Massachusetts
2023 Department of
ANNUAL REPORT
Telecommunications
and Cable
mass.gov/dtc
OCABR
The Office of Consumer Affairs and Business Regulation
FY 2022 ANNUAL REPORT
TABLE OF CONTENTS
Letter from Commissioner Charles ............................................................................................... 2
Department Regulatory Responsibilities...................................................................................... 3
Telecommunications Industry Regulation ............................................................................... 5
Cable Industry Regulation ...................................................................................................... 7
FY 2023 Accomplishments.......................................................................................................... 8
Administration Division ................................................................................................................ 9
Competition Division ................................................................................................................... 9
Legal Division ........................................................................................................................... 11
Consumer Division .................................................................................................................... 13
Conclusion ................................................................................................................................ 16
Appendix A FY 2023 Department Orders and Rulings .............................................................. 17
Appendix B FY 2023 Consumer Division Telecommunications & Cable Statistics..................... 20
Appendix C FY 2023 Department FCC Filings .......................................................................... 23
Appendix D FY 2023 Organizational Chart................................................................................ 24
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FY 2022 ANNUAL REPORT
Letter from Commissioner Charles
Greetings,
Thank you for taking time to learn about the Department of
Telecommunications and Cable (“DTC”) and the work we do on behalf
of the Commonwealth, consumers, and the telecommunications
industry. Fiscal Year (“FY”) 2023 was filled with many highpoints, from
a record number of refunds returned to consumers by our Consumer
Division, to outreach events held around the state and comments filed
at the Federal Communications Commission (“FCC”) advocating on
issues that will enhance the communications experience for
Massachusetts consumers. As a result of the increased use of virtual
technology to accommodate routine activities, it has become
abundantly clear that communications services, including broadband
services, are essential to all residents of the Commonwealth. At the
DTC, we work daily to ensure that consumers get connected and stay
connected to our nation’s communications network.
Like many other agencies in the Healey-Driscoll Administration, we “At the DTC, we work daily
continue to operate in a hybrid environment and continue our strong to ensure that consumers
collaboration with telecommunications industry stakeholders. We
fielded complaints and investigated issues on behalf of consumers, get connected and stay
advocated for the Commonwealth and its consumers before the FCC, connected to our nation’s
and held public and evidentiary hearings.
communications network.”
The DTC continues to fight to safeguard the rights of consumers,
especially those that are the most vulnerable. In FY 2023, the
Department secured over $272,000 in consumer refunds and savings,
while investigating 2,124 consumer complaints. We are excited in
executing this hard work, as our consumers need us now more than
ever.
I hope you find the information that follows helpful, and I look forward to
another strong year for the DTC.
Sincerely,
Karen Charles
Commissioner
Department of Telecommunications and Cable
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FY 2022 ANNUAL REPORT
Department Regulatory Responsibilities1
The Department of Telecommunications and Cable (“Department” or “DTC”) is funded through an annual
assessment on telecommunications and cable companies as authorized by the annual General
Appropriations Act and pursuant to Chapter 25C, Section 7 of the Massachusetts General Laws
(“M.G.L.”) and Chapter 19 of the Acts of 2007. The Department’s operating budget for Fiscal Year 2 (“FY”)
2023 was $3,178,295. Any unexpended balances are generally credited to the General Fund.
The telecommunications industry, over which the Department has jurisdiction, is made up of common
carriers, including local exchange carriers, interexchange carriers, operator service providers, payphone
companies, and cable companies. As of FY 2023, 222 telecommunications carriers were registered with
the Department and these companies reported $868,440,335.15 in intrastate telecommunications
revenues for calendar year 2021.3
The cable industry in Massachusetts comprises eight cable television providers serving over 1.5 million
cable video subscribers in 320 of the Commonwealth’s 351 cities and towns. The list of cable providers
licensed to provide service in Massachusetts includes: Charter Communications, Comcast, Cox
Communications, Norwood Light Department, Astound, Breezeline, Shrewsbury Electric and Cable
Operations, and Verizon. Cable providers reported more than $2.4 billion in intrastate cable revenues in
calendar year 2022.4
The Department’s mission is to: (1) oversee the telecommunications and cable industries in accordance
with the statutory obligations imposed by the Commonwealth of Massachusetts and the federal
government; (2) work to ensure that consumers receive high-quality communications at just and
reasonable rates; (3) promote sustainable competition which will increase the welfare of all
Massachusetts residents and businesses; (4) maintain and enforce consumer protections, consistent with
the public interest, particularly where market forces alone are not sufficient to do so, including
investigating and responding to inquiries and complaints from consumers, providers, carriers, and other
interested parties; and (5) provide expert input into the development of telecommunications and
cable-related policies for the Commonwealth and the federal government.
