FINAL BILL REPORT

                  SSB 6046

                          C 404 L 97

                      Synopsis as Enacted

Brief Description:  Creating a study by the utilities and transportation commission on universal telecommunications service.

Sponsors:  Senate Committee on Energy & Utilities (originally sponsored by Senator Finkbeiner).

Senate Committee on Energy & Utilities

House Committee on Energy & Utilities

Background:  The concept of Auniversal service@ in the telephone network has been prevalent since the early part of this century in the United States.  This premise holds that the value of the network is higher for all when more users are interconnected.

The universal service concept was embraced by generally levelizing the costs of different areas, allowing various subsidies to cover some of the costs of areas that were more expensive to serve.  With competition becoming more prevalent in the telecommunications industry, any universal service subsidies will be more challenging to impose.

Summary:  By January 1, 1998, the Washington Utilities and Transportation Commission is directed to study and make recommendations on the future of providing universal service telecommunications services in the state.  The study is to include a recommended definition of basic service, analysis of potential carriers including wireless, an analysis of cost methodologies, and options for generating and disbursing universal service funding.  Completion of the study may be delayed until six months after the Federal Communications Commission adopts universal service rules.

Votes on Final Passage:

Senate 45 0

House     98 0 (House amended)

Senate    46 0 (Senate concurred)

Effective:  July 27, 1997