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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 24, 2001 STATES ILLINOIS -- ICC initiates Ameritech long distance investigation KANSAS -- WorldCom seeks special access performance measures NEW JERSEY -- Peretz calls for BPU to dismiss Verizon long distance bid OREGON -- PUC approves certificate-transfer rules OREGON -- PUC streamlines interconnection procedures TEXAS -- SW Bell, CLECs spar over special access INDIANA -- Ameritech tells URC no cuts for now GEORGIA -- Call waiting feature penetrates 41% of BellSouth's access lines VIRGINIA -- Gov. Gilmore to speak on telecom security KENTUCKY -- PSC nixes plan to eliminate measured service OREGON -- PUC raises RSPF surcharge SOUTH CAROLINA -- PSC modifies 'win-back' restrictions HAWAII -- StarBand launches satellite Internet service ILLINOIS -- Verizon offering EAS to more than 50 exchanges WISCONSIN -- Video voyeur bill awaits governor's signature IDAHO -- PUC sets UNE pricing workshop UTAH -- Area code 'split' delayed for one year TEXAS -- AG accuses telemarketers of deceptive trade NEW YORK -- Gov. Pataki mulls electronic harassment bill MAINE -- E911 implementation affects directory listings ILLINOIS -- Verizon proposes EAS in 23 exchanges ALABAMA -- T-NETIX to provide long distance to state prisons REGIONAL Companies team up to transmit IP storage records ______________________________________________________ ILLINOIS -- ICC initiates Ameritech long distance investigation The Commerce Commission today initiated an investigation into matters relating to Ameritech-Illinois' compliance with section 271 of the federal Telecommunications Act of 1996. (09/17/01) The commission said that it would appoint an administrative law judge to conduct the investigation in two phases. The first phase will examine items on the 14-point "competitive checklist" in section 271 that don't require Ameritech's operation support system (OSS) test results. The second phase will cover all the remaining OSS issues and any other relevant issues that weren't addressed during the first phase. After the passage of the Act in 1996, Ameritech expressed interest in offering in-region interLATA service. The company later said it would defer its plans to apply for a 271 application from the FCC until the second quarter of 2002. Ameritech must comply with section 271 of the Act before it can be authorized to provide in-region interLATA (local access and transport area) services. "Our goal in conducting this proceeding is to determine whether we believe Ameritech-Illinois has satisfied the requirements of section 271 for purposes of our consultation with the FCC," said the commission. (Docket 01-0662) ______________________________________________________ KANSAS -- WorldCom seeks special access performance measures WorldCom, Inc., has asked the Corporation Commission to establish performance measures for Southwestern Bell Telephone Co.'s switched and special access orders. In June, the Texas Public Utility Commission required SW Bell to implement performance measures for special access service, but subsequently decided to reconsider its decision and arbitrate the issue. (9/20/01) The Texas performance measure under consideration doesn't apply to SW Bell's switched orders. SW Bell said the KCC lacked authority to implement performance measures for special access, which is provided according to terms and conditions set in SW Bell's state and federal tariffs. Sprint Communications Co. L.P. agrees with SW Bell. "Special access is not an element of interconnection, UNEs [unbundled network elements], or resold service," Sprint said. (Docket 01- SWBT-999-MIS) ______________________________________________________ NEW JERSEY -- Peretz calls for BPU to dismiss Verizon long distance bid Ratepayer Advocate Blossom A. Peretz has asked the Board of Public Utilities to dismiss Verizon New Jersey, Inc.'s bid to offer in-region interLATA (local access and transport area) services under section 271 of the federal Telecommunications Act of 1996. Ms. Peretz said that competition doesn't exist in the state's local telephone market and, if given market-entry, Verizon would become an "unregulated monopoly." Verizon asked the BPU to support its New Jersey interLATA bid last September following KPMG Consulting, Inc.'s favorable third- party review of its operation support system (OSS). (9/6/01) Verizon said it plans to file an application for final approval with the FCC in December. Ms. Peretz asserted that Verizon has failed to comply with the 14-point "competitive checklist," which is necessary for market- entry. She cited a 1997 U.S. District Court in Newark ruling that struck down Verizon's unbundled network element (UNE) pricing regime adopted by the BPU in 1997. The court's June 2000 decision found the $16 UNE rate to be "arbitrary and capricious." (Case 97-5762, AT&T v. Bell Atlantic-New Jersey) The matter is currently pending at the BPU. The Ratepayer Advocate also said the filing's OSSs testing is incomplete, lacking real-world evidence that a competitor could "seamlessly interconnect" with the Verizon network. In addition, Ms. Peretz said, the bid shouldn't be approved until