IC 8-1-2.6
Chapter 2.6. Competition in the Provision of Telephone Services
IC 8-1-2.6-0.1 "Basic telecommunications service"
Sec. 0.1. (a) As used in this chapter, "basic telecommunications
service" means stand alone telephone exchange service (as defined
in 47 U.S.C. 153(47)) that:
(1) is provided to a residential customer through the customer's
primary line; and
(2) is:
(A) the sole service purchased by the customer;
(B) not part of a package of services, a promotion, or a
contract; or
(C) not otherwise offered at a discounted price.
(b) The term includes, at a minimum, the following:
(1) Voice grade access to the public switched telephone
network with minimum bandwidth of three hundred (300) to
three thousand (3,000) hertz.
(2) Dual tone multifrequency signaling and single party service.
(3) Access to:
(A) emergency services, including access to 911 and
enhanced 911 if provided by the local government having
jurisdiction in the service area;
(B) operator services;
(C) local directory assistance;
(D) telephone relay services; and
(E) interexchange service.
(4) Toll limitation services for qualifying low income
customers.
(c) The term does not include a functionally equivalent service
provided by a person or an entity described in IC 8-1-2-1.1. As added by P.L.27-2006, SEC.6.
IC 8-1-2.6-0.2 "Incumbent local exchange carrier"
Sec. 0.2. As used in this chapter, "incumbent local exchange
carrier" has the meaning set forth in 47 U.S.C. 251(h). As added by P.L.27-2006, SEC.7.
IC 8-1-2.6-0.3 "Nonbasic telecommunications service"
Sec. 0.3. (a) As used in this chapter, "nonbasic
telecommunications service" means retail telecommunications
service other than:
(1) basic telecommunications service, except when the service
is purchased by the customer:
(A) in conjunction with another service;
(B) as part of a package of services, a promotion, or a
contract; or
(C) at an otherwise discounted price;
(2) commercial mobile radio service (as defined in 47 CFR
51.5);
(3) services outside the jurisdiction of the commission under
section 1.1 of this chapter; and
(4) switched and special access services.
(b) The term includes services included in:
(1) customer specific contracts;
(2) volume, term, and discount pricing options; and
(3) packages, bundles, and promotions, including offers
designed to obtain new customers, retain existing customers, or
bring back former customers. As added by P.L.27-2006, SEC.8.
IC 8-1-2.6-0.4 "Provider"
Sec. 0.4. As used in this chapter, "provider" means a person or an
entity that offers basic or nonbasic telecommunications service. As added by P.L.27-2006, SEC.9.
IC 8-1-2.6-0.5 "Rates and charges"
Sec. 0.5. As used in this chapter, "rates and charges", with respect
to basic telecommunications service, means the monthly charge to a
customer for basic telecommunications service, including:
(1) recurring charges for flat rate and message rate service; and
(2) any nonrecurring charge for installation or a line or service
connection. As added by P.L.27-2006, SEC.10.
IC 8-1-2.6-0.6 "Telecommunications"
Sec. 0.6. As used in this chapter, "telecommunications" has the
meaning set forth in 47 U.S.C. 153(43). As added by P.L.27-2006, SEC.11.
IC 8-1-2.6-0.7 "Telecommunications service"
Sec. 0.7. As used in this chapter, "telecommunications service"
has the meaning set forth in 47 U.S.C. 153(46). As added by P.L.27-2006, SEC.12.
IC 8-1-2.6-1 Legislative declaration
Sec. 1. The Indiana general assembly hereby declares that:
(1) the maintenance of universal telephone service is a
continuing goal of the commission in the exercise of its
jurisdiction;
(2) competition has become commonplace in the provision of
telecommunications services in Indiana and the United States;
(3) advancements in and the convergence of technologies that
provide voice, video, and data transmission, including:
(A) landline, wireless, cable, satellite, and Internet
transmissions; and
(B) transmissions involving voice over Internet Protocol
(VOIP), Internet Protocol enabled services, and voice over
power lines;
are substantially increasing consumer choice, reinventing the
marketplace with unprecedented speed, and making available
highly competitive products and services and new methods of
delivering local exchange service;
(4) traditional regulatory policies, practices, and statutes are not
designed to deal with a competitive environment and
technological advancements;
(5) an environment in which Indiana consumers will have
available the widest array of state-of-the-art communications
services at the most economic and reasonable cost possible will
necessitate full and fair facilities based competition in the
delivery of telecommunications services throughout Indiana;
and
(6) streamlining of, and flexibility in, the regulation of
providers of telecommunications services, regardless of the
technology used, is essential to the well-being of Indiana, its
economy, and its citizens, and that the public interest requires
that the commission be authorized to formulate and adopt rules
and policies as will permit the commission, in the exercise of its
expertise, to regulate and control the provision of
telecommunications services to the public in an increasingly
competitive and technologically changing environment, giving
due regard to the interests of consumers and the public, the
ability of market forces to encourage innovation and
investment, and the continued universal availability of basic
telecommunications service. As added by P.L.92-1985, SEC.1. Amended by P.L.23-1988, SEC.32;
P.L.27-2006, SEC.13.
IC 8-1-2.6-1.1 Services not subject to commission jurisdiction
Sec. 1.1. The commission shall not exercise jurisdiction over:
(1) advanced services (as defined in 47 CFR 51.5);
(2) broadband service, however defined or classified by the
Federal Communications Commission;
(3) information service (as defined in 47 U.S.C. 153(20));
(4) Internet Protocol enabled retail services:
(A) regardless of how the service is classified by the Federal
Communications Commission; and
(B) except as expressly permitted under IC 8-1-2.8;
(5) commercial mobile service (as defined in 47 U.S.C. 332); or
(6) any service not commercially available on March 28, 2006. As added by P.L.27-2006, SEC.14. Amended by P.L.1-2007, SEC.69. IC 8-1-2.6-1.2 Nonbasic telecommunications service; commission's limited
jurisdiction
Sec. 1.2. Except as provided in sections 1.5(b), 12, and 13 of this
chapter, after March 27, 2006, the commission shall not exercise
jurisdiction over any nonbasic telecommunications service. As added by P.L.27-2006, SEC.15. Amended by P.L.1-2007, SEC.70.
IC 8-1-2.6-1.3 Rate transition period; allowed increases in basic
telecommunications service rates; broadband service
requirements; availability of flat monthly rate; emergency
suspension of rate limits; measured local service prohibited
Sec. 1.3. (a) As used in this section, "broadband service" means
a connection to the Internet that provides capacity for transmission
at an average speed of at least one and one-half (1.5) megabits per
second downstream and at least three hundred eighty-four (384)
kilobits per second upstream, regardless of the technology or medium
used to provide the connection. The term includes a connection to the
Internet provided by wireless technology, copper wire, fiber optic
cable, coaxial cable, broadband over power lines, or other facilities
or future technologies. The term does not include any of the
following:
(1) Value added services in which computer processing
applications are used to act on the form, content, code, or
protocol of any information transmitted.
(2) Value added services providing text, graphic, video, or
audio program content for a purpose other than transmission.
(3) The transmission of video programming or other
programming:
(A) provided by; or
(B) generally considered comparable to programming
provided by;
a television broadcast station or a radio broadcast station,
including cable TV, direct broadcast satellite, and digital
television.
(4) A connection to the Internet provided through satellite
technology.
(b) As used in this section, "rate transition period" refers to the
period beginning March 28, 2006, and ending June 30, 2009, during
which a provider may act under this section to increase the provider's
flat monthly rate for basic telecommunications service offered in one
(1) or more local exchange areas in Indiana.
(c) This subsection applies to a provider that offers basic
telecommunications service in one (1) or more local exchange areas
in Indiana on March 27, 2006. Subject to subsection (e), during the
rate transition period, a provider may act without the prior approval
of the commission to increase the provider's flat monthly rate for
basic telecommunications service in any local exchange area in
which the provider offers basic telecommunications service on
March 27, 2006. Subject to subsection (h), a provider may increase
the provider's flat monthly rate for basic telecommunications service
in a local exchange area as follows:
(1) The provider may increase the flat monthly rate not more
frequently than once during each successive twelve (12) month
period during the period beginning March 28, 2006, and ending
June 30, 2009. The amount of any increase in the flat monthly
rate imposed during a twelve (12) month period described in
this subdivision may not exceed one dollar ($1). If a provider:
(A) does not impose an increase during any twelve (12)
month period described in this subdivision; or
(B) imposes an increase less than the maximum one dollar
($1) increase allowed under this subdivision during any
twelve (12) month period described in this subdivision;
the provider may not impose the unused increase in any
subsequent twelve (12) month period described in this
subdivision.
(2) The provider may increase the flat monthly rate not more
frequently than three (3) times during the entire rate transition
period. The amount of the total increase in the flat monthly rate
during the transition period may not exceed three dollars ($3),
as calculated based on the flat monthly rate in effect in the local
exchange area on March 27, 2006.
The provider shall provide the commission and all affected
customers thirty (30) days advance notice of each rate increase under
this subsection.
(d) This subsection applies to a provider that, at any time during
the rate transition period, begins offering basic telecommunications
service in a local exchange area in Indiana in which the provider did
not offer basic telecommunications service on March 27, 2006. In
accordance with the procedures set forth in IC 8-1-2, the commission
shall approve the initial rates and charges for basic
telecommunications service first offered by the provider in a local
exchange area at any time during the rate transition period. Subject
to subsections (e) and (h), beginning twelve (12) months after the
commission approves the initial rates and charges for the local
exchange area, the provider may increase the initial flat monthly rate
for basic telecommunications service in accordance with subsection
(c). However, subsection (c)(2) does not apply to a rate increase
under this subsection. The provider may not increase the flat monthly
rate under this subsection during the rate transition period more
frequently than the number of twelve (12) month periods remaining
in the rate transition period at the time the provider is first eligible to
increase the initial flat monthly rate under this subsection. The
amount of the total increase in the flat monthly rate during the rate
transition period may not exceed the product of:
(1) one dollar ($1); multiplied by
(2) the number of twelve (12) month periods remaining in the
rate transition period at the time the provider is first eligible to
increase the initial flat monthly rate under this subsection.
The provider shall provide the commission and all affected
customers thirty (30) days advance notice of each rate increase under
this subsection.
(e) This subsection applies to a provider that acts under
subsection (c) or (d) to increase the provider's flat monthly rate for
basic telecommunications service in a local exchange area in Indiana.
Not later than eighteen (18) calendar months after the provider's first
rate increase in the local exchange area under subsection (c) or (d),
the provider must offer broadband service to at least fifty percent
(50%) of the households located in the local exchange area, at the
average speeds set forth in subsection (a), as determined by the
commission after notice and an opportunity for hearing. The
commission may extend the eighteen (18) month period allowed
under this subsection by not more than nine (9) additional calendar
months for good cause shown by the provider. The commission shall
hold a hearing and make a finding as to whether the provider offers
broadband service to at least fifty percent (50%) of the households
in the local exchange area not later than the earlier of the following:
(1) Ninety (90) days after a request by the provider for a hearing
and determination by the commission. The provider may
request a hearing and determination under this subdivision at
any time before the expiration of:
(A) the eighteen (18) month period allowed by this
subsection; or
(B) any extension of the eighteen (18) month period allowed
by the commission under this subsection.
(2) Ninety (90) days after the expiration of:
(A) the eighteen (18) month period allowed by this
subsection; or
(B) any extension of the eighteen (18) month period allowed
by the commission under this subsection;
if the provider does not request a hearing and determination
under subdivision (1).
(f) If, after a hearing under subsection (e), the commission
determines that the provider does not offer broadband service to at
least fifty percent (50%) of the households in the local exchange area
not later than eighteen (18) months after the provider's first rate
increase in the local exchange area under subsection (c) or (d), the
commission may require the provider to:
(1) refund to customers; or
(2) pay to the commission as a civil penalty;
an amount equal to the incremental revenue accruing to the provider
as a result of all rate increases imposed by the provider in the local
exchange area under subsection (c) or (d), plus interest. The
commission shall determine the amount of interest added to a refund
or payment made under this subsection by applying the average
interest rate paid during the eighteen (18) months after the provider's
first rate increase to depositors by the fifteen (15) largest banks with
their principal offices in Indiana. A determination by the commission
under this subsection is subject to appeal under IC 8-1-3.
