A small surcharge on phone bills might get a little bigger if lawmakers pass a package of five House bills aimed at reforming Colorado’s telecommunications regulations and spurring rural broadband investment.
After zipping through the House, the bipartisan-backed measures were approved unanimously Wednesday by the seven-member Senate Business, Labor and Technology Committee.
House Bill 1328 would redirect a $54 million program that subsidizes traditional landline service in high-cost areas toward rural broadband development. A 2.6 percent surcharge on all phone bills — copper lines, wireless and Voice-over-Internet-Protocol — funds the program. Providers of VoIP services, which haven’t faced regulation in Colorado, collect the surcharge voluntarily.
A sister measure, HB 1329, would stamp into law that Colorado can’t regulate VoIP and other Internet-based services. Some lawmakers believe VoIP providers such as Comcast would stop collecting the surcharge if HB 1329 passes, creating a $4.5 million shortfall in the high-cost program.
Two Democratic members of the committee — Sen. John Kefalas of Fort Collins and Sen. Gail Schwartz of Snowmass Village — raised questions Wednesday about that scenario.
Schwartz asked whether the surcharge would need to be increased to 2.9 percent to make up the gap.
Pete Kirchhof, who represents Colorado’s rural telephone companies, said the Public Utilities Commission annually determines the size of the high-cost program and amount of the surcharge. The PUC capped the program at $54 million in 2012.
“If we have to raise the surcharges … who’s going to pay for that?” Kefalas asked.
The answer is landline and wireless subscribers in Colorado.
HB 1327 would eliminate state sales tax on broadband equipment and enable carriers to more easily access public rights of way and utility-trenching projects for network build-outs. HB 1330 would update certain telecommunications terms and HB 1331 would deregulate basic phone service.
The measures have broad support from industry.
“It is very difficult for us to continue to serve our customers if we have mandates and requirements that our competitors do not,” Kirchhof said.
Bill Levis, former director of the Colorado Office of Consumer Counsel, testified against HB 1328, 1329 and 1331 on behalf of AARP of Colorado. He raised concerns about consumers’ inability to lodge complaints if the PUC loses regulatory authority over phone service.
“You’re throwing consumers under the bus,” he said.
The measures are headed to the Senate State, Veterans and Military Affairs committee.
Andy Vuong : 303-954-1209, avuong@denverpost.com or twitter.com/andyvuong