BILL: HB 1182

SUBJECT: Exempting Institutions of Higher Learning from Telecommunications Regulation

DESCRIPTION: The University system in North Dakota is seeking to be exempt from all telecommunications statutes in the State, although they are a substantial provider of telephone service. The University of North Dakota serves 6,540 lines, while North Dakota State University has 4,587 customers. The University system argues that they should be exempt from any regulation because they only serve the "university community." Public Service Commission staff has already investigated the service at UND and determined they are both a reseller and a facilities-based telecommunications carrier because they provide service to non-university entities both on and off campus.

IMPACT OF INDEPENDENT TELEPHONE COMPANIES: Although the impact on most rural telephone companies is muted due to Qwest Communications serving most of the cities in which the larger institutions are located, the Association believes that it is inappropriate for the University system to become completely exempt. Nor do we underestimate the potential impact that it will have on those independent telcos such as Souris River Telecommunications and Consolidated Telecommunications who serve communities where institutions of higher learning are located. Additionally, the Association also believes that allowing the university system to become exempt would allow them to offer their service to an unlimited number of people, including the homes of university employees, alumni, businesses within the communities and, even, the public at large.

ASSOCIATION RECOMMENDATION: Oppose HB 1182 unless amendments are adopted limiting the universities’ telecom service offerings to its own offices, students in its dormitories or other housing maintained by the university and others offering their services primarily to the institution and not the public generally.