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Dispute over wireless local service before the ND Supreme Court

By Dave Thompson

Bismarck, ND – A Dickinson telephone company says the North Dakota Public Service Commission should regulate a cellular company that is providing competing local service in Regent.

Consolidated Telephone has taken that contention to the North Dakota Supreme Court.Western Wireless -- also known as Cellular One -- has been offering local service in Regent using what's been called a "tellular" phone. It looks like a lap-top computer, and the customer has to plug a handset into it. The P-S-C says because it uses wireless technology, it has no authority to regulate. But Consolidated argues that the phone system is not very mobile -- and should follow state law.

Michael Maus of Dickinson is Consolidated's attorney.

"The question is, who regulates that service. And we're saying, when it's a replacement for local telephone service, it should be subject to the same regulation that the land line company is."

But Western Wireless says the system is mobile, and uses cellular technology -- which is governed by the Federal Communications Commission. Mark Aayot represents Western Wireless.

"It's a transmitter capable of operating while in motion. That is an FCC regulation which the Commission determined, based on the facts, that the wireless access unit is capable of operating while in motion. It may be clumsy. There is no evidence in the record to support that -- that's their claim."

At stake is money from the federal universal service fund...which provides subsidies for companies that serve sparsely-populated and high-cost areas. Consolidated argues that the pool of money will shink that much more...and the local company with millions of dollars invested in its lines will lose out.

The high court is considering that case.