AB696: Bill Text

Interconnected VOIP service

With two exceptions, the bill provides that interconnected VOIP service is exempt from PSC regulation. The bill provides that interconnected VOIP has the same meaning as under federal law, which is a service requiring a broadband connection and Internet protocol-compatible customer premises equipment that allows the user to engage in real-time, two-way communication over the public switched telephone network. The first exception to the exemption is that a telecommunications provider that provides interconnected VOIP service must make contributions to the state universal service fund based on its revenues from providing the service. The bill specifies the methods for calculating the revenues. The second exception is that, unless otherwise provided under federal law, access charges for interconnected VOIP service are subject to the access service charge requirements described above.

Universal service

Current law requires the PSC to promulgate rules that define a basic set of essential telecommunications services that must be available to all customers at affordable prices and that are a necessary component of universal service. Current law also requires the PSC to promulgate rules that define a set of advanced service capabilities that must be available to all areas of this state at affordable prices within a reasonable time and that are a necessary component of universal service. The essential services and advanced service capabilities must be based on market, social, economic development, and infrastructure development principles rather than on specific technologies or providers.

This bill repeals the foregoing requirements and requires instead that certain telecommunications providers must make available to their customers all essential telecommunications services. The bill defines "essential telecommunications services" as services or functionalities determined by the FCC to be eligible for support by federal universal service support mechanisms. The bill's requirement applies to a telecommunications provider that provides basic local exchange service or that is designated under federal law as a telecommunications carrier eligible to receive support from the federal universal service fund. Also, the bill provides that a telecommunications provider may provide essential telecommunications services itself or through an affiliate or through the use of any available technology or mode.

Electronic call detail records

The bill requires a telecommunications provider that provides tandem switching service (tandem switching provider) to make certain electronic call detail records available to other telecommunications providers. The requirement applies to calls originated by wireless providers (which are referred to as commercial mobile radio service providers) and CLECs, and subsequently routed by the tandem switching provider to another telecommunications provider's network for termination. A tandem switching provider must make the electronic call detail records available no later than 24 months after the bill's effective date. The bill provides that a tandem switching provider complies with the foregoing requirements if an electronic call detail record that is made available contains the information provided by the telecommunications provider that originated the call. The bill also provides that it does not otherwise change the record creation, record exchange, or billing processes for traffic carried by interexchange carriers that are in effect on the bill's effective date.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB696, s. 1 Section 1. 20.155 (1) (s) of the statutes is created to read:

AB696,7,4 20.155 (1) (s) Incumbent local exchange carrier disbursements. From the universal service fund, a sum sufficient to make disbursements to incumbent local exchange carriers under s. 196.191 (3) (d) 2.

AB696, s. 2 Section 2. 93.01 (1m) of the statutes is amended to read:

AB696,7,14 93.01 (1m) "Business" includes any business, except that of banks, savings banks, credit unions, savings and loan associations, and insurance companies. "Business" includes public utilities and telecommunications carriers to the extent that their activities, beyond registration, notice, and reporting activities, are not regulated by the public service commission and includes public utility and telecommunications carrier methods of competition or trade and advertising practices that are exempt from regulation by the public service commission under s. 196.195, 196.196, 196.202, 196.203, 196.219, or 196.499 or by other action of the commission.

AB696, s. 3 Section 3. 133.07 (2) of the statutes is amended to read:

AB696,8,5 133.07 (2) This chapter does not prohibit activities of any public utility, as defined in s. 196.01 (5), or telecommunications carrier, as defined in s. 196.01 (8m), which are required by ch. 196 or rules or orders under ch. 196, activities necessary to comply with that chapter or those rules or orders or activities that are actively supervised by the public service commission. This subsection does not apply to activities of a public utility or telecommunications carrier that are exempt from public service commission regulation under s. 196.195, 196.196, 196.202, 196.203, 196.219 or 196.499 or by other action by the commission.

AB696, s. 4 Section 4. 196.01 (1d) (g) of the statutes is created to read:

AB696,8,8 196.01 (1d) (g) A telecommunications utility that provides notice to the commission under s. 196.50 (2) (j) 1.

