SENATE BILL REPORT

HB 2525

BYRepresentatives Miller, Jacobsen, Nelson and May; by request of Washington Utilities and Transportation Commission

Limiting regulation of radio communications services.

House Committe on Energy & Utilities

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 15, 1990; February 16, 1990

Majority Report:  Do pass as amended.

      Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Metcalf, Nelson, Owen, Patrick, Stratton, Sutherland, Williams.

Senate Staff:Phil Moeller (786-7455)

                  February 21, 1990

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, FEBRUARY 16, 1990

BACKGROUND:

Radio communications service companies provide cellular telecommunications service and paging service.  These companies were deregulated in 1985 (RCW 80.66.010).  However, if radio communications services are provided by a regulated telecommunications company without using a subsidiary to provide the services, the services remain regulated.  It appears that the market for these services is competitive.

In some isolated instances, radios are used to link rural customers into local exchange telecommunications service. These instances are probably not a competitive situation.

SUMMARY:

The statutes are clarified to state that radio communication services remain deregulated unless they are the only source for voice grade local exchange telecommunications services.

SUMMARY OF PROPOSED SENATE AMENDMENT:

It is further clarified that if the Utilities and Transportation Commission (UTC) regulates radio communications services, the UTC may only regulate the radio communication service provided by the regulated telecommunications company.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Representative Miller, prime sponsor; Cliff Webster, US West New Vector Group; Tony Cook, WUTC (pro); Jack Doyle, Ind. Tel. Co. (pro)