California Considering State Broadband Fund: According to Jack Leutza, Communications Division Director at the California Public Utilities Commission, the CPUC is considering creating a broadband fund. The fund would create subsidies for providers to expand broadband into unserved areas.
New Hampshire PUC Considering Tough Conditions for Verizon/Fairpoint Deal: The New Hampshire Public Utilities Commission proposed eleven conditions on Verizon's $2.7 billion transfer to Fairpoint Communications. Among them are requirements for Verizon to assume some transition costs; impose buildout requirements on Fairpoint; bar local rate increases; continue all wholesale obligations currently applicable to Verizon for at least three years; and even require Fairpoint to appoint two New Hampshire representatives to the corporate board. The broadband buildout requirements would force Fairpoint to bring broadband to 75 percent of access lines in 18 months and 95 percent within 60 months. If the cost exceeded Fairpoint's planned $21.6 million expansion budget, Verizon would be required to cover the excess.
Nebraska Continues to Expand Regulatory Obligations on Non-Carriers: In the past six months, the Nebraska Public Service Commission has imposed regulatory obligations on non-carriers at a steady rate. The PSC imposed its state universal service fund on VoIP providers. It then imposed its state telecommunications relay service charge on VoIP providers. The PSC recently issued a "Communications Provider Registration Form" requiring VoIP providers and even ISPs to register with the PSC and pay a one-time fee of
Maryland Hits AT&T With Tax Penalty: The Maryland tax authorities have been auditing the books of telecommunications carriers in the past year. AT&T challenged a $5.2 million state assessment for its failure to pay tax on 900 services for 15 years. AT&T argued that it was exempt because it was a wholesale common carrier transport service. The tax authorities disagreed and were upheld by the court.
Tennessee Imposes 911 Service Charges on T1 and PRI Circuits: The Tennessee Attorney General's Office Issued an opinion regarding the proper calculation of 911 charge son T1s and PRIs. The opinion held that 911 charges apply to all digital channels in a T1 or PRI that are capable of carrying a voice call. So for a T1, up to 24 channels could each be subject to the fee, and 23 channels for a PRI.
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