(g) This subsection applies to an incumbent local exchange carrier
that offers basic telecommunications service in one (1) or more local
exchange areas in Indiana on March 27, 2006. Throughout the rate
transition period, the incumbent local exchange carrier shall continue
to make available a flat monthly rate with unlimited local calling for
basic telecommunications service in all local exchange areas in
which the incumbent local exchange carrier offers basic
telecommunications service on March 27, 2006, regardless of
whether the incumbent local exchange carrier increases the flat
monthly rate in any of those local exchange areas under subsection
(c). Throughout the transition period, an extended area of service in
which the incumbent local exchange carrier offers basic
telecommunications service on March 27, 2006, may not be reduced
in area or scope without the approval of the commission after notice
and hearing.
(h) If, at any time during the rate transition period, the
commission determines in accordance with IC 8-1-2-113 that an
emergency exists, the commission may act under IC 8-1-2-113 to
temporarily alter, amend, or suspend the limits on the flat monthly
rate increases set forth in subsections (c) and (d) if necessary to
maintain a provider's financial integrity and ability to provide
adequate basic telecommunications service. The commission shall
reimplement the limits on flat monthly rate increases, as set forth in
subsections (c) and (d), when the commission is satisfied the
emergency no longer exists.
(i) After June 30, 2009, a provider that offers basic
telecommunications service in Indiana:
(1) must offer a flat monthly rate with unlimited local calling
for basic telecommunications service in each local exchange
area in Indiana in which the provider offers basic
telecommunications service; and
(2) may not, in any local exchange area in Indiana in which the
provider offers basic telecommunications service, offer any
service plan for basic telecommunications service that includes
measured local service. As added by P.L.27-2006, SEC.16.
IC 8-1-2.6-1.4 Basic telecommunications service; commission's limited
jurisdiction
Sec. 1.4. Except as provided in sections 1.5(b), 12, and 13 of this
chapter, after June 30, 2009, the commission shall not exercise
jurisdiction over basic telecommunications service. As added by P.L.27-2006, SEC.17. Amended by P.L.1-2007, SEC.71.
IC 8-1-2.6-1.5 Commission's authority over interconnection, resale of
telecommunications service, and unbundled network elements;
interconnection disputes; intrastate switched or special access
service
Sec. 1.5. (a) In acting to impose any requirements or set any prices
concerning:
(1) interconnection with the facilities and equipment of
providers for purposes of 47 U.S.C. 251(c)(2);
(2) the resale of telecommunications service for purposes of 47
U.S.C. 251(c)(4); or
(3) the unbundled access of one (1) provider to the network
elements of another provider for purposes of 47 U.S.C.
251(c)(3);
the commission shall not exceed the authority delegated to the
commission under federal laws and regulations with respect to those
actions. This subsection does not affect the commission's authority
under IC 8-1-2-5.
(b) Subject to any regulations adopted by the Federal
Communications Commission, this section does not affect:
(1) the commission's authority to mediate a dispute between
providers under 47 U.S.C. 252(a);
(2) the commission's authority to arbitrate a dispute between
providers under 47 U.S.C. 252(b);
(3) the commission's authority to approve an interconnection
agreement under 47 U.S.C. 252(e), including the authority to
establish service quality metrics and liquidated damages;
(4) the commission's authority to review and approve a
provider's statement of terms and conditions under 47 U.S.C.
252(f);
(5) a provider's ability to file a complaint with the commission
to have a dispute decided by the commission:
(A) after notice and hearing; and
(B) in accordance with this article; or
(6) the commission's authority to resolve an interconnection
dispute between providers under the expedited procedures set
forth in 170 IAC 7-7.
(c) If a provider's rates and charges for intrastate switched or
special access service are:
(1) at issue in a dispute that the commission is authorized to
mediate, arbitrate, or otherwise determine under state or federal
law; or
(2) included in an interconnection agreement or a statement of
terms and conditions that the commission is authorized to
review or approve under state or federal law;
the commission shall consider the provider's rates and charges for
intrastate switched or special access service to be just and reasonable
if the intrastate rates and charges mirror the provider's interstate rates
and charges for switched or special access service. As added by P.L.27-2006, SEC.18.
IC 8-1-2.6-2 Rules and orders of the commission; notice and hearing;
underlying policies; determination of public interest
Sec. 2. (a) This section applies to rules and orders that:
(1) concern telecommunications service or providers of
telecommunications service; and
(2) may be adopted or issued by the commission under the
authority of state or federal law.
(b) Rules and orders described in this section:
(1) may be adopted or issued only after notice and hearing,
unless:
(A) the commission determines in accordance with
IC 8-1-2-113 that an emergency exists that requires the
commission or a provider to take immediate action to:
(i) prevent injury to the business or interests of the citizens
of Indiana; or
(ii) maintain a provider's financial integrity and ability to
provide adequate basic telecommunications service;
(B) the commission is authorized under IC 8-1-2 to adopt a
particular rule or issue a particular order without the
necessity of a hearing; or
(C) after receiving notice of the commission's proposed
action, all parties to a proceeding consent to the commission
taking action without a hearing; and
(2) must be:
(A) consistent with this chapter; and
(B) in the public interest, as determined by the commission
under subsection (d).
(c) Rules and orders described in this section must promote one
(1) or more of the following:
(1) Cost minimization for providers to the extent that a
provider's quality of service and facilities are not diminished.
(2) A more accurate evaluation by the commission of a
provider's physical or financial conditions or needs as well as a
less costly regulatory procedure for either the provider, the
provider's customers, or the commission.
(3) Consumer access to affordable basic telecommunications
service.
(4) Development of depreciation guidelines and procedures that
recognize technological obsolescence.
(5) Increased provider management efficiency beneficial to
customers.
(6) Regulation consistent with a competitive environment.
(d) In determining whether the public interest will be served, as
required under subsection (b), the commission shall consider:
(1) whether technological change, competitive forces, or
regulation by other state and federal regulatory bodies render
the exercise of jurisdiction by the commission unnecessary or
wasteful;
(2) whether the exercise of commission jurisdiction produces
tangible benefits to the customers of providers; and
(3) whether the exercise of commission jurisdiction inhibits a
regulated entity from competing with unregulated providers of
functionally similar telecommunications services or equipment.
(e) This section does not affect the commission's authority under
IC 8-1-2-5. As added by P.L.92-1985, SEC.1. Amended by P.L.27-2006, SEC.19.
IC 8-1-2.6-3
Repealed
(Repealed by P.L.27-2006, SEC.61.)
IC 8-1-2.6-4 Regulatory flexibility committee; legislative standing committees;
subject matter jurisdiction; reports
Sec. 4. (a) A regulatory flexibility committee is established to
monitor competition in the telecommunications industry.
(b) The committee is composed of the members of a house
standing committee selected by the speaker of the house of
representatives and a senate standing committee selected by the
president pro tempore of the senate. In selecting standing committees
under this subsection, the speaker and president pro tempore shall
determine which standing committee of the house of representatives
and the senate, respectively, has subject matter jurisdiction that most
closely relates to the electricity, gas, energy policy, and
telecommunications jurisdiction of the regulatory flexibility
committee. The chairpersons of the standing committees selected
under this subsection shall co-chair the regulatory flexibility
committee.
(c) The commission shall, by July 1 of each year, prepare for
presentation to the regulatory flexibility committee a report that
includes the following:
(1) An analysis of the effects of competition and technological
change on universal service and on pricing of all
telecommunications services offered in Indiana.
(2) An analysis of the status of competition and technological
change in the provision of video service (as defined in
IC 8-1-34-14) to Indiana customers, as determined by the
commission in carrying out its duties under IC 8-1-34. The
commission's analysis under this subdivision must include a
description of:
(A) the number of multichannel video programming
distributors offering video service to Indiana customers;
(B) the technologies used to provide video service to Indiana
customers; and
(C) the effects of competition on the pricing and availability
of video service in Indiana.
(3) Beginning with the report due July 1, 2007, and in each
report due in an odd-numbered year after July 1, 2007:
(A) an identification of all telecommunications rules and
policies that are eliminated by the commission under section
4.1 of this chapter during the two (2) most recent state fiscal
years; and
(B) an explanation why the telecommunications rules and
policies identified under clause (A) are no longer in the
public interest or necessary to protect consumers.
(4) Beginning with the report due July 1, 2010, best practices
concerning vertical location of underground facilities for
purposes of IC 8-1-26. A report under this subdivision must
address the viability and economic feasibility of technologies
used to vertically locate underground facilities.
(d) In addition to reviewing the commission report prepared under
subsection (c), the regulatory flexibility committee shall also issue
a report and recommendations to the legislative council by November
1 of each year that is based on a review of the following issues:
(1) The effects of competition and technological change in the
telecommunications industry and impact of competition on
available subsidies used to maintain universal service.
(2) The status of modernization of the publicly available
telecommunications infrastructure in Indiana and the incentives
required to further enhance this infrastructure.
(3) The effects on economic development and educational
opportunities of the modernization described in subdivision (2).
(4) The current methods of regulating providers, at both the
federal and state levels, and the effectiveness of the methods.
(5) The economic and social effectiveness of current
telecommunications service pricing.
(6) All other telecommunications issues the committee deems
appropriate.
The report and recommendations issued under this subsection to the
legislative council must be in an electronic format under IC 5-14-6.
(e) The regulatory flexibility committee shall meet on the call of
the co-chairpersons to study telecommunications issues described in
subsection (d). The committee shall, with the approval of the
commission, retain the independent consultants the committee
considers appropriate to assist the committee in the review and study.
The expenses for the consultants shall be paid by the commission. As added by P.L.92-1985, SEC.1. Amended by P.L.23-1988, SEC.33;
P.L.55-1992, SEC.1; P.L.224-2003, SEC.277; P.L.28-2004, SEC.71;
P.L.27-2006, SEC.20; P.L.62-2009, SEC.1.
IC 8-1-2.6-4.1 Commission's biennial elimination of obsolete telecommunications
rules; notification to customer switching from basic to nonbasic
telecommunications service
Sec. 4.1. (a) Not later than:
(1) July 1, 2007; and
(2) July 1 of each odd-numbered year after July 1, 2007;
the commission shall, through a rulemaking proceeding under
IC 4-22-2 or another commission proceeding, identify and eliminate
rules and policies concerning telecommunications service and
telecommunications service providers if the rules or policies are no
longer necessary in the public interest or for the protection of
consumers as the result of meaningful economic competition
between providers of telecommunications services.
(b) Not later than July 1, 2007, the commission shall adopt rules
under IC 4-22-2 to require a telecommunications service provider, at
any time the provider communicates with a residential customer
about changing the customer's basic telecommunications service to
nonbasic telecommunications service, to notify the residential
customer of:
(1) the option of basic telecommunications service; and
(2) any regulatory protections, including pricing or quality of
service protections, that the residential customer would forego
by switching to nonbasic telecommunications service.
(c) In carrying out this section, the commission shall promote the
policies and purposes set forth in this chapter. Beginning in 2007,
and in each odd-numbered year after 2007, the commission's annual
report to the regulatory flexibility committee under section 4 of this
chapter must:
(1) identify any regulation or policy eliminated by the
commission under this section during the two (2) most recent
state fiscal years; and
(2) explain why the regulation or policy is no longer in the
public interest or necessary to protect consumers. As added by P.L.27-2006, SEC.21.
IC 8-1-2.6-5
Repealed
(Repealed by P.L.27-2006, SEC.61.)
IC 8-1-2.6-6
Repealed
(Repealed by P.L.27-2006, SEC.62.)
IC 8-1-2.6-7
Repealed
(Repealed by P.L.27-2006, SEC.61.)
IC 8-1-2.6-8 Rate reduction programs
Sec. 8. (a) As used in this section, "rate reduction" means a
decrease in either recurring or nonrecurring rates or charges.
(b) Notwithstanding any other provision of this chapter or any
other statute, a provider may participate in any rate reduction
program for residential customers funded from revenues provided by
any governmental entity or other revenues administered by an agency
of that entity. As added by P.L.81-1988, SEC.2. Amended by P.L.27-2006, SEC.22.
IC 8-1-2.6-12 Settlement agreements approved before July 29, 2004
Sec. 12. This chapter does not terminate or otherwise change the
terms and conditions of a settlement agreement approved by the
commission under this chapter before July 29, 2004. However, a
provider may renegotiate the terms and conditions of the settlement
agreement at any time before the expiration of the settlement
agreement. As added by P.L.27-2006, SEC.23.
IC 8-1-2.6-13 Commission's jurisdiction before and after June 30, 2009;
reporting requirements
Sec. 13. (a) As used in this section, "communications service" has
the meaning set forth in IC 8-1-32.5-3.
