Verizon’s top southeastern-region executive urged the Tex. legisl...

testified during House Regulated Industries Committee hearings on HB-789, a bill that would deregulate rates for nearly all retail telecom services. Banta urged the legislature to look to the “proven model” of the competitive wireless industry, which has delivered lower prices and technological benefits to consumers without state regulation. Banta had some issues with HB-789, which the committee may address through amendment. He said he opposed a provision that would allow incumbent telcos to take advantage of deregulation only if they forego participation in the state universal service fund. He said this provision would put Verizon and other incumbents “in an impossible Catch-22 situation” of having to absorb all costs of serving rural and high-cost areas if they wanted pricing freedom in their densely-populated markets. He also took issue with a provision that he said would give cable companies “special advantages over other telecom providers” by impairing telcos’ ability to offer competitive video services. He also objected to wording that would require all telecom carriers, including wireless, to pay a state gross receipts tax that would replace local right-of-way levies. He said wireless carriers don’t use terrestrial rights of way so they shouldn’t be subject to a tax levy that’s imposed in lieu of right-of-way fees. State Rep. Phil King (R), chmn. of the Regulated Industries Committee, said he planned to amend HB- 789’s universal service provisions. Instead of barring deregulated telcos from the state fund, he said he'll propose alternative language directing the PUC to study the $600 million Tex. universal service subsidy system and recommend changes to the 2007 legislature. The Tex. legislature meets only in odd-numbered years. King also indicated he’s willing to review whether wireless carriers should be included in the proposed state right-of-way tax.