there is a state universal service fund to satisfy the public interest requirement of section 271 of the Act. Dennis Bone, president of Verizon New Jersey, said that the state's market was "irrevocably open" to competition and expressed confidence that the BPU would comment favorably to the FCC on Verizon's application. He said that a review of Verizon's record, its test results, and competitors' experience using the telco's computer systems would show that Verizon is ready to enter the New Jersey interLATA market. ______________________________________________________ OREGON -- PUC approves certificate-transfer rules The Public Utility Commission has approved rules allowing telecom carriers to transfer certificates of authority to provide telecom service in the state. Previously, there were no rules governing the process. (5/21/01) The new rules require both parties to the transaction to file a joint application. According to the commission staff, having both the transferor and the transferee complete a joint application ensures that both parties concur with the specifics of the transfer. The rules direct the PUC to provide interested parties with 20 days to file a protest. If there are no protests, the commission will review the application and either approve or deny it. The staff said it plans to process the applications on an expedited basis if there aren't any protests. (AR 415, In the Matter of a Rulemaking proceeding for the transfer of Certificates of Authority to provide telecommunications service as a Competitive Provider) ______________________________________________________ OREGON -- PUC streamlines interconnection procedures The Public Utility Commission has adopted rules that seek to streamline its procedures for examining interconnection agreements. Although the rules in place have worked well, it has become "clear" that they should be amended to streamline the commission's review, the staff said. Additionally, the existing rules don't address current issues like the review of already approved agreements that carriers may opt into or adopt. (3/21/01) The new rules eliminate the commission's notice requirement. The staff said that although the notice list includes more than 100 people, the commission hasn't received any comments from any interested party other than the staff. Instead, the commission will provide notice of the agreement on its Web site. Under the new rules, if a carrier decides to adopt an agreement that has already been approved by the commission and the adoption notice was filed unilaterally by the requesting carrier, the requesting carrier must file an adoption notice with the affected carrier. The affected carrier will then have 21 days to file an objection with the commission. If no objections are filed, then the agreement will take effect on the 22nd day. The rules authorize the affected carrier to object to the adoption if the costs of providing the particular interconnection, service, or element to the requesting carrier are greater than the costs of providing it to the carrier that originally negotiated the agreement. The affected carrier also may object if the interconnection, service, or element isn't technically feasible. In addition, if the proposed agreement has expired or been cancelled, the affected carrier can object to its adoption. (Docket AR 414) ______________________________________________________ TEXAS -- SW Bell, CLECs spar over special access Southwestern Bell Telephone Co. has disputed the Public Utility Commission's authority to establish performance measures for the company's special access, or dedicated transport, services sold to CLEC (competitive local exchange carriers). The PUC's performance measures were established to monitor SW Bell's compliance with the 14-point "competitive checklist" in section 271 of the federal Telecommunications Act of 1996. In June, the PUC required SW Bell's provision of special access services to be measured "as another level of disaggregation in all UNE [(unbundled network element)] measures" when a CLEC orders special access instead of UNEs. In September, the PUC voted to reconsider its decision and arbitrate the issue. (9/20/01) Special-access performance measures aren't within the commission's jurisdiction, SW Bell said. If the commission has jurisdiction to establish performance measures for special access, it's limited to intrastate service, SW Bell added. About 94% of SW Bell's special access service is ordered from the company's interstate FCC tariff, SW Bell said. Time Warner Telecommunications of Texas L.P. supports special- access performance measures. Time Warner said the PUC's authority to establish special-access performance measures is provided in section 253(b) of the Act, which authorizes states to "ensure the continued quality of telecommunications." A state law authorizing the PUC to implement competitive safeguards also authorizes the PUC to implement special-access performance measures, Time Warner added. Receiving timely and quality service, whether a CLEC orders service out of a tariff or an interconnection agreement, is essential to the development of competition, Time Warner said. Special access provisioning delays