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Manager’s Memo - for the week ending March 5, 2010
Senate Moves Access Legislation: The Senate Commerce Committee, meeting in executive session Tuesday, approved a substitute for SB 698 that requires CenturyLink, Windstream and AT&T to lower their intrastate access rate to the interstate rate in ten years. The substitute, adopted on a 7-2 vote, exempts both small ILECs and rural CLECs from the provisions of the bill.
The committee initially considered a substitute for SB 785 offered by Senator Schaefer that would have required carriers to lower intrastate rates to the interstate rate in six years and would have directed the PSC to establish a transition fund. A motion to approve that substitute bill failed 7-2.
The House-passed access reform bill, HB 1750, has not yet been assigned to a Senate committee for a hearing. Further action on either bill will come sometime after the legislature returns from its annual spring break which began at the close of business Thursday. Lawmakers will reconvene March 15.
COLR Relief Moves in House: By an 8-2 vote, the House Energy and Environment Committee Tuesday approved legislation that would relieve ILECs from carrier of last resort obligations in limited circumstances. The bill, HB 1372, would provide an automatic COLR waiver to ILECs in cases in which a developer of a "greenfield" property entered into an exclusive service contract with an alternative provider. MTIA, CenturyLink and AT&T previously testified in favor of the bill.
Budget Problems Lead to Sweep Bill: The state's deepening budget crisis for fiscal year 2011 is causing Governor Nixon and lawmakers to look for any available extra income, including considering a plan that would sweep $2 million from the deaf relay fund into state general revenue. The deaf relay program is funded by a 13 cent per month surcharge on wireline telephone customers.
The fund, which has a current balance of about $4 million, is among 23 accounts targeted in SB 1000 to be tapped for extra general revenue. In total the bill heard Wednesday by the Senate Appropriations Committee would raise about $27 million. Although a dozen witnesses opposed the move to sweep the various funds already identified, Senate staffers said another 60 ear-marked funds were being considered.
Northeast Wins Broadband Grant: Northeast Missouri Rural Telephone Company has been awarded $10.2 million under the federal broadband stimulus program to construct a fiber-to-the-premises network in the Unionville exchange. The project will connect several anchor institutions in the company's service area. The FTTP project includes a $5.1 million loan and a $5.1 grant from the RUS. To date, Northeast is the only telecommunications carrier in the state to be awarded funds under the federal program.
In related news the NTIA and RUS announced this week that applicants have been granted an extension to file for Round Two funding. Applicants will have until March 26 to file BTOP Comprehensive Community Infrastructure proposals with NTIA and until March 29 to file BIP infrastructure proposals with RUS.
Mapping Project Timetable Pushed Back: Administrative problems getting a state broadband mapping project underway has lead to a possible delay in the timetable for industry input. The Missouri Office of Administration plans to ask the NTIA to push back the March 31 deadline for submitting their project. Under the revised plan, the state's telecommunications carriers would have until April 15 to submit detailed information about broadband deployment. Carriers can expect to be contacted soon with more details about the project.
Industry Partner of the Week: MTIA member company Power & Tel offers complete product solutions for FTTH, IPTV, VoIP, central office and other needs of Missouri's telecommunications providers. For more information contact Michael Kean, district sales manager, at 800-247-0042 or visit them online at www.ptsupply.com.
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