Regulate Wireless Phone Companies

Section 1. Subdivision 6 of section 5 of the public service law is REPEALED.

§ 2. Section 92-h of the public service law is REPEALED.

§ 3. The public service law is amended by adding a new article 12 to read as follows:

ARTICLE 12

PROVISIONS RELATING TO WIRELESS COMMUNICATION SERVICES Section 250. Statement of policy.

251. Definitions.

252. Applicability of article.

253. Duties of the commission in respect to wireless communi-

cation services companies.

254. Powers of the commission in respect to wireless services

companies.

255. Costs and expenses of the commission and department and

assessment thereof related to the regulation of wireless

services companies.

256. Municipal fees; taxes or charges.

257. Construction of systems.

258. Requirement for adequate service.

259. Consumer protection.

260. Rates.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD06543-01-9

A. 5043 2

261. Forfeiture.

262. Investigations by commission.

263. Authority of the commission.

264. Duties of the commission in respect to New York state

supplemental lifeline discounted service for wireless

communication services.

265. Reporting requirements for disruptions to wireless communi-

cation services.

§ 250. Statement of policy. The last decade has produced radical change throughout the telecommunications industry. Previously, voice and video were distinct services, with different technology platforms, capabilities and benefits. This is no longer the case. The internet and broadband connections to the internet have disrupted the conventional wisdom that previously governed the mechanisms, business models and regulatory construct for voice, cable and data communications.

Voice service enables real-time voice communications and provides access to E911 services. Where telecommunication was previously a terrestrial service provided over copper cable, telecommunication today includes wireline, wireless, and broadband-based services. Broadband and wireless networks have enabled the emergence of video communications along with the rise of text messaging and email as further mechanisms for real-time connections. These powerful uses of technology are indicative of how broadband and wireless networks are radically altering the societal norms of interactive communication.

There has been a migration from traditional voice communications over a wireline service to wireless services. An increasingly large percentage of households use wireless phones as their primary or only means of telephone service and such households increasingly use wireless phones for broadband access as well. The vast majority of residents and businesses in the state utilize wireless communication services to aid their health, safety and welfare. Wireless communication will continue to expand as new network infrastructure is developed to allow consumers to access the internet at faster speeds. As this expansion occurs, consumers no doubt will continue to have various complaints regarding their wireless communication services such as billing, call quality, contract early-termination, customer service, carrier marketing and advertising, number portability, and equipment.

In light of these new circumstances, the legislature determines that there is an over-reliance on market competition to regulate wireless communication services companies and that the over twenty year suspension on regulating cellular telephone services in this chapter should be lifted and repealed.

While congress and the federal communications commission have jurisdiction over the entry into and exit out of the market and the rates for wireless services, New York state has jurisdiction over consumer protection, service quality, emergency reporting and ensuring universal service. Accordingly, there is a need for a state agency to determine state wireless communications policy, to both ensure that wireless communication services companies provide adequate service and consumer protections to their subscribers; and oversee the development of a wireless service industry responsive to community and public interest, consonant with federal regulations and statutes.

The commission is the agency best suited to oversee the continued development of the wireless communication services industry in this state in accordance with a statewide wireless services plan and consistent with state communications policy generally, to set service quality

A. 5043 3

standards and ensure compliance, to receive and address customer complaints, and enforce customer protections.

§ 251. Definitions. The words and phrases used in this article shall have the following meanings unless a different meaning clearly appears in the context.

1. "Downgrade" shall mean a change in service initiated by the subscriber to a less expensive service tier than the one currently subscribed to.

2. "Gross annual receipts" shall mean any and all compensation received directly or indirectly by a wireless communication services company from its operations within the state, including but not limited to, sums received from subscribers or users in payment for wireless communication services, advertising and carrier service revenue and any other moneys that constitute income in accordance with the system of accounts approved by the commission.

3. "Person" shall mean any individual, trustee, partnership, association, corporation or other legal entity.

