Section 63-9A-5.1 - Mid-size carriers; separate regulation. - New Mexico Statutes

63-9A-5.1. Mid-size carriers; separate regulation.

A.     As used in this section:

(1)     "basic services" means retail telecommunications services that provide residence or business customers with an individual primary line providing voice grade access to the public switched network; and

(2)     "non-basic services" means retail telecommunications services that are not a basic service, a switched-access service or a wholesale service governed by an interconnection agreement.

B.     The commission shall regulate mid-size carriers separately from other telecommunications companies regulated by the commission in accordance with the provisions of this section and in such a manner as to:

(1)     minimize regulatory costs;

(2)     differentiate mid-size carriers from other telecommunications companies and establish a level of regulation between the levels of regulation applying to rural carriers and other incumbent local exchange carriers;

(3)     ensure the continuance of universal service, investment in telecommunications infrastructure and availability of affordable rates for basic local service; and

(4)     encourage competition and economic growth and development through the efficient deployment of telecommunications services in areas of the state served by mid-size carriers.

C.     In adopting its rules to regulate mid-size carriers, the commission:

(1)     shall consider the operational and technical effects of the following factors that differentiate mid-size carriers from other telecommunications companies:

(a)     number of access lines served by mid-size carriers;

(b)     types of markets served by mid-size carriers;

(c)     prices on file with the commission and charged by other telecommunications companies operating in the state for services comparable to those offered by mid-size carriers;

(d)     service quality and consumer protection requirements applicable to mid-size carriers;

(e)     historical performance of mid-size carriers pertaining to quality and consumer protection; and

(f)     the experience of local exchange carriers operating and providing service within the state under current or previous forms of regulation; and

(2)     shall consider rules of general applicability governing all telecommunications carriers in the state.

D.     The commission shall adopt rules that prescribe reasonable price ceilings and the means to change prices for basic local services. The commission shall adopt an objective mechanism by which mid-size carriers may periodically adjust the price ceiling for basic services. In adopting rules to implement this subsection, the commission shall consider using an annual publication published by the federal communications commission or comparable relevant data. This objective mechanism shall be used to establish an indexed price ceiling to limit increases in prices for basic residence local exchange service and basic business local single-line exchange service.

E.     The provisions of Subsection D of this section notwithstanding, the commission may increase a mid-size carrier's basic service prices as part of a revenue-neutral price rebalancing to a level above that otherwise allowed by applicable rules.

F.     The commission shall adopt rules:

(1)     creating reasonable quality of service and consumer protection standards for mid-size carriers;

(2)     allowing reasonable pricing flexibility for non-basic services and prescribing an objective mechanism by which mid-size carriers may change prices for non-basic services; and

(3)     ensuring that the terms and conditions for non-basic services offered by mid-size carriers further the public interest.

G.     Once a mid-size carrier is subject to regulations adopted pursuant to this section, it may introduce or withdraw non-basic services, bundle and package non-basic services and products with other services and products, including basic services. The services offered shall be priced above cost and provided throughout the mid-size carrier's service area to the extent the necessary facilities are available. The introduction of new services, withdrawal of existing services or price adjustments for non-basic services shall become effective upon a tariff filing and ten days' notice to the commission; provided that the commission may suspend the introduction, withdrawal or adjustment under circumstances limited to:

(1)     ensuring compliance with applicable rules;

(2)     cost considerations; or

(3)     a finding that the tariff filing is not consistent with the public interest.

H.     A mid-size carrier may petition the commission for a waiver of a rule for good cause shown."