(b) As used in this section, "communications service provider"
means a person or an entity that offers communications service to
customers in Indiana, without regard to the technology or medium
used by the person or entity to provide the communications service.
The term includes a provider of commercial mobile service (as
defined in 47 U.S.C. 332).
(c) As used in this section, "dark fiber" refers to unused capacity
in a communications service provider's communications network,
including fiber optic cable or other facilities:
(1) in place within a public right-of-way; but
(2) not placed in service by a communications service provider.
(d) Notwithstanding sections 1.2, 1.4, and 1.5 of this chapter, the
commission may do the following both during and after the rate
transition period described in section 1.3 of this chapter, except as
otherwise provided in this subsection:
(1) Subject to section 12 of this chapter, enforce the terms of a
settlement agreement approved by the commission before July
29, 2004. The commission's authority under this subdivision
continues for the duration of the settlement agreement.
(2) Fulfill the commission's duties under IC 8-1-2.8 concerning
the provision of dual party relay services to hearing impaired
and speech impaired persons in Indiana.
(3) Fulfill the commission's duties under IC 8-1-19.5 concerning
the administration of the 211 dialing code for communications
service used to provide access to human services information
and referrals.
(4) Fulfill the commission's responsibilities under IC 8-1-29 to
adopt and enforce rules to ensure that a customer of a
telecommunications provider is not:
(A) switched to another telecommunications provider unless
the customer authorizes the switch; or
(B) billed for services by a telecommunications provider that
without the customer's authorization added the services to
the customer's service order.
(5) Fulfill the commission's obligations under:
(A) the federal Telecommunications Act of 1996 (47 U.S.C.
151 et seq.); and
(B) IC 20-20-16;
concerning universal service and access to telecommunications
service and equipment, including the designation of eligible
telecommunications carriers under 47 U.S.C. 214.
(6) Perform any of the functions described in section 1.5(b) of
this chapter.
(7) After June 30, 2009, perform the commission's
responsibilities under IC 8-1-32.5 to:
(A) issue; and
(B) maintain records of;
certificates of territorial authority for communications service
providers offering communications service to customers in
Indiana.
(8) Perform the commission's responsibilities under IC 8-1-34
concerning the issuance of certificates of franchise authority to
multichannel video programming distributors offering video
service to Indiana customers.
(9) After June 30, 2009, require a communications service
provider, other than a provider of commercial mobile service
(as defined in 47 U.S.C. 332), to report to the commission on an
annual basis, or more frequently at the option of the provider,
any of the following information:
(A) Service quality goals and performance data. The
commission shall make any information or data submitted
under this subsection available:
(i) for public inspection and copying at the offices of the
commission under IC 5-14-3; and
(ii) electronically through the computer gateway
administered by the office of technology established by
IC 4-13.1-2-1;
to the extent the information or data are not exempt from
public disclosure under IC 5-14-3-4(a).
(B) Information concerning the:
(i) capacity;
(ii) location; and
(iii) planned or potential use;
of the communications service provider's dark fiber in
Indiana.
(C) Information concerning the communications service
offered by the communications service provider in Indiana,
including:
(i) the types of service offered; and
(ii) the areas in Indiana in which the services are offered.
(D) Any information needed by the commission to prepare
the commission's report to the regulatory flexibility
committee under section 4 of this chapter.
(E) Any other information that the commission is authorized
to collect from a communications service provider under
state or federal law.
The commission may revoke a certificate issued to a
communications service provider under IC 8-1-32.5 if the
communications service provider fails or refuses to report any
information required by the commission under this subdivision.
However, this subdivision does not empower the commission to
require a communications service provider to disclose
confidential and proprietary business plans and other
confidential information without adequate protection of the
information. The commission shall exercise all necessary
caution to avoid disclosure of confidential information supplied
under this subdivision.
(10) Perform the commission's duties under IC 8-1-32.4 with
respect to telecommunications providers of last resort, to the
extent of the authority delegated to the commission under
federal law to perform those duties.
(11) Perform the commission's duties under IC 8-1-2-5 with
respect to interconnection.
(12) Establish and administer the Indiana Lifeline assistance
program under IC 8-1-36.
(13) After June 30, 2009, collect and maintain from a provider
of commercial mobile service (as defined in 47 U.S.C. 332) the
following information:
(A) The address of the provider's web site.
(B) All toll free telephone numbers and other customer
service telephone numbers maintained by the provider for
receiving customer inquiries and complaints.
(C) An address and other contact information for the
provider, including any telephone number not described in
clause (B).
The commission shall make any information submitted by a
provider under this subdivision available on the commission's
web site. The commission may also make available on the
commission's web site contact information for the Federal
Communications Commission and the Cellular Telephone
Industry Association.
(14) Fulfill the commission's duties under any state or federal
law concerning the administration of any universally applicable
dialing code for any communications service.
(e) After June 30, 2009, the commission does not have
jurisdiction over any of the following with respect to a
communications service provider:
(1) Rates and charges for communications service provided by
the communications service provider, including the filing of
schedules or tariffs setting forth the provider's rates and
charges.
(2) Depreciation schedules for any of the classes of property
owned by the communications service provider.
(3) Quality of service provided by the communications service
provider, other than the imposition of a reporting requirement
under subsection (d)(9)(A).
(4) Long term financing arrangements or other obligations of
the communications service provider.
(5) Except as provided in subsection (d), any other aspect
regulated by the commission under this title before July 1, 2009.
(f) After June 30, 2009, the commission has jurisdiction over a
communications service provider only to the extent that jurisdiction
is:
(1) expressly granted by state or federal law, including:
(A) a state or federal statute;
(B) a lawful order or regulation of the Federal
Communications Commission; or
(C) an order or a ruling of a state or federal court having
jurisdiction; or
(2) necessary to administer a federal law for which regulatory
responsibility has been delegated to the commission by federal
law. As added by P.L.27-2006, SEC.24. Amended by P.L.1-2007, SEC.72.
IC 8-1-2.6-14 Payment of switched network access rates and other carrier
compensation not affected
Sec. 14. This chapter does not affect the rights and obligations of
any person or entity concerning the payment of switched network
access rates or other carrier compensation concerning:
(1) Internet Protocol enabled services;
(2) advanced services (as defined in 47 CFR 51.5);
(3) broadband service; or
(4) other Internet access services. As added by P.L.27-2006, SEC.25.
IC 8-1-2.6-15 Statutory conflicts; right of small telephone companies and rural
cooperatives to withdraw from commission jurisdiction not
affected
Sec. 15. (a) Except as provided in subsection (b), if there is a
conflict between this chapter and another provision of this article,
this chapter controls.
(b) This chapter does not affect the rights of:
(1) a provider that has withdrawn from the commission's
jurisdiction under IC 8-1-2-88.5 or IC 8-1-17-22.5 before March
28, 2006, to remain outside the jurisdiction of the commission
during the transition period described in section 1.3 of this
chapter; or
(2) a provider that:
(A) has not withdrawn from the commission's jurisdiction
under IC 8-1-2-88.5 or IC 8-1-17-22.5 before March 28,
2006; and
(B) is otherwise eligible to withdraw from the commission's
jurisdiction under IC 8-1-2-88.5 or IC 8-1-17-22.5;
to withdraw from the commission's jurisdiction under
IC 8-1-2-88.5 or IC 8-1-17-22.5 at any time during the transition
period described in section 1.3 of this chapter.
Except as provided in section 13(d)(5) of this chapter, after June 30,
2009, section 1.4 of this chapter applies to a provider described in
this subsection. As added by P.L.27-2006, SEC.26.
IC 8-1-2.6-16 Rates charged by incumbent local exchange carriers to payphone
service providers
Sec. 16. (a) As used in this section, "payphone service provider"
means an entity, other than an incumbent local exchange carrier, that
owns and operates:
(1) public or semipublic pay telephones; or
(2) pay telephones used to provide telephone service in
correctional institutions.
(b) Notwithstanding any other statute, the commission shall retain
jurisdiction to establish just and reasonable rates that may be charged
by an incumbent local exchange carrier to a payphone service
provider. Rates established under this section must be:
(1) based on the costs incurred by the incumbent local exchange
carrier to provide the service;
(2) consistent with the requirements of 47 U.S.C. 276;
(3) nondiscriminatory; and
(4) consistent with the pricing guidelines for payphone service
providers established by the Federal Communications
Commission. As added by P.L.27-2006, SEC.27.
IC 8-1-2.6
Chapter 2.6. Competition in the Provision of Telephone Services
IC 8-1-2.6-0.1 "Basic telecommunications service"
Sec. 0.1. (a) As used in this chapter, "basic telecommunications
service" means stand alone telephone exchange service (as defined
in 47 U.S.C. 153(47)) that:
(1) is provided to a residential customer through the customer's
primary line; and
(2) is:
(A) the sole service purchased by the customer;
(B) not part of a package of services, a promotion, or a
contract; or
(C) not otherwise offered at a discounted price.
(b) The term includes, at a minimum, the following:
(1) Voice grade access to the public switched telephone
network with minimum bandwidth of three hundred (300) to
three thousand (3,000) hertz.
(2) Dual tone multifrequency signaling and single party service.
(3) Access to:
(A) emergency services, including access to 911 and
enhanced 911 if provided by the local government having
jurisdiction in the service area;
(B) operator services;
(C) local directory assistance;
(D) telephone relay services; and
(E) interexchange service.
(4) Toll limitation services for qualifying low income
customers.
(c) The term does not include a functionally equivalent service
provided by a person or an entity described in IC 8-1-2-1.1. As added by P.L.27-2006, SEC.6.
IC 8-1-2.6-0.2 "Incumbent local exchange carrier"
Sec. 0.2. As used in this chapter, "incumbent local exchange
carrier" has the meaning set forth in 47 U.S.C. 251(h). As added by P.L.27-2006, SEC.7.
IC 8-1-2.6-0.3 "Nonbasic telecommunications service"
Sec. 0.3. (a) As used in this chapter, "nonbasic
telecommunications service" means retail telecommunications
service other than:
(1) basic telecommunications service, except when the service
is purchased by the customer:
(A) in conjunction with another service;
(B) as part of a package of services, a promotion, or a
contract; or
(C) at an otherwise discounted price;
(2) commercial mobile radio service (as defined in 47 CFR
51.5);
(3) services outside the jurisdiction of the commission under
section 1.1 of this chapter; and
(4) switched and special access services.
(b) The term includes services included in:
(1) customer specific contracts;
(2) volume, term, and discount pricing options; and
(3) packages, bundles, and promotions, including offers
designed to obtain new customers, retain existing customers, or
bring back former customers. As added by P.L.27-2006, SEC.8.
IC 8-1-2.6-0.4 "Provider"
Sec. 0.4. As used in this chapter, "provider" means a person or an
entity that offers basic or nonbasic telecommunications service. As added by P.L.27-2006, SEC.9.
IC 8-1-2.6-0.5 "Rates and charges"
Sec. 0.5. As used in this chapter, "rates and charges", with respect
to basic telecommunications service, means the monthly charge to a
customer for basic telecommunications service, including:
(1) recurring charges for flat rate and message rate service; and
(2) any nonrecurring charge for installation or a line or service
connection. As added by P.L.27-2006, SEC.10.
IC 8-1-2.6-0.6 "Telecommunications"
Sec. 0.6. As used in this chapter, "telecommunications" has the
meaning set forth in 47 U.S.C. 153(43). As added by P.L.27-2006, SEC.11.
IC 8-1-2.6-0.7 "Telecommunications service"
Sec. 0.7. As used in this chapter, "telecommunications service"
has the meaning set forth in 47 U.S.C. 153(46). As added by P.L.27-2006, SEC.12.
