Administrative Rules of the State of Montana

BEFORE THE DEPARTMENT OF PUBLIC SERVICE REGULATION

OF THE STATE OF MONTANA

In the matter of the amendment of ARM 38.5.1307 and the repeal of ARM 38.5.1305, 38.5.1309, 38.5.1311, 38.5.1313, and 38.5.1315 pertaining to Telephone Extended Area Service

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT AND REPEAL

TO: All Concerned Persons

1. On April 2, 2015, at 1:30 p.m., the Department of Public Service Regulation will hold a public hearing in the Bollinger Room at 1701 Prospect Avenue, Helena, Montana, to consider the proposed amendment and repeal of the above-stated rules.

2. The Department of Public Service Regulation will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Public Service Regulation no later than 5:00 p.m. on March 28, 2015, to advise us of the nature of the accommodation that you need. Please contact Aleisha Solem, Department of Public Service Regulation, 1701 Prospect Avenue, Helena, Montana, 59620-2601; telephone (406) 444-6170; fax (406) 444-7618; TDD/Montana Relay Service (406) 444-4212; or e-mail [email protected].

3. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:

38.5.1307 EAS -- GENERAL (1) The repeal of these rules does not affect the status of any existing EAS program. ~~To qualify for EAS the exchanges in an exchange-to-exchange EAS must be adjoining. Exchanges within a designated region must be contiguous to the region (within or adjoining at some point).~~

~~(2) When implemented, exchange-to-exchange or regional, EAS shall be mandatory (not optional) and shall be two way between the affected exchanges.~~

~~(3) These rules do not affect the status of any existing EAS program, but will be applied to expansion or modification of such programs, exchange-to-exchange and regional.~~

AUTH: 69-3-103, MCA

IMP: 69-3-301, MCA

REASON: The Telephone Extended Area Service (EAS) rules were adopted in 1995 when the telecommunications market in Montana was virtually a monopoly for the wireline incumbent local exchange carriers (ILECs). In 2015 that is no longer the case. The Montana telecommunications marketplace is now extremely competitive with consumers having access to numerous providers of telecommunication services that are substitutes for traditional ILEC wireline service such as wireless service, VoIP service, and services provided by competitive local exchange carriers such as cable providers. Because of the changes in the telecommunications industry in the last 20 years, the existing rules are obsolete, unworkable, and are actually anti-competitive in that the very rules designed to expand local calling areas can now stymie the expansion of local calling areas.

4. The department proposes to repeal the following rules:

38.5.1305 DEFINITIONS

38.5.1309 EAS PROCEDURE -- GENERAL

38.5.1311 EAS PROCEDURE -- REGIONS

38.5.1313 EAS PROCEDURE -- PHASE I, COMMUNITY OF INTEREST DETERMINATION

38.5.1315 EAS PROCEDURE -- PHASE II, COST ANALYSIS AND RATE DESIGN

AUTH: 69-3-103, MCA

IMP: 69-3-301, MCA

5. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Aleisha Solem, Department of Public Service Regulation, 1701 Prospect Avenue, Helena, Montana, 59620-2601; telephone (406) 444-6170; fax (406) 444-7618; or e-mail [email protected], and must be received no later than 5:00 p.m., April 10, 2015.

6. The commission, a commissioner, or a duly appointed presiding officer may preside over and conduct the hearing.

7. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 5 above or may be made by completing a request form at any rules hearing held by the department.

8. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

9. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

10. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment and repeal of the above-referenced rules will not significantly and directly impact small businesses.

/s/ JUSTIN KRASKE /s/ BRAD JOHNSON

Justin Kraske Brad Johnson

Rule Reviewer Chairman

Department of Public Service Regulation

Certified to the Secretary of State March 2, 2015.