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TR's State NewsWire . . .daily intelligence on communications industry news and policy from the editors of Telecommunications Reports. . . ====================================================== *Table of Contents* October 18, 2001 STATES MAINE -- Verizon asks PUC to support long distance bid PENNSYLVANIA -- Senate minority leader opposes PUC nomination TEXAS -- SW Bell may revise local switching rates WASHINGTON -- ALJ says Verizon must make agreement available MISSOURI -- PSC rules against AT&T in tariff dispute OHIO -- Lawmaker proposes E911 council, fund NEVADA -- E.spire seeks compensation from Sprint TENNESSEE -- ACCESS asks for BellSouth win-back investigation NEVADA -- Sprint asks PUC to revise depreciation rates MARYLAND -- Montgomery County high schoolers go wireless TENNESSEE -- CLECs seek special-access performance measures NEVADA -- PUC to hold Sprint performance plan hearing WEST VIRGINIA -- Seminar focuses on 'e-government' WASHINGTON -- UTC to hold damage-prevention workshop NEVADA -- Sprint to launch voice channels service OREGON -- Leap offers local wireless service in Salem PENNSYLVANIA -- Dimension completes Chester County fiber network REGIONAL Earthlink, AOL launch broadband services ______________________________________________________ MAINE -- Verizon asks PUC to support long distance bid Verizon New England, Inc., today asked the Public Utilities Commission to support its bid to provide in-region interLATA (local access and transport area) service under section 271 of the federal Telecommunications Act of 1996. Verizon said that it has completed the 14-point "competitive checklist" for market entry and that PriceWaterhouseCoopers, an independent auditing firm, has verified that Verizon's operations support systems for the state are the same as those already approved in Massachusetts. After the PUC has completed its review process and makes a recommendation, the FCC will have 90 days to review Verizon's section 271 application. The FCC also must consult with the U.S. Department of Justice before making its final decision. Verizon said that the state's local distance market is "irreversibly open to competition" as shown by the fact that 47,000 Maine telephone lines are served by competitors. Of those lines, 40,500 are served by competitors that lease Verizon's lines on a wholesale basis, and 6,400 are owned by competitors. Earlier this year, the company filed similar requests for market- entry with state regulators in New Hampshire, Vermont, Rhode Island, and New Jersey. Verizon is authorized to provide service in Massachusetts, New York, Connecticut, and Pennsylvania. ______________________________________________________ PENNSYLVANIA -- Senate minority leader opposes PUC nomination Senate minority leader Robert Mellow (D., Lackawanna) has said he opposes the nomination of Kim Pizzingrilli to the Public Utility Commission because if she was confirmed the PUC would be composed of five Republican members. In a letter sent to Gov. Mark Schweiker (R.), Mr. Mellow called for the withdrawal of Ms. Pizzingrilli's nomination and asked that a Democratic nominee be submitted. He said, "it is neither productive nor sound public policy to have all five members of the PUC made up of the same political party." Former Gov. Tom Ridge (R.) nominated Ms. Pizzingrilli for the position early this month. Ms. Pizzingrilli is currently the secretary of the commonwealth, a position she assumed in 1999. Before becoming secretary of the commonwealth, Ms. Pizzingrilli was the deputy secretary of regulatory programs at the Virginia Department of State. (10/3/01) A spokesman for Gov. Schweiker's office told TR that the governor stands by Pizzingrilli's confirmation. He added that the governor "bases his decisions on appointments based on the qualifications of the individual" not on their party affiliation. Ms. Pizzingrilli's nomination awaits confirmation by the state Senate. ______________________________________________________ TEXAS -- SW Bell may revise local switching rates Southwestern Bell Telephone Co. has not decided whether to establish market-based prices for certain services now offered to competitive local exchange carriers as unbundled network elements (UNEs). The availability of unrestricted unbundled local switching, operator service, and directory assistance as UNEs ended Oct. 13 under SW Bell's T2A (Texas 271 interconnection agreement). About 170 competitive local exchange carriers have signed the T2A. The T2A contains a sunset provision that permits SW Bell to provide "those offers no longer identified as UNEs by the FCC" at market prices upon 60 days' notice to competitors. SW Bell told the Public