Gulf Coast Regulators Face Tough Telecom Issues in Katrina’s Wake

For instance, Miss. PSC staff said the agency plans to meet Sept. 12 to hear reports on utility recovery efforts and begin tackling major storm-related telecom matters likely to dominate in all hard-hit states: (1) Whether to waive service quality standards such as for timely installations and repairs be waived until carriers complete restoration of service and replacement of destroyed facilities. (2) Whether to allow regulated carriers a temporary local rate increase or surcharge to enable them to recover the extraordinary and unexpected costs the storm caused. (3) Whether to let carriers restore networks to pre-storm condition, or encourage them toward wholesale replacement of older wires, cables and switches with the latest in fiber and digital technologies. (4) How to use state regulation to facilitate electronic communications among emergency responders and prevent breakdowns. Staffers said no Miss. carriers have made proposals in these areas yet. They said the PSC offices just got their utilities back on Mon. and they'll operate with a skeleton crew this week.

The Ala. PSC, at its meeting Tues., heard reports from telecom and energy providers on progress restoring service. BellSouth said 20,500 lines were still out in Ala., with about 17,700 outages in the Mobile area. BellSouth said it would take about 3 weeks to restore service fully in Mobile. Century Tel, the state’s 2nd- largest incumbent, said it had restored all but 200 lines on the mainland, not counting some 300 lines on Dauphin Island’s western end, where damage was still too severe to make repairs. CenturyTel said it had only 5 central offices still on emergency power. Gulf Telephone said it still had about 700 outages in the Gulf Shores area. Energy utilities reported restoring nearly all service to affected customers, including telephone companies. PSC Pres. Jim Sullivan praised the telecom and energy firms for their “very appropriate and very quick responses.”

The storm did produce one policy change in Ala. Before Katrina, the PSC was considering an order that would have required CenturyTel to transfer 1/2 its $300,000 annual budget for generator procurement and maintenance to the universal service budget to support extension of phone lines and installation of network upgrades in high-cost rural areas. The PSC staff had recommended allowing only $150,000 for generators. But at the Tues. meeting, the staff, Century and the PSC agreed to leave generators budgeted at $300,000 for 2006, with most of that to be spent installing generators at 6 more central offices. The PSC instead decided to get the $150,000 for high-cost rural line extensions from another fund earmarked for replacing obsolete metal cables.

Staffers at the La. PSC said the agency’s immediate priority is restoring telecom and energy services, but they expect the PSC to look at disaster-related policy issues in future. Key PSC telecom and energy personnel were helping the state Office of Emergency Management with recovery efforts.

Meanwhile, BellSouth said it expects to restore phone service to most Katrina-struck customers within 30 days, but predicted restoration may take much longer in New Orleans and other hard-hit locales. Bill Smith, BellSouth chief technology officer, said the carrier’s top priority is restoring public safety calling systems in hospitals, fire stations and the like, then wireless service, interoffice trunking and central offices. It has sent many 2-worker teams across affected states to gauge damage and set priorities. “Our overall restoration activities are ongoing and we are making good progress daily,” he said. But he said restoration is being hampered by people cutting phone cables and damaging outside plant equipment as they clear debris and restore their properties. BellSouth had the same problem in central Fla. after Katrina crossed that state.