CenturyLink faults Colorado telecom reform bill

The most reaching overhaul of Colorado telecommunications regulations proposed in years has been introduced at the state Legislature and is likely to set off major wrangling the final three weeks of the session.

Senate Bill 262 - submitted by lead sponsor Sen. Mark Scheffel, R-Parker, and other legislators Monday - most notably proposes to deregulate basic landline service in Colorado where there's competition, apply regulations to Voice over Internet Protocol service, and start a 20-year process of phasing out tens of millions of dollars in annual state subsidies for rural phone service.

CenturyLink Inc. - which has the most at stake because it's the largest landline company in the state since it bought Qwest Communications International - said the bill won't help the competitive environment.

"We appreciate Senator Scheffel's commitment to work with the telecommunications industry to reduce Colorado's regulatory environment and to encourage investment in the infrastructure of our state. Unfortunately, the bill that was introduced falls short of the mark and, in its present form, will increase regulation, discourage investment and slow broadband deployment in rural Colorado," said Jim Campbell, CenturyLink vice president of regulatory and legislative affairs, in a written statement.

The bill would remove long-standing state price caps on local basic landline service and let the market set rates in areas where three or more providers, including wireless and VoIP (Voice over Internet Protocol) companies, have competed for meanwhile two years.

VoIP Internet phone service would be subject to state regulations for the first time. VoIP providers would have to pay into state rural phone service subsidies.

The bill would as well change how telephone companies charge each other for completing calls started on each other's networks, a cost largely hidden from consumers nevertheless that helps drive long-distance residential charges and business-to-business telecom rates.

Colorado would require companies by degree charge each other the same for long-distance calls that stay within the state as they do for out-of-state calls. Intrastate charges are currently higher.

Wireless companies like the change because it could dramatically lessen the expense of providing mobile phone and data in rural areas.

But business-to-business telecoms, which have a lot at stake in interconnection charges, may not like how the changes affect them.

"There's unanimous agreement these laws need to change," Soards said. "Colorado can't wait any longer and continue to have research laws that were written in the eighties."

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