Utility Commission that it hadn't decided whether to reprice certain UNEs "in part due to the pendancy of certain regulatory and judicial proceedings." Carriers that provide service by leasing a platform of combined unbundled network elements (UNE-P) asked the commission to require SW Bell to continue to provide such services as UNEs. (9/11/01) AT&T Communications of Texas L.P., McLeod USA Telecommunications Services, Inc., and the Texas UNE Platform Coalition estimate that about 500,000 access lines in Houston, Dallas, Fort Worth, and San Antonio would be denied competitive alternatives if SW Bell stopped offering unrestricted local switching as a UNE. If SW Bell stopped offering operator service and directory assistance as a UNE, competitors would be required to establish "costly transport arrangements" to access alternative providers, the carriers said. (9/12/01) (Docket 24631) ______________________________________________________ WASHINGTON -- ALJ says Verizon must make agreement available A Utilities and Transportation Commission administrative law judge has proposed directing Verizon Northwest, Inc., to make a North Carolina GTE South, Inc.-Time Warner, Inc., interconnection agreement available to Focal Communications Corp. of Washington. Focal asked the UTC to intervene when Verizon refused to make the agreement available. (4/19/01) Focal said the conditions imposed by the FCC on the merger of Bell Atlantic Corp. and GTE Corp., included a most-favored nation (MFN) provision for out-of-region and in-region arrangements. Under the merger order, the new company had to make any interconnection arrangement, unbundled network element (UNE), or interconnection provision that it agreed to in the former GTE service area before the merger to any carrier throughout the former GTE region after the merger. On Nov. 9, 2000, Focal submitted a letter to the FCC's Common Carrier Bureau requesting an interpretation of the MFN provision in the merger order. In December 2000, the bureau said that the merger order's MFN provisions apply to entire interconnection agreements. Verizon, however, maintained that it was only required to make available interconnection arrangements, UNEs, and provisions of the agreement that were the express subject of section 251© of the federal Telecommunications Act of 1996. The company noted that the MFN provision in the order only addressed that specific subsection. The incumbent added that it was under no obligation to make available interconnection arrangements, UNEs, and provisions of the agreement that were the subject of section 251(b) of the Act. The ALJ determined that section 251© includes subsection (b). He added that Verizon's conduct "unfairly deprived Focal of its rights under the Bell Atlantic/GTE Merger Order." The ALJ pointed out that the bureau's letter had the same force and effect as actions taken by the FCC. He said, "Verizon was clearly bound to comply with its findings as of the fate it was written." The ALJ, therefore, proposed that Focal's request to opt-in to entire agreement be made effective as of Dec. 27, 2001. The ALJ's initial order isn't effective until the UTC issues a final order. Parties have 20 days after service of this initial order to file a petition for administrative review; replies are due five days after service of the petition. (Docket UT-013019, Focal Communications Corporation of Washington, Petitioner, v. Verizon Northwest, Inc., Respondent) ______________________________________________________ MISSOURI -- PSC rules against AT&T in tariff dispute The Public Service Commission has approved competitive local exchange carrier (CLEC) Mark Twain Communications Co.'s wireless termination service tariff, which establishes per-minute rates wireless carriers must pay for terminating wireless traffic on Mark Twain's network. The commission concluded that it would be inequitable to permit incumbent local exchange carriers (ILECs) to recover wireless termination costs through tariffs and deny CLECs the same opportunity. AT&T Wireless Services, Inc., asked the PSC to reject the tariff. AT&T said the tariff was illegal because it didn't provide reciprocal compensation for traffic exchanged between Mark Twain's and wireless carriers' networks. (5/25/01) The companies currently exchange traffic under a bill-and-keep arrangement, AT&T said. Mark Twain disputed AT&T's assertions. Mark Twain said it hadn't agreed to a bill-and-keep arrangement. Its tariff was modeled after PSC-approved tariffs filed by small ILECs, Mark Twain said. Commissioner Connie Murray issued a dissenting opinion. Although CLECs are entitled to compensation for terminating wireless traffic, tariffs aren't the appropriate method for providing