Federalism in the 21 st Century New England Conference of Public Utility Commissioners June 11, 2013 Groton, Connecticut Susan M. Baldwin

Acknowledgments Overview Acknowledgements: Helen Golding and Sarah Bosley - colleagues (Voice Link, rural call completion, state telecom legislation, IP trials, and more) We work with many consumer advocates. My comments today reflect my views and not necessarily those of the agencies I work with. Responding to “NARUC Federalism Task Force Report: Cooperative Federalism and Telecom in the 21 st Century,” June 2013 Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

State Legislation Matters Good things and bad things happen in the State Legislature NARUC paper is quiet about state legislation Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

Voice Link – A Call for State Action Unique opportunity and responsibility: states should investigate Voice Link tariffs  Evidentiary hearings  NYPSC Staff has already issued discovery to Verizon  Opportunities for stakeholders to vet the policy  As opposed to federal proceedings, which, as Paper observes, are often driven by the ex parte process, stakeholders are on more equal footing Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

Voice Link: State Trumps Federal Verizon is using spectrum to provide Voice Link But Voice Link is a fixed wireless service Federal pre-emption of CMRS/mobile wireless services (OBRA) did not contemplate carriers abandoning copper and replacing it with fixed wireless Therefore it would be inappropriate to construe OBRA so as to govern wireless offerings when they are used as a substitute for basic telephone exchange service. Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

Federal/State: Voice Link Principles 3 and 5: Competition and Broadband access, affordability and adoption  One fewer supplier of broadband Internet access  Pre Voice Link - broadband markets at best a duopoly.  Without DSL, the only wireline broadband is the incumbent cable company.  Who’s minding the broadband store?  Rates – FCC’s Form 477 should collect pricing information – how else can federal and state regulators monitor the market?  Service quality  4G LTE is metered. Not a substitute for wireline broadband service. Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

Federal: Section 214 Section 214 application to the FCC for authority to “grandfather and discontinue provision of its interstate wireline telecommunications services, including interstate interexchange and exchange access services in some limited parts of New York and New Jersey where copper wireline facilities were destroyed or rendered inoperable by Superstorm Sandy and where the new deployment of wireline facilities is impractical,” filed June 7, 2013 Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

Voice Link – for now, just a band-aid, or is it? Voice Link – emergency response to western part of Fire Island  BUT – the PSC allowed a provision to take effect that may encourage premature neglect of copper plant  Verizon may offer Voice Link as its sole service whenever it “(a) certifies and demonstrates that a substantial portion of its facilities in the area is destroyed, rendered unusable, or beyond reasonable repair.”  Does the PSC intend that this provision could apply anywhere in New York? Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

Voice Link – State Concerns – Public Safety Principle 2: Network reliability and public safety:  Incompatible with medical Life Alert Systems  Incompatible with home security systems  Limited battery back up for power outages  Geographic coding is “fixed” to the resident’s location – what if consumer moves and takes Voice Link equipment with her?  Verizon’s proposed tariff creates incentive to neglect its outside plant, which, in turn, weakens the link to emergency services Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

Voice Link – State Concerns Economic Development and Information Age  Does not support wireline broadband – DSL  4G LTE is a separate and metered service; less affordable than DSL and not necessarily available  Reduces broadband options in a market that already is not competitive.  Does not support credit card transactions, faxing Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

Voice Link – A Call for State Guidance Should Verizon be allowed to deploy Voice Link without regulatory approval? No. – Section 214 from FCC; tariff review by states. What do states have to offer when it comes to Voice Link and similar services? Evidentiary hearings. Discovery. Cross-examination. Informed decision-making. “More equal” footing for stakeholders than the FCC’s ex parte-driven process Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

Voice Link – A Call for State Guidance What is happening now? Parallel fed/state tracks  May 3 rd Verizon filing with the NYPSC  June 7 th Section 214 filing with the FCC  FCC IP trial proceeding – NPRM mentions Fire Island Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

“Make available to all the people of the United States, without discrimination…” NARUC Paper at 2 quoting Section 1 47 U.S.C. 151 Voice Link discriminates. “….some level of regulatory intervention available as a backstop to remedy problems caused by a lack of competitive choice or other issues associated with the broader public interest (e.g., public safety and privacy).” NARUC Paper, at 4. States should intervene in and as necessary – Voice Link is a perfect example of when to intervene. Voice Link – A Call for State Guidance Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

“…it appears that the FCC often focuses its efforts more on the information provided in the ex parte submissions….” NARUC Paper, at 7. This is troubling. State process is more open. States should take the lead in investigating Voice Link “Diversity of regulatory input and evidence-based decision making are the cornerstones for ensuring that regulation meets the needs of end users and industry.” NARUC Paper, at 8 Hear, hear! Voice Link – A Call for State Guidance Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,

For more information: Susan M. Baldwin 17 Arlington Street ▪ Newburyport, MA (978) Susan M. Baldwin – 66th Annual NECPUC Symposium – June 11,