Local Competition

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Local Competition

ALLOWING LOCAL EXCHANGE COMPETITION EFFECTIVE JANUARY 1, 1996 -- SENATE BILL 1554 Through passage of Senate Bill 1554 during the 1995 legislative session, Chapter 364, Florida Statutes, was revised substantially to allow for local exchange competition effective January 1, 1996. The main thrust of these statutory changes was to permit competitive local exchange companies to operate and to allow incumbent local exchange companies to elect price regulation.

Incumbent local exchange companies and competitive local exchange companies enter into inter-carrier contracts, which are generally called interconnection agreements. These contracts may include provisions regarding interconnection of networks, unbundling of network elements, resale of services, and collocation of facilities. Parties to interconnection agreements are expected to negotiate rates, terms, and conditions wherever possible, and to petition the Commission in the event an agreement cannot be reached.

To search for interconnection agreements, use the Negotiated and Arbitrated Agreement Tracking System.

According to Chapter 364, Florida Statutes, services for price regulated local exchange companies fall into five broad categories: basic, non-basic, network access, local interconnection, and unbundling and resale. Pricing flexibility and notice periods vary according to the service category. Network access rates are capped, while basic and non-basic rates may be adjusted up or down subject to some aggregate constraints. Tariff filings by price regulated local exchange companies are also handled on a more expedient basis, with notice periods of 1 to 30 days, depending on the nature of the filing. Under traditional rate-of-return regulation, most local exchange company tariff filings had been subject to a 60 day notice period.

ROLE OF THE DIVISION OF REGULATORY COMPLIANCE

The Division of Regulatory Compliance is responsible for providing information and making recommendations to the Commissioners on matters concerning telecommunications. In addition, the Division provides telecommunications information and assistance to members of the general public as well as other governmental bodies. Telecommunications companies currently regulated by the Florida Public Service Commission can be viewed by clicking on the following:

Types of Regulated Telecommunications Companies

INCUMBENT LOCAL EXCHANGE COMPANIES (ILECs)

Incumbent Local Exchange Companies are defined as telephone companies that were historically granted exclusive franchises to build, maintain, and provide local telephone service. Incumbent local exchange companies were certificated by the Commission to provide local exchange telecommunications service in this state on or before June 30, 1995. Ten incumbent providers of local exchange telecommunications service are operating in the state of Florida. Of the ten incumbent local exchange companies, nine are price regulated and one is rate-of-return regulated. Use the Master Commission Directory to view a list of the incumbent local exchange companies, their mailing address, location, contact information, regulation information (company code and number of certificates), current dockets, and links to the Company's Home Page (if available):

COMPETITIVE LOCAL EXCHANGE COMPANIES (CLECs)

Competitive local exchange companies are defined as any company, other than incumbent local exchange companies, certificated by the Commission to provide local exchange telecommunications services in this state on or after July 1, 1995. Competitive local exchange companies providing services in the State of Florida after July 1, 1995, must be certificated by the Florida Public Service Commission, and competitive local exchange companies are required to file a price list specifying their rates and charges for basic local telecommunications service. Certificate authority is on a statewide basis, except where prohibited. The Master Commission Directory contains a listing of the competitive local exchange companies, their mailing address, location, contact information, regulation information (company code and number of certificates), current dockets, and links to the Company's Home Page (if available).

BARRIERS FOR COMPETITIVE LOCAL EXCHANGE COMPANIES

Competitive local exchange companies are striving to penetrate the local telecommunications market, as a result of the 1996 Telecommunications Act. This legislation has placed the industry in a pro-competitive environment, allowing many new competitive local service providers the chance to compete in this evolving industry. The following is a non-inclusive list of some of the potential barriers to entry for competitive local exchange companies:

Name recognition of incumbent local exchange companies
Building awareness of entrants and their services
Lack of a network infrastructure for facilities-based providers
Development of resale and operational arrangements
Start-up costs
Interconnection arrangements
Unbundling
Number Portability
Operations and maintenance
Customers service (including billing systems)

While we acknowledge that the above list includes potential barriers, these barriers are not insurmountable. We believe that consumers stand to benefit from increased competition, because more competition should result in lower prices, creative service offerings, and greater choice and flexibility in the market place.

Last updated July 10, 2006