Missouri Senate

Introduced

The act modifies the definition of "competitive telecommunications service" to include the services which have been classified as such in Section 392.245.

The act modifies the commission's approval process for service offerings in a sub-exchange. The act states that telecommunication services may be offered in a sub-exchange unless the Public Service Commission finds that doing so is contrary to the public interest; a change from the current law which states that such approval shall be based upon clear and convincing evidence.

The act authorizes customer-specific pricing on an equal basis for both incumbent and alternative local exchange companies, and adds all services which have been declared competitive under Section 392.245 to the circumstances where customer-specific pricing has been authorized.

The act allows telecommunications companies to offer discounted rates or special promotions to existing customers as well as new or former customers.

The act allows incumbent and alternative local exchange companies to offer packages of services - which is defined in this act as more than one telecommunications service or telecommunication service combined with one or more non telecommunication service - and that such packages shall not be subject to price cap or rate of return regulations, provided that any service offered in the package is available on its own, apart from the package.

The act states that any rate, charge, toll or rental for telecommunication service that does not exceed the maximum allowable price shall be deemed to be just, reasonable and lawful. The act adds to the provisions that allow small incumbent local exchange companies to be regulated under the price cap provisions by including situations where two or more wireless providers are providing service in any part of the company's service area.

The act allows an incumbent local exchange company to change the rates of service so long as they are consistent with subsections 2 through 5 of Section 392.200.

The act changes the standards by which services are classified as competitive. The act states that any service offered to business and residential customers other than exchange access service, shall be classified as competitive if there are two non-affiliated entities providing basic local service to both business and residential customers within that exchange. The act clarifies that wireless providers shall be considered as entities providing basic local services, provided that only one such non-affiliated provider shall be considered as providing said service within an exchange. The act clarifies that any entity providing local voice service, regardless of the technology utilized as well as whether or not that entity is subject to regulation, shall be considered as an entity providing basic local service. The act states that companies only offering prepaid services shall not be considered entities providing basic local service.

The act provides a time frame of thirty days from the request under which the commission shall determine whether the requisite number of companies are providing the services required and if so, approve tariffs as competitive. If the services of an incumbent local exchange company are determined to be competitive, the company may thereafter adjust its rates upon filing tariffs which shall become effective within the timelines identified in Section 392.500. The commission is authorized to review the services which have been classified as competitive to determine if the competitive conditions continue to exist in the exchange.

The act increases the opportunity for companies subject to price cap regulation to reduce intrastate access rates with a corresponding increase in local service rates from four to six annual adjustments. The act removes the cost justification component by the commission in response to these rate changes.

The act clarifies that an incumbent local exchange company can propose new telecommunications services and establishing prices for those services. Any such service first offered after September 1, 2005, shall be deemed competitive and tariffs establishing the service shall become effective within ten days and any subsequent price changes shall become effective consistent with the provisions of Section 392.500.

MEGAN WORD