Ky. Gov. Ernie Fletcher (R) signed a phone deregulation bill that will deregulate rates for all retail services other than basic local service, effective July 12. The PSC under HB-337 will keep its authority over wholesale services. The new law lets large incumbent telcos pick a program freezing basic local rates 5 years, and then allows annual increases equal based on national Consumer Price Index rises. Small incumbents will have a one-year rate freeze, and then can make impose increases based on the CPI. Rates for nonbasic services will be deregulated. The measure ends PSC jurisdiction over VoIP service. The law gives customers who buy a deregulated service 30 days to cancel without early- termination penalties. It also retains PSC jurisdiction over retail service quality, and over consumer complaints involving billing, slamming and cramming for all services, along with jurisdiction over Lifeline and 911 services.

Phone network failures in Cal. and Mont. left thousands of AT&T and Qwest customers without service Sat. and Sun. In Cal., a landslide Sat. severed a major trunk and cut off AT&T dial tone for 6 coastal communities in San Mateo County. The towns of Montara, Moss Beach, El Granada, Pescadero, Princeton Harbor and La Honda were affected. The failure cut off local, toll and 911 service. San Mateo sheriff’s deputies were stationed at a number of prominent locations so people cut off from 911 could still find assistance. Service went out Sat. evening but was restored Sun. afternoon. A power failure in an equipment vault in Lewiston, Mont., knocked out interexchange service and 911 access for about 4,000 customers of Qwest and Mid-Rivers Telecom in the Lewiston area. Local calls could be completed and local 7- digit emergency numbers still worked, but 911 was routed along the same interexchange trunks affected by the power failure. Service was lost for about 3 hours Sun. afternoon.

The FCC issued a $750,000 notice of apparent liability for forfeiture against Dobson Cellular and American Cellular on accusations of “willfully and repeatedly” violating FCC rules requiring the carrier to provide E-911 service within 6 months of a valid request by a PSAP. Both carriers are subsidiaries of Oklahoma City-based Dobson Communications.

Improvements in communications devices for hearing impaired people are offset by lack of interoperability, resulting in continued frustration and possible danger, disability advocates said Mon. on an FCBA panel. Relay services have evolved from the old teletype-based TTY machines to video and IP-based equipment -- but without compatible standards people often own 2 or more devices and hope the right one is turned on when one’s doctor is trying to call, said consultant Karen Strauss, a former FCC disabilities access expert. “One of the biggest problems this community faces is interoperability,” said Strauss: “Voice is compatible everywhere but not so with text or video.”

Va. Gov. Tim Kaine (D) signed a bill denying state regulators jurisdiction to control rates and terms of retail VoIP service as of July 1. HB-1198 gives VoIP providers until July 1 to develop a plan and timetable to implement VoIP E-911 service for submission to the state Corporation Commission. VoIP providers who can’t provide E-911 service will have to notify customers of that. Kaine signed a related VoIP E-911 bill (SB-395) extending state Wireless E- 911 Service Board jurisdiction to VoIP providers. The measure also alters the formula for distributing money from the state E-911 fund so 60% of funds goes to cover operating costs of local public safety answering points, and 30% to carriers. The other 10%, plus funds left over from previous fiscal years, will be available as grants to PSAPs for special projects.

Va. Gov. Tim Kaine (D) signed a telecom tax reform bill that consolidates a variety of local and state telecom levies into a single statewide 5% telecom service tax on telephone, cable and wireless services. The new law (HB-568) also extends the telecom tax to cover formerly levy-free satellite video/radio services and VoIP services. The measure also established a statewide 75 landline 911 tax and continues indefinitely the state’s 75 wireless E-911 tax. The new state taxes replace municipal consumer utility taxes, municipal gross receipts taxes, municipal E-911 taxes, the state relay service tax and local cable franchise fees. It also makes cable right of way access fees equal to those applied to telephone carriers. The law also spells out the mechanism for rebating state tax collections to municipalities. Verizon applauded the signing for replacing a fragmented, regressive and discriminatory tax system with one that it said is fair, equitable and nondiscriminatory among the various telecom service delivery systems.

A Cal. PUC hearing officer declined to dismiss a consumer group’s complaint that AT&T and Cox Communications failed to maintain access to 911 from homes whose residents didn’t have accounts with the companies. The consumer group TURN in Cases 05-11-011 & 012 alleged the firms violated a legal requirement to provide 911 access to residential premises regardless of whether residents have an account. TURN said the firms failed to inform residents of their right to 911 access no matter what their account status. The carriers contended TURN gave no facts documenting a violation, but the administrative law judge ruled there was sufficient cause for more proceedings.

The Kan. Corporation Commission approved an AT&T tariff to introduce “311” abbreviated dialing service for non- emergency public safety calls. The tariff sets forth the installation charges and monthly recurring service and usage charges applicable to municipalities, counties or public safety emergency districts that want 311 to ease the loads on their 911 systems from non-emergency calls. The KCC concluded the proposed rates appeared reasonable and consistent with AT&T’s current price regulation plan.

The long-awaited House telecom bill got a warm reception from Bell companies, but net neutrality proponents Tues. called it a step backward for the Internet (see separate story in this issue). The bill puts net neutrality regulation in the FCC’s hands, but it specifically orders no rulemaking -- a provision critics say would limit the FCC’s enforcement power. Cable gave the bill conditional approval, praising progress from earlier drafts. The bill doesn’t include a buildout provision -- considered a key stumbling block in building bipartisan support on the committee.

The FCC likely will vote March 17 for an order permitting it to create a Public Safety/Homeland Security Bureau, sources said Mon. On a 2nd security-themed item in the same meeting, the FCC is likely to pass an order that could clear the way for public safety to provide video and other broadband applications, in addition to voice communications, on 700 MHz spectrum. Chmn. Martin late Fri. began to circulate both items with colleagues in preparation for the March meeting.