AB696, s. 5 Section 5. 196.01 (3a) of the statutes is created to read:

AB696,8,11 196.01 (3a) "Interconnected voice over Internet protocol service" has the meaning given in 47 CFR 9.3.

AB696, s. 6 Section 6. 196.02 (2) of the statutes is amended to read:

AB696,8,21 196.02 (2) Definition; classification. In this subsection, "public utility" does not include a telecommunications cooperative, an unincorporated telecommunications cooperative association, or a small telecommunications utility except as provided under s. 196.205 or 196.215 (2) and does not include an alternative telecommunications utility. The commission shall provide for a comprehensive classification of service for each public utility. The classification may take into account the quantity used, the time when used, the purpose for which used, and any other reasonable consideration. Each public utility shall conform its schedules of rates, tolls and charges to such classification.

AB696, s. 7 Section 7. 196.09 (1) of the statutes is amended to read:

AB696,9,8 196.09 (1) In this section, "public utility" does not include a telecommunications cooperative or an unincorporated telecommunications cooperative association except as provided under s. 196.205. In subs. (2) to (7), "public utility" does not include a telecommunications utility. Subsection (9) only applies to a telecommunications utility. Every public utility shall file with the commission, within such time as may be required by the commission, its estimate of the annual rate of depreciation required for each of its classes of fixed capital used for public utility purposes, and of the composite annual rate of depreciation required for such fixed capital as an aggregate, which shall constitute the public utility's estimates of the amount which should be returned to it out of its rates for service, to meet the depreciation of its property.

AB696, s. 8 Section 8. 196.09 (9) of the statutes is repealed.

AB696, s. 9 Section 9. 196.13 (2) of the statutes is amended to read:

AB696,9,15 196.13 (2) The commission shall publish in its reports the value of all the property actually used and useful for the convenience of the public of a public utility, other than a telecommunications utility, if the commission has held a hearing on the public utility's rates, charges, service or regulations or if the commission has otherwise determined the value of the public utility's property.

AB696, s. 10 Section 10. 196.19 (1m) of the statutes is repealed.

AB696, s. 11 Section 11. 196.19 (5) of the statutes is repealed.

AB696, s. 12 Section 12. 196.191 of the statutes is created to read:

AB696,9,20 196.191 Telecommunications access charges. (1) Definitions. In this section:

AB696,9,22 (a) "Access charges" means dedicated access charges and switched access charges.

AB696,9,25 (b) "Access service" means the provision of switched or dedicated access to a local exchange network for the purpose of enabling a telecommunications provider to originate or terminate telecommunications service within the local exchange.

AB696,10,4 (c) "Dedicated access" means the provision of wholesale intrastate access service, other than switched access service, to a local exchange network for the purpose of enabling a telecommunications provider to originate or terminate telecommunications service within the local exchange.

AB696,10,7 (d) "Dedicated access charges" means the rates and rate elements that a local exchange carrier charges a telecommunications provider for the provision of dedicated access.

AB696,10,9 (e) "Incumbent local exchange carrier" has the meaning given in 47 USC 251 (h) (1).

AB696,10,12 (f) "Lost revenues" means the amount of the reduction of an incumbent local exchange carrier's revenues that results directly from the incumbent local exchange carrier's compliance with sub. (2) as calculated under sub. (3) (c).

AB696,10,15 (g) "Switched access" means the provision of switched access to a local exchange network for the purpose of enabling a telecommunications provider to originate or terminate telecommunications service within the local exchange.

AB696,10,18 (h) "Switched access charges" means the rates and rate elements that a local exchange carrier charges a telecommunications provider for the provision of switched access, including any carrier common line charges or substitute charges.

AB696,10,25 (2) Incumbent local exchange carriers. No incumbent local exchange carrier may increase its intrastate access charges so that the charges exceed the incumbent local exchange carrier's interstate access charges allowed under federal law. No later than 6 months after the effective date of this subsection .... [LRB inserts date], an incumbent local exchange carrier shall make any reductions in its intrastate access charges that are necessary to ensure that the charges do not exceed the incumbent local exchange carrier's interstate access charges allowed under federal law.

