HOUSE SPECIAL COMMITTEE ON TELECOMMUNICATIONS                              
                  December 11, 1997                                            
                      9:10 a.m.                                                
                  Anchorage, Alaska                                            
                                                                               
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
STATUS OF THE TELECOMMUNICATIONS INDUSTRY IN ALASKA                            
                                                                               
TAPE(S)                                                                        
                                                                               
97-1, SIDE(S) A & B                                                            
97-2, SIDE(S) A & B                                                            
97-3, SIDE(S) A & B                                                            
97-4, SIDE(S) A & a portion of B                                               
                                                                               
CALL TO ORDER                                                                  
                                                                               
Representative Porter, Chairman, convened the House Special                    
Committee on Telecommunications meeting at 9:10 a.m.                           
                                                                               
PRESENT                                                                        
                                                                               
Committee members present at the call to order were                            
Representatives Porter and James.  Representative Ivan was                     
attending via teleconference.  Representative Berkowitz arrived                
at 9:20 a.m.  Another House member present was Representative                  
Kemplen.                                                                       
                                                                               
SUMMARY OF INFORMATION                                                         
                                                                               
JOHN AYERS, e'Net Limited, discussed the size and scope of the                 
telecommunications market today, what it needs to grow and be                  
healthy and what influences are necessary to meet those needs.                 
                                                                               
JERRY DeFRANCISCO, AT&T Alascom, talked about what has changed,                
what has not changed and that open competition is essential.                   
                                                                               
DAVE FAUSKE, Arctic Slope Telephone Association, gave an overview              
of the local exchange telephone companies serving the rural towns              
and villages of Alaska.                                                        
                                                                               
STEPHEN CONN, Alaska Public Interest Research Group (AkPIRG),                  
urged that the consumers' choices need to be protected.                        
                                                                               
ALAN C. EAKER, GTE Alaska Inc., explained how his company is                   
different, and discussed access charges and universal service                  
funds.                                                                         
                                                                               
DEAN RANDALL, GTE Alaska Inc., referenced regulatory issues                    
before the commission.                                                         
                                                                               
TOM EDRINGTON, Anchorage Telephone Utility (ATU), acknowledged                 
that competition is here but a level playing field is not.                     
                                                                               
GREG BERBERICH, Matanuska Telephone Utility (MTA), supports the                
ideals of competition.  He further discussed competing for                     
universal service funds and the role and structure of the Alaska               
Public Utilities Commission (APUC).                                            
                                                                               
STEVE HAMLEN, United Utilities, addressed the barriers to entry                
to long distance markets, universal service and low-income                     
households.                                                                    
                                                                               
CHUCK HENSLEY, Alaska Network Systems, spoke of barriers to                    
competitive entry, the wholesale rate fallacy and the regulatory               
lag.                                                                           
                                                                               
EDWARD CARTER, Ketchikan Public Utilities, spoke to competitive                
rate impacts to rural consumers.                                               
                                                                               
COMMITTEE ACTION                                                               
                                                                               
The committee took no action.                                                  
                                                                               
ADJOURNMENT                                                                    
                                                                               
The meeting was recessed at 4:39 p.m. until December 12, 1997, at              
9:00 a.m.                                                                      
                                                                               
NOTE:                                                                          
                                                                               
This meeting was recorded and handwritten log notes were taken.                
A copy of the tapes and log notes may be obtained by contacting                
the House Records Office at 130 Seward Street, Suite 211, Juneau,              
Alaska, 99801-1182, (907) 465-2214, or after adjournment of the                
second session of the Twentieth Alaska State Legislature, in the               
Legislative Reference Library.