The Department’s general responsibilities include the following.
1) Protect and Educate Consumers
• Establish and enforce basic consumer protections (e.g., the Department’s residential
telephone billing and termination rules, including, for example, the prevention of service
disconnection for senior households and persons with serious illness), and educate
consumers about these protections.
• Monitor service providers’ billing practices and compliance with notification requirements
related to billing delinquency, network enhancements, and cable programming changes.
• Mediate consumer complaints, including but not limited to billing issues, service quality, and
other complaints between residential, business, and municipal customers and their service
providers.
1 The Department files this report as required by M.G.L. c. 25C, § 6.
2 The Commonwealth’s Fiscal Year runs from July 1 to June 30.
3 Per statute, telecommunications carriers report calendar year revenues by March 31 of the following
year. Statutory assessments against regulated telecommunications carriers’ reported revenues for a
particular calendar year are made in a subsequent FY. For instance, FY 2023 assessments are based on
calendar year 2021 reported revenues.
4 FY 2023 cable providers assessments are based on calendar year 2022 reported revenues.
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FY 2022 ANNUAL REPORT
• Answer consumer questions about different telecommunications services and technologies,
including traditional landline telephone service, fiber-optic service, wireless service, internet
service, and Voice over Internet Protocol (“VoIP”) service; 5
• Monitor and implement the federal Universal Service Fund (“USF”) programs, including the
Lifeline low-income discount, the Connect America Fund, the E-rate program, and the rural
health care program; and
• Review and, where appropriate, approve applications for “eligible telecommunications carrier”
(“ETC”) status. ETCs must meet certain service obligations to be eligible to receive federal
universal service funds.
2) Promote Competition
• Revise existing policies and develop new policies in response to new technologies and
market conditions.
• Collect and compile data on the status of competition in the telecommunications and cable
industries in Massachusetts.
• Develop and implement policies that promote competition and service in areas of the state
where it lags.
• Develop and enforce policies to promote wholesale and retail competition; and
• Implement competition-related rule changes consistent with state and federal law.
3) Inform and Advocate
• Analyze major federal legislative and regulatory decisions to evaluate their impact on state
regulation of the telecommunications and cable industries and, when appropriate, advocate
on behalf of Massachusetts consumers before the Federal Communications Commission
(“FCC”) and Congress.
• Explain Department regulations and policies, and provide other information as requested by
consumers, carriers, public officials, the Legislature, the Administration, and others.
• Monitor and evaluate proposed state legislation and provide recommendations.
• Propose state legislation where appropriate to adapt to changing technologies and market
conditions.
• Analyze new technologies and market developments in order to determine their impact on
consumers and the competitive marketplace;
• Participate in regional and national regulatory groups to ensure that Massachusetts’s
interests are represented;6
• Comply with periodic FCC reporting requirements; and
• Work collaboratively with federal, state, and local partners to conduct outreach that promotes
awareness and increases enrollment in certain federal benefit programs.
5 With limited exception, the Department does not regulate wireless, VoIP, or broadband internet service.
M.G.L. c. 25C, §§ 6A, 8. However, the Department strives to assist all consumers with
telecommunications-related requests.
6 National memberships and involvement include: the North American Numbering Council, the FCC’s
Consumer Advisory Committee, the National Association of Regulatory Utility Commissioners, the
National Association of Telecommunications Officers and Advisors, the Massachusetts Municipal
Association, the Federal Communications Bar Association, and the New England Conference of Public
Utilities Commissioners.
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FY 2022 ANNUAL REPORT
Telecommunications Industry Regulation
Regulatory Framework
The Department regulates telecommunications providers principally through Title 47 of the U.S. Code and
its enabling legislation found in M.G.L. chapters 25C, 159, and 166. Major changes have taken place in
the telecommunications industry due to advancements in technology, legislative activity, and FCC rulings.
The increase in competition, spurred largely by technological innovation, required that the Department
adjust its regulations to reflect changes in market conditions and relax its regulations where market forces
are sufficient to protect consumer interests, thereby ensuring that the Department continues to promote
competition. However, where market forces are not sufficient to safeguard consumer interests, the
Department has continued to enforce necessary protections, to the extent permitted under state law.