AB696,11,3 (3) Recovery of lost revenues. (a) Amounts recoverable from universal service fund. 1. An incumbent local exchange carrier shall recover lost revenues from the universal service fund in the following amounts:

AB696,11,5 a. During the first year following a reduction under sub. (2), the incumbent local exchange carrier shall recover 95 percent of its lost revenues in each month.

AB696,11,7 b. During the 2nd year following a reduction under sub. (2), the incumbent local exchange carrier shall recover 85 percent of its lost revenues in each month.

AB696,11,10 c. Except as provided in subd. 2., during the 3rd year following a reduction under sub. (2), and during each year thereafter, the incumbent local exchange carrier shall recover 75 percent of its lost revenues in each month.

AB696,11,17 2. a. In this subdivision, "broadband service" means a service that provides access to the Internet that is capable of transmitting data packets or Internet signals at upstream or downstream average minimum speeds of 200 kilobits per second, except that the commission may promulgate rules specifying greater upstream or downstream average minimum speeds if such speeds are consistent with any definition of broadband service established by the federal communications commission.

AB696,11,22 b. If an incumbent local exchange carrier fails to provide access to broadband service to at least 85 percent of its customers in any month during the 6th year following a reduction under sub. (2), or during any year thereafter, the incumbent local exchange carrier shall recover from the universal service fund 50 percent of its lost revenues in that month.

AB696,12,2 (b) Amounts not recoverable from universal service fund. Beginning 6 months after the effective date of this paragraph .... [LRB inserts date], an incumbent local exchange carrier may, by increasing its monthly rates for any service other than access service, recover lost revenues not recovered from the universal service fund under par. (a).

AB696,12,15 (c) Calculation; notification. No later than 60 days after the effective date of this paragraph .... [LRB inserts date], each incumbent local exchange carrier shall notify the commission in writing, with supporting documentation, of the amount of the reduction in annual intrastate access revenues that results from the reduction required under sub. (2). The reduction in switched access revenues shall be calculated for each incumbent local exchange carrier as the difference between intrastate and interstate switched access charges in effect on October 1, 2009, multiplied by the intrastate switched access minutes of use and other switched access demand quantities for the 2008 calendar year. The reduction in dedicated access revenues shall be calculated for each incumbent local exchange carrier as the difference between the dedicated access charges in effect on October 1, 2009, and the dedicated access charges after any reduction required under sub. (2), multiplied by demand quantities for the 2008 calendar year.

AB696,12,19 (d) Commission duties; disbursements. 1. No later than 60 days after an incumbent local exchange carrier makes the notification required under par. (c), the commission shall calculate the size of the monthly disbursement from the universal service fund for each incumbent local exchange carrier.

AB696,12,25 2. If an incumbent local exchange carrier is in compliance with this section, the commission shall begin monthly disbursements from the universal service fund to the incumbent local exchange carrier within 270 days after the effective date of this subdivision .... [LRB inserts date]. In any month, the commission may not make a disbursement to an incumbent local exchange carrier that exceeds an amount reasonably approximating the carrier's lost revenues for that month.

AB696,13,2 3. The commission shall establish procedures for administering disbursements from the universal service fund required under this paragraph.

AB696,13,5 (4) Other telecommunications providers. (a) In this subsection, "telecommunications provider" does not include an incumbent local exchange carrier.

AB696,13,12 (b) A telecommunications provider's intrastate access charges for a local exchange may not exceed the intrastate access charges of the incumbent local exchange carrier that provides telecommunications service in the local exchange, except that if a telecommunications provider is required to make reductions under par. (c), this paragraph first applies to such a telecommunications provider on the first day of the 60th month beginning after the effective date of this paragraph .... [LRB inserts date].

