New options for phone companies (new law)

With changing demands and markets, telephone companies are looking for new ways to be competitive.

A telephone company may now elect to be regulated under an existing alternative regulation plan of another telephone company, if the company is larger or an affiliated company, thanks to a new law signed by Gov. Tim Pawlenty May 1. It is effective the next day.

Sponsored by Rep. Mike Beard (R-Shakopee) and Sen. John Doll (DFL-Burnsville), the law allows a telephone company to make this change, if it agrees to operate under the plan for three years or the original term of the plan, whichever is longer.

The company must also cap rates for its services for three years at the levels in effect when the change is made.

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