affect competitors' ability to serve their customers, WorldCom, Inc., said. In August, SW Bell met only 75% of its committed due dates for WorldCom DS-1s, WorldCom said. (Docket 24515) ______________________________________________________ INDIANA -- Ameritech tells URC no cuts for now Ameritech-Indiana has told the Utility Regulatory Commission that it doesn't plan to make significant cuts to its Indiana workforce at this time. A commissioner asked an Ameritech official during Monday's regular meeting whether the company plans to make significant cuts to its workforce in the state, a URC spokesman told TR. Under the terms of the Opportunity Indiana alternative regulation plan, which Ameritech agreed to this year, the company must commit $1 billion in infrastructure improvements throughout the state over the next three years. The company also promised not to reduce its workforce below 3,683--Ameritech's staffing level before it merged with SBC Communications, Inc. (03/20/01) SBC said on Monday it plans to eliminate several thousand jobs and cut capital spending by up to 20% next year. The company posted year-over-year revenue growth of just 0.8% in the third quarter excluding one-time items. ______________________________________________________ GEORGIA -- Call waiting feature penetrates 41% of BellSouth's access lines BellSouth Telecommunications, Inc., has disclosed its penetration rates for certain features in response to AT&T Communications of the Southern States, Inc.'s request for information about the incumbent's UNE (unbundled network element) and interconnection costs. Based on September data, 41% of BellSouth's access lines have the company's call waiting feature. Caller ID has a 36% penetration rate, and three-way calling and call return have a 27% penetration rate. (Docket 14361-U) ______________________________________________________ VIRGINIA -- Gov. Gilmore to speak on telecom security Gov. Jim Gilmore (R.) will give the opening remarks at today's Virginia Security and Preparedness Panel meeting. The panel will focus on security issues for telecom networks, computer systems, and other "critical technologies," a spokesman for Gov. Gilmore said. Gov. Gilmore created the panel Sept. 25 in the wake of the Sept. 11 terrorist attacks in the area. The purpose of the panel is " to ensure safety mechanisms are implemented to protect Virginians and their property from future terrorist attack," Gov. Gilmore said. The panel's assessment of telecom and computer issues is part of an analysis of security threats within the state that Gov. Gilmore charged the group with completing as its first order of business. The panel will then examine the state's ability to respond to risks. Gov. Gilmore asked the panel to submit its findings by November. ______________________________________________________ KENTUCKY -- PSC nixes plan to eliminate measured service The Public Service Commission has rejected BellSouth Telecommunications, Inc.'s proposal to eliminate the "low-use" and "standard" local measured service packages it offers residential customers. The service meets a "legitimate public need," and it's not in the public interest to eliminate these services at this time, the PSC said. (Case 1999-434) ______________________________________________________ OREGON -- PUC raises RSPF surcharge The Public Utility Commission has increased the monthly residential service protection fund (RSPF) surcharge from 10 cents per subscriber line to 13 cents per subscriber line, effective Jan. 1, 2002. The surcharge provides revenue for three programs--the Telecommunications Devices Access Program (TDAP), the Oregon Telephone Assistance Program (OTAP), and the Oregon Telecommunications Relay Service (OTRS). Oregon state law requires the commission to review the RSPF surcharge amount each year to ensure that the fund is adequate and the balance doesn't exceed six months of projected expenses. The monthly surcharge can't exceed 35 cents per line. The surcharge has been 10 cents per line since 1997. The surcharge has been below the cost of delivering the services, the commission staff reported. In the last several years, however, the number of wireless instruments and subscriber lines increased faster than the 2.5% growth projected. There were more funds available than anticipated and the last biennium the staff supplemented the surcharge by spending down the ending balance, the staff said. In addition, costs have increased for the OTAP and OTRS. The surcharge needs to be increased because of the increase in cost and the lack of excess funds, the staff said. ______________________________________________________ SOUTH CAROLINA -- PSC modifies 'win-back' restrictions The Public Service Commission yesterday voted to modify its restrictions on BellSouth Telecommunications, Inc.'s "win-back" activities. The PSC prohibited the incumbent from engaging in "win-back" activities for 10 calendar days after customers switch their local service to a competitor, the PSC staff told TR. The original waiting period was 10 business days. (10/17/01) The Georgia and Louisiana commissions recently imposed a seven- day waiting period on BellSouth's win-back programs, which