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ENGROSSED SUBSTITUTE SENATE BILL 5156
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Passed Legislature - 1995 Regular Session
State of Washington 54th Legislature 1995
Regular Session
By
Read first time 01/25/95.
Promoting competition for long
distance telecommunications.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. The legislature finds
that:
(1) It is the declared
policy of the state of Washington in RCW 80.36.300(5) to promote diversity in
the supply of telecommunications services and products in telecommunications
markets throughout the state.
(2) In 1984, a federal
court ordered the divestiture of the Bell System separating the system into:
(a) Local service companies, limited to service within defined geographic areas
called local access transport areas, known as LATAs; and (b) an interexchange
or inter-LATA company, which is free to provide any lawful service, but cannot
purchase the operations of its divested operating companies. The local service
companies expected to be permitted to compete for inter-LATA services as soon
as interexchange providers could legally compete with intra-LATA dialing
parity.
(3) It has been lawful
in Washington since 1985 for any company to provide any telecommunications
service so long as the company is properly registered with the Washington
utilities and transportation commission. Two exceptions to this freedom to
compete in all markets exist. The carrier that serves most of the state's
citizens and the largest geographic area is prohibited from providing
inter-LATA telecommunications services. The second largest exchange company in
the state may only provide inter-LATA services through a separate subsidiary.
(4) Competition in the
telecommunications services industry has intensified with the fast pace of
changes in telecommunications technology in recent years. The effect of
increased competition for customers on the affordability of service for
consumers cannot be determined without further review by the utilities and
transportation commission.
NEW SECTION. Sec.
2. A new section is added
to chapter 80.36 RCW to read as follows:
In order to promote
diversity of supply and competition in the provision of all services in the
state:
(1) The commission
shall require all carriers registered to provide service in this state to allow
their customers to individually choose an authorized carrier to provide one
plus dialed service;
(2) The commission
shall not require any change in intra-LATA one plus dialing patterns existing
on January 1, 1995, under subsection (1) of this section until all carriers are
permitted to provide inter-LATA service on an integrated basis, or June 30,
1998, whichever is earlier; and
(3) Nothing in this
section shall preclude the commission from engaging in a fact-finding
investigation in anticipation of the requirement that all carriers provide one
plus presubscription.
NEW SECTION. Sec.
3. The commission shall
submit to the legislature no later than December 1, 1997, a study of the
intra-LATA telephone market in the state of Washington as it exists at that
time. This study shall analyze the nature and extent of competition in the
intra-LATA and inter-LATA markets, including local exchange operators' market
power in the inter-LATA market and long distance carriers' market power in the
intra-LATA market; the impact of proposed changes in intra-LATA dialing
patterns on local business and residential basic rates; the ability of
telecommunications companies to meet universal service obligations in light of
proposed changes in intra-LATA one plus dialing patterns; all relevant state
and federal enactments and court and regulatory decisions made after the
effective date of this act which affect intra-LATA services by
telecommunications companies in the state of Washington. This study shall
objectively set forth policy options regarding intra-LATA dialing patterns, and
shall make recommendations based upon those options. Nothing in this section
shall prohibit the commission from engaging in an inquiry proceeding or other fact-finding
investigation in anticipation of issuing orders regarding intra-LATA one plus
dialing.
NEW SECTION. Sec.
4. This act is necessary for
the immediate preservation of the public peace, health, or safety, or support
of the state government and its existing public institutions, and shall take
effect July 1, 1995.
