LANSING – A fund that could help smaller telecommunication providers in Michigan bring their intrastate access rates more in line with federal standards would stymie innovation in the industry, a lobbyist for Verizon Communications told the House Energy and Technology Committee on Tuesday.

Dave Vehslage, Verizon’s lobbyist, testified on HB 4257 , which would ban telecom providers with less than 250,000 customers from charging access rates above those charged for interstate access.

A substitute for the legislation would create a fund paid for by providers of retail intrastate telecommunication services, commercial mobile services and voice over Internet protocol services that would reimburse incumbent local exchange carriers for lowering their rates.

Vehslage said Verizon supports the concept of the bill in that it deals with “excessive” access rates, but he added the substitute is “a very bureaucratic way to solve the issue.”

Wireless and voice over Internet protocol customers would pay into a fund from which they would not benefit, he said, and the bill doesn’t specify how big the fund could get while it’s in existence.

“What’s that do for the next big idea in telecom if we continue to subsidize the older technology,” Vehslage said.

Smaller carriers like Climax Telephone Company have told lawmakers that forcing them to charge rates below the federal standards would cut into their revenue. Jim Burnham with the telephone company said they could lose as much as $450,000 in revenue under the legislation. That will affect the company’s ability to expand and improve its technology, he said.

The committee did not vote on the legislation during its hearing and the bill sponsor, Rep. Tim Melton (D-Auburn Hills), has said he will introduce another substitute that would involve the Public Service Commission more in deciding how carriers justify the access rates they charge.

Linda Teeter, executive director of Michigan Citizen Action, said customers should be informed on what these phone bill fees are paying for and the PSC could offer them that layer of accountability.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

a>>