Information Technology Toolkit

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Intellectual Infrastructure

Telecommunications Infrastructure

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Frequently Asked Questions

Infrastructure Development FAQs (Page 1)

Understanding the Regulatory Environment FAQs (Page 2)

The Telecommunications Act of 1996 (the Act), was the first major Congressional overhaul of the communications industry since the Communications Act of 1934.   Significantly, the Act was designed to open up the local markets to competition and to create incentives for the investment in and deployment of advanced telecommunications services.   The framework of the Act provides for these goals by removing barriers to entry and requiring local exchange carriers to provide access and interconnection to all competing carriers.  Special compliance incentives were imposed upon regional bell operating companies, such as Qwest, through section 271 of the Act.

Through a concept identified as Universal Service, the Act was also designed to create affordable access to telecommunications services to all Americans.   Particular emphasis was placed on affordability for schools, libraries and rural health care providers.

Congress further provided a mechanism for telephone companies providing video programming and made it unlawful for persons to transmit indecent or obscene materials over telecommunications equipment or computers.  

The Common Carrier Bureau (CCB) is responsible for the FCC's policies and rules concerning long distance and local wireline telephone service to consumers. Telephone companies generally provide consumers with voice, data and other telecommunication transmission services. The CCB ensures that everyone has rapid, efficient, nationwide and worldwide access to these services at reasonable rates.

The Bureau oversees programs that ensure all Americans have universal access to telephone service. Among these programs are:  Lifeline and Linkup, E-rate, Rural Health Care, High Cost Fund and Telecommunications Relay Services. 

CCB is also responsible for consumer protection in telecommunications. It develops rules and policies to protect consumers from slamming and cramming, and ensures Truth-in-Billing and Truth-in-Advertising. 

For more information, see the FCC's Web site, www.fcc.gov .

(Back to Telecommunications Infrastructure FAQ Page 2 Index)  

The PSC is responsible for determining the companies that are allowed to enter the telecommunications markets in Nebraska, and regulating the quality of the service they provide and, upon petition by customers, the rates they charge.  The PSC also receives and investigates all types of complaints lodged against telecommunications carriers certificated by the PSC.  Additionally, the PSC resolves disputes between providers of telecommunications, often arising from interconnection agreements that allow the providers to connect their networks and compete.

Annually, the PSC reports to the Nebraska Legislature on the quality of telecommunications service provided, its affordability and the level of rates in Nebraska.  This report is posted on the PSC Web site, www.nol.org/home/NPSC/ .  

The Commission has service quality rules (PDF file) that may be found on the PSC Web site.  Telecommunications is a competitive industry per federal law.  Thus, few requirements exist as to services that must be provided.  All local telephone providers are required by the PSC to provide access to emergency or 911 service.

Further, to qualify for funding from the Nebraska Universal Service Fund, which provides support for high-cost telephone service, a carrier must provide single-party service; touch-tone; standard "white page" listing; access to directory assistance; access to interexchange services; access to operator services; and toll blocking for qualifying low income consumers. 

Competition largely drives what services are provided.  This may be changed by legislation.  

The Nebraska Universal Service Fund (NUSF) helps to maintain affordable telephone service in all areas of the state and assists qualifying low-income Nebraskans in obtaining telephone services. The NUSF covers basic local service and instate long-distance service.

The Federal Universal Service funds is designed to accomplish the same goals as the NUSF.  Based on a U.S. Supreme Court decision, the costs to provide telephone service are separated between the states and the federal government.  The NUSF deals with the States' portion of the service costs and the Federal fund with the federal portion.

Current estimates indicate that the NUSF surcharge would need to be between 20% and 30% (3-4 times higher) to cover broadband access.

LATA  stands for Local Access and Transport Area.  As a general rule, a LATA is an area served by a single local telephone company.  In Nebraska, however, Qwest serves areas that are in two separate LATAs.  Presently, Qwest may not provide service that crosses the LATAs' boundary.  It must be provided by a long distance carrier.

A PSC position on whether or not Qwest has met the checklist requirements found in Section 271 of the 1996 Act is expected later this year or early in 2002, subsequent to the Operational Support System testing which is currently underway.  Once Qwest satisfies the checklist and upon FCC approval, it may provide service that crosses LATA boundaries.