SB 12-157: Telecommunications Modernization Act of 2012

• Eliminates price controls for most retail telecommunications services except basic local exchange service for residential customers and emergency 911 service in areas without sufficient competition.

• Requires local exchange carriers to phase in rate reductions to align intrastate switched access rates with their interstate rates by January 1, 2014.

• Reduces and phases out the Colorado High Cost Support Mechanism (HCSM) by capping it at $40 million annually starting April 1, 2013, and eliminating it entirely by January 1, 2025.

• Creates a Broadband Capital Investment Fund, with 50% of HCSM savings from non-rural incumbent carriers losing support in competitive areas transferred to this fund for broadband infrastructure in unserved areas until 2025.

• Expands definitions of competitive services including IP-enabled services (VoIP), broadband services, and commercial mobile radio services (CMRS) to reduce regulation, while maintaining commission oversight of basic service in areas with insufficient competition.