The Department has jurisdiction over telecommunications services that originate and terminate within or
between Massachusetts’ two federally designated “Local Access and Transport Areas” (“LATAs”). 7 The
FCC generally regulates interstate and international telecommunications services.
Department Responsibilities
The Department’s primary telecommunications-related responsibilities include:
• Enforcing service quality standards.
• Overseeing the retail market.
• Helping to ensure public safety and network reliability.
• Overseeing the wholesale market; and
• Monitoring market entry and exit.
1) Enforcing Service Quality Standards
Verizon New England, Inc. d/b/a Verizon MA (“Verizon”) is the Commonwealth’s incumbent local
exchange carrier (“ILEC”) in all but four towns in Massachusetts. Verizon also serves as the
Commonwealth’s carrier-of-last-resort in its service area. As such, Verizon is subject to certain service
quality standards and other requirements, which the Department monitors and enforces. Additionally, the
Department ensures that Verizon allocates sufficient resources for the maintenance of service and call
quality to all its customers, regardless of their location.
The Department adopted, and continues to monitor, a Retail Service Quality Plan (“Plan”) for Verizon
retail customers. This Plan consists of twelve service measures in the categories of Installation Service,
Maintenance Service, and Service Response. Verizon reports its performance on each of the measures
to the Department monthly. If Verizon’s performance, on a rolling basis, falls below the Department’s
threshold, Verizon pays a penalty in the form of a refund to all residential and business customers. The
Department also evaluates Verizon’s retail service quality at the local level when the Department receives
a formal complaint from city or town officials or customers.
Separately, the Department monitors Verizon’s compliance with a Performance Assurance Plan (“PAP”)
for Verizon wholesale customers. The Department and Verizon instituted the PAP in order to ensure that
Verizon provides high-quality service to competitive local exchange carriers (“CLECs”) pursuant to federal
law. The PAP includes: (1) the adoption of carrier-to-carrier service measurements and standards; (2)
scoring mechanisms to determine whether CLECs are receiving non-discriminatory treatment; (3) a
provision for the payment of bill credits to CLECs if Verizon’s reported performance does not meet certain
standards; (4) monthly reporting requirements; and (5) provisions for annual review, updates, and audits.
Like the Retail Service Quality Plan, Verizon submits PAP reports monthly.
7The Western Massachusetts LATA consists of the 413-area code; all other area codes in the
Commonwealth fall under the Eastern Massachusetts LATA.
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FY 2022 ANNUAL REPORT
2) Retail Market Oversight
The Department develops and enforces policies to promote retail competition, including policies that relax
regulation where market forces are sufficient to protect consumer interests. However, the Department
continues to regulate certain Verizon basic retail services over which the company retains market power.
The Department similarly regulates the rates, services, and practices of three rural ILECs in Western
Massachusetts, Richmond Telephone Company, Taconic Telephone Corp., and Granby Telephone &
Telegraph, that have market power in their service territories. The Department also sets intrastate rates
and monitors service quality for certain inmate-calling services and ensures that reasonable service
quality and certain consumer protections are provided by all traditional voice (i.e., non-Voice over Internet
Protocol (VoIP)) carriers.
3) Helping to Ensure Public Safety and Network Reliability
The Department helps to ensure adequate funding of the E-911 network. The Department oversees the
cost of the network and establishes a retail surcharge to fund the network. The Department also
oversees the State 911 Department’s expenditures, pursuant to Chapter 223 of the Acts of 2008.
Additionally, the Department:
• Facilitates quick resolution of wholesale and retail service outages by working closely with
carriers and the Massachusetts Emergency Management Agency as necessary.
• Enforces Verizon’s major extended service outage rules, which are intended to address
prolonged outages affecting 200 or more customers.
• Enforces Verizon’s central office collocation security rules; and
• Helps to guide federal policy impacting public safety requirements at the state and local
levels.
4) Wholesale Market Oversight
Apart from building their own facilities to serve customers, carriers that wish to compete in the retail
telecommunications market have two available modes of entry. The first is to lease unbundled network
elements (“UNEs”) from the ILEC8 or another carrier and to provide service over this leased network.
Verizon is the ILEC for all but four towns (Gosnold, Granby, Hancock, and Richmond) in Massachusetts.
Pursuant to federal law, the Department has authority over Verizon’s wholesale p