compensation, Ms. Murray said. Unlike ILECs, Mark Twain isn't required to negotiate or arbitrate an interconnection agreement, Ms. Murray said. Approving Mark Twain's tariff will "significantly reduce" any possibility that the parties will be able to negotiate a "mutually agreeable" interconnection agreement, she said. (Case TT-2001-646) ______________________________________________________ OHIO -- Lawmaker proposes E911 council, fund Sen. Priscilla Mead (R., District 16) has introduced SB 181, which would create the Enhanced Wireless 911 Government Assistance Fund and the Ohio E911 Council. According to Sen. Mead, SB 181 "would be the first step to update emergency service technology to identify the number and location of emergency calls placed with a cellular phone or other wireless communication device." The E911 Council would provide the 88 counties in Ohio with assistance in becoming compliant with FCC-mandated emergency response services. Money from the E911 fund would be used for "only the one-time costs of designing, upgrading, purchasing, leasing, programming, installing, or maintaining the necessary data, hardware, software, and trunking required for any public safety answering point." In 1996, the FCC mandated that state governments update their public safety answering point (PSAP) facilities to handle enhanced 911 service by April 1, 1998. The FCC also asked wireless carriers to begin providing Phase II automatic location identification (ALI) for wireless 911 calls by Oct. 1, or within six months of receiving a request from a PSAP, whichever occurred later. PSAPs in Ohio failed to meet the FCC deadlines. The FCC approved Phase II waivers with certain modifications extending the deployment schedules proposed by Verizon Wireless, Sprint PCS, and Nextel Communications, Inc., for their networks, and by AT&T Wireless Services, Inc., and Cingular Wireless LLC for the GSM (Global System for Mobile communications) portions of their systems. The sixth national wireless provider, VoiceStream Wireless Corp., received a Phase II waiver last year. Other sponsors of the bill include Sen. David Goodman (R., District 3), Sen. Bill Harris (R., District 19), Sen. Robert Gardner (R., District 18), Sen. Leigh Herington (D., District 28), and Sen. Daniel Brady (D., District 23). The bill awaits consideration in the Committee on Reference. ______________________________________________________ NEVADA -- E.spire seeks compensation from Sprint American Communication Service of Las Vegas, d/b/a e.spire, has said Central Telephone Co., d/b/a Sprint, failed to compensate e.spire for provisioning interconnection facilities that carry Sprint-originated traffic to e.spire's network. E.spire also said Sprint failed to use the appropriate rates when paying for e.spire's transport and termination of local calls forwarded by Sprint to e.spire for delivery to end users served by e.spire. E.spire asked the Public Utilities Commission to direct Sprint to comply with the terms of the companies' resale and interconnection agreement by fully compensating e.spire for past due, present, and future amounts. According to e.spire, Sprint refused to pay e.spire the rates included in the agreement. Instead, Sprint said it would pay e.spire rates that reflect a statutory discount. This discount, however, applies only to Sprint's rates for interoffice facilities within Sprint's network, e.spire said. E.spire also said Sprint refused to compensate e.spire at the appropriate amount for the transport and termination of Sprint- originated traffic on e.spire's network. Under the agreement, e.spire can designate its switch as a tandem and end-office switch. In its complaint, the company asked the commission to find that e.spire's switch was properly designated as a tandem switch and an end-office switch for the purpose of receiving compensation for transporting and terminating local traffic. If the commission finds that the designation was properly made, e.spire said Sprint should be ordered to pay reciprocal compensation retroactively and prospectively at the tandem call termination rate. (Docket 01-10025) ______________________________________________________ TENNESSEE -- ACCESS asks for BellSouth win-back investigation ACCESS Integrated Networks, Inc. (AIN) has asked the Regulatory Authority to initiate a "show cause" proceeding against BellSouth Telecommunications, Inc., to determine whether the incumbent "engaged in a pattern of anticompetitive and discriminatory conduct" by marketing local service under terms and conditions inconsistent with its tariffs. BellSouth recently suspended its authorized sales representatives' (ASRs') marketing efforts in Tennessee in response to an AIN complaint alleging