IC 8-1-2.6-1 Legislative declaration
Sec. 1. The Indiana general assembly hereby declares that:
(1) the maintenance of universal telephone service is a
continuing goal of the commission in the exercise of its
jurisdiction;
(2) competition has become commonplace in the provision of
telecommunications services in Indiana and the United States;
(3) advancements in and the convergence of technologies that
provide voice, video, and data transmission, including:
(A) landline, wireless, cable, satellite, and Internet
transmissions; and
(B) transmissions involving voice over Internet Protocol
(VOIP), Internet Protocol enabled services, and voice over
power lines;
are substantially increasing consumer choice, reinventing the
marketplace with unprecedented speed, and making available
highly competitive products and services and new methods of
delivering local exchange service;
(4) traditional regulatory policies, practices, and statutes are not
designed to deal with a competitive environment and
technological advancements;
(5) an environment in which Indiana consumers will have
available the widest array of state-of-the-art communications
services at the most economic and reasonable cost possible will
necessitate full and fair facilities based competition in the
delivery of telecommunications services throughout Indiana;
and
(6) streamlining of, and flexibility in, the regulation of
providers of telecommunications services, regardless of the
technology used, is essential to the well-being of Indiana, its
economy, and its citizens, and that the public interest requires
that the commission be authorized to formulate and adopt rules
and policies as will permit the commission, in the exercise of its
expertise, to regulate and control the provision of
telecommunications services to the public in an increasingly
competitive and technologically changing environment, giving
due regard to the interests of consumers and the public, the
ability of market forces to encourage innovation and
investment, and the continued universal availability of basic
telecommunications service. As added by P.L.92-1985, SEC.1. Amended by P.L.23-1988, SEC.32;
P.L.27-2006, SEC.13.
IC 8-1-2.6-1.1 Services not subject to commission jurisdiction
Sec. 1.1. The commission shall not exercise jurisdiction over:
(1) advanced services (as defined in 47 CFR 51.5);
(2) broadband service, however defined or classified by the
Federal Communications Commission;
(3) information service (as defined in 47 U.S.C. 153(20));
(4) Internet Protocol enabled retail services:
(A) regardless of how the service is classified by the Federal
Communications Commission; and
(B) except as expressly permitted under IC 8-1-2.8;
(5) commercial mobile service (as defined in 47 U.S.C. 332); or
(6) any service not commercially available on March 28, 2006. As added by P.L.27-2006, SEC.14. Amended by P.L.1-2007, SEC.69. IC 8-1-2.6-1.2 Nonbasic telecommunications service; commission's limited
jurisdiction
Sec. 1.2. Except as provided in sections 1.5(b), 12, and 13 of this
chapter, after March 27, 2006, the commission shall not exercise
jurisdiction over any nonbasic telecommunications service. As added by P.L.27-2006, SEC.15. Amended by P.L.1-2007, SEC.70.
IC 8-1-2.6-1.3 Rate transition period; allowed increases in basic
telecommunications service rates; broadband service
requirements; availability of flat monthly rate; emergency
suspension of rate limits; measured local service prohibited
Sec. 1.3. (a) As used in this section, "broadband service" means
a connection to the Internet that provides capacity for transmission
at an average speed of at least one and one-half (1.5) megabits per
second downstream and at least three hundred eighty-four (384)
kilobits per second upstream, regardless of the technology or medium
used to provide the connection. The term includes a connection to the
Internet provided by wireless technology, copper wire, fiber optic
cable, coaxial cable, broadband over power lines, or other facilities
or future technologies. The term does not include any of the
following:
(1) Value added services in which computer processing
applications are used to act on the form, content, code, or
protocol of any information transmitted.
(2) Value added services providing text, graphic, video, or
audio program content for a purpose other than transmission.
(3) The transmission of video programming or other
programming:
(A) provided by; or
(B) generally considered comparable to programming
provided by;
a television broadcast station or a radio broadcast station,
including cable TV, direct broadcast satellite, and digital
television.
(4) A connection to the Internet provided through satellite
technology.
(b) As used in this section, "rate transition period" refers to the
period beginning March 28, 2006, and ending June 30, 2009, during
which a provider may act under this section to increase the provider's
flat monthly rate for basic telecommunications service offered in one
(1) or more local exchange areas in Indiana.
(c) This subsection applies to a provider that offers basic
telecommunications service in one (1) or more local exchange areas
in Indiana on March 27, 2006. Subject to subsection (e), during the
rate transition period, a provider may act without the prior approval
of the commission to increase the provider's flat monthly rate for
basic telecommunications service in any local exchange area in
which the provider offers basic telecommunications service on
March 27, 2006. Subject to subsection (h), a provider may increase
the provider's flat monthly rate for basic telecommunications service
in a local exchange area as follows:
(1) The provider may increase the flat monthly rate not more
frequently than once during each successive twelve (12) month
period during the period beginning March 28, 2006, and ending
June 30, 2009. The amount of any increase in the flat monthly
rate imposed during a twelve (12) month period described in
this subdivision may not exceed one dollar ($1). If a provider:
(A) does not impose an increase during any twelve (12)
month period described in this subdivision; or
(B) imposes an increase less than the maximum one dollar
($1) increase allowed under this subdivision during any
twelve (12) month period described in this subdivision;
the provider may not impose the unused increase in any
subsequent twelve (12) month period described in this
subdivision.
(2) The provider may increase the flat monthly rate not more
frequently than three (3) times during the entire rate transition
period. The amount of the total increase in the flat monthly rate
during the transition period may not exceed three dollars ($3),
as calculated based on the flat monthly rate in effect in the local
exchange area on March 27, 2006.
The provider shall provide the commission and all affected
customers thirty (30) days advance notice of each rate increase under
this subsection.
(d) This subsection applies to a provider that, at any time during
the rate transition period, begins offering basic telecommunications
service in a local exchange area in Indiana in which the provider did
not offer basic telecommunications service on March 27, 2006. In
accordance with the procedures set forth in IC 8-1-2, the commission
shall approve the initial rates and charges for basic
telecommunications service first offered by the provider in a local
exchange area at any time during the rate transition period. Subject
to subsections (e) and (h), beginning twelve (12) months after the
commission approves the initial rates and charges for the local
exchange area, the provider may increase the initial flat monthly rate
for basic telecommunications service in accordance with subsection
(c). However, subsection (c)(2) does not apply to a rate increase
under this subsection. The provider may not increase the flat monthly
rate under this subsection during the rate transition period more
frequently than the number of twelve (12) month periods remaining
in the rate transition period at the time the provider is first eligible to
increase the initial flat monthly rate under this subsection. The
amount of the total increase in the flat monthly rate during the rate
transition period may not exceed the product of:
(1) one dollar ($1); multiplied by
(2) the number of twelve (12) month periods remaining in the
rate transition period at the time the provider is first eligible to
increase the initial flat monthly rate under this subsection.
The provider shall provide the commission and all affected
customers thirty (30) days advance notice of each rate increase under
this subsection.
(e) This subsection applies to a provider that acts under
subsection (c) or (d) to increase the provider's flat monthly rate for
basic telecommunications service in a local exchange area in Indiana.
Not later than eighteen (18) calendar months after the provider's first
rate increase in the local exchange area under subsection (c) or (d),
the provider must offer broadband service to at least fifty percent
(50%) of the households located in the local exchange area, at the
average speeds set forth in subsection (a), as determined by the
commission after notice and an opportunity for hearing. The
commission may extend the eighteen (18) month period allowed
under this subsection by not more than nine (9) additional calendar
months for good cause shown by the provider. The commission shall
hold a hearing and make a finding as to whether the provider offers
broadband service to at least fifty percent (50%) of the households
in the local exchange area not later than the earlier of the following:
(1) Ninety (90) days after a request by the provider for a hearing
and determination by the commission. The provider may
request a hearing and determination under this subdivision at
any time before the expiration of:
(A) the eighteen (18) month period allowed by this
subsection; or
(B) any extension of the eighteen (18) month period allowed
by the commission under this subsection.
(2) Ninety (90) days after the expiration of:
(A) the eighteen (18) month period allowed by this
subsection; or
(B) any extension of the eighteen (18) month period allowed
by the commission under this subsection;
if the provider does not request a hearing and determination
under subdivision (1).
(f) If, after a hearing under subsection (e), the commission
determines that the provider does not offer broadband service to at
least fifty percent (50%) of the households in the local exchange area
not later than eighteen (18) months after the provider's first rate
increase in the local exchange area under subsection (c) or (d), the
commission may require the provider to:
(1) refund to customers; or
(2) pay to the commission as a civil penalty;
an amount equal to the incremental revenue accruing to the provider
as a result of all rate increases imposed by the provider in the local
exchange area under subsection (c) or (d), plus interest. The
commission shall determine the amount of interest added to a refund
or payment made under this subsection by applying the average
interest rate paid during the eighteen (18) months after the provider's
first rate increase to depositors by the fifteen (15) largest banks with
their principal offices in Indiana. A determination by the commission
under this subsection is subject to appeal under IC 8-1-3.
(g) This subsection applies to an incumbent local exchange carrier
that offers basic telecommunications service in one (1) or more local
exchange areas in Indiana on March 27, 2006. Throughout the rate
transition period, the incumbent local exchange carrier shall continue
to make available a flat monthly rate with unlimited local calling for
basic telecommunications service in all local exchange areas in
which the incumbent local exchange carrier offers basic
telecommunications service on March 27, 2006, regardless of
whether the incumbent local exchange carrier increases the flat
monthly rate in any of those local exchange areas under subsection
(c). Throughout the transition period, an extended area of service in
which the incumbent local exchange carrier offers basic
telecommunications service on March 27, 2006, may not be reduced
in area or scope without the approval of the commission after notice
and hearing.
(h) If, at any time during the rate transition period, the
commission determines in accordance with IC 8-1-2-113 that an
emergency exists, the commission may act under IC 8-1-2-113 to
temporarily alter, amend, or suspend the limits on the flat monthly
rate increases set forth in subsections (c) and (d) if necessary to
maintain a provider's financial integrity and ability to provide
adequate basic telecommunications service. The commission shall
reimplement the limits on flat monthly rate increases, as set forth in
subsections (c) and (d), when the commission is satisfied the
emergency no longer exists.
(i) After June 30, 2009, a provider that offers basic
telecommunications service in Indiana:
(1) must offer a flat monthly rate with unlimited local calling
for basic telecommunications service in each local exchange
area in Indiana in which the provider offers basic
telecommunications service; and
(2) may not, in any local exchange area in Indiana in which the
provider offers basic telecommunications service, offer any
service plan for basic telecommunications service that includes
measured local service. As added by P.L.27-2006, SEC.16.
IC 8-1-2.6-1.4 Basic telecommunications service; commission's limited
jurisdiction
Sec. 1.4. Except as provided in sections 1.5(b), 12, and 13 of this
chapter, after June 30, 2009, the commission shall not exercise
jurisdiction over basic telecommunications service. As added by P.L.27-2006, SEC.17. Amended by P.L.1-2007, SEC.71.
IC 8-1-2.6-1.5 Commission's authority over interconnection, resale of
telecommunications service, and unbundled network elements;
interconnection disputes; intrastate switched or special access
service
Sec. 1.5. (a) In acting to impose any requirements or set any prices
concerning:
(1) interconnection with the facilities and equipment of
providers for purposes of 47 U.S.C. 251(c)(2);
(2) the resale of telecommunications service for purposes of 47
U.S.C. 251(c)(4); or
(3) the unbundled access of one (1) provider to the network
elements of another provider for purposes of 47 U.S.C.
251(c)(3);
the commission shall not exceed the authority delegated to the
commission under federal laws and regulations with respect to those
actions. This subsection does not affect the commission's authority
under IC 8-1-2-5.
(b) Subject to any regulations adopted by the Federal
Communications Commission, this section does not affect:
(1) the commission's authority to mediate a dispute between
providers under 47 U.S.C. 252(a);
(2) the commission's authority to arbitrate a dispute between
providers under 47 U.S.C. 252(b);
(3) the commission's authority to approve an interconnection
agreement under 47 U.S.C. 252(e), including the authority to
establish service quality metrics and liquidated damages;
(4) the commission's authority to review and approve a
provider's statement of terms and conditions under 47 U.S.C.
252(f);
(5) a provider's ability to file a complaint with the commission
to have a dispute decided by the commission:
(A) after notice and hearing; and
(B) in accordance with this article; or
(6) the commission's authority to resolve an interconnection
dispute between providers under the expedited procedures set
forth in 170 IAC 7-7.
(c) If a provider's rates and charges for intrastate switched or
special access service are:
(1) at issue in a dispute that the commission is authorized to
mediate, arbitrate, or otherwise determine under state or federal
law; or
(2) included in an interconnection agreement or a statement of
terms and conditions that the commission is authorized to
review or approve under state or federal law;
the commission shall consider the provider's rates and charges for
intrastate switched or special access service to be just and reasonable
if the intrastate rates and charges mirror the provider's interstate rates
and charges for switched or special access service. As added by P.L.27-2006, SEC.18.
IC 8-1-2.6-2 Rules and orders of the commission; notice and hearing;
underlying policies; determination of public interest
Sec. 2. (a) This section applies to rules and orders that:
(1) concern telecommunications service or providers of
telecommunications service; and
(2) may be adopted or issued by the commission under the
authority of state or federal law.