AB696,13,18 (c) On the effective date of this paragraph .... [LRB inserts date], if a telecommunications provider's intrastate access charges for a local exchange exceed the intrastate access charges in effect on October 1, 2009, of the incumbent local exchange carrier that provides telecommunications service in the local exchange, the telecommunications provider shall determine the difference between the charges and reduce its intrastate access charges according to the following schedule:

AB696,13,21 1. No later than 2 months after the effective date of this subdivision .... [LRB inserts date], the telecommunications provider shall reduce its charges by 20 percent of the difference.

AB696,13,24 2. No later than 24 months after the effective date of this subdivision .... [LRB inserts date], the telecommunications provider shall reduce its charges by 40 percent of the difference.

AB696,14,3 3. No later than 36 months after the effective date of this subdivision .... [LRB inserts date], the telecommunications provider shall reduce its charges by 60 percent of the difference.

AB696,14,6 4. No later than 48 months after the effective date of this subdivision .... [LRB inserts date], the telecommunications provider shall reduce its charges by 80 percent of the difference.

AB696,14,9 5. No later than 60 months after the effective date of this subdivision .... [LRB inserts date], the telecommunications provider shall reduce its charges by 100 percent of the difference.

AB696, s. 13 Section 13. 196.194 (1) of the statutes is amended to read:

AB696,15,8 196.194 (1) Telecommunications utilities. Except as provided in this subsection, nothing Nothing in this chapter prohibits the commission from approving the filing of a tariff which permits a telecommunications utility to enter into an individual contract with an individual customer if substitute telecommunications services are available to customers or potential customers of the telecommunications utility and the absence of such a tariff will cause the telecommunications utility to be disadvantaged in competing for business. A tariff filed under this subsection shall include the condition that any such contract shall be compensatory as determined under s. 196.204 (5) and (6). The tariff shall include any other condition and procedure required by the commission in the public interest. Within 20 days after a contract authorized under this subsection or an amendment to such a contract has been executed, the telecommunications utility shall submit to the commission written notice of the general nature of the contract and the parties to the contract. Upon request, the commission shall inform a person, or direct that the person be informed, that notice has been received by the commission of execution of a contract under this subsection. Within 6 months after receiving substantial evidence that a contract may be noncompensatory, or upon its own motion, the commission shall investigate and determine whether the contract is compensatory. If the commission determines that the contract is noncompensatory, the commission may make appropriate adjustments in the rates or tariffs of the telecommunications utility that has entered into the contract, in addition to other remedies under this chapter. The dollar amount of the adjustment may not be less than the amount by which the contract was found to be noncompensatory.

AB696, s. 14 Section 14. 196.195 (1) of the statutes is amended to read:

AB696,15,12 196.195 (1) Regulation imposed. Except as provided in this section and ss. 196.202, 196.203, 196.215 and, 196.219, and 196.50 (2) (i), a telecommunications utility is subject to every applicable provision of this chapter and ch. 201.

AB696, s. 15 Section 15. 196.195 (5) of the statutes is amended to read:

AB696,15,23 196.195 (5) Commission action. If after the proceedings under subs. (2), (3) and (4) the commission has determined that effective competition exists in the market for the telecommunications service which justifies a lesser degree of regulation and that lesser regulation in that market will serve the public interest, the commission may, by order, suspend tariffing requirements under s. 196.194 (1) or any of the following provisions of law ch. 201, except as provided under subs. (7) and (8): ch. 201 and s. 196.02 (2); s. 196.05; s. 196.06; s. 196.07; s. 196.09; s. 196.10; s. 196.12; s. 196.13 (2); s. 196.19; tariffing requirements under s. 196.194; s. 196.196 (1) or (5); s. 196.20; s. 196.21; s. 196.22; s. 196.26; s. 196.28; s. 196.37; s. 196.49; s. 196.52; s. 196.58; s. 196.60; s. 196.604; s. 196.77; s. 196.78; s. 196.79; and s. 196.805.

AB696, s. 16 Section 16. 196.195 (12) (a) of the statutes is amended to read:

AB696,16,6 196.195 (12) (a) To provide incentives for telecommunications utilities to achieve any of the goals listed in par. (b) 1. a., the commission may suspend any of the provisions listed in sub. (5) except ss. 196.19, 196.20 (1m), 196.22, 196.26, 196.37, 196.60 and 196.604 of ch. 201 or may approve a regulatory method alternative to traditional rate-of-return regulation that does not require suspension of any provisions listed in sub. (5).