that one of BellSouth's ASRs violated BellSouth's tariffs by offering three free months of local service to "win back" a local business customer. (9/24/01) XO Tennessee, Inc., said a BellSouth senior account executive made the same offer to a Tennessee customer. (10/15/01) It's "highly unlikely" that these offers were "accidental or isolated incidents," AIN said. The TRA should require BellSouth to explain whether it plans to honor agreements to provide three free months of local service, AIN said. (Docket 01-00808) ______________________________________________________ NEVADA -- Sprint asks PUC to revise depreciation rates Central Telephone Co. of Nevada, d/b/a Sprint, has asked the Public Utilities Commission to approve revised depreciation rates that would "correct its current under-recovery of its capital investment." The revised rates would increase Sprint's annual depreciation expanse by $5.8 million on an interstate basis and by $7.9 million on a total company basis. That would bring Sprint's annual depreciation expense to $148 million on a total company basis. Sprint said it wanted the new depreciation rates to take effect Jan. 1. The company added that the new depreciation rates wouldn't affect customers rates and would facilitate Sprint's efforts to invest in new technologies and improve the company's capital structure. Comments on Sprint's application are due Oct. 31. (Docket 01-9029) ______________________________________________________ MARYLAND -- Montgomery County high schoolers go wireless The Montgomery County Board of Education has approved new rules that allow high school students to have wireless devices on school grounds, a spokesperson for the Montgomery County Schools told TR. The new rules were created to comply with HB 67, introduced by Rep. Dana Lee Dembrow (D., District 20), which lifted a state prohibition on wireless devices on school property. The bill mandated that local education agencies work with the state Department of Education to develop local policies regarding the use of these devices on public school property during school hours. Montgomery County's eight-member Board of Education unanimously voted to allow high school students to possess wireless devices on school property during the school day if turned off and "out of sight." High school students may also use wireless devices on school buses. Elementary and junior high school students aren't allowed to have wireless devices under the new rules unless parents obtain a waiver from the school's principal. The new rules take effect immediately. The board will revisit the issue in a year and review the rules. ______________________________________________________ TENNESSEE -- CLECs seek special-access performance measures WorldCom, Inc., and Time Warner Telecom of the Mid-South L.P. have asked the Regulatory Authority to develop performance measures for BellSouth Telecommunications, Inc.'s special-access services. BellSouth's "timely and nondiscriminatory" provisioning of special access is "critical" for developing local competition, Time Warner said. BellSouth's special access tariffs don't provide "adequate" remedies for provisioning delays, Time Warner added. Competitors shouldn't be penalized for deciding to buy DS1s or DS3s from BellSouth's special access tariff instead of buying the equivalent service as UNEs (unbundled network elements) through interconnection agreements, the carriers said. (Docket 01-00193) ______________________________________________________ NEVADA -- PUC to hold Sprint performance plan hearing The Public Utilities Commission has scheduled a Nov. 28 hearing to examine a carrier-to-carrier service-quality plan submitted by Central Telephone Co.-Nevada, d/b/a Sprint of Nevada. The hearing will be continued day to day, as necessary. Under state law, Nevada Bell, Sprint, and Verizon California, d/b/a Verizon Nevada, must file such performance plans. (Docket 01-1049, In re petition of Central Telephone Company - Nevada, d/b/a Sprint of Nevada, and Sprint Communications Company L.P. for review and approval of proposed revised performance measures.) ______________________________________________________ WEST VIRGINIA -- Seminar focuses on 'e-government' The "Wired Wonderful West Virginia" seminar, held yesterday in Charleston, focused on how to use technology to expand the capabilities of state governments. Gov. Bob Wise (D.) said that the seminar shows that "West Virginia is committed to technology, e-government and e-business. This seminar moves the entire state another step closer to a true e-government that puts its citizens first by providing full accessibility to government services." Cathilea Robinett, executive director for the Center for