4. "Service tier" shall mean a category of wireless communication services or other services provided by a wireless communication services company and for which a rate or fee is charged by the wireless communication services company.

5. "State agency" shall mean any office, department, board, commission, bureau, division, public corporation, agency or instrumentality of the state.

6. "Wireless communication services company" shall mean any person owning, controlling, operating, managing or leasing one or more wireless communication services systems within the state.

7. "Wireless communication services system" shall mean any system which operates for hire, the service of providing real time communication wirelessly, including but not limited to, cellular phones.

§ 252. Applicability of article. The provisions of this article shall apply to every wireless communication services system and every wireless communication services company.

§ 253. Duties of the commission in respect to wireless communication services companies. The commission shall:

1. develop and maintain a statewide plan for the development of wireless communication services, setting forth the objectives which the commission deems to be of regional and state concern;

2. prescribe standards for the construction and operation of wireless communication services systems, which standards shall be designed to promote (a) safe, adequate and reliable service to subscribers, (b) the construction and operation of systems consistent with the most advanced technology when practicable, (c) a construction schedule providing for maximum penetration as rapidly as possible within the limitations of economic feasibility, (d) the construction of systems with facilities to provide service in areas conforming to various community interests, facilities with the technical capacity for interconnection with other systems within the regions as established in the commission's statewide plan and facilities capable of transmitting signals from subscribers to the wireless communication services company or to other points, and (e) the prompt handling of inquiries, complaints and requests for repairs;

3. represent the interests of the people of the state before the federal communications commission and other appropriate federal agencies and make available information on wireless communication developments at the federal level;

A. 5043 4

4. maintain liaison with the wireless communications industry and parties, both public and private, having an interest therein, other states and agencies of this state to promote the rapid harmonious development of wireless communication services as set forth in the statement of policy under section two hundred fifty of this article;

5. undertake such studies as may be necessary to meet the responsibilities and objectives of this article;

6. implement the provisions of this article in a manner which is cognizant of the differing financial and administrative capabilities of companies of different sizes;

7. encourage and cooperate with other state agencies that collect information from wireless communication services companies to eliminate duplicative reporting requirements.

§ 254. Powers of the commission in respect to wireless services companies. 1. The commission may promulgate, issue, amend and rescind such orders, rules and regulations as it may find necessary or appropriate to carry out the purposes of this article. Such orders, rules and regulations may classify persons and matters within the jurisdiction of the commission and prescribe different requirements for different classes of persons or matters. A copy of any order, rule or regulation promulgated hereunder shall be subject to public inspection during reasonable business hours and posted on the commission's website.

2. The commission may require wireless communication services companies to maintain and file such reports, contracts and statements, including but not limited to ownership, accounting, auditing and operating statements, engineering reports and other data as the commission may deem necessary or appropriate to administer the provisions of this article. The commission, including members of its staff, may make reasonable inspections of the records and facilities of any wireless communication services company.

3. The commission may examine, under oath, all officers, agents, employees and stockholders of any wireless communication services company, municipal officials and any other persons and compel the production of papers and the attendance of witnesses to obtain the information necessary to administer the provisions of this article.

4. The commission may require and receive from any agency of the state or any political subdivision thereof such assistance and data as may be necessary to enable the commission to administer the provisions of this article.

5. The commission shall have and may exercise all other powers necessary or appropriate to carry out the purposes of this article.

§ 255. Costs and expenses of the commission and department and assessment thereof related to the regulation of wireless services companies. 1. All costs and expenses of the department and commission related to wireless communication services companies shall be paid pursuant to appropriation in the first instance from the state treasury, on the certification of the chair of the department and upon the audit and warrant of the comptroller. The state treasury shall be reimbursed therefor by payments to be made from moneys collected pursuant to this article.

2. Notwithstanding the provisions of subdivision one of this section, by February first of each year, the chair of the department shall estimate the total direct and indirect costs and expenses necessary to operate and administer the powers and duties of the commission and department relating to wireless communication services companies for the ensuing state fiscal year. The chair shall, prior to March first, bill

A. 5043 5