Advocate lauds
PUC action

Star-Bulletin staff

A proposed Public Utilities Commission ruling that sets broad parameters for increased competition in the telecommunications industry represents a major victory for consumers, the state's consumer advocate says.

The PUC proposal will help bring more competition, which ultimately will benefit consumers, Chuck Totto said yesterday.

The PUC last week issued a draft ruling to help determine how GTE Hawaiian Tel, the dominant provider of local phone service, will charge competitors wanting to use GTE's network for their own customers.

Deciding such issues is crucial for potential competitors so they can determine whether to challenge GTE's near-monopoly in the local dial-tone market, especially for residential service. Among other issues that must be decided: how competing systems will connect with each other and whether GTE is allowed to restructure its phone rates.

In its current form, the telecom ruling would dramatically cut what GTE wants to do, Totto said.

The commission, for instance, rejected surcharges GTE proposed for its customers to offset revenue lost because of competition, he said. If the draft ruling is adopted, GTE likely will have to lower the rate increases it is proposing, Totto said.

The PUC has scheduled a Dec. 9 hearing to get industry comments before it makes a final decision.

GTE declined to comment about specifics of the proposed ruling. "We are still studying the commission's preliminary decision and may not agree with all of its findings, but in general we commend the efforts of the (PUC) and the even-handed approach they have taken," the company said.