AB696, s. 17 Section 17. 196.195 (12) (b) 3. of the statutes is amended to read:

AB696,16,15 196.195 (12) (b) 3. The commission shall regulate telecommunications utilities with the goal of developing alternative forms of regulation. The commission shall, by order, develop and approve an incentive regulatory plan for each telecommunications utility to implement this subdivision. The commission may not increase regulation of a small telecommunications utility in implementing this subdivision. For telecommunications utilities with more than 150,000 access lines in use in this state, s. 196.196 (2) applies to access service rates in any regulatory plan approved under this subdivision.

AB696, s. 18 Section 18. 196.196 of the statutes is repealed.

AB696, s. 19 Section 19. 196.198 (2) (a) of the statutes is renumbered 196.198 (2) and amended to read:

AB696,16,24 196.198 (2) Except as provided in sub. (3), a telecommunications utility that has more than 150,000 access lines in use in this state or a telecommunications provider that has more than 150,000 access lines in use in this state may not charge a residential customer for basic local exchange service based on the duration of a call or on the time of day that a call is made. This paragraph subsection does not apply to an extended community telephone service.

AB696, s. 20 Section 20. 196.198 (2) (b) of the statutes is repealed.

AB696, s. 21 Section 21. 196.198 (3) (intro.) of the statutes is amended to read:

AB696,17,5 196.198 (3) (intro.) The commission may suspend the application of sub. (2) (a) in a particular geographical area for a telecommunications utility or a telecommunications provider if, after a contested case hearing, the commission determines that all of the following apply:

AB696, s. 22 Section 22. 196.198 (3) (a) of the statutes is amended to read:

AB696,17,8 196.198 (3) (a) Failure to suspend the application of sub. (2) (a) makes competition in that geographical area impractical.

AB696, s. 23 Section 23. 196.198 (3) (b) (intro.) of the statutes is amended to read:

AB696,17,11 196.198 (3) (b) (intro.) Suspending the application of sub. (2) (a) is beneficial to all of the following groups:

AB696, s. 24 Section 24. 196.20 (1) of the statutes is amended to read:

AB696,17,21 196.20 (1) The rate schedules of any public utility shall include all rules applicable to the rendition or discontinuance of the service to which the rates specified in the schedules are applicable. No change may be made by any public utility in its schedules except by filing the change as proposed with the commission. Except for a telecommunications utility, no No change in any public utility rule which purports to curtail the obligation or undertaking of service of the public utility shall be effective without the written approval of the commission after hearing, except that the commission, by emergency order, may make the rule, as filed, effective from the date of the order, pending final approval of the rule after hearing.

AB696, s. 25 Section 25. 196.20 (1m) of the statutes is repealed.

AB696, s. 26 Section 26. 196.20 (2) (a) (intro.) of the statutes is amended to read:

AB696,18,2 196.20 (2) (a) (intro.) Except for a telecommunications utility, a A proposed change which constitutes a decrease in rates shall be effective at the time specified in the change as filed but not earlier than 10 days after the date of filing the change with the commission, unless any of the following occurs:

AB696, s. 27 Section 27. 196.20 (2) (am) of the statutes is repealed.

AB696, s. 28 Section 28. 196.20 (2m) of the statutes is amended to read:

AB696,18,11 196.20 (2m) Except as provided under sub. (5) and ss. 196.193, and 196.195 (12) and 196.196, no change in schedules which constitutes an increase in rates to consumers may be made except by order of the commission, after an investigation and opportunity for hearing. The commission may waive a hearing under this subsection for a proposed change in a telecommunications utility schedule. By rule or order, the commission shall specify the notice and procedural requirements applicable to a telecommunications utility proposal for which a hearing is waived.

AB696, s. 29 Section 29. 196.20 (2r) of the statutes is repealed.

AB696, s. 30 Section 30. 196.20 (3) of the statutes is repealed.