SENATE JOINT MEMORIAL 46

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Lynda M. Lovejoy

A JOINT MEMORIAL

REQUESTING THE PUBLIC REGULATION COMMISSION TO CREATE A TASK FORCE TO STUDY THE EFFECTS OF DEREGULATION OF LANDLINE TELECOMMUNICATIONS IN NEW MEXICO.

     WHEREAS, Senate Bill 37, introduced during the second session of the forty-ninth legislature, provides for the deregulation of landline telecommunications in New Mexico by requiring the public regulation commission to "eliminate rules, regulations and other requirements applicable to the provision of such service, including the specific fixing of rates, tariffs or fares of such service"; and

     WHEREAS, deregulation would be implemented statewide if effective competition is determined for fifty percent of an incumbent company's lines in designated areas; and

     WHEREAS, if an incumbent company has lost fifty percent of its access lines in urban areas since 2001, pursuant to Senate Bill 37, the company could be released from regulation not only in urban areas but also in rural areas where competition may not exist; and

     WHEREAS, many New Mexicans, especially in rural New Mexico, still depend on landlines as their sole source of telecommunications; and

     WHEREAS, should deregulation be implemented on a statewide basis, these New Mexicans could be deprived of essential telecommunications services such as emergency 911; and

     WHEREAS, many of these New Mexicans are senior citizens living on a fixed income or low-income families who could not afford paying additional fees on their phone bills to finance an incumbent company's investment on infrastructure or service extension; and

     WHEREAS, by eliminating rules and regulations on rates, Senate Bill 37 could also create an unfair business environment in areas where competition does exist by allowing larger carriers to offer unreasonably lower rates than their competitors; and

     WHEREAS, the fiscal impact to the state's general fund is unknown due to the potential elimination of fees such as utility and carrier inspection fees or other sources of income that may result from the elimination of rates, tariffs and fares; and

     WHEREAS, the impact of the proposed legislation on other statutes and public regulation commission rules and orders has not been thoroughly determined and is the subject of a future open meeting discussion at the public regulation commission; and

     WHEREAS, the impact on future public regulation commission rules and procedures for landline telecommunications carriers is not clear; and

     WHEREAS, despite all of these concerns, the legislature also understands that new forms of telecommunications have also created unregulated competition to the landline telecommunications industry in certain areas of the state;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the public regulation commission be requested to form a task force, including representatives from the wireless and wireline telecommunications industry, consumer advocacy groups, the public regulation commission, the attorney general's office and members of the legislature, to study the effects of deregulation of landline telecommunications in New Mexico and to draft a bill addressing their concerns that can be introduced in the 2011 legislative session; and

     BE IT FURTHER RESOLVED that the public regulation commission report the findings and recommendations of the task force to the appropriate interim committee of the legislature by December 1, 2010; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the public regulation commissioners.

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