(b) Rules and orders described in this section:
(1) may be adopted or issued only after notice and hearing,
unless:
(A) the commission determines in accordance with
IC 8-1-2-113 that an emergency exists that requires the
commission or a provider to take immediate action to:
(i) prevent injury to the business or interests of the citizens
of Indiana; or
(ii) maintain a provider's financial integrity and ability to
provide adequate basic telecommunications service;
(B) the commission is authorized under IC 8-1-2 to adopt a
particular rule or issue a particular order without the
necessity of a hearing; or
(C) after receiving notice of the commission's proposed
action, all parties to a proceeding consent to the commission
taking action without a hearing; and
(2) must be:
(A) consistent with this chapter; and
(B) in the public interest, as determined by the commission
under subsection (d).
(c) Rules and orders described in this section must promote one
(1) or more of the following:
(1) Cost minimization for providers to the extent that a
provider's quality of service and facilities are not diminished.
(2) A more accurate evaluation by the commission of a
provider's physical or financial conditions or needs as well as a
less costly regulatory procedure for either the provider, the
provider's customers, or the commission.
(3) Consumer access to affordable basic telecommunications
service.
(4) Development of depreciation guidelines and procedures that
recognize technological obsolescence.
(5) Increased provider management efficiency beneficial to
customers.
(6) Regulation consistent with a competitive environment.
(d) In determining whether the public interest will be served, as
required under subsection (b), the commission shall consider:
(1) whether technological change, competitive forces, or
regulation by other state and federal regulatory bodies render
the exercise of jurisdiction by the commission unnecessary or
wasteful;
(2) whether the exercise of commission jurisdiction produces
tangible benefits to the customers of providers; and
(3) whether the exercise of commission jurisdiction inhibits a
regulated entity from competing with unregulated providers of
functionally similar telecommunications services or equipment.
(e) This section does not affect the commission's authority under
IC 8-1-2-5. As added by P.L.92-1985, SEC.1. Amended by P.L.27-2006, SEC.19.
IC 8-1-2.6-3
Repealed
(Repealed by P.L.27-2006, SEC.61.)
IC 8-1-2.6-4 Regulatory flexibility committee; legislative standing committees;
subject matter jurisdiction; reports
Sec. 4. (a) A regulatory flexibility committee is established to
monitor competition in the telecommunications industry.
(b) The committee is composed of the members of a house
standing committee selected by the speaker of the house of
representatives and a senate standing committee selected by the
president pro tempore of the senate. In selecting standing committees
under this subsection, the speaker and president pro tempore shall
determine which standing committee of the house of representatives
and the senate, respectively, has subject matter jurisdiction that most
closely relates to the electricity, gas, energy policy, and
telecommunications jurisdiction of the regulatory flexibility
committee. The chairpersons of the standing committees selected
under this subsection shall co-chair the regulatory flexibility
committee.
(c) The commission shall, by July 1 of each year, prepare for
presentation to the regulatory flexibility committee a report that
includes the following:
(1) An analysis of the effects of competition and technological
change on universal service and on pricing of all
telecommunications services offered in Indiana.
(2) An analysis of the status of competition and technological
change in the provision of video service (as defined in
IC 8-1-34-14) to Indiana customers, as determined by the
commission in carrying out its duties under IC 8-1-34. The
commission's analysis under this subdivision must include a
description of:
(A) the number of multichannel video programming
distributors offering video service to Indiana customers;
(B) the technologies used to provide video service to Indiana
customers; and
(C) the effects of competition on the pricing and availability
of video service in Indiana.
(3) Beginning with the report due July 1, 2007, and in each
report due in an odd-numbered year after July 1, 2007:
(A) an identification of all telecommunications rules and
policies that are eliminated by the commission under section
4.1 of this chapter during the two (2) most recent state fiscal
years; and
(B) an explanation why the telecommunications rules and
policies identified under clause (A) are no longer in the
public interest or necessary to protect consumers.
(4) Beginning with the report due July 1, 2010, best practices
concerning vertical location of underground facilities for
purposes of IC 8-1-26. A report under this subdivision must
address the viability and economic feasibility of technologies
used to vertically locate underground facilities.
(d) In addition to reviewing the commission report prepared under
subsection (c), the regulatory flexibility committee shall also issue
a report and recommendations to the legislative council by November
1 of each year that is based on a review of the following issues:
(1) The effects of competition and technological change in the
telecommunications industry and impact of competition on
available subsidies used to maintain universal service.
(2) The status of modernization of the publicly available
telecommunications infrastructure in Indiana and the incentives
required to further enhance this infrastructure.
(3) The effects on economic development and educational
opportunities of the modernization described in subdivision (2).
(4) The current methods of regulating providers, at both the
federal and state levels, and the effectiveness of the methods.
(5) The economic and social effectiveness of current
telecommunications service pricing.
(6) All other telecommunications issues the committee deems
appropriate.
The report and recommendations issued under this subsection to the
legislative council must be in an electronic format under IC 5-14-6.
(e) The regulatory flexibility committee shall meet on the call of
the co-chairpersons to study telecommunications issues described in
subsection (d). The committee shall, with the approval of the
commission, retain the independent consultants the committee
considers appropriate to assist the committee in the review and study.
The expenses for the consultants shall be paid by the commission. As added by P.L.92-1985, SEC.1. Amended by P.L.23-1988, SEC.33;
P.L.55-1992, SEC.1; P.L.224-2003, SEC.277; P.L.28-2004, SEC.71;
P.L.27-2006, SEC.20; P.L.62-2009, SEC.1.
IC 8-1-2.6-4.1 Commission's biennial elimination of obsolete telecommunications
rules; notification to customer switching from basic to nonbasic
telecommunications service
Sec. 4.1. (a) Not later than:
(1) July 1, 2007; and
(2) July 1 of each odd-numbered year after July 1, 2007;
the commission shall, through a rulemaking proceeding under
IC 4-22-2 or another commission proceeding, identify and eliminate
rules and policies concerning telecommunications service and
telecommunications service providers if the rules or policies are no
longer necessary in the public interest or for the protection of
consumers as the result of meaningful economic competition
between providers of telecommunications services.
(b) Not later than July 1, 2007, the commission shall adopt rules
under IC 4-22-2 to require a telecommunications service provider, at
any time the provider communicates with a residential customer
about changing the customer's basic telecommunications service to
nonbasic telecommunications service, to notify the residential
customer of:
(1) the option of basic telecommunications service; and
(2) any regulatory protections, including pricing or quality of
service protections, that the residential customer would forego
by switching to nonbasic telecommunications service.
(c) In carrying out this section, the commission shall promote the
policies and purposes set forth in this chapter. Beginning in 2007,
and in each odd-numbered year after 2007, the commission's annual
report to the regulatory flexibility committee under section 4 of this
chapter must:
(1) identify any regulation or policy eliminated by the
commission under this section during the two (2) most recent
state fiscal years; and
(2) explain why the regulation or policy is no longer in the
public interest or necessary to protect consumers. As added by P.L.27-2006, SEC.21.
IC 8-1-2.6-5
Repealed
(Repealed by P.L.27-2006, SEC.61.)
IC 8-1-2.6-6
Repealed
(Repealed by P.L.27-2006, SEC.62.)
IC 8-1-2.6-7
Repealed
(Repealed by P.L.27-2006, SEC.61.)
IC 8-1-2.6-8 Rate reduction programs
Sec. 8. (a) As used in this section, "rate reduction" means a
decrease in either recurring or nonrecurring rates or charges.
(b) Notwithstanding any other provision of this chapter or any
other statute, a provider may participate in any rate reduction
program for residential customers funded from revenues provided by
any governmental entity or other revenues administered by an agency
of that entity. As added by P.L.81-1988, SEC.2. Amended by P.L.27-2006, SEC.22.
IC 8-1-2.6-12 Settlement agreements approved before July 29, 2004
Sec. 12. This chapter does not terminate or otherwise change the
terms and conditions of a settlement agreement approved by the
commission under this chapter before July 29, 2004. However, a
provider may renegotiate the terms and conditions of the settlement
agreement at any time before the expiration of the settlement
agreement. As added by P.L.27-2006, SEC.23.
IC 8-1-2.6-13 Commission's jurisdiction before and after June 30, 2009;
reporting requirements
Sec. 13. (a) As used in this section, "communications service" has
the meaning set forth in IC 8-1-32.5-3.
(b) As used in this section, "communications service provider"
means a person or an entity that offers communications service to
customers in Indiana, without regard to the technology or medium
used by the person or entity to provide the communications service.
The term includes a provider of commercial mobile service (as
defined in 47 U.S.C. 332).
(c) As used in this section, "dark fiber" refers to unused capacity
in a communications service provider's communications network,
including fiber optic cable or other facilities:
(1) in place within a public right-of-way; but
(2) not placed in service by a communications service provider.
(d) Notwithstanding sections 1.2, 1.4, and 1.5 of this chapter, the
commission may do the following both during and after the rate
transition period described in section 1.3 of this chapter, except as
otherwise provided in this subsection:
(1) Subject to section 12 of this chapter, enforce the terms of a
settlement agreement approved by the commission before July
29, 2004. The commission's authority under this subdivision
continues for the duration of the settlement agreement.
(2) Fulfill the commission's duties under IC 8-1-2.8 concerning
the provision of dual party relay services to hearing impaired
and speech impaired persons in Indiana.
(3) Fulfill the commission's duties under IC 8-1-19.5 concerning
the administration of the 211 dialing code for communications
service used to provide access to human services information
and referrals.
(4) Fulfill the commission's responsibilities under IC 8-1-29 to
adopt and enforce rules to ensure that a customer of a
telecommunications provider is not:
(A) switched to another telecommunications provider unless
the customer authorizes the switch; or
(B) billed for services by a telecommunications provider that
without the customer's authorization added the services to
the customer's service order.
(5) Fulfill the commission's obligations under:
(A) the federal Telecommunications Act of 1996 (47 U.S.C.
151 et seq.); and
(B) IC 20-20-16;
concerning universal service and access to telecommunications
service and equipment, including the designation of eligible
telecommunications carriers under 47 U.S.C. 214.
(6) Perform any of the functions described in section 1.5(b) of
this chapter.
(7) After June 30, 2009, perform the commission's
responsibilities under IC 8-1-32.5 to:
(A) issue; and
(B) maintain records of;
certificates of territorial authority for communications service
providers offering communications service to customers in
Indiana.
(8) Perform the commission's responsibilities under IC 8-1-34
concerning the issuance of certificates of franchise authority to
multichannel video programming distributors offering video
service to Indiana customers.
(9) After June 30, 2009, require a communications service
provider, other than a provider of commercial mobile service
(as defined in 47 U.S.C. 332), to report to the commission on an
annual basis, or more frequently at the option of the provider,
any of the following information:
(A) Service quality goals and performance data. The
commission shall make any information or data submitted
under this subsection available:
(i) for public inspection and copying at the offices of the
commission under IC 5-14-3; and
(ii) electronically through the computer gateway
administered by the office of technology established by
IC 4-13.1-2-1;
to the extent the information or data are not exempt from
public disclosure under IC 5-14-3-4(a).
(B) Information concerning the:
(i) capacity;
(ii) location; and
(iii) planned or potential use;
of the communications service provider's dark fiber in
Indiana.
(C) Information concerning the communications service
offered by the communications service provider in Indiana,
including:
(i) the types of service offered; and
(ii) the areas in Indiana in which the services are offered.
(D) Any information needed by the commission to prepare
the commission's report to the regulatory flexibility
committee under section 4 of this chapter.
(E) Any other information that the commission is authorized
to collect from a communications service provider under
state or federal law.
The commission may revoke a certificate issued to a
communications service provider under IC 8-1-32.5 if the
communications service provider fails or refuses to report any
information required by the commission under this subdivision.
However, this subdivision does not empower the commission to
require a communications service provider to disclose
confidential and proprietary business plans and other
confidential information without adequate protection of the
information. The commission shall exercise all necessary
caution to avoid disclosure of confidential information supplied
under this subdivision.
(10) Perform the commission's duties under IC 8-1-32.4 with
respect to telecommunications providers of last resort, to the
extent of the authority delegated to the commission under
federal law to perform those duties.
(11) Perform the commission's duties under IC 8-1-2-5 with
respect to interconnection.
(12) Establish and administer the Indiana Lifeline assistance
program under IC 8-1-36.
(13) After June 30, 2009, collect and maintain from a provider
of commercial mobile service (as defined in 47 U.S.C. 332) the
following information:
(A) The address of the provider's web site.
