WASHINGTON-Western Wireless Corp. is appealing a decision by the Colorado Public Utilities Commission to impose conditions on it receiving universal-service subsidies, arguing the conditions amount to rate regulation prohibited by federal law.
The Colorado PUC’s “decision subjects Western Wireless’ provision of service as an eligible telecommunications carrier to additional standards not found in federal law and not found in the Colorado PUC’s rules,” argues Western Wireless in an appeal filed in federal court in Colorado. The Colorado PUC “created additional standards for ETCs but did not do so by adopting regulations-it instead created new standards in a contested adjudicatory proceeding.”
Western Wireless was granted ETC and essential provider status for most of rural Colorado in 2001. ETC status is necessary to receive federal universal-service subsidies. Essential provider status enabled it receive subsidies at the state level. On Feb.14, 2003, Western Wireless asked the Colorado PUC to grant it only ETC status for the remainder of the rural part of the state. The Colorado PUC granted it ETC status May 23 but conditioned it show its rates were affordable to rural customers and that it adhere to certain service-quality requirements. Even though Colorado PUC Chairman Greg Sopkin reversed his decision and opposed the conditions on reconsideration, Colorado PUC Commissioner Polly Page continued to believe the conditions were necessary. Because the Colorado PUC was deadlocked, the conditions remain in place, leading Western Wireless to fight them in court.
The Colorado PUC’s “decision takes regulatory authority over rates, terms and conditions (including the service agreement) for bundled service offerings. This regulation is beyond the state’s authority. The Colorado PUC’s decision thus regulates interstate services and intrastate services that are inseparable from interstate services. The Colorado PUC’s regulation of interstate services would substantially affect Western Wireless’ provision of interstate communications,” said Western Wireless.
Western Wireless has fought hard to obtain universal-service subsidies in its service territory, arguing that competition and mobility override concerns that rural landline carriers have about potentially losing their subsidies.
