SR 48 — A Resolution directing the Legislative Budget and Finance Committee to conduct a review of the compliance of telecommunication carriers with the high-speed broadband deployment mandates of the Public Utility Code and to report findings and recommendations to the Senate.

PRIOR PRINTER'S NO.

657 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA SENATE RESOLUTION Session of No.

95248 THE2019 GENERALINTRODUCED ASSEMBLYBY OFPHILLIPS-HILL, PENNSYLVANIAYAW, SENATEHUTCHINSON, COSTA, BAKER, AUMENT, STEFANO, WHITE, BROWNE, HAYWOOD AND BARTOLOTTA, APRIL 29, 2019 REFERRED TO COMMUNICATIONS AND TECHNOLOGY, APRIL 29, 2019 A RESOLUTION SessionDirecting the Legislative Budget and Finance Committee to conduct an audit on the compliance of No.telecommunication carriers with the Public Utility Code and high-speed broadband universal service deployment mandates and to report their findings and recommendations to the Senate.

48 2019 INTRODUCED BY PHILLIPS-HILL, YAW, HUTCHINSON, COSTA, BAKER, APRIL 29, 2019O, WHITE, BROWNE, HAYWOOD AND BARTOLOTTA, SENATOR PHILLIPS-HILL, COMMUNICATIONS AND TECHNOLOGY, AS AMENDED, JUNE 12, 2019 A RESOLUTION Directing the Legislative Budget and Finance Committee to conduct an audit on A REVIEW OF the compliance of <-- telecommunication carriers with the Public Utility Code and <-- high-speed broadband universal service deployment mandates OF <-- THE PUBLIC UTILITY CODE and to report their findings and <-- recommendations to the Senate.

and WHEREAS, In 1993, telecommunications carriers operating in <-- this Commonwealth adopted an alternative form of regulation and network modernization plans to replace existing copper-based network infrastructure with a hybrid of fiber optic and coaxial cables to deliver high-speed broadband at speeds of at least 45 megabits per second (Mbps) in both directions throughout 100% of their urban, suburban and rural service territories by the end of 2015;

and WHEREAS, In March 2002, the PUC rejected the telecommunications carriers' third biennial update and concluded 20190SR0048PN0952 - 2 - that telecommunications carriers unilaterally changed the 20190SR0048PN0657 - 2 - broadband commitment without properly notifying the PUC, stating that:

and WHEREAS, In July 2003, the PUC officially permitted 20190SR0048PN0952 - 3 - telecommunications carriers to break the commitment to the 20190SR0048PN0657 - 3 - Commonwealth to deploy a 45 Mbps high-speed hybrid fiber optic and coaxial cable broadband network and replaced that commitment with a mandate to deploy broadband at a speed of 1.544 Mbps with the following benchmarks regarding each urban, suburban or rural exchange:

and WHEREAS, In July 2003, the PUC A PENNSYLVANIA PUBLIC UTILITY <-- COMMISSION (PUC) order also directed telecommunications carriers <-- to upgrade all central offices and existing remote terminals and construct new terminals to provide broadband service at 1.544 Mbps within five days of a customer request;

20190SR0048PN0952 - 4 - (2) reducing the inflation offset under the companies' 20190SR0048PN0657 - 4 - price cap form of rate regulation;

and (4) establishing several funds and programs to further facilitate broadband deployment beyond the deployment commitments contained in the CERTAIN companies' network <-- modernization plans, including:

and WHEREAS, In February 2005, this Commonwealth's LARGEST <-- telecommunications carriers CARRIER filed A revised network <-- modernization plans PLAN with the PUC to comply with Act 183 of <-- 2004;

and WHEREAS, The plans were PLAN WAS approved by order entered in <-- May 2005 to:

(1) require the telecommunications carriers CARRIER to <-- retain their ITS commitment of broadband availability to 100% <-- of the total retail access lines by December 31, 2015, under the same benchmarks as outlined in the third supplement to their ITS network modernization plans PLAN approved by the <-- PUC in August 2004;

and (2) allow telecommunications carriers THE CARRIER to <-- reduce the inflation offset of the ITS price stability <-- mechanism from 2.93% to 0.5% to generate additional funding dedicated to the deployment of high-speed broadband service 20190SR0048PN0952 - 5 - at 1.544 Mbps through urban, suburban and rural areas of their ITS service territories;

<--20190SR0048PN0657 - 5 - and WHEREAS, In December 2011, this Commonwealth's LARGEST <-- telecommunications carriers filed plans to announce their <-- intentions CARRIER FILED A PLAN PURSUANT TO STATUTE TO ANNOUNCE <-- ITS INTENTION to use other technologies, including fixed wireless, to meet the statutorily mandated broadband deployment benchmarks, stating their ITS commitment to inform the PUC about <-- deploying technologies to make broadband available to customers;

and WHEREAS, In February 2013, the PUC approved a final order and concluded that the PUC cannot specifically require 20190SR0048PN0952 - 6 - telecommunications carriers THE CARRIER to deploy DSL service to <-- meet the BFRR of the Greensburg CSA l125 customers or to set a specific price for the retail broadband access service offered those 20190SR0048PN0657 - 6 - customers as part of the request;

and WHEREAS, The largest telecommunications carrier's joint <-- venture agreement with its wireless affiliate changes a potential alternative provider of broadband service into the carrier's designated provider, which may constitute illegal cross-subsidization under 66 Pa.C.S.

and WHEREAS, The largest telecommunications carrier's customers who receive wireless broadband services to satisfy a BFRR are required to address any service or billing disputes with the wireless affiliate, further raising cross-subsidization concerns <-- because the carrier's wireless affiliate WHICH is an unregulated <-- provider of wireless competitive services and may or may not receive dedicated funding only for the benefit of the carrier's customers where broadband must be deployed, and the funding may or may not be used by the wireless affiliate to offer competitive wireless services to the general public;

and WHEREAS, The pricing for the wireless 4G LTE that is provided through the THIS Commonwealth's largest telecommunications <-- carrier's joint venture is affected by certain data usage caps and tiers, various equipment charges, service reliability issues and contract periods that may exceed the one-year contractual 20190SR0048PN0952 - 7 - term that is statutorily specified for the routine engagement of retail broadband access service under the BFRR process and could <-- be considered cost prohibitive to rural customers that lack 20190SR0048PN0657 - 7 - access to alternative broadband service providers and who have paid increased telephone fees for decades to telecommunications carriers for the deployment of broadband services;

and WHEREAS, The Federal Communications Commission's Connect America Fund offered funding to this Commonwealth's largest telecommunications carrier to build new broadband network 20190SR0048PN0952 - 8 - infrastructure or upgrade networks in areas where it might not be as profitable, yet hundreds of millions of dollars in Connect America Funds have been declined by the carrier;

therefore be it 20190SR0048PN0657 - 8 - RESOLVED, That the Senate direct the Legislative Budget and Finance Committee to conduct an audit on A REVIEW OF the <-- compliance of telecommunication carriers with high-speed broadband universal service deployment mandates under the Public <-- Utility Code;

(1) determine whether telecommunications carriers have fulfilled their commitments under the Public Utility Code 66to <--accelerate PA.C.S.broadband availability to 100% of their total retail access lines in their distribution networks by December 31, 2015;

CH.30 to accelerate broadband availability to 100% of their total retail access lines in their distribution networks by December 31, 2015;

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