(B) All toll free telephone numbers and other customer
service telephone numbers maintained by the provider for
receiving customer inquiries and complaints.
(C) An address and other contact information for the
provider, including any telephone number not described in
clause (B).
The commission shall make any information submitted by a
provider under this subdivision available on the commission's
web site. The commission may also make available on the
commission's web site contact information for the Federal
Communications Commission and the Cellular Telephone
Industry Association.
(14) Fulfill the commission's duties under any state or federal
law concerning the administration of any universally applicable
dialing code for any communications service.
(e) After June 30, 2009, the commission does not have
jurisdiction over any of the following with respect to a
communications service provider:
(1) Rates and charges for communications service provided by
the communications service provider, including the filing of
schedules or tariffs setting forth the provider's rates and
charges.
(2) Depreciation schedules for any of the classes of property
owned by the communications service provider.
(3) Quality of service provided by the communications service
provider, other than the imposition of a reporting requirement
under subsection (d)(9)(A).
(4) Long term financing arrangements or other obligations of
the communications service provider.
(5) Except as provided in subsection (d), any other aspect
regulated by the commission under this title before July 1, 2009.
(f) After June 30, 2009, the commission has jurisdiction over a
communications service provider only to the extent that jurisdiction
is:
(1) expressly granted by state or federal law, including:
(A) a state or federal statute;
(B) a lawful order or regulation of the Federal
Communications Commission; or
(C) an order or a ruling of a state or federal court having
jurisdiction; or
(2) necessary to administer a federal law for which regulatory
responsibility has been delegated to the commission by federal
law. As added by P.L.27-2006, SEC.24. Amended by P.L.1-2007, SEC.72.
IC 8-1-2.6-14 Payment of switched network access rates and other carrier
compensation not affected
Sec. 14. This chapter does not affect the rights and obligations of
any person or entity concerning the payment of switched network
access rates or other carrier compensation concerning:
(1) Internet Protocol enabled services;
(2) advanced services (as defined in 47 CFR 51.5);
(3) broadband service; or
(4) other Internet access services. As added by P.L.27-2006, SEC.25.
IC 8-1-2.6-15 Statutory conflicts; right of small telephone companies and rural
cooperatives to withdraw from commission jurisdiction not
affected
Sec. 15. (a) Except as provided in subsection (b), if there is a
conflict between this chapter and another provision of this article,
this chapter controls.
(b) This chapter does not affect the rights of:
(1) a provider that has withdrawn from the commission's
jurisdiction under IC 8-1-2-88.5 or IC 8-1-17-22.5 before March
28, 2006, to remain outside the jurisdiction of the commission
during the transition period described in section 1.3 of this
chapter; or
(2) a provider that:
(A) has not withdrawn from the commission's jurisdiction
under IC 8-1-2-88.5 or IC 8-1-17-22.5 before March 28,
2006; and
(B) is otherwise eligible to withdraw from the commission's
jurisdiction under IC 8-1-2-88.5 or IC 8-1-17-22.5;
to withdraw from the commission's jurisdiction under
IC 8-1-2-88.5 or IC 8-1-17-22.5 at any time during the transition
period described in section 1.3 of this chapter.
Except as provided in section 13(d)(5) of this chapter, after June 30,
2009, section 1.4 of this chapter applies to a provider described in
this subsection. As added by P.L.27-2006, SEC.26.
IC 8-1-2.6-16 Rates charged by incumbent local exchange carriers to payphone
service providers
Sec. 16. (a) As used in this section, "payphone service provider"
means an entity, other than an incumbent local exchange carrier, that
owns and operates:
(1) public or semipublic pay telephones; or
(2) pay telephones used to provide telephone service in
correctional institutions.
(b) Notwithstanding any other statute, the commission shall retain
jurisdiction to establish just and reasonable rates that may be charged
by an incumbent local exchange carrier to a payphone service
provider. Rates established under this section must be:
(1) based on the costs incurred by the incumbent local exchange
carrier to provide the service;
(2) consistent with the requirements of 47 U.S.C. 276;
(3) nondiscriminatory; and
(4) consistent with the pricing guidelines for payphone service
providers established by the Federal Communications
Commission. As added by P.L.27-2006, SEC.27.
IC 8-1-2.6
Chapter 2.6. Competition in the Provision of Telephone Services
IC 8-1-2.6-0.1 "Basic telecommunications service"
Sec. 0.1. (a) As used in this chapter, "basic telecommunications
service" means stand alone telephone exchange service (as defined
in 47 U.S.C. 153(47)) that:
(1) is provided to a residential customer through the customer's
primary line; and
(2) is:
(A) the sole service purchased by the customer;
(B) not part of a package of services, a promotion, or a
contract; or
(C) not otherwise offered at a discounted price.
(b) The term includes, at a minimum, the following:
(1) Voice grade access to the public switched telephone
network with minimum bandwidth of three hundred (300) to
three thousand (3,000) hertz.
(2) Dual tone multifrequency signaling and single party service.
(3) Access to:
(A) emergency services, including access to 911 and
enhanced 911 if provided by the local government having
jurisdiction in the service area;
(B) operator services;
(C) local directory assistance;
(D) telephone relay services; and
(E) interexchange service.
(4) Toll limitation services for qualifying low income
customers.
(c) The term does not include a functionally equivalent service
provided by a person or an entity described in IC 8-1-2-1.1. As added by P.L.27-2006, SEC.6.
IC 8-1-2.6-0.2 "Incumbent local exchange carrier"
Sec. 0.2. As used in this chapter, "incumbent local exchange
carrier" has the meaning set forth in 47 U.S.C. 251(h). As added by P.L.27-2006, SEC.7.
IC 8-1-2.6-0.3 "Nonbasic telecommunications service"
Sec. 0.3. (a) As used in this chapter, "nonbasic
telecommunications service" means retail telecommunications
service other than:
(1) basic telecommunications service, except when the service
is purchased by the customer:
(A) in conjunction with another service;
(B) as part of a package of services, a promotion, or a
contract; or
(C) at an otherwise discounted price;
(2) commercial mobile radio service (as defined in 47 CFR
51.5);
(3) services outside the jurisdiction of the commission under
section 1.1 of this chapter; and
(4) switched and special access services.
(b) The term includes services included in:
(1) customer specific contracts;
(2) volume, term, and discount pricing options; and
(3) packages, bundles, and promotions, including offers
designed to obtain new customers, retain existing customers, or
bring back former customers. As added by P.L.27-2006, SEC.8.
IC 8-1-2.6-0.4 "Provider"
Sec. 0.4. As used in this chapter, "provider" means a person or an
entity that offers basic or nonbasic telecommunications service. As added by P.L.27-2006, SEC.9.
IC 8-1-2.6-0.5 "Rates and charges"
Sec. 0.5. As used in this chapter, "rates and charges", with respect
to basic telecommunications service, means the monthly charge to a
customer for basic telecommunications service, including:
(1) recurring charges for flat rate and message rate service; and
(2) any nonrecurring charge for installation or a line or service
connection. As added by P.L.27-2006, SEC.10.
IC 8-1-2.6-0.6 "Telecommunications"
Sec. 0.6. As used in this chapter, "telecommunications" has the
meaning set forth in 47 U.S.C. 153(43). As added by P.L.27-2006, SEC.11.
IC 8-1-2.6-0.7 "Telecommunications service"
Sec. 0.7. As used in this chapter, "telecommunications service"
has the meaning set forth in 47 U.S.C. 153(46). As added by P.L.27-2006, SEC.12.
IC 8-1-2.6-1 Legislative declaration
Sec. 1. The Indiana general assembly hereby declares that:
(1) the maintenance of universal telephone service is a
continuing goal of the commission in the exercise of its
jurisdiction;
(2) competition has become commonplace in the provision of
telecommunications services in Indiana and the United States;
(3) advancements in and the convergence of technologies that
provide voice, video, and data transmission, including:
(A) landline, wireless, cable, satellite, and Internet
transmissions; and
(B) transmissions involving voice over Internet Protocol
(VOIP), Internet Protocol enabled services, and voice over
power lines;
are substantially increasing consumer choice, reinventing the
marketplace with unprecedented speed, and making available
highly competitive products and services and new methods of
delivering local exchange service;
(4) traditional regulatory policies, practices, and statutes are not
designed to deal with a competitive environment and
technological advancements;
(5) an environment in which Indiana consumers will have
available the widest array of state-of-the-art communications
services at the most economic and reasonable cost possible will
necessitate full and fair facilities based competition in the
delivery of telecommunications services throughout Indiana;
and
(6) streamlining of, and flexibility in, the regulation of
providers of telecommunications services, regardless of the
technology used, is essential to the well-being of Indiana, its
economy, and its citizens, and that the public interest requires
that the commission be authorized to formulate and adopt rules
and policies as will permit the commission, in the exercise of its
expertise, to regulate and control the provision of
telecommunications services to the public in an increasingly
competitive and technologically changing environment, giving
due regard to the interests of consumers and the public, the
ability of market forces to encourage innovation and
investment, and the continued universal availability of basic
telecommunications service. As added by P.L.92-1985, SEC.1. Amended by P.L.23-1988, SEC.32;
P.L.27-2006, SEC.13.
IC 8-1-2.6-1.1 Services not subject to commission jurisdiction
Sec. 1.1. The commission shall not exercise jurisdiction over:
(1) advanced services (as defined in 47 CFR 51.5);
(2) broadband service, however defined or classified by the
Federal Communications Commission;
(3) information service (as defined in 47 U.S.C. 153(20));
(4) Internet Protocol enabled retail services:
(A) regardless of how the service is classified by the Federal
Communications Commission; and
(B) except as expressly permitted under IC 8-1-2.8;
(5) commercial mobile service (as defined in 47 U.S.C. 332); or
(6) any service not commercially available on March 28, 2006. As added by P.L.27-2006, SEC.14. Amended by P.L.1-2007, SEC.69. IC 8-1-2.6-1.2 Nonbasic telecommunications service; commission's limited
jurisdiction
Sec. 1.2. Except as provided in sections 1.5(b), 12, and 13 of this
chapter, after March 27, 2006, the commission shall not exercise
jurisdiction over any nonbasic telecommunications service. As added by P.L.27-2006, SEC.15. Amended by P.L.1-2007, SEC.70.
IC 8-1-2.6-1.3 Rate transition period; allowed increases in basic
telecommunications service rates; broadband service
requirements; availability of flat monthly rate; emergency
suspension of rate limits; measured local service prohibited
Sec. 1.3. (a) As used in this section, "broadband service" means
a connection to the Internet that provides capacity for transmission
at an average speed of at least one and one-half (1.5) megabits per
second downstream and at least three hundred eighty-four (384)
kilobits per second upstream, regardless of the technology or medium
used to provide the connection. The term includes a connection to the
Internet provided by wireless technology, copper wire, fiber optic
cable, coaxial cable, broadband over power lines, or other facilities
or future technologies. The term does not include any of the
following:
(1) Value added services in which computer processing
applications are used to act on the form, content, code, or
protocol of any information transmitted.
(2) Value added services providing text, graphic, video, or
audio program content for a purpose other than transmission.
(3) The transmission of video programming or other
programming:
(A) provided by; or
(B) generally considered comparable to programming
provided by;
a television broadcast station or a radio broadcast station,
including cable TV, direct broadcast satellite, and digital
television.
(4) A connection to the Internet provided through satellite
technology.
(b) As used in this section, "rate transition period" refers to the
period beginning March 28, 2006, and ending June 30, 2009, during
which a provider may act under this section to increase the provider's
flat monthly rate for basic telecommunications service offered in one
(1) or more local exchange areas in Indiana.
(c) This subsection applies to a provider that offers basic
telecommunications service in one (1) or more local exchange areas
in Indiana on March 27, 2006. Subject to subsection (e), during the
rate transition period, a provider may act without the prior approval
of the commission to increase the provider's flat monthly rate for
basic telecommunications service in any local exchange area in
which the provider offers basic telecommunications service on
March 27, 2006. Subject to subsection (h), a provider may increase
the provider's flat monthly rate for basic telecommunications service
in a local exchange area as follows:
(1) The provider may increase the flat monthly rate not more
frequently than once during each successive twelve (12) month
period during the period beginning March 28, 2006, and ending
June 30, 2009. The amount of any increase in the flat monthly
rate imposed during a twelve (12) month period described in
this subdivision may not exceed one dollar ($1). If a provider:
(A) does not impose an increase during any twelve (12)
month period described in this subdivision; or
(B) imposes an increase less than the maximum one dollar
($1) increase allowed under this subdivision during any
twelve (12) month period described in this subdivision;
the provider may not impose the unused increase in any
subsequent twelve (12) month period described in this
subdivision.
