Texas Senate Bill SB713

Texas 2011 - 82nd Regular

• Introduced: 2/15/11
• Refer: 2/23/11

Caption

Relating to the procedure for certain small local exchange companies to propose to offer certain services or to make a minor change in a rate or tariff.

Impact

If enacted, SB713 would alter the regulatory landscape for local exchange companies by reducing the bureaucratic hurdles associated with rate changes and service proposals. The amendments enable companies to notify the commission of minor changes with less lead time, thereby expediting the introduction of new services and adjustments to existing ones. This change aims to foster competition within the telecommunications market, potentially benefiting consumers through increased choices and improved services. However, it places the onus on the companies to effectively communicate changes to their customers, ensuring transparency.

Summary

SB713 proposes amendments to the Texas Utilities Code that streamline the process for certain small local exchange companies to propose offering new services or making minor adjustments to their rates or tariffs. Specifically, it allows these companies, defined as those with fewer than 31,000 access lines, to make such proposals with a simplified notification procedure, aiming to promote greater operational efficiency in the telecommunications sector. The bill's proponents argue that this flexibility is crucial for enabling smaller companies to respond swiftly to market demands and enhance service offerings.

Sentiment

The sentiment surrounding SB713 appears generally favorable among telecommunications providers, particularly smaller local exchange companies that see it as a measure that empowers them to be more competitive. However, there may be concerns among consumer advocacy groups about the implications of reduced regulatory oversight, particularly regarding how rate changes are communicated to consumers. As such, while the industry sentiment is positive, there are cautionary notes regarding maintaining consumer rights and protection.

Contention

One notable point of contention within the discussions around SB713 may revolve around the balance of regulatory oversight and the need for efficiency in the telecommunications sector. Proponents emphasize the importance of making it easier for smaller companies to adapt and offer services in a timely manner. In contrast, critics might argue that loosening the requirements for notifying customers and regulators simultaneously could lead to confusion or lack of transparency regarding rate changes, potentially affecting consumer protection. This highlights the ongoing tension between fostering a competitive market and ensuring that consumer interests are adequately safeguarded.