attempt to persuade customers who have switched their local service to a CLEC (competitive local exchange carrier) to return to BellSouth. (7/24/01, 9/20/01) (Docket 2000-378-C) ______________________________________________________ HAWAII -- StarBand launches satellite Internet service StarBand Communications, Inc., has said it is now able to provide high-speed Internet service to all the Hawaiian Islands. The company says that it is the first always-on, two-way, high-speed satellite-delivered Internet service in the state. This deployment marks the 50th state where the company is now offering service. Other than the island of Oahu, local phone service does not reach all Hawaiian residents, so traditional dial-up Internet access is not widely available to the state, the company said. The company went on to say that StarBand's high-speed network is satellite- based, enabling it to reach even the most isolated areas of the islands. StarBand launched the third-generation product last June. The company's satellite modem can be used with an Ethernet connection or a USB port, and is compatible with most Windows operating systems. ______________________________________________________ ILLINOIS -- Verizon offering EAS to more than 50 exchanges Verizon Communications, Inc., yesterday began offering extended area dialing services to customers in more than 50 exchanges. The Commerce Commission approved the extended area service (EAS) plan. The plan would allow residential and business customers to call all communities within the same market service area and a 15-mile radius of their own exchange without paying local toll charges. Under the plan, local calls to nearby communities would be priced at local usage-sensitive service rates. The service has a $17.02 monthly fee plus a call-connection charge of 3 cents per call and a 1.8 cents-per-minute calling charge. Costs for calls within the home exchange would remain the same; residential customers currently pay 3.4 cents per call with no per-minute calling charges. Business customers currently pay a 1.88-cent call- connection charge and a 0.93 cent-per-minute call charge. These charges will be discounted 50% on weekends, holidays, and from 9 p.m.-8 a.m. weekdays. Verizon has expanded the calling plan to its customers in the following exchanges: Alexander, Argenta, Barry, Baylis, Bethany, Camp Point, Carrollton, Cerro Gordo, Chapin, Cisco, Clayton, Dalton City, Deland, Eldred, Elwin, Franklin, Girard, Greenfield, Griggsville, Hammond, Hillview, Hull, Illiopolis, Jacksonville, La Place, Literberry, Macon, Manchester, Maroa, Milton, Mt. Sterling, Mt. Zion, Murrayville, New Canton, Niantic, Oreana, Palmyra, Patterson, Pearl, Perry, Pittsfield, Pleasant Hill, Rockport, Roodhouse, Sullivan, Virden, Warrensburg, Waverly, White Hall and Woodson. ______________________________________________________ WISCONSIN -- Video voyeur bill awaits governor's signature The Assembly yesterday unanimously approved AB 60, sponsored by Sen. Kimberly Plache (D. District 21) and Rep. Mark Gundrum (R. District 84), which would amend a "video voyeur" law signed by Gov. Scott McCallum (R.) in the state's 2001 budget, Wisconsin Act 16. The bill now awaits Gov. McCallum's approval. (10/09/01) Rep. Gundrum said that he was "optimistic" that Gov. McCallum would sign the bill. The language included in AB 60 is more precise than the language included in the budget bill. ______________________________________________________ IDAHO -- PUC sets UNE pricing workshop The Public Utilities Commission has scheduled a Dec. 4 workshop for interested parties to work on reaching a consensus on prices for Qwest Corp.'s unbundled network elements. This is the second workshop in a proceeding the commission established to determine the forward-looking costs that should be used in setting prices for the elements and services contained in Qwest's statement of generally available terms. A third workshop will be held at a later date. The commission originally planned for all three workshops to be completed by Aug. 31. (Case QWE-T-01-11) ______________________________________________________ UTAH -- Area code 'split' delayed for one year The Public Service Commission has postponed for one year implementing permissive and mandatory dialing for a geographic "split" it approved for the "801" area code. The commission said that 1,000-number-block "pooling" and other area code conservation measures have "substantially increased" the estimated time to "exhaust." Permissive dialing is now slated to begin March 30, 2003, and mandatory dialing is scheduled to start Sept. 30, 2003. The commission said it would continue to monitor the number resources in the 801 area code to determine the efficacy of the conservation measures being taken. If the life of the area code is further extended through conservation measures, the PUC may delay commencement of mandatory dialing, the commission said. ______________________________________________________ TEXAS -- AG accuses telemarketers of deceptive trade Attorney General John Cornyn (R) and the Harris County Attorney's office have accused telemarketers hired by the Harris County sheriffs' union of deceptive trade