MO HB1750

Incumbent local exchange telecommunications companies must decrease composite intrastate switched exchange access rates by six percent annually for three years, beginning by March 1, 2011, based on the difference between interstate and intrastate rates as of the initial reduction date.

Small incumbent local exchange telecommunications companies serving fewer than 25,000 access lines as of January 1, 2010, and rural alternative local exchange telecommunications companies are exempt from the rate reduction requirements.

Rural alternative local exchange telecommunications companies are defined as those meeting four criteria as of December 31, 2009: possessing a certificate of service authority, having approved tariffs on file, providing services over at least 60 percent company-owned distribution facilities, and having more than 90 percent of customers in third classification counties.

Companies affected by rate reductions must submit annual reports to designated House and Senate committees between January 15-30 each year describing their service quality, infrastructure build-out activities, and the financial impact of the rate reduction requirements.

The exemption for rural alternative local exchange telecommunications companies applies only to exchanges where they served existing lines as of December 31, 2009.