Nevada Senate votes to prohibit regulation of broadband services

Ryan Pearson

Tuesday, April 22, 2003 | 9:46 a.m.

CARSON CITY -- The state Senate on Monday unanimously approved a stripped-down bill that prevents Nevada from regulating broadband services such as high-speed Internet.

The measure also allows billing for packaged services to include only one overall price, not costs of each part of the package or "unit" pricing. It's similar to legislation introduced in several other states by telecom giant SBC Communications and was backed in Nevada by Sprint.

Senate Commerce and Labor Chairman Randolph Townsend said SB400 would allow for "innovative" pricing plans and help phone companies expand service offerings.

"The only way you're going to have a healthy, vibrant local exchange company is to allow them to make money elsewhere," the Reno Republican said.

Nevada's AARP objected to the legislation, noting that broadband services will likely be so widespread in coming years that rate regulation may be needed. But Townsend warned that prices for other services could rise with tight regulation of high-speed Internet.

"If we don't allow flexibility and allow people to be able to mix and match based on market-driven conditions not government-driven conditions, I think we're going to raise rates in the future," the Reno Republican said.

In a voice vote, lawmakers rejected a proposed amendment by Senate Minority Leader Dina Titus, D-Las Vegas, to specify that the intent of the bill was not to move toward deregulation of residential or business telecom service.

The bill allows for "alternative" regulation of 3-5 years for some business telecom services, a provision Townsend said would result in "trickle down" of more inexpensive services to home customers.

Phone service and cable companies denounced an earlier version of the bill they said would have essentially deregulated local residential phone service and flattened competition to former monopoly companies.

Most agreed with the amended bill, which retains current law allowing the Nevada Public Utilities Commission to decide when to regulate a certain service. Cable company Cox Communications was pleased with the amended version but phone giant AT&T said it would hurt consumers and limit choice.

The measure heads to the Assembly. If approved there and signed into law by the governor, it would be effective immediately.