BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 991
                                                          Page  1

Date of Hearing:   April 20, 1999

          ASSEMBLY COMMITTEE ON INFORMATION TECHNOLOGY 
                        John Dutra, Chair
           AB 991 (Papan) - As Amended:  April 19, 1999
  
SUBJECT  : Internet Access: line sharing

  SUMMARY  : Requires Public Utilities Commission (PUC) to monitor  
and participate in considering the possibility of two-carrier  
line sharing with the Federal Communications Commission (FCC).  
Specifically,  this bill  :  

1)Enacts the California High Speed Internet Access Act of 1999.

2)Makes Findings related to the deployment of advanced  
  telecommunications services.

3)Requires PUC to establish rules and regulations in a  
  proceeding with FCC.

4)Requires PUC to implement rules and rates for line sharing.

  EXISTING LAW  Under the Public Utilities Act, the Public  
Utilities Commission has the authority to regulate public  
utilities, including telephone corporations.

  FISCAL EFFECT  : Unknown; Administration costs to PUC and FCC to  
establish rules and regulations for the implementation of line  
sharing.  Administration costs to PUC for the implementation of  
the rules and rates for line sharing.

  COMMENTS  : 

  Need for Bill:
  
According to the author's office, "competitors deserve equal  
access to the DSL market.  Consumers are entitled to more than  
one choice in residential DSL services.  This bill ensures a  
competitive market for this new technology by directing the PUC  
to establish rules and regulations that permit interconnection  
by competitors to provide DSL services on a non-discriminatory  
basis."

  Proposed Legislation at Federal Level








                                                         AB 991
                                                          Page  2

  
At the Federal level, Senator John McCain (R-Ariz.) is to  
introduce legislation that would require the Commerce Department  
to investigate and report its finding to the panel regarding how  
future consumers will connect to the Internet using new  
high-speed data pipelines.  
  





Proposal Limited to Telephone Companies:  

The cable industry plans to spend $10 billion on the development  
of high speed Internet connections and upgrades through the end  
of this year.  High-speed connections, whether through cable or  
telephone lines, will enable better performance and create a  
more consumer-friendly environment through increased  
competition.  Comprehensive planning efforts surrounding high  
bandwidth connections, high-speed Internet access, and any other  
advanced telecommunications technology cited in the finding and  
declarations should not be limited solely to incumbent local  
exchange carriers, but reflect all options available to  
consumers. 
  
  REGISTERED SUPPORT / OPPOSITION  :   

  Support  
High Speed Internet Access Coalition (HiSAC)
MCI Telecommunications Corporation
COVAD Communication Company
Northpoint Communications, INC.
Qwest Communications
Network Associates
Information Technology Association of America (ITAA)
CompTel-Competitive Telecommunications Association
Emptor
Zyan Communications
CALTEL- California Association of Competitive Telecommunications  
Companies
Digital Generation Systems
John D. Wirth, Professor at Stanford University
CalBurg-California Broadband Users' Group
Busch International








                                                          AB 991
                                                          Page  3

Information Technology Ventures
ALTS-Association for Local Telecommunications Services
Direct Network Access
Brainstorm Networks
InterWest Partners
Rythms NetConnections, INC.
GST Telecom, INC.
El Dorado Ventures
L.R. Webb (Los Angeles)
MediaFlex, INC.
Matthew Eash (San Francisco)
Jeff & Mandy Rubin (Pleasanton)
Paula Bailey (Antioch)
Jean Davidson (Redwood City)
James Stevenson

  Neutral
  Pacific Telesis
  
Opposition  
None on File
  

Analysis Prepared by  :    Laura Crawford / INFO. TECH / (916)  
319-3945