Maine governor signs legislation reforming telecommunications regulation

Maine Governor Paul LePage today signed into law historic legislation changing the way telecommunications providers are regulated in Maine, which should help FairPoint compete against lesser-regulated or unregulated providers.
â This bill is an excellent example of what our administration promised to do,’said LePage. â This legislation reduces red tape and regulation, and puts all telecommunication providers under the same set of rules.’ LePage said the legislation modernizes regulation, while continuing to provide the necessary protections to Maine consumers.
The legislation, sponsored by Rep. Stacey Fitts, R-Pittsfield, moves the regulatory requirements of all telecommunications providers closer to parity. The new regulations will continue to protect the public interests and do not increase regulation on any one sector of the industry.
â The legislation puts in place much needed regulatory reform reflecting todayâ s competitive realities,’said Fitts. â The current regulatory environment was outdated based on changes in the telecommunications marketplace. This is groundbreaking legislation that positions Maine as a leader in developing regulatory reform at the state level.â
Mike Reed, Maine state president for FairPoint Communications, Inc. said that the legislation is a bold step forward and recognizes that the industry is going through a period of dramatic change. FairPoint is the primary telecom provider in Vermont and New Hampshire, as well
â Vigorous competition is a reality in Maine, and telecommunications regulation will now reflect that,’said Reed. â This sets the stage to put all telecommunication providers, regardless of the technology they use, on a level playing field.â
Reed said that the new regulation provides regulatory freedom for all products and services, except Provider of Last Resort (POLR) responsibilities, and allows FairPoint flexibility to quickly adjust its pricing to respond to changes in the marketplace.
Also, it removes or drastically reduces long-standing regulatory burdens ‘some with financial penalties ‘that are no longer necessary in this highly competitive environment.
The bill also provides protection for consumers by maintaining POLR requirements, thereby ensuring that all consumers have affordable access to basic voice service. Because providing POLR service can be very costly, the state now will move forward with a process to evaluate the need for POLR and to determine a funding mechanism for ongoing support of the program.
The legislation was supported by a broad-based industry coalition including cable companies, incumbent local exchange companies, wireless providers, consumer groups and industry trade groups.
The legislation is the first fundamental overhaul of the regulatory statute since 1913. It provides broad reform that reshapes and modernizes how telecommunications will be regulated in Maine. Additionally, the reform helps set up an environment that encourages innovation and continued investment in telecommunications services in the state.
The process started during last yearâ s legislative session when the Joint Standing Committee on Energy, Utilities and Technology (EUT) issued a directive to the Maine Public Utilities Commission to undertake a comprehensive study of the current regulatory structure in Maine. The study set the stage for reform that now provides a comprehensive reshaping of how telecommunications are regulated in Maine. The bill can be found at Maine Legislature.
PORTLAND, Maine (April 12, 2012)