LEGISLATIVE BRIEFING
Telecommunications Industry in Pennsylvania

CONSUMER AFFAIRS COMMITTEE

Pennsylvania House of Representatives

Representative Joseph Preston, Jr., Democratic Chairman
Prepared by Tim Scott

February 2, 2009


Summary

The Public Utility commission regulates local telephone service in Pennsylvania. Long distance and wireless communications are under the jurisdiction of Federal Communications Commission (FCC). In Pennsylvania, the telecomm industry works with the PUC to ensure reasonable and affordable rates, quality of service, and accelerated deployment of high-speed internet service and to make sure no consumer is left without local phone service through the Universal Service Fund.

Licensed Phone Companies

There are 747 telecommunications carriers in PA as of 2008. These companies are broken down into two categories: Incumbent Local Exchange Carriers (ILECs) and Competitive Local Exchange Carriers (CLECs). The largest ILECs are Verizon Pennsylvania Inc., Verizon North Inc., Embarq and Windstream.

Act 183 of 2004

Act 183 of 2004 made Pennsylvania the home to one of the most aggressive internet deployment commitments in the nation. Act 183 (or Chapter 30 as it is sometimes referred to) mandated accelerated broadband deployment by ILECs in exchange for a decreased regulatory framework, which most telecoms found desirable in their highly competitive environment. As a result, many ILECs are almost 100% deployed or quickly approaching full deployment. By 2015, every city, township, borough and village will have access to high-speed internet service (even the rural areas).

Glossary of Terms

Broadband: Any high-speed, always-on Internet connection. "True" broadband transmits voice, data, and video at rates of at least 1.5Mbps (although today's networks commonly offer roughly 500 Kbps).

Digital Subscriber Line: Broadband technology that works over regular copper telephone cabling. Incumbent Local Exchange Carrier (ILEC): The traditional local telephone companies such as the former Bell companies like Verizon, or local exchange carriers designated as such by the PUC.

Interexchange Carrier (IXC): Long distance phone carriers like AT&T, MCI and Sprint as well as ILECs that qualify to provide long distance service.

Competitive Local Exchange Carrier: Telephone companies that are allowed to enter the local exchange market after obtaining a Certificate of Public Convenience and Necessity from the PUC.

Resale Carrier: A carrier that does not own transmission facilities, but obtains communications services from another carrier for resale to the public for profit. Also know as a Reseller.

Hot Topics

Universal Service: Sustainability of these programs
Encouraging the Spread of Broadband
Net Neutrality: Treating all Internet Content the Same
Price Regulation among Carriers: Access Charges


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