LANSING – A bill to essentially allow telecommunications companies to end landline services to customers with a 90-day notice has several big names concerned about ensuring residents have access to reliable voice communication service in the future, but proponents of the bill say consumers are already making the decision to get rid of landlines, and the state needs to get with the times.

The Public Service Commission is among those currently opposed to SB 636 , and Attorney General Bill Schuette issued a statement Tuesday that he has “serious reservations” about the bill.

The PSC told the Senate Energy and Technology Committee Tuesday that one of the fundamental tenants of the telecommunications policy in Michigan is the concept of ensuring access to “reasonable telecommunications services,” and the commission is concerned that won’t be met if the bill passes as written.

Commissioner Greg White said that while it’s often argued that “nobody uses landlines anymore,” the commission would argue that service is still at a “fairly high level.” He said Michigan’s landline service peaked at around 7 million customers. In 2012, there were still about 3 million people who fell under that classification. And while the commission acknowledges the continued decrease of residents with landlines, it still projects the use of about 2.8 million landlines in 2013, 2.53 in 2014 and just under 2 million still using that service by 2016.

“Obviously the number of landlines in Michigan is in decline, and that’s what we see nationally as well,” White said. “We understand that there will be a time when the existing regulatory framework may no longer be beneficial to providers. …However, 2017 may not be that time and unfortunately there’s nothing in this legislation that can assure that voice service is still available to all customers at that time.”

Per a Senate Fiscal Agency analysis of the legislation, within 60 days after publication or receipt of the notice to discontinue services, a person or other provider affected by the discontinuance may apply to the PSC to determine if the discontinuance is authorized. Within 90 days after the notice is published, the PSC may hold a proceeding to determine whether the discontinuance is authorized. The Commission has 180 days from the date a proceeding is initiated to issue its final order.

The provisions would not apply after December 31, 2016, hence the 2017 deadline the PSC noted. Beginning January 1, 2017, a telecommunication provider that provided basic local exchange or toll service could discontinue that service in an exchange with much less difficulty than current law allows.

The bill also gives authority to the Federal Communications Commission to oversee the process, which the PSC also opposed.

“I don’t believe that the FCC looks at issues at the local level the way we do,” White said. “They don’t do the kind of granular analysis that we do, and I have concerns that they would not in fact provide the same level of review that we would. Our notice provisions are more robust than those of the FCC.”

Another major figure with “serious reservations” about the bill is Mr. Schuette, who sent out a statement on Tuesday stating such.

“I am concerned about Michigan’s most vulnerable citizens, the elderly and residents in more rural, outstate Michigan,” Schuette said. “Calling 911 or placing a call from someone’s home to an emergency room or a hospital is of paramount importance to every citizen of Michigan. I would encourage the Legislature to thoroughly review every detail of this proposed legislation in the remaining days of the Senate and House session.”

The Michigan Townships Association stated its position on SB 636 as neutral with some concerns, specifically regarding township office landlines and emergency services when other options are not adequate or readily available. Tom Frazier, legislative liaison with the MTA, said the association would be concerned if residents could not call 9-1-1 in an emergency if other means, such as with a cellular device, were down or had spotty reception.

“We would like to see the implementation period extended somewhat,” Frazier said.

And the Michigan Association of Counties was opposed, stating the same concerns as the MTA, especially as it relates to access in very rural areas of the state. The MAC supported keeping the decision-making process with the PSC instead of the FCC, as well as ensuring that other local options for service were available for residents.

Frontier Communications and AT&T have supported the bill.

“It’s very important to note that this process of transitioning from a traditional landline phone to a communications network that’s based on wireless service is a transition,” said Matt Resch, spokesperson for AT&T. “It’s not something that’s going to happen overnight.”

Resch said 83 percent of all the 9-1-1 calls made on ATT’s network in 2012 were made either on a cell phone or an Internet-serviced phone, and so consumers are already making that transition.

As to concerns about control in the process, Resch said the bill allows the process to go forward “with the guidance of the FCC, with input from the PSC and residents.” And an FCC guideline relevant to this issue states “the FCC will review, taking into account input from state commissioners and residents,” he said.

“This is a process, not an event,” he said. “There is no time when landlines are going to be turned off.”

AARP Michigan on Tuesday said it would send letters to members of the Senate committee to notify them that SB 636 is considered “key vote” legislation and that they intend to inform their members and the public of who votes how on the bill. AARP Michigan opposes the bill for many of the same reasons other opponents do.

“This legislation puts reliable phone service at risk for all Michigan consumers,” said Kelli Fritts, interim state director for AARP Michigan, in a statement. “Telephone service is a basic necessity, particularly for older adults, who are more likely than any other group to rely on landline service to not only maintain social contact but to preserve health and public safety.”

AARP is also concerned that wireless options to landlines are not compatible with medical alert and monitoring systems and home security systems, it said. In addition, there are questions about whether landline alternatives will function effectively with 911 services.

Sen. Mike Nofs (R-Battle Creek), chair of the committee and sponsor of the bill, said he would like to get the PSC comfortable with the bill before sending it to the full Senate for consideration. Asked if he would try to get the bill passed before the end of the year, Nofs said that is largely dependent on working out some of the concerns stated by the PSC and others, though the sooner, the better, he said.

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