NATIONAL ASSOCIATION OF STATE UTILITY CONSUMER ADVOCATES
RESOLUTION 2004-05
RESOLUTION: Authorizing NASUCA to Advocate in Favor of a Consumer Bill of Rights in a Revision of the Telecommunications Act of 1996
WHEREAS, the Telecommunications Act of 1996 (Act) promised to: “promote competition and reduce regulation in order to secure lower prices and higher quality services for American telecommunications consumers and encourage the rapid deployment of new telecommunications technologies”; and
WHEREAS, many consumers have not been able to enjoy the benefits of greater competition, lower prices, and higher quality services; and
WHEREAS, the achievement of basic universal service as an essential consumer requirement has been made increasingly difficult concerning the funding of universal service regulation, and the maintenance of just, reasonable, and affordable universal service rates; and
WHEREAS, consumers should be able to enjoy a safe harbor of basic regulated universal service from a provider of last resort consistent with the goals of universal service; and
WHEREAS, it is particularly important to safeguard the interests of low-income consumers and consumers in high-cost areas, who are less likely to receive the benefits of competition, so that they may enjoy the benefits of universal service; and
WHEREAS, consumer concerns regarding privacy, public safety, including e911, and other social policy goals have not diminished regardless of the development of competition and new technologies; and
WHEREAS, courts and regulatory agencies continue to change the regulations related to competition and competing telecommunications technologies, and such changes have created increasing challenges for consumers and competitors attempting to offer and use competitive services; and
WHEREAS, contrary to the provisions of the 1996 Telecommunications Act, support for universal service has been shifted from carriers to consumers, and such support has inappropriately been used to reduce access and other carrier costs of business due to inadequate consideration of consumer interests in the FCC’s decision making processes; and
WHEREAS, contrary to the provisions of the 1996 Telecommunications Act, the FCC has not sought recommendations from the Universal Service Joint Board on some universal service issues thereby limiting the participation of state commissions and consumer advocates in representing state jurisdictional and consumer interests on universal service matters; and
WHEREAS, consumers’ confusion concerning their telecommunications bills continues and increases due to a proliferation of unauthorized surcharges that make price comparisons difficult; and
WHEREAS, in many cases telecommunications providers fail to provide conspicuous, clear, and not misleading, billing and marketing disclosures; and
WHEREAS, the application of the Act has become difficult due to the growing availability of different technologies that offer various types of telecommunications services and the increasing uncertainty regarding the regulatory classification of these technologies and services; and
WHEREAS, regulatory authorities should apply a technology-neutral method of regulation so that consumer protections would be maintained and not necessarily reduced simply based upon the technology used to provide similar services; and
WHEREAS, state regulatory authorities should have the primary role in regulating the retail relationship between the telecommunications provider and its customers; and
WHEREAS, state regulatory authorities must have a continued role in the areas of consumer protection, economic regulation of dominant carriers, and overseeing the development of competition as the states best understand the specific circumstances present in their respective markets; and
WHEREAS, state regulatory authorities should have primary authority over service quality and terms of service for all types of telecommunications service; and
WHEREAS, state regulatory authorities have been granted specific responsibilities concerning section 271 authority, regarding Regional Bell Operating Companies’ ability to provide long-distance service, and states should continue to hold authority concerning 271 requirements so that states can oversee competitive markets pursuant to federal guidelines; and
WHEREAS, telecommunications providers should be subject to anti-trust laws notwithstanding other regulatory requirements and remedies applicable to such providers; and
WHEREAS, it is necessary to appoint a federal consumer advocate, an independent consumer advocate nominated by a national organization of state utility consumer advocates, in order to consistently bring to the FCC the representation of consumer interests in telecommunications matters; and
WHEREAS, consumers should have the right of open access to telecommunications services and content regardless of the network that they choose to use; and
WHEREAS, telephone number resources continue to be depleted, raising concerns regarding the existing North American Numbering Plan; and
THEREFORE BE IT RESOLVED that consumers must be guaranteed certain protections through a Consumer Bill of Rights that should be included in any future federal telecommunications legislation; and
THEREFORE BE IT RESOLVED that NASUCA is authorized to advocate before Congress and fully participate in the legislative process concerning the revision of the Act; and
THEREFORE BE IT RESOLVED that NASUCA urges Congress to revise the Act and create a consumer Bill of Rights that:
- requires the provision of basic universal service at just, reasonable and affordable rates; and
- makes certain that all consumers are guaranteed a safe harbor of regulated service, particularly for low-income and high cost rural consumers, so that a provider of last resort will continue to offer service in all areas; and
- safeguards certain social and public safety goals, such as preserving Universal Service and ensuring e911 service, through adequate funding from all providers of voice telecommunications services regardless of the specific technology used to provide such services; and
- ensures that all voice telecommunications services, including, but not limited to, wire line, wireless, cable, VoIP, would be subject to certain standards regardless of the technical means by which they offer their service; and
- prohibits the waiver of consumer rights to regulatory protections, e.g. provisions requiring arbitration of disputes and early termination penalties by contract or otherwise; and
- ensures that states have a continued role in the areas of consumer protection, economic regulation of dominant carriers and developing competition in a manner that recognizes that states best understand the specific circumstances present in their respective markets; and
- grants states the primary authority over the retail relationship between the customer and the customer’s telecommunications provider; and
- reserves specific responsibilities to the states under section 271 of the Act so that states can develop and enforce competitive market requirements pursuant to federal guidelines; and
- reserves to the states the ability to regulate service quality, disclosure and terms of service pertaining to all telecommunications services without being preempted; and
- guarantees truth-in-billing and truth-in-marketing protections to all consumers including eliminating unauthorized surcharges on consumer bills; and
- guarantees that consumers’ privacy related to their telecommunications services is maintained; and
- creates a federal Consumer Advocate, an independent consumer advocate nominated by a national organization of state utility consumer advocates, for purposes of representing consumer interests in telecommunications matters before the Federal Communications Commission in concert with NASUCA; and
- preserves consumers’ recourse to anti-trust remedies for these regulated services where traditional anti-trust regulations might otherwise not apply; and
- guarantees consumers the right of open access to services and content regardless of which network they choose to use; and
- enforces number conservation rules on all telecommunications providers in order to ensure the efficient allocation of numbering resources.
BE IT FURTHER RESOLVED, that the Telecommunications Committee of NASUCA, with the approval of the Executive Committee of NASUCA, is authorized to take all steps consistent with this Resolution in order to secure its implementation.
Approved by NASUCA
Submitted by: Telecommunications and Consumer Protection Committees
Place: Nashville, Tennessee
Date: November 16, 2004