MN SF736

Establishes a new regulatory framework allowing local exchange carriers to petition the Minnesota Public Utilities Commission for competitive market regulation in specific exchange service areas.

Defines "competitive service provider" as a provider owning a substantial proportion of last-mile facilities delivering local residential voice service, including wireless and VOIP providers but excluding satellite technology, wholesale resellers, and over-the-top VOIP providers.

Sets two approval standards: carriers serving fewer than 50% of households need only demonstrate that 50% of households can choose from at least one alternative competitive provider; carriers serving more than 50% must additionally prove no significant market entry barriers exist and no single provider can maintain above-competitive prices.

Approved carriers become subject to regulation as telecommunications carriers under Minnesota law and competitive local exchange carrier rules, with existing alternative regulation ending 30 days after approval.

Commission may reexamine whether competitive criteria continue to be met and adjust regulation accordingly if conditions change in an approved exchange service area.