC advisory board has recommended reform include a broadband fund. The FCC has yet to take action on the suggestion but sources say USF changes could, in part, come alongside revision of intercarrier compensation rules. That could happen soon.
No matter how the reform turns out, though, oversight will be required.
“Realistically, so long as there is USF support, someone will need to make sure it is spent appropriately and it is likely that state commissions will be asked to do a lot of the work,” Gillan said.