Digital Government in Folsom, Calif., gave the keynote speech. The day's sessions included topics such as developing Internet and technology strategies in a "decentralized government organization," portals and content management, and Web site security. ______________________________________________________ WASHINGTON -- UTC to hold damage-prevention workshop The Utilities and Transportation Commission, the Washington Utilities Coordinating Council, the Citizens Advisory Committee on Pipeline Safety, and the City-County Consortium on Pipeline Safety have scheduled an Oct. 26 workshop on preventing damage to underground utilities. During the workshop, participants will review draft language that would create a board and a complaint process to assist enforcement of the current damage-prevention law. ______________________________________________________ NEVADA -- Sprint to launch voice channels service Central Telephone Co. of Nevada, d/b/a Sprint of Nevada, has asked the Public Utilities Commission for authority to classify as "discretionary" its new service called Individual Voice Channels for Sprint Custom Access Solutions. The service would provide Sprint Custom Access Solutions customers the ability to add derived choice channels over their data service. Under Nevada law, a discretionary service is a service that isn't necessary for provisioning basic service. If it were classified as discretionary, the service wouldn't be price regulated. Comments on the application are due Nov. 7. (Advice letter 49) ______________________________________________________ OREGON -- Leap offers local wireless service in Salem Leap Wireless International, Inc., has introduced its "cricket comfortable wireless service" in Salem. The service offers subscribers flat-rate "all-you-can-talk" local wireless service while within a local calling area. ______________________________________________________ PENNSYLVANIA -- Dimension completes Chester County fiber network The North American region of Dimension Data Holdings plc has completed a new fiber-optic network in Chester County. The network uses Internet protocol telephony and video conferencing supplied by Cisco Systems, Inc., to connect the county's 12 school districts, three colleges, county government offices, and the library. The company used 225 miles of fiber to complete the project. Major funding for the network came from a state grant. The remaining monies were raised from community organizations and local school districts. ______________________________________________________ NEW YORK, OHIO -- Earthlink, AOL launch broadband services Earthlink, Inc., and AOL Time Warner, Inc., today separately announced that they were each offering high-speed Internet service to consumers in Western Ohio. Time Warner Cable networks will supply the broadband service to both companies. Earthlink said that it would offer the broadband service initially for $41.95 a month for downstream speeds of up to 2 megabits per second and upstream speeds of 384 kilobits per second. AOL said customers who sign up for its high-speed service would pay $44.95 for unlimited use of their broadband account and $2.95 for dial-up use. Users that want unlimited use of their broadband account and unlimited dial-up from any location will pay $54.95 for the service. Earthlink also launched high-speed service in Albany, N.Y. Time Warner will supply the broadband service there as well. Tom Andrus, vice president-products and services at EarthLink, said that availability of service to these consumers "is the culmination of hard work and the exemplary cooperation of Time Warner Cable." Under the agreement, Earthlink will now have access to about 300,000 consumers in Time Warner's Albany service area and 420,000 consumers in Time Warner's Western Ohio service area. ======================== END ========================= To view this issue online, go to http://www.tr.com/statenews/. Federal law prohibits duplication in any form, including electronic, without permission of the publisher. TR's State NewsWire Copyright 2000, 2001 Telecommunications Reports International, Inc. (ISSN 1082-9350) is transmitted each business day, except holidays. Telecommunications Reports International, Inc. 1333 H St. NW, Suite 100-E Washington, DC 20005-4707 Gayle Kansagor, E-mail: mailto:gkansagor@tr.com Editor Susan McGovern, E-mail: mailto:smcgovern@tr.com Senior Telecommunications Analyst Victoria Curtis, E-mail: mailto:vcurtis@tr.com Senior Research Analyst Michael Johnson, E-mail: mailto:mjohnson@tr.com Senior Telecommunications Analyst Account Services: Christy Iredell (202) 312-6051, (202) 312-6065 (fax), E-mail: mailto:ciredell@tr.com
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