NY AG Criticizes State's Own Ongoing Telecom Assessment
New York State’s assessment of telecom came in for criticism from the state’s attorney general, Eric Schneiderman (D). The AG and consumer groups took the Public Service Commission to task for what they said was a good review in theory but one that in practice is flawed. They sought more public involvement, among other things.
Schneiderman sent the PSC a letter urging the commission to initiate a formal proceeding in front of an administrative judge. Consumer group Stop the Cap sent a letter to the PSC the next day, Wednesday, reiterating similar points and criticizing the locations chosen for public hearings and the nonadversarial environment of these events. The Connect New York Coalition exchanged letters with the commission at the end of June through the beginning of July, citing its disappointment in the timeline of the assessment over the past year. The public involvement, including that of state and local public officials, consumer groups, the telecom industry, labor and economic development organizations, and other interested stakeholders, is essential to the establishment of a clear and concise record in this proceeding, which will enable the commission to chart a better path regarding the future of telecom in the state, the a spokesman for the PSC said.
If the PSC held a formal proceeding, it could learn whether there is adequate competition for broadband service throughout the state and whether there are any areas that are still essentially cable monopolies, the AG's letter said. Schneiderman also said the proceeding could discover whether telecom companies are making honest representations about infrastructure buildouts and if consumers are satisfied with available voice services. It could find out whether Verizon is adequately upgrading or repairing its copper wire infrastructure, said Schneiderman. “To fully understand the impact of deregulation on consumers and businesses, I urge you to initiate a formal proceeding in accordance with Article 1, Section 5 of the Public Service Law and 16 [New York Codes, Rules and Regulations] Part 3. Such a proceeding, in front of an administrative judge, provides for evidence-gathering, allows for cross-examination and counter-evidence, and concludes with a final order or decision by the PSC.”
Stop the Cap agrees with Schneiderman that the PSC should open a formal proceeding because without a real record of the facts, there is no hope of fixing the problems that exist in the telecom industry in the state, said Director Phillip Dampier. In addition to the recommendations the AG made in his letter, Dampier said, the PSC needs to give wider notice to consumers to comment. He said the PSC should also utilize social media and video streaming services so consumers who can’t make it to a meeting have the option to know what's being said. It would also be helpful if the PSC provided the public with an agenda explaining its plans for this process, Dampier said. Also, there needs to be "a formal hearing process that is on the record, with an administrative law judge who is sitting there and taking testimony -- preferably under oath -- asking providers pointed questions,” he said. “Then instead of having consumers complaining about 'My phone doesn't work.' And providers saying 'These are just isolated incidents, it's anecdotal evidence.' You would actually have a process that actually sees how people are being served.”
The PSC recently completed a series of 15 public statement hearings in nine locations statewide that were attended by more than 800 people, emailed a commission spokesman. No final decision has been made in terms of next steps in the review process, he said, but everything remains on the table, including holding possible evidentiary hearings. “Our goal is to improve the state of telecommunications in New York and improve customer service and options,” the spokesman said. “That is why we commenced this review. We just completed an extensive public hearing phase and we are still receiving written public comments. We have always maintained that additional process may be necessary to complete the record. We will consider the Attorney General’s recommendations.”
The Connect New York Coalition’s letter aired the same concerns, but also included its concern that millions of New Yorkers have telecom systems that are "neither socially nor economically adequate." It said the system, for many, operates in violation of the laws of the state and while a staff assessment is welcome, it’s not a remedy.