Texas Senate Bill SB986

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/4/11
• Voted on by Senate: 4/21/11
• Engrossed: 4/21/11

Caption

Relating to deregulation of certain telecommunications markets and companies.

Impact

The proposed deregulation is expected to have significant implications on state law concerning the regulation of telecommunications services. Notably, it will affect companies delivering services in regions with populations greater than 30,000 by restructuring the distribution of subsidies from the universal service fund. Furthermore, a company operating in a deregulated market would no longer receive support from this fund if the local market exceeds this population threshold, which could leave smaller or underserved areas without adequate telecommunication services.

Summary

SB986 is a legislative bill aimed at the deregulation of certain telecommunications markets and companies in Texas. The bill seeks to amend the Utilities Code, allowing the Public Utility Commission to impose less burdensome regulations on certain telecommunications utilities that are not classified as public utilities. This change is intended to streamline operational requirements and reduce regulatory burdens on deregulating or transitioning companies. The introduction of this bill reflects a broader trend towards deregulation in the telecommunications industry, aiming to foster competition and improve services in various markets across the state.

Contention

The bill has sparked discussions on the potential risks associated with deregulation, specifically regarding service quality and access in less populated areas. Proponents argue that reducing regulatory constraints will encourage competition, potentially leading to better service options and pricing for consumers. However, opponents warn that deregulation might disadvantage rural communities and lead to diminished service standards. The tension reflects a broader debate on local versus state regulatory control and the adequacy of protections for consumers in increasingly competitive markets.