practices, according to a lawsuit filed in the state district court for Harris County. A telemarketing campaign conducted last year by Houston Marketing Consultants and Publishing and RKI illegally misappropriated the name "Toys for Tots," the lawsuit said. The sheriffs' union raised more than $100,000 using the name Toys for Tots, a U.S. Marine Corps trademarked charity. The Marine Corps didn't receive most of the funds raised during the campaign, the lawsuit said. The telemarketers also identified themselves falsely as law enforcement officers, the lawsuit said. The AG asked the court to assess penalties for violations of the Deceptive Trade Practices and Consumer Protection Act, the Business and Commerce Code, the Texas Occupations Code and the Telephone Solicitation Act. ______________________________________________________ NEW YORK -- Gov. Pataki mulls electronic harassment bill Gov. George Pataki (R.) is considering a bill that would add "mechanical or electronic communications" to a law that makes it a crime to send a telephone, telegraph, mail or any other form of written communication in a manner "likely to cause annoyance or alarm." SB 4233, authored by Sen. Stephen Saland (R., District 41), also states that a person found violating the law would be guilty of "aggravated harassment." ______________________________________________________ MAINE -- E911 implementation affects directory listings The Public Utilities Commission has asked all Maine telephone customers to check their directory listings for accuracy after discovering that E911 implementation had caused some discrepancies in customer addresses. The PUC said an informal examination of an area that recently changed its street names for E911 implementation found that more than 50% of the listings were incorrect. A PUC spokesman said that many towns changed or modified their street names to implement the state's E911 system and aid emergency personnel in locating residences. Those changes may not have shown up in the most recent editions of telephone directories, he said. ______________________________________________________ ILLINOIS -- Verizon proposes EAS in 23 exchanges Verizon Communications, Inc., has filed a request with the Commerce Commission to offer customers in 23 exchanges extended area dialing services. If the ICC approves the extended area services (EAS) plan, Verizon said it would offer the service Dec. 4. The new plan would allow residential and business customers to call all communities within the same market service area and a 15-mile radius of their own exchange without paying local toll charges. Under the plan, local calls to nearby communities would be priced at local usage-sensitive service rates. The service has a $17.02 monthly fee plus a call-connection charge of 3 cents per call and a 1.8 cents-per-minute calling charge. Costs for calls within the home exchange would remain the same; residential customers currently pay 3.4 cents per call with no per-minute calling charges. Business customers currently pay a 1.88-cent call- connection charge and a 0.93 cent-per-minute call charge. These charges will be discounted 50% on weekends, holidays, and from 9 p.m.-8 a.m. weekdays. Verizon wants to offer the calling plan to customers in the following exchanges: Alvin, Astoria, Bement, Bismarck, Broadlands, Buckley, Elliott, Henning, Homer, Mahomet, Mansfield, Melvin, Monticello, Newman, Paxton, Roberts, Rossville, Sibley, Sidell, Sidney, Thawville, Tuscola and Villa Grove. ______________________________________________________ ALABAMA -- T-NETIX to provide long distance to state prisons The state of Alabama has awarded T-NETIX, Inc., a three-year contract to provide long distance service to pay phones in state prisons. The company estimates that the contract will provide about $36 million in gross revenue. ______________________________________________________ CALIFORNIA, NEW JERSEY -- Companies team up to transmit IP storage records Internet Protocol (IP) storage data can be transmitted at a peak throughput of 215 Megabytes per second and at a sustained throughput of more than 200 MBps between Sunnyvale, Calif. and Newark, N.J., several companies announced today. Dell Computer Corp., Hitachi Data Systems, Nishan Systems, QLogic Corp., and Qwest Communications International, Inc., used the Internet Fibre Channel Protocol to transmit the storage data. The companies said this launch capitalized on the successful deployment of the Promontory Project in September. The first phase of the project demonstrated that multiple ports on a Nishan IP storage switch could collectively process IP storage data from Fibre Channel and iSCSI end systems at a rate sufficient to saturate the OC-48 channels on an OC-192 coast-to-coast wide area network link. This second phase of the project demonstrates the ability of a pair of Nishan IP storage switches, linked by a single transcontinental full-duplex Gigabit Ethernet connection, to convert between Fibre Channel and native IP storage data at wire speed (215MBps), simultaneously in both directions. ======================== 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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