You requested a section-by-section analysis of SB 1097, “AAC the Equal Regulation of Telecommunications Services,” currently before the Energy and Technology Committee.

SECTION ONE

Under current law, telecommunications services are classified as competitive, emerging competitive, or noncompetitive. The classification applies to services provided by telephone companies (Verizon in part of Greenwich and SBC in the remainder of the state) and by certified telecommunications providers, such as Sprint. The classification of a service affects, among other things, the amount of notice that a telecommunications company must give to the Department of Public Utility Control (DPUC) before it can implement a new or amended service tariff. The law provides a process for DPUC to reclassify a service, upon petition, its own motion, or in connection with an investigation it conducts on a company’s tariff. DPUC must consider eight factors when deciding whether to reclassify a service.

Under current law, with limited exceptions, services that a telephone company provided before July 1, 1994 are deemed to be noncompetitive. In contrast, the law precludes DPUC from prohibiting or restricting the competitive provision of telecommunications services by certified telecommunications providers, unless DPUC finds that this would be inconsistent with laws governing the regulation of telecommunication services.

The bill expands the types of services provided by a telephone company that are deemed to be competitive to include (1) services offered to business customers and (2) home office services. The bill also deems any service provided to a residential customer to be competitive, so long as the customer subscribes to two or more telephone company services. These services include basic local service, intrastate toll service, and “vertical features. ” In testimony at the public hearing on the bill, an SBC representative indicated that these features include such things as caller identification and call waiting.

The bill also requires that DPUC reclassify any service in geographical areas that meet certain criteria, upon petition, on its own motion, or in connection with an investigation it conducts on a company’s tariff. The criteria are that:

1. at least three persons (companies or other entities) offer commercial mobile telecommunications service, e. g. , wireless service, in the area; and

2. one or more certified telecommunications providers or cable TV companies offer telecommunications to residents of the area or at least person offers voice over internet protocol (VOIP) to residents of the area.

It appears that most if not all areas of the state meet these criteria. Under the bill, DPUC must reclassify a service in an area that meets the criteria after notice and hearing. It must do so within (1) 90 days of receiving a petition for reclassification or initiating the proceeding on its own motion or (2) in the period of time that the department has to investigate a tariff under current law, if the reclassification is done in connection with the investigation. It appears that the latter period would be 75 days in most circumstances.

SECTION TWO

By law, DPUC had to adopt, by regulation, quality of service standards that apply to all services offered by telephone companies and certified telecommunication providers. These standards cover such things as customer trouble reports and service outages. The bill requires that DPUC apply the standards on an equal basis to all companies and all services. It bars DPUC from applying or enforcing standards that are not applied uniformly.

SECTION THREE

The bill extends to certified telecommunications providers various provisions regarding termination of residential service that currently apply to telephone companies. These provisions also apply to other utility companies and electric suppliers (companies that compete with electric utilities). These provisions:

1. require the affected company to provide notice by first class mail at least 13 days before terminating service for nonpayment of the customer’s bill;

2. prohibit the company from terminating service for nonpayment to a seriously ill customer whose doctor certifies and informs the company of the illness during the period specified by DPUC regulations;

3. entitle a customer who has a complaint or investigation pending before the company to a hearing before a review officer of the company, other than a member of the company’s credit department;

4. prohibit the company from terminating service while a complaint, investigation, hearing, or appeal is pending, although a telephone company (and under the bill, a certified telecommunications provider) can terminate service if a customer does not pay his undisputed charges or meet certain other conditions;

5. allow an aggrieved customer to appeal to DPUC regarding a complaint or request for an investigation; and

6. protect the customer from termination without a second notice if pays at least 20% of his balance due.

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