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California Commissioner Unveils Revised Telecom Rules
by Chloe Albanesius
Susan Kennedy, a member of the California Public Utilities Commission (CPUC), on Monday introduced a revised version of the state's controversial telecommunications bill of rights.
Kennedy's version adds "Internet freedom" and "naked DSL" to the list of rights the CPUC says telecom consumers should be guaranteed. Naked DSL is a service that allows regional phone companies to provide customers with digital subscriber lines (DSL) for broadband service without also providing phone service.
"The most effective means of consumer protection in a competitive market is freedom of choice," Kennedy said in a statement. "In order to exercise that choice, laws and regulations against fraud and slamming must be strictly enforced, consumers must be free to choose the services they want and be able to make informed decisions about the terms and conditions of services for which they contract."
In May 2004, the California commission approved rules regulating the marketing, billing and contract practices of wireless firms. Carriers were required to more clearly label bills, avoid deceptive marketing practices and allow customers to opt out of their contracts within the first 30 days of purchase.
Telecom providers criticized the rules, claiming the firms already had consumer protections and that the new rules would stifle innovation. The uproar prompted the commission to temporarily suspend the rules in January for further discussion.
The bill of rights alone was not the problem, "it was the way the commission went crazy trying to implement them," Kennedy said. The CPUC made a mistake when it "tried to regulate every detail of interaction between a customer and a provider."
Kennedy's revised proposal, therefore, will examine each right against existing law to make sure the bill of rights is not being duplicative.
In other CPUC news, California Gov. Arnold Schwarzenegger on Monday appointed John Bohn to the commission.
"More than ever, the PUC needs people, like John, who understand the power of technology to reduce prices and improve services, and I am confident he will be an invaluable addition to the commission," the Republican governor said in a statement.
Bohn is chairman and CEO of the financial consulting firm GlobalNet Venture Partners and worked as special assistant to U.S. Treasury Secretary Don Regan during the 1980s.
ITAA Urges Halt To California Recycling Fees
Meanwhile, the Information Technology Association of America (ITAA) last week sent a second letter to the California Integrated Waste Management Board requesting the board halt the collection of e-recycling fines until the state and federal government resolve issues with the program.
The ITAA said it is concerned the state will impose fines of up to $2,500 on electronic sellers that do not collect e-recycling fees from federal government clients. Some federal clients like the Defense Department and the General Services Administration claim that as federal entities, they are exempt from state regulation -- a point of contention between state and federal authorities.
Vendors were supposed to submit collected e-recycling fees to the board by April 30. ITAA asked the board to state in writing that these vendors would not be punished for not collecting fees from federal agencies that refuse to pay them. "This situation is on the verge of causing irreparable harm to ... vendors," ITAA President Harris Miller wrote.
States Approve Telecom Deregulation Bills
Lawmakers in Alabama and Missouri this week took action on several telecom-related bills.
The Alabama Senate on Tuesday approved a bill that would limit the power the state's Public Service Commission has over major providers of traditional telephone service, like BellSouth. The Birmingham News reports that the measure now moves to Gov. Bob Riley for his signature. A legislative liaison for the Republican governor said he "is generally in favor of deregulation."
Meanwhile, The Kansas City Star reports that the Missouri House on Tuesday also approved a bill that would deregulate the telecom market. The legislation would make it easier for a company to be declared competitive and free of regulation and price restrictions. Of the state's 700 phone exchanges, only a handful have been declared competitive so far, but the bill is expected to free up about 130 businesses and 100 residential areas.
E-Voting Machine Firm Sues Ohio
Electronic voting machine company Election Systems & Software (ES&S) on Monday filed suit against Ohio Secretary of State Kenneth Blackwell for breach of contract.
The company contends that Ohio signed a contract with ES&S in 2004 that allowed 42 of the state's 88 counties to purchase optical scan or touch-screen machines from ES&S. Blackwell violated that agreement, however, when a January 2005 directive called for the state to purchase only optical scan machines, the company said. ES&S accuses Blackwell's office of ignoring state and local objections to the move and holding secret meetings with vendors outside the normal procurement process.
"We took this step reluctantly after many attempts to resolve these issues amicably," Aldo Tesi, president and CEO of ES&S, said in a statement. "We have no desire to sue state agencies, but the voting system selection process in Ohio has effectively removed the authority of county officials and directed business to one of our competitors."
The ES&S suit seeks a temporary restraining order and preliminary injunction to force Ohio to comply with the 2004 contract.
Blackwell said in a statement that the ES&S lawsuit "amounts to nothing more than a final shot of desperation by a company that knows its time has run out and it simply is not prepared to provide Ohio voters with viable electronic voting systems."
Blackwell argued that "a year and a half has passed since vendors were provided with a list of specific security improvements, [and] only Diebold has presented my office with a system that is ready to be sent to the boards of elections and placed in front of Ohio voters."
Meanwhile, Washington Gov. Christine Gregoire Tuesday signed eight election overhaul bills, one of which requires a paper trail for electronic voting machines.
"We had a very difficult and very close election last year," the Democratic governor said in a statement, referring to the hotly contested gubernatorial race between her and Republican Dino Rossi, which the state GOP is still challenging in court. "Because of its closeness, we all learned a lot about how our state's elections operate."
In other news, Ohio this week offered Accenture -- which the state fired four years ago for failing to adequately complete a jobs-matching software contract -- an $85 million contract to put more of the state's day-to-day business online.
Ohio News Network reports that Accenture will install $11 million worth of PeopleSoft software so the state can basically eliminate paper documents for such things as timesheets and supply orders.
Despite previous issues with Accenture, David White, the current program's executive manager, said he was "comfortable" with the selection because the company "went through a pretty rigorous competitive process."
Florida, Microsoft Team Up For Education Network
Florida Gov. Jeb Bush last week announced that the state has joined forces with Microsoft to develop an online education network.
The five-year deal for "Sunshine Connections" will give teachers Internet access to student data, curriculum materials, document management systems and a link to other teachers throughout the state. The Republican governor pledged to "revolutionize teaching capabilities and reach beyond the classroom and district for resources."
The first phase of the project will be rolled out by the state's Education Department to approximately 35,000 students across 17 school districts by year's end. Statewide deployment is expected by the fall of 2006.
The program will establish a "benchmark for how this online collaborative environment can drive action at the classroom level to increase student achievement," said Gerri Elliott, senior vice president of Microsoft's worldwide public sector division.
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