Part XIV: Telecommunications

RESOLUTION LIFTING THE MODIFICATION OF FINAL JUDGEMENT RESTRICTION ON LONG DISTANCE SERVICE Summary When the Bell telephone system was broken up in 1984, artificial boundaries were created by the court to differentiate local from long distance service. These unnaturally-imposed lines carry huge cost penalties for Americas consumers. Indeed, calls connected across these boundaries - no matter how close the connection - must be routed through both long distance and local carriers. For the customer, that means phone bills reflect two corporate overheads and additional costs associated with circuitous routing that increases the distance of a call. Model Resolution WHEREAS advances in technology have brought our society into the information age; and WHEREAS the national welfare will be greatly enhanced by bringing about the universal availability of the information age to the American people through the development and deployment of innovative technologies; and WHEREAS the provision of long distance service, and the removal of judicially imposed restriction on the development and availability of such servcice, will stimulate and encourage the use of information age technology by the America people, and the development of an advanced telecommunications infrastructure throughout the nation in the most fair and efficient manner; and WHEREAS it is imperative that states have the freedom to encourage telecommunications companies to provide new and innovative services and an efficient, reliable, state-of-the-art, and internationally competitive public telecommunications network to serve the growing needs of the people of the United STates in both rural and urban communities; and WHEREAS the following accounting and structural safeguards exist that prevent anticompetitive behavior:

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federal and state Open Network Architecture (ONA) requirements that ensure all providers access tolocal telephone networks; fully allocated cost accounting rules and a revised uniform system of accounts which prevent cross-subsidization by regulated carrriers;

n implementation o f price cap regulation at the federal level and other forms of incentive regulation in many states that eliminate or reduce incentives to cross subsidize and include and network investment monitoring; and extensive service quality n

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equal network access requirements that prevent discrimination riers; and

against any interexchange

WHEREAS the Federal Communications Commission (FCC) is the appropriate federal agency, in conjunction with appropriate state regulatory agencies, to ensure fair competition in the telecommunications industry, while protecting the interests of consumers; and WHEREAS the court order on RBOCs,referred to as the Modification of Final Judgement (MFJ) has prevented some two-thirds of Americas domestically owned telecommunications industry from providing long distance service in competition with domestic and foreign telecommunications firms in the United States; and

Volume II: Sourcebook of American State Legislation 1995

345

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Part XIV: Telecommunications

WHEREAS it is the responsibility of Congress, rather than the courts, to determine telecommunications public policy including its effect on economic competitiveness, education reform, accessibility to health care, job creation, and criminal justic reform which are essential elements of a sound national telecommunications policy; NOW THEREFORE BE IT RESOLVED, that the state legislature calls upon the United States Congress to vigorously support legislation which would encourage universal service, standardize consumer access and, with the existing consumer and industry safeguards, encourage open market competition by allowing all local telephone companies to engage in the provision of long distance service; and BE IT FURTHER RESOLVED, that the state legislature transmit copies of this resolution to the President and Vice President of the United States, the Speaker of the House of Representatives, the President of the Senate and all members of the Congress of the United States.

Volume II: Sourcebook of American State Legislation I995

346

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