SCC Staff Report Raises Serious Concerns about 2011 Telecom Modernization Bill

CWA Calls Legislation a Bad Deal for Virginia Customers

GLEN ALLEN, Va.--(BUSINESS WIRE)-- A staff analysis by the State Corporation Commission of the proposed 2011 Telecom Modernization bill has raised some serious concerns about the effect of this bill on Virginians, especially the four million customers with traditional wireline service and Virginia businesses.

The analysis pointed out that one of the proposed changes would “alter significantly” the service obligations of public utility telephone providers like Verizon, by eliminating requirements that Verizon or another provider extend wireline service to a residential customer if that customer can obtain service from another source, including a wireless company.

This would deny wireline service to existing residential customers if the network facilities need to be replaced or expanded. Business customers moving to an area served by Verizon and who depend on multi-line services would not be able to get the services they need from a public utility, the analysis found.

Another section of the proposed legislation would “detariff” the competitive and non-competitive service of telephone companies, meaning that the lists of prices, rates, terms and conditions of service would be eliminated, the report found.

“Detariffing undermines the ability of the regulator to oversee and implement” its policy goals, the report said, outlining several questions that the action raises, including whether the SCC will retain authority to assist customers with complaints, or would customers be forced to seek remedies in civil court.

The SCC staff report also raised concerns about the elimination of important consumer safeguards, including complaint notification procedures, billing and other issues.

The Communications Workers of America has raised similar concerns about House Bill 2367 and Senate Bill 1368 and calls on members of the Virginia legislature to reject these measures.

The legislation “would allow telecom companies to raise rates and skimp on telephone line maintenance, meaning Virginia consumers could end up paying more and getting poorer service,” said Richard Hatch, president of the CWA Virginia State Council. “It would give service providers an incentive to let their networks deteriorate, preventing them from being used for high-speed broadband that’s a necessity in the digital age,” he added.

CONTACT:

CWA District 2
Carol Summerlyn, 804-346-4777, Extension 5

KEYWORDS:   United States  North America  Virginia

INDUSTRY KEYWORDS:   Technology  Telecommunications  Public Policy/Government  Congressional News/Views  Other Policy Issues  Public Policy  State/Local

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