NE LB4

Creates the Telecommunications Exchange Deregulation Act allowing local exchange carriers with certificates issued on or before February 8, 1996 to petition the Public Service Commission for deregulation of specific exchanges

Mandates deregulation for exchanges with population of at least 100,000 inhabitants, or for smaller exchanges where at least two other carriers provide voice communications service throughout the exchange

Removes carrier of last resort obligations, service quality standards, rate restrictions, and earnings reporting requirements for fully deregulated carriers; prohibits these carriers from receiving Nebraska Telecommunications Universal Service Fund support

Establishes "transitioning carrier" status for carriers with some but not all exchanges deregulated, allowing reduced regulatory requirements in deregulated exchanges while maintaining existing obligations in regulated exchanges

Requires the commission to decide deregulation petitions within 90 days and grants authority to adopt rules for administering the act, including standards for reregulation