(2) The provider may increase the flat monthly rate not more
frequently than three (3) times during the entire rate transition
period. The amount of the total increase in the flat monthly rate
during the transition period may not exceed three dollars ($3),
as calculated based on the flat monthly rate in effect in the local
exchange area on March 27, 2006.
The provider shall provide the commission and all affected
customers thirty (30) days advance notice of each rate increase under
this subsection.
(d) This subsection applies to a provider that, at any time during
the rate transition period, begins offering basic telecommunications
service in a local exchange area in Indiana in which the provider did
not offer basic telecommunications service on March 27, 2006. In
accordance with the procedures set forth in IC 8-1-2, the commission
shall approve the initial rates and charges for basic
telecommunications service first offered by the provider in a local
exchange area at any time during the rate transition period. Subject
to subsections (e) and (h), beginning twelve (12) months after the
commission approves the initial rates and charges for the local
exchange area, the provider may increase the initial flat monthly rate
for basic telecommunications service in accordance with subsection
(c). However, subsection (c)(2) does not apply to a rate increase
under this subsection. The provider may not increase the flat monthly
rate under this subsection during the rate transition period more
frequently than the number of twelve (12) month periods remaining
in the rate transition period at the time the provider is first eligible to
increase the initial flat monthly rate under this subsection. The
amount of the total increase in the flat monthly rate during the rate
transition period may not exceed the product of:
(1) one dollar ($1); multiplied by
(2) the number of twelve (12) month periods remaining in the
rate transition period at the time the provider is first eligible to
increase the initial flat monthly rate under this subsection.
The provider shall provide the commission and all affected
customers thirty (30) days advance notice of each rate increase under
this subsection.
(e) This subsection applies to a provider that acts under
subsection (c) or (d) to increase the provider's flat monthly rate for
basic telecommunications service in a local exchange area in Indiana.
Not later than eighteen (18) calendar months after the provider's first
rate increase in the local exchange area under subsection (c) or (d),
the provider must offer broadband service to at least fifty percent
(50%) of the households located in the local exchange area, at the
average speeds set forth in subsection (a), as determined by the
commission after notice and an opportunity for hearing. The
commission may extend the eighteen (18) month period allowed
under this subsection by not more than nine (9) additional calendar
months for good cause shown by the provider. The commission shall
hold a hearing and make a finding as to whether the provider offers
broadband service to at least fifty percent (50%) of the households
in the local exchange area not later than the earlier of the following:
(1) Ninety (90) days after a request by the provider for a hearing
and determination by the commission. The provider may
request a hearing and determination under this subdivision at
any time before the expiration of:
(A) the eighteen (18) month period allowed by this
subsection; or
(B) any extension of the eighteen (18) month period allowed
by the commission under this subsection.
(2) Ninety (90) days after the expiration of:
(A) the eighteen (18) month period allowed by this
subsection; or
(B) any extension of the eighteen (18) month period allowed
by the commission under this subsection;
if the provider does not request a hearing and determination
under subdivision (1).
(f) If, after a hearing under subsection (e), the commission
determines that the provider does not offer broadband service to at
least fifty percent (50%) of the households in the local exchange area
not later than eighteen (18) months after the provider's first rate
increase in the local exchange area under subsection (c) or (d), the
commission may require the provider to:
(1) refund to customers; or
(2) pay to the commission as a civil penalty;
an amount equal to the incremental revenue accruing to the provider
as a result of all rate increases imposed by the provider in the local
exchange area under subsection (c) or (d), plus interest. The
commission shall determine the amount of interest added to a refund
or payment made under this subsection by applying the average
interest rate paid during the eighteen (18) months after the provider's
first rate increase to depositors by the fifteen (15) largest banks with
their principal offices in Indiana. A determination by the commission
under this subsection is subject to appeal under IC 8-1-3.
(g) This subsection applies to an incumbent local exchange carrier
that offers basic telecommunications service in one (1) or more local
exchange areas in Indiana on March 27, 2006. Throughout the rate
transition period, the incumbent local exchange carrier shall continue
to make available a flat monthly rate with unlimited local calling for
basic telecommunications service in all local exchange areas in
which the incumbent local exchange carrier offers basic
telecommunications service on March 27, 2006, regardless of
whether the incumbent local exchange carrier increases the flat
monthly rate in any of those local exchange areas under subsection
(c). Throughout the transition period, an extended area of service in
which the incumbent local exchange carrier offers basic
telecommunications service on March 27, 2006, may not be reduced
in area or scope without the approval of the commission after notice
and hearing.
(h) If, at any time during the rate transition period, the
commission determines in accordance with IC 8-1-2-113 that an
emergency exists, the commission may act under IC 8-1-2-113 to
temporarily alter, amend, or suspend the limits on the flat monthly
rate increases set forth in subsections (c) and (d) if necessary to
maintain a provider's financial integrity and ability to provide
adequate basic telecommunications service. The commission shall
reimplement the limits on flat monthly rate increases, as set forth in
subsections (c) and (d), when the commission is satisfied the
emergency no longer exists.
(i) After June 30, 2009, a provider that offers basic
telecommunications service in Indiana:
(1) must offer a flat monthly rate with unlimited local calling
for basic telecommunications service in each local exchange
area in Indiana in which the provider offers basic
telecommunications service; and
(2) may not, in any local exchange area in Indiana in which the
provider offers basic telecommunications service, offer any
service plan for basic telecommunications service that includes
measured local service. As added by P.L.27-2006, SEC.16.
IC 8-1-2.6-1.4 Basic telecommunications service; commission's limited
jurisdiction
Sec. 1.4. Except as provided in sections 1.5(b), 12, and 13 of this
chapter, after June 30, 2009, the commission shall not exercise
jurisdiction over basic telecommunications service. As added by P.L.27-2006, SEC.17. Amended by P.L.1-2007, SEC.71.
IC 8-1-2.6-1.5 Commission's authority over interconnection, resale of
telecommunications service, and unbundled network elements;
interconnection disputes; intrastate switched or special access
service
Sec. 1.5. (a) In acting to impose any requirements or set any prices
concerning:
(1) interconnection with the facilities and equipment of
providers for purposes of 47 U.S.C. 251(c)(2);
(2) the resale of telecommunications service for purposes of 47
U.S.C. 251(c)(4); or
(3) the unbundled access of one (1) provider to the network
elements of another provider for purposes of 47 U.S.C.
251(c)(3);
the commission shall not exceed the authority delegated to the
commission under federal laws and regulations with respect to those
actions. This subsection does not affect the commission's authority
under IC 8-1-2-5.
(b) Subject to any regulations adopted by the Federal
Communications Commission, this section does not affect:
(1) the commission's authority to mediate a dispute between
providers under 47 U.S.C. 252(a);
(2) the commission's authority to arbitrate a dispute between
providers under 47 U.S.C. 252(b);
(3) the commission's authority to approve an interconnection
agreement under 47 U.S.C. 252(e), including the authority to
establish service quality metrics and liquidated damages;
(4) the commission's authority to review and approve a
provider's statement of terms and conditions under 47 U.S.C.
252(f);
(5) a provider's ability to file a complaint with the commission
to have a dispute decided by the commission:
(A) after notice and hearing; and
(B) in accordance with this article; or
(6) the commission's authority to resolve an interconnection
dispute between providers under the expedited procedures set
forth in 170 IAC 7-7.
(c) If a provider's rates and charges for intrastate switched or
special access service are:
(1) at issue in a dispute that the commission is authorized to
mediate, arbitrate, or otherwise determine under state or federal
law; or
(2) included in an interconnection agreement or a statement of
terms and conditions that the commission is authorized to
review or approve under state or federal law;
the commission shall consider the provider's rates and charges for
intrastate switched or special access service to be just and reasonable
if the intrastate rates and charges mirror the provider's interstate rates
and charges for switched or special access service. As added by P.L.27-2006, SEC.18.
IC 8-1-2.6-2 Rules and orders of the commission; notice and hearing;
underlying policies; determination of public interest
Sec. 2. (a) This section applies to rules and orders that:
(1) concern telecommunications service or providers of
telecommunications service; and
(2) may be adopted or issued by the commission under the
authority of state or federal law.
(b) Rules and orders described in this section:
(1) may be adopted or issued only after notice and hearing,
unless:
(A) the commission determines in accordance with
IC 8-1-2-113 that an emergency exists that requires the
commission or a provider to take immediate action to:
(i) prevent injury to the business or interests of the citizens
of Indiana; or
(ii) maintain a provider's financial integrity and ability to
provide adequate basic telecommunications service;
(B) the commission is authorized under IC 8-1-2 to adopt a
particular rule or issue a particular order without the
necessity of a hearing; or
(C) after receiving notice of the commission's proposed
action, all parties to a proceeding consent to the commission
taking action without a hearing; and
(2) must be:
(A) consistent with this chapter; and
(B) in the public interest, as determined by the commission
under subsection (d).
(c) Rules and orders described in this section must promote one
(1) or more of the following:
(1) Cost minimization for providers to the extent that a
provider's quality of service and facilities are not diminished.
(2) A more accurate evaluation by the commission of a
provider's physical or financial conditions or needs as well as a
less costly regulatory procedure for either the provider, the
provider's customers, or the commission.
(3) Consumer access to affordable basic telecommunications
service.
(4) Development of depreciation guidelines and procedures that
recognize technological obsolescence.
(5) Increased provider management efficiency beneficial to
customers.
(6) Regulation consistent with a competitive environment.
(d) In determining whether the public interest will be served, as
required under subsection (b), the commission shall consider:
(1) whether technological change, competitive forces, or
regulation by other state and federal regulatory bodies render
the exercise of jurisdiction by the commission unnecessary or
wasteful;
(2) whether the exercise of commission jurisdiction produces
tangible benefits to the customers of providers; and
(3) whether the exercise of commission jurisdiction inhibits a
regulated entity from competing with unregulated providers of
functionally similar telecommunications services or equipment.
(e) This section does not affect the commission's authority under
IC 8-1-2-5. As added by P.L.92-1985, SEC.1. Amended by P.L.27-2006, SEC.19.
IC 8-1-2.6-3
Repealed
(Repealed by P.L.27-2006, SEC.61.)
IC 8-1-2.6-4 Regulatory flexibility committee; legislative standing committees;
subject matter jurisdiction; reports
Sec. 4. (a) A regulatory flexibility committee is established to
monitor competition in the telecommunications industry.
(b) The committee is composed of the members of a house
standing committee selected by the speaker of the house of
representatives and a senate standing committee selected by the
president pro tempore of the senate. In selecting standing committees
under this subsection, the speaker and president pro tempore shall
determine which standing committee of the house of representatives
and the senate, respectively, has subject matter jurisdiction that most
closely relates to the electricity, gas, energy policy, and
telecommunications jurisdiction of the regulatory flexibility
committee. The chairpersons of the standing committees selected
under this subsection shall co-chair the regulatory flexibility
committee.
(c) The commission shall, by July 1 of each year, prepare for
presentation to the regulatory flexibility committee a report that
includes the following:
(1) An analysis of the effects of competition and technological
change on universal service and on pricing of all
telecommunications services offered in Indiana.
(2) An analysis of the status of competition and technological
change in the provision of video service (as defined in
IC 8-1-34-14) to Indiana customers, as determined by the
commission in carrying out its duties under IC 8-1-34. The
commission's analysis under this subdivision must include a
description of:
(A) the number of multichannel video programming
distributors offering video service to Indiana customers;
(B) the technologies used to provide video service to Indiana
customers; and
(C) the effects of competition on the pricing and availability
of video service in Indiana.
(3) Beginning with the report due July 1, 2007, and in each
report due in an odd-numbered year after July 1, 2007:
(A) an identification of all telecommunications rules and
policies that are eliminated by the commission under section
4.1 of this chapter during the two (2) most recent state fiscal
years; and
(B) an explanation why the telecommunications rules and
policies identified under clause (A) are no longer in the
public interest or necessary to protect consumers.
(4) Beginning with the report due July 1, 2010, best practices
concerning vertical location of underground facilities for
purposes of IC 8-1-26. A report under this subdivision must
address the viability and economic feasibility of technologies
used to vertically locate underground facilities.
