Members of the Matanuska Telephone Association throughout the Mat-Su Borough recently received a ballot asking whether the telecom company should be exempt from regulation by the Regulatory Commission of Alaska.
Most of MTA’s services are already outside of the jurisdiction of the RCA. The only service that is still regulated at the state level is landline telephones. Other services, including wireless phones, television, and Internet, would continue to be regulated by the Federal Communication Commission.
Carolyn Hanson, Director of Marketing and Sales, says deregulating will save MTA members $175,000 annually by eliminating the state administrative fee that goes to the RCA. Hanson says that many customers won’t see a big difference in their phone bill, but some larger entities will.
“Residential customer, obviously a smaller [Regulatory Commission] Charge, but your school district and some of your larger government entities—the Mat-Su Borough School District will save about $18,000 annually.”
Mostly, the RCA regulates rate increases and tariffs. It also acts as a consumer protection entity. Rodney Crum, Chief of Consumer Protection and Information with RCA, says that the agency would still take calls from MTA customers if deregulation passes, but that the company’s landline service would fall under federal jurisdiction.
Carolyn Hanson says one of the most common questions from MTA members is what will happen after the RCA no longer has to approve rate increases. She says that MTA has not raised its landline rates in two decades and does not currently plan to in the near future.
“When you’re in a competitive market, the market sets the rates, so if we went out and raised our rates, and we weren’t competitive, which today we are competitive. GCI competes for our local service in our market, so that’s not something that MTA is looking to do.”
Rodney Crum with the RCA says that, if MTA deregulates and members don’t like the results, it is possible to bring the company back under state purview.
In order for the deregulation attempt to succeed, fifteen percent of the membership has to vote on the mail-in ballots, and a simple majority of those votes must be in favor of deregulating.
More information is available from MTA.
