II. Scope of This Proceeding
A. SB 1563
SB 1563, in conjunction with companion legislation, SB 1863, amends Section 709 to state that the policies for telecommunications in California are as follows:
(a) To continue our universal service commitment by assuring the continued affordability and widespread availability of high-quality telecommunications services to all Californians.
(b) To focus efforts on providing educational institutions, health care institutions, community-based organizations, and governmental institutions with access to advanced telecommunications services in recognition of their economic and societal impact.
(c) To encourage the development and deployment of new technologies and the equitable provision of services in a way that efficiently meets consumer need and encourages the ubiquitous availability of a wide choice of state-of-the-art services.
(d) To assist in bridging the "digital divide" by encouraging expanded access to state-of-the-art technologies for rural, inner-city, low-income, and disabled Californians.
(e) To promote economic growth, job creation, and the substantial social benefits that will result from the rapid implementation of advanced information and communications technologies by adequate long-term investment in the necessary infrastructure.
(f) To promote lower prices, broader consumer choice, and avoidance of anticompetitive conduct.
(g) To remove the barriers to open and competitive markets and promote fair product and price competition in a way that encourages greater efficiency, lower prices, and more consumer choice.
(h) To encourage fair treatment of consumers through provision of sufficient information for making informed choices, establishment of reasonable service quality standards, and establishment of processes for equitable resolution of billing and service problems.
SB 1563 and SB 1863 add items (b), (c), (d), and (h) to this list of policy goals.
This bill states its intent to bridge the "digital divide" by encouraging expanded access to state-of-the-art technologies for rural, inner-city, low-income, and disabled Californians, and encouraging fair treatment of consumers through consumer-oriented conduct. In this context, the bill requires the Commission to convene a proceeding to develop a plan for encouraging the widespread availability and use of advanced communications infrastructure. It requires us to encourage participation from a broad cross section of the communications industries, including those entities that the commission does not regulate, as well as users and community representatives. The bill also requires the commission to encourage participation by community-based organizations, including nonprofit community technology programs and libraries.
The bill further requires us to submit a report to the Governor and the Legislature no later than December 31, 2004, of our findings and recommendations regarding the plan. The report should identify factors preventing the ubiquitous availability and use of advanced communications services, and assess the consequences of and develop strategies for addressing this inadequacy while encouraging the deployment of adequate investment.
B. Related Commission Decisions
The Commission has recently addressed certain related issues in an OIR (R.01-05-046) and report submitted to the Legislature on August 14, 2002, in response to SB 1712 (Ch. 943, Stats. 2000). SB 1712 required the Commission to investigate the viability of redefining universal service to include high-speed Internet access and report its findings to the Legislature, following public hearings around the state. This OIR was commenced on May 24, 2001.
The Commission's SB 1712 report, titled "Broadband Services as a Component of Basic Telephone Service," found that aggressively deploying broadband services in California would be prohibitively expensive to all customers, including low-income customers. It observed that "dial up" service for Internet access is available for any customers with basic telephone service.
Decision (D.) 02-10-060 expressed the Commission's intent to modify the California Teleconnect Fund (CTF) to make broadband discounts and services to community-based organizations (CBOs) and government owned health facilities the same as those offered to schools and libraries. We also intend to implement the requirement of SB 1863, expanding CBO eligibility to participate in the CTF program. We expect to implement these changes to the CTF program in early May or June 2003.
C. Issues
SB 1563 finds that telecommunications policy in California includes the following:
(a) To continue our universal service commitment by assuring the continued affordability and widespread availability of high-quality telecommunications services to all Californians.
(b) To focus efforts on providing educational institutions, health care institutions, community-based organizations, and governmental institutions with access to advanced telecommunications services in recognition of their economic and societal impact.
(c) To encourage the development and deployment of new technologies and the equitable provision of services in a way that efficiently meets consumer need and encourages the ubiquitous availability of a wide choice of state-of-the-art services.
(d) To assist in bridging the "digital divide" by encouraging expanded access to state-of-the-art technologies for rural, inner-city, low-income, and disabled Californians.
(e) To promote economic growth, job creation, and the substantial social benefits that will result from the rapid implementation of advanced information and communications technologies by adequate long-term investment in the necessary infrastructure.
(f) To promote lower prices, broader consumer choice, and avoidance of anticompetitive conduct.
(g) To remove the barriers to open and competitive markets and promote fair product and price competition in a way that encourages greater efficiency, lower prices, and more consumer choice.
(h) To encourage fair treatment of consumers through provision of sufficient information for making informed choices, establishment of reasonable service quality standards, and establishment of processes for equitable resolution of billing and service problems.
In recognition of these policies, SB 1563 directs the Commission to develop a plan "for encouraging the widespread use of advanced communications infrastructure." The bill finds that "the mission of the plan is to identify factors preventing the ubiquitous availability and use of advanced communications services, assess the consequences of, and develop strategies for, addressing these factors while encouraging the deployment of adequate investment for advanced communications infrastructure that serves the public good," consistent with the policies it specifies.
Based on the legislation, we identify the following as issues that should be explored in this proceeding:
Existing barriers to the ubiquitous availability and use of advanced telecommunications technology;
Whether new telecommunications technologies or the cost of existing technologies have changed in ways that would make them more economical to deploy statewide;
Whether and how telecommunications technologies and their cost are expected to change in the future in ways that would make them more economical to deploy statewide;
Whether the Commission can or should direct changes in technologies, their deployment or related infrastructure in ways that would promote more ubiquitous availability;
Whether and how existing programs promote the availability and use of advanced telecommunications technology for inner-city, low-income, and disabled Californians;
Whether and how open and competitive markets for advanced communications technologies can encourage greater efficiency, low prices and more consumer choice;
Whether and how identified technologies may promote economic growth, job creation and social benefits;
The adequacy of current efforts to provide educational institutions, health care institutions, community-based organizations, and governmental institutions with access to advanced telecommunications services; and
Whether existing law and policy encourage fair treatment of consumers through provision of sufficient information for making informed choices, establishment of reasonable service quality standards, and establishment of processes for equitable resolution of billing and service problems.
This OIR will not review: (1) the cost model for the California High Cost Fund-B (CHCF-B) or the adopted rules for the CHCF-B (Appendix B, Rule 6 in Decision (D.) 96-10-066); (2) the specific rules for ULTS set forth in Appendix B, Rule 5 of D.96-10-066; and (3) Rules 7 (Universal Service Working Group) and 9 (Consumer Information) in Appendix B of D.96-10-066.