(d) In addition to reviewing the commission report prepared under
subsection (c), the regulatory flexibility committee shall also issue
a report and recommendations to the legislative council by November
1 of each year that is based on a review of the following issues:
(1) The effects of competition and technological change in the
telecommunications industry and impact of competition on
available subsidies used to maintain universal service.
(2) The status of modernization of the publicly available
telecommunications infrastructure in Indiana and the incentives
required to further enhance this infrastructure.
(3) The effects on economic development and educational
opportunities of the modernization described in subdivision (2).
(4) The current methods of regulating providers, at both the
federal and state levels, and the effectiveness of the methods.
(5) The economic and social effectiveness of current
telecommunications service pricing.
(6) All other telecommunications issues the committee deems
appropriate.
The report and recommendations issued under this subsection to the
legislative council must be in an electronic format under IC 5-14-6.
(e) The regulatory flexibility committee shall meet on the call of
the co-chairpersons to study telecommunications issues described in
subsection (d). The committee shall, with the approval of the
commission, retain the independent consultants the committee
considers appropriate to assist the committee in the review and study.
The expenses for the consultants shall be paid by the commission. As added by P.L.92-1985, SEC.1. Amended by P.L.23-1988, SEC.33;
P.L.55-1992, SEC.1; P.L.224-2003, SEC.277; P.L.28-2004, SEC.71;
P.L.27-2006, SEC.20; P.L.62-2009, SEC.1.
IC 8-1-2.6-4.1 Commission's biennial elimination of obsolete telecommunications
rules; notification to customer switching from basic to nonbasic
telecommunications service
Sec. 4.1. (a) Not later than:
(1) July 1, 2007; and
(2) July 1 of each odd-numbered year after July 1, 2007;
the commission shall, through a rulemaking proceeding under
IC 4-22-2 or another commission proceeding, identify and eliminate
rules and policies concerning telecommunications service and
telecommunications service providers if the rules or policies are no
longer necessary in the public interest or for the protection of
consumers as the result of meaningful economic competition
between providers of telecommunications services.
(b) Not later than July 1, 2007, the commission shall adopt rules
under IC 4-22-2 to require a telecommunications service provider, at
any time the provider communicates with a residential customer
about changing the customer's basic telecommunications service to
nonbasic telecommunications service, to notify the residential
customer of:
(1) the option of basic telecommunications service; and
(2) any regulatory protections, including pricing or quality of
service protections, that the residential customer would forego
by switching to nonbasic telecommunications service.
(c) In carrying out this section, the commission shall promote the
policies and purposes set forth in this chapter. Beginning in 2007,
and in each odd-numbered year after 2007, the commission's annual
report to the regulatory flexibility committee under section 4 of this
chapter must:
(1) identify any regulation or policy eliminated by the
commission under this section during the two (2) most recent
state fiscal years; and
(2) explain why the regulation or policy is no longer in the
public interest or necessary to protect consumers. As added by P.L.27-2006, SEC.21.
IC 8-1-2.6-5
Repealed
(Repealed by P.L.27-2006, SEC.61.)
IC 8-1-2.6-6
Repealed
(Repealed by P.L.27-2006, SEC.62.)
IC 8-1-2.6-7
Repealed
(Repealed by P.L.27-2006, SEC.61.)
IC 8-1-2.6-8 Rate reduction programs
Sec. 8. (a) As used in this section, "rate reduction" means a
decrease in either recurring or nonrecurring rates or charges.
(b) Notwithstanding any other provision of this chapter or any
other statute, a provider may participate in any rate reduction
program for residential customers funded from revenues provided by
any governmental entity or other revenues administered by an agency
of that entity. As added by P.L.81-1988, SEC.2. Amended by P.L.27-2006, SEC.22.
IC 8-1-2.6-12 Settlement agreements approved before July 29, 2004
Sec. 12. This chapter does not terminate or otherwise change the
terms and conditions of a settlement agreement approved by the
commission under this chapter before July 29, 2004. However, a
provider may renegotiate the terms and conditions of the settlement
agreement at any time before the expiration of the settlement
agreement. As added by P.L.27-2006, SEC.23.
IC 8-1-2.6-13 Commission's jurisdiction before and after June 30, 2009;
reporting requirements
Sec. 13. (a) As used in this section, "communications service" has
the meaning set forth in IC 8-1-32.5-3.
(b) As used in this section, "communications service provider"
means a person or an entity that offers communications service to
customers in Indiana, without regard to the technology or medium
used by the person or entity to provide the communications service.
The term includes a provider of commercial mobile service (as
defined in 47 U.S.C. 332).
(c) As used in this section, "dark fiber" refers to unused capacity
in a communications service provider's communications network,
including fiber optic cable or other facilities:
(1) in place within a public right-of-way; but
(2) not placed in service by a communications service provider.
(d) Notwithstanding sections 1.2, 1.4, and 1.5 of this chapter, the
commission may do the following both during and after the rate
transition period described in section 1.3 of this chapter, except as
otherwise provided in this subsection:
(1) Subject to section 12 of this chapter, enforce the terms of a
settlement agreement approved by the commission before July
29, 2004. The commission's authority under this subdivision
continues for the duration of the settlement agreement.
(2) Fulfill the commission's duties under IC 8-1-2.8 concerning
the provision of dual party relay services to hearing impaired
and speech impaired persons in Indiana.
(3) Fulfill the commission's duties under IC 8-1-19.5 concerning
the administration of the 211 dialing code for communications
service used to provide access to human services information
and referrals.
(4) Fulfill the commission's responsibilities under IC 8-1-29 to
adopt and enforce rules to ensure that a customer of a
telecommunications provider is not:
(A) switched to another telecommunications provider unless
the customer authorizes the switch; or
(B) billed for services by a telecommunications provider that
without the customer's authorization added the services to
the customer's service order.
(5) Fulfill the commission's obligations under:
(A) the federal Telecommunications Act of 1996 (47 U.S.C.
151 et seq.); and
(B) IC 20-20-16;
concerning universal service and access to telecommunications
service and equipment, including the designation of eligible
telecommunications carriers under 47 U.S.C. 214.
(6) Perform any of the functions described in section 1.5(b) of
this chapter.
(7) After June 30, 2009, perform the commission's
responsibilities under IC 8-1-32.5 to:
(A) issue; and
(B) maintain records of;
certificates of territorial authority for communications service
providers offering communications service to customers in
Indiana.
(8) Perform the commission's responsibilities under IC 8-1-34
concerning the issuance of certificates of franchise authority to
multichannel video programming distributors offering video
service to Indiana customers.
(9) After June 30, 2009, require a communications service
provider, other than a provider of commercial mobile service
(as defined in 47 U.S.C. 332), to report to the commission on an
annual basis, or more frequently at the option of the provider,
any of the following information:
(A) Service quality goals and performance data. The
commission shall make any information or data submitted
under this subsection available:
(i) for public inspection and copying at the offices of the
commission under IC 5-14-3; and
(ii) electronically through the computer gateway
administered by the office of technology established by
IC 4-13.1-2-1;
to the extent the information or data are not exempt from
public disclosure under IC 5-14-3-4(a).
(B) Information concerning the:
(i) capacity;
(ii) location; and
(iii) planned or potential use;
of the communications service provider's dark fiber in
Indiana.
(C) Information concerning the communications service
offered by the communications service provider in Indiana,
including:
(i) the types of service offered; and
(ii) the areas in Indiana in which the services are offered.
(D) Any information needed by the commission to prepare
the commission's report to the regulatory flexibility
committee under section 4 of this chapter.
(E) Any other information that the commission is authorized
to collect from a communications service provider under
state or federal law.
The commission may revoke a certificate issued to a
communications service provider under IC 8-1-32.5 if the
communications service provider fails or refuses to report any
information required by the commission under this subdivision.
However, this subdivision does not empower the commission to
require a communications service provider to disclose
confidential and proprietary business plans and other
confidential information without adequate protection of the
information. The commission shall exercise all necessary
caution to avoid disclosure of confidential information supplied
under this subdivision.
(10) Perform the commission's duties under IC 8-1-32.4 with
respect to telecommunications providers of last resort, to the
extent of the authority delegated to the commission under
federal law to perform those duties.
(11) Perform the commission's duties under IC 8-1-2-5 with
respect to interconnection.
(12) Establish and administer the Indiana Lifeline assistance
program under IC 8-1-36.
(13) After June 30, 2009, collect and maintain from a provider
of commercial mobile service (as defined in 47 U.S.C. 332) the
following information:
(A) The address of the provider's web site.
(B) All toll free telephone numbers and other customer
service telephone numbers maintained by the provider for
receiving customer inquiries and complaints.
(C) An address and other contact information for the
provider, including any telephone number not described in
clause (B).
The commission shall make any information submitted by a
provider under this subdivision available on the commission's
web site. The commission may also make available on the
commission's web site contact information for the Federal
Communications Commission and the Cellular Telephone
Industry Association.
(14) Fulfill the commission's duties under any state or federal
law concerning the administration of any universally applicable
dialing code for any communications service.
(e) After June 30, 2009, the commission does not have
jurisdiction over any of the following with respect to a
communications service provider:
(1) Rates and charges for communications service provided by
the communications service provider, including the filing of
schedules or tariffs setting forth the provider's rates and
charges.
(2) Depreciation schedules for any of the classes of property
owned by the communications service provider.
(3) Quality of service provided by the communications service
provider, other than the imposition of a reporting requirement
under subsection (d)(9)(A).
(4) Long term financing arrangements or other obligations of
the communications service provider.
(5) Except as provided in subsection (d), any other aspect
regulated by the commission under this title before July 1, 2009.
(f) After June 30, 2009, the commission has jurisdiction over a
communications service provider only to the extent that jurisdiction
is:
(1) expressly granted by state or federal law, including:
(A) a state or federal statute;
(B) a lawful order or regulation of the Federal
Communications Commission; or
(C) an order or a ruling of a state or federal court having
jurisdiction; or
(2) necessary to administer a federal law for which regulatory
responsibility has been delegated to the commission by federal
law. As added by P.L.27-2006, SEC.24. Amended by P.L.1-2007, SEC.72.
IC 8-1-2.6-14 Payment of switched network access rates and other carrier
compensation not affected
Sec. 14. This chapter does not affect the rights and obligations of
any person or entity concerning the payment of switched network
access rates or other carrier compensation concerning:
(1) Internet Protocol enabled services;
(2) advanced services (as defined in 47 CFR 51.5);
(3) broadband service; or
(4) other Internet access services. As added by P.L.27-2006, SEC.25.
IC 8-1-2.6-15 Statutory conflicts; right of small telephone companies and rural
cooperatives to withdraw from commission jurisdiction not
affected
Sec. 15. (a) Except as provided in subsection (b), if there is a
conflict between this chapter and another provision of this article,
this chapter controls.
(b) This chapter does not affect the rights of:
(1) a provider that has withdrawn from the commission's
jurisdiction under IC 8-1-2-88.5 or IC 8-1-17-22.5 before March
28, 2006, to remain outside the jurisdiction of the commission
during the transition period described in section 1.3 of this
chapter; or
(2) a provider that:
(A) has not withdrawn from the commission's jurisdiction
under IC 8-1-2-88.5 or IC 8-1-17-22.5 before March 28,
2006; and
(B) is otherwise eligible to withdraw from the commission's
jurisdiction under IC 8-1-2-88.5 or IC 8-1-17-22.5;
to withdraw from the commission's jurisdiction under
IC 8-1-2-88.5 or IC 8-1-17-22.5 at any time during the transition
period described in section 1.3 of this chapter.
Except as provided in section 13(d)(5) of this chapter, after June 30,
2009, section 1.4 of this chapter applies to a provider described in
this subsection. As added by P.L.27-2006, SEC.26.
IC 8-1-2.6-16 Rates charged by incumbent local exchange carriers to payphone
service providers
Sec. 16. (a) As used in this section, "payphone service provider"
means an entity, other than an incumbent local exchange carrier, that
owns and operates:
(1) public or semipublic pay telephones; or
(2) pay telephones used to provide telephone service in
correctional institutions.
(b) Notwithstanding any other statute, the commission shall retain
jurisdiction to establish just and reasonable rates that may be charged
by an incumbent local exchange carrier to a payphone service
provider. Rates established under this section must be:
(1) based on the costs incurred by the incumbent local exchange
carrier to provide the service;
(2) consistent with the requirements of 47 U.S.C. 276;
(3) nondiscriminatory; and
(4) consistent with the pricing guidelines for payphone service
providers established by the Federal Communications
Commission. As added by P.L.27-2006, SEC.27.
