MO SB698

Adds section 392.605 to Missouri law requiring incumbent local exchange telecommunications companies to reduce intrastate switched exchange access rates by 10 percent annually until rates equal interstate rates by December 31, 2019.

Exempts 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 from the rate reduction requirement.

Defines "composite" rates as the sum of all traffic-sensitive and non-traffic-sensitive tariffed rate elements for originating and terminating switched exchange access service, excluding Federal Communications Commission-approved subscriber line charges.

First 10 percent reduction must occur by December 31, 2010, with subsequent reductions occurring annually on December 31 through 2019.

Defines "rural alternative local exchange telecommunications company" as alternative local telecommunications companies that possess a certificate of service authority, have approved tariffs, own at least 60 percent of distribution facilities to end users, and have more than 90 percent of customers in third-class counties as of December 31, 2009.