BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1734
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1734 (Utilities Committee)
          As Introduced March 26, 2001
          Majority vote

           UTILITIES AND COMMERCE     11-0                                 
           
           ----------------------------------------------------------------- 
          |Ayes:|Wright, Canciamilla,      |     |                          |
          |     |Cardenas, Diaz, Jackson,  |     |                          |
          |     |Kelley, Nation, Papan,    |     |                          |
          |     |Reyes, Simitian, Wesson   |     |                          |
           ----------------------------------------------------------------- 
           
          SUMMARY  :  Sets forth a policy for encouraging the development  
          and deployment of infrastructure to support new technologies for  
          provision of telecommunications services in a way that  
          efficiently meets consumer need and encourages availability of  
          state-of-the-art services.  

           EXISTING LAW  asserts a policy to:

          1)Continue universal service commitment by assuring continued  
            affordability and widespread availability of high-quality  
            telecommunications service to all Californians.

          2)Encourage development and deployment of new technologies, and  
            equitable provision of services in a way that efficiently  
            meets consumer need and encourages the ubiquitous availability  
            of a wide choice of state-of-the-art services.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  This bill advances current policy to encourage  
          development and deployment of new technologies for  
          telecommunications services by adding the commitment to support  
          for development of the infrastructure required to provision  
          these new technologies.  

          California's economy will depend in large part upon the state's  
          ability to provide state-of-the-art communications networks and  
          services to meet the demand of technological development in the  
          world market.  This bill affirms California's commitment to  
          development and deployment of the infrastructure necessary to  
          ubiquitously deploy such advanced services to residential and  








                                                                  AB 1734
                                                                  Page  2

          business customers throughout the state.  More importantly, the  
          policy is geared toward efficiently meeting consumer need and  
          equitable provision of services, presumably across carriers and  
          technologies.

          The universal service policy promulgated in this bill advances  
          California's telecommunications objectives firmly into the 21st  
          century in a non-discriminatory manner that is economically  
          efficient.  Support of infrastructure development (on a policy  
          basis and to provide for economic and financial incentives as  
          appropriate) is necessary to also support advancement of the  
          technologies relying upon the infrastructure.  Without adequate  
          infrastructure suitable to support high speed data and voice and  
          other similar technologies, any universal service policy and  
          commitment is essentially hollow.  This bill completes the  
          circle of universal service support for emerging technologies.


           Analysis Prepared by  :    Kelly Boyd / U. & C. / (916) 319-2083  
          FN: 0000641