federalism in the 21 st century new england conference of public utility commissioners june 11, 2013...

Federalism in the 21st Century

New England Conference of Public Utility Commissioners

June 11, 2013Groton, Connecticut

Susan M. Baldwin

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AcknowledgmentsOverview

Acknowledgements: Helen Golding and Sarah Bosley - colleagues (Voice Link, rural call completion, state telecom legislation, IP trials, and more)

We work with many consumer advocates. My comments today reflect my views and not necessarily those of the agencies I work with.

Responding to “NARUC Federalism Task Force Report: Cooperative Federalism and Telecom in the 21st Century,” June 2013

Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11, 2013

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State Legislation Matters

Good things and bad things happen in the State Legislature

NARUC paper is quiet about state legislation


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Voice Link – A Call for State Action

Unique opportunity and responsibility: states should investigate Voice Link tariffs

Evidentiary hearings NYPSC Staff has already issued discovery to

Verizon Opportunities for stakeholders to vet the policy As opposed to federal proceedings, which, as

Paper observes, are often driven by the ex parte process, stakeholders are on more equal footing


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Voice Link: State Trumps Federal

Verizon is using spectrum to provide Voice LinkBut Voice Link is a fixed wireless serviceFederal pre-emption of CMRS/mobile wireless

services (OBRA) did not contemplate carriers abandoning copper and replacing it with fixed wireless

Therefore it would be inappropriate to construe OBRA so as to govern wireless offerings when they are used as a substitute for basic telephone exchange service.


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Federal/State: Voice Link

Principles 3 and 5: Competition and Broadband access, affordability and adoption One fewer supplier of broadband Internet access Pre Voice Link - broadband markets at best a duopoly. Without DSL, the only wireline broadband is the

incumbent cable company. Who’s minding the broadband store?

Rates – FCC’s Form 477 should collect pricing information – how else can federal and state regulators monitor the market?

Service quality 4G LTE is metered. Not a substitute for wireline

broadband service.


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Federal: Section 214

Section 214 application to the FCC for authority to “grandfather and discontinue provision of its interstate wireline telecommunications services, including interstate interexchange and exchange access services in some limited parts of New York and New Jersey where copper wireline facilities were destroyed or rendered inoperable by Superstorm Sandy and where the new deployment of wireline facilities is impractical,” filed June 7, 2013


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Voice Link – for now, just a band-aid , or is it?

Voice Link – emergency response to western part of Fire Island

BUT – the PSC allowed a provision to take effect that may encourage premature neglect of copper plant

Verizon may offer Voice Link as its sole service whenever it “(a) certifies and demonstrates that a substantial portion of its facilities in the area is destroyed, rendered unusable, or beyond reasonable repair.”

Does the PSC intend that this provision could apply anywhere in New York?


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Voice Link – State Concerns – Public Safety

Principle 2: Network reliability and public safety:

Incompatible with medical Life Alert Systems

Incompatible with home security systems

Limited battery back up for power outages

Geographic coding is “fixed” to the resident’s location – what if consumer moves and takes Voice Link equipment with her?

Verizon’s proposed tariff creates incentive to neglect its outside plant, which, in turn, weakens the link to emergency services


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Voice Link – State Concerns

Economic Development and Information Age

Does not support wireline broadband – DSL

4G LTE is a separate and metered service; less affordable than DSL and not necessarily available

Reduces broadband options in a market that already is not competitive.

Does not support credit card transactions, faxing


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Voice Link – A Call for State Guidance

Should Verizon be allowed to deploy Voice Link without regulatory approval?

No. – Section 214 from FCC; tariff review by states.

What do states have to offer when it comes to Voice Link and similar services?

Evidentiary hearings. Discovery. Cross-examination. Informed decision-making. “More equal” footing for stakeholders than the FCC’s ex parte-driven process


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What is happening now?

Parallel fed/state tracks

May 3rd Verizon filing with the NYPSC

June 7th Section 214 filing with the FCC

FCC IP trial proceeding – NPRM mentions Fire Island


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“Make available to all the people of the United States, without discrimination…” NARUC Paper at 2 quoting Section 1 47 U.S.C. 151

Voice Link discriminates.

“….some level of regulatory intervention available as a backstop to remedy problems caused by a lack of competitive choice or other issues associated with the broader public interest (e.g., public safety and privacy).” NARUC Paper, at 4.

States should intervene in and as necessary – Voice Link is a perfect example of when to intervene.



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“…it appears that the FCC often focuses its efforts more on the information provided in the ex parte submissions….” NARUC Paper, at 7.

This is troubling. State process is more open. States should take the lead in investigating Voice Link

“Diversity of regulatory input and evidence-based decision making are the cornerstones for ensuring that regulation meets the needs of end users and industry.” NARUC Paper, at 8

Hear, hear!



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For more information:

Susan M. Baldwin17 Arlington Street ▪ Newburyport, MA 01950

(978) 255-2344 www.smbaldwinconsulting.com

[email protected]


mailto:[email protected]

federalism in the 21 st century new england conference of public utility commissioners june 11, 2013...

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