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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 25, 2001 STATES KANSAS -- SW Bell seeks court review of LD rate decision SOUTH DAKOTA -- Qwest to present long distance bid NORTH CAROLINA -- KMC seeks tandem-interconnect rate CONNECTICUT -- DPUC to accept WorldCom, SNET arbitration decision NORTH CAROLINA -- Gov. Easley signs bill streamlining telcos' taxes MARYLAND -- WorldCom calls for an end to Verizon's 'alt-reg' plan WASHINGTON -- 1-800-RECONEX asks to leave market MAINE -- Carriers must file infrastructure, service area maps MICHIGAN -- Law enforcement bill would allow wiretapping TEXAS -- PUC tentatively backs 'overlay' for '903' area code TENNESSEE -- TRA to develop procedures for intercompany complaints NEVADA -- Gov. Guinn names state CIO TEXAS -- AT&T launches call trace, repeat dial, call return features ALASKA -- UUI to change Lifeline eligibility criteria WASHINGTON -- Technology institute launched MONTANA -- PSC seeks comments on PAP TEXAS -- Staff proposes revisions to 'slamming' rules NEW YORK -- PSC postpones Verizon number 'pooling' deadline ILLINOIS -- Ameritech expands EAS OHIO -- Earthlink, AOL launch broadband services MASSACHUSETTS -- Forrester to hold forum on 'X Internet' UTAH -- Verizon Wireless launches digital service WASHINGTON -- UTC reschedules PAP hearings REGIONAL Cingular rolls out 2.5G wireless service Leap launches service in Reno, Toledo ______________________________________________________ KANSAS -- SW Bell seeks court review of LD rate decision Southwestern Bell Communications Services, Inc. (SBCS) has asked the Kansas Court of Appeals to set aside a Kansas Corporation Commission decision regulating the company's long distance rates. SBCS is Southwestern Bell Telephone Co.'s long distance subsidiary. The commission unlawfully asserted jurisdiction over SBCS's rates, the company said. The KCC's decision is "unreasonable, arbitrary and/or capricious," SBCS added. In March, AT&T Communications of the Southwest, Inc., asked the commission to suspend SBCS's tariff arguing that it was "unlawful, unduly preferential, and anticompetitive." In April, the commission denied AT&T's request but concluded that SBCS was a "public utility" and, as such, the commission had the authority to investigate its rates. The commission denied SBCS's requests to reconsider its decision. SBCS is not a "public utility" because it doesn't own, control, operate, or manage any equipment, plant, or generating machinery for transmitting telephone messages, the company said. SBCS said it should be regulated as a telecommunications "carrier." State law prohibits the commission from regulating a carrier's long distance rates. (Case 01-87901-A, Southwestern Bell Communications Services, Inc. v. Corporation Commission of the State of Kansas) ______________________________________________________ SOUTH DAKOTA -- Qwest to present long distance bid Qwest Corp. has said that it plans to submit documentation with the Public Utilities Commission today that signals its intent to offer in-region interLATA (local access and transport area) service under section 271 of the federal Telecommunications Act of 1996. The company is asking the commission to review documentation that demonstrates Qwest has opened up its in-region intraLATA market to its competitors. Qwest said that it hopes the PUC will support its decision and "influence" the FCC with "a strong endorsement" of its filing. After the PUC reviews its proposal, the company plans to submit its bid to offer interLATA service in South Dakota to the FCC by early 2002. ______________________________________________________ NORTH CAROLINA -- KMC seeks tandem-interconnect rate KMC Telecom III, Inc., has asked the Utilities Commission to require Carolina Telephone and Telegraph Co. and Central Telephone Co., d/b/a Sprint, to pay KMC the tandem- interconnection rate for reciprocal compensation. Sprint is paying KMC the lower end-office switching rate for reciprocal compensation. KMC is seeking about $550,000 in reciprocal compensation fees from Sprint. KMC said it's eligible for the tandem-interconnection rate because its switch (1) serves a geographic area comparable the area covered by BellSouth's tandem switch and (2) performs "tandem-like" functions. (Docket P-7, sub 980; P-10, sub 622) ______________________________________________________ CONNECTICUT -- DPUC to accept WorldCom, SNET arbitration decision The Department of Public Utility Control has issued a draft decision that would accept a revised final arbitration settlement between Southern New England Telephone Co. (SNET) and WorldCom's Connecticut operating companies--MCI Metro Access Transmission Services, Inc., and Brooks Fiber Communications of Connecticut, Inc. The companies sought the arbitration after failing to agree on interconnection terms after their 1999 agreement expired. The disputed issues included directory assistance, resale, unbundled network elements, reciprocal compensation, and collocation. The DPUC partially remanded the arbitrator's initial decision last July to (1) clarify inconsistencies in language; (2) ensure compliance with the federal Telecommunications Act of 1996; (3) provide a time period for the consistency of cost studies, which the DPUC said was omitted; and (4) clarify the reasons supporting the award, in light of an "Eighth Circuit Decision vacating certain duties regarding unbundling of incumbent local exchange carriers." The remainder of the award was affirmed. (7/12/01) The arbitrator issued a letter clarifying the language to make it consistent with the original ruling, stating that WorldCom should be billed a manual loop qualification charge when the loop qualification process isn't mechanized. The arbitrator also determined that the companies should complete their cost studies within 60 days of the final decision's release. The arbitrator declined to discuss his reasons for supporting the award because "such disclosure would be detrimental to the confidential nature of the arbitration process." The DPUC accepted the arbitrator's assertion and said that it would base its ruling for this issue on the arguments made by SNET and WorldCom. The DPUC will hold Nov. 6 oral arguments on the settlement. Parties that want to participate in the oral arguments must file at the commission by Oct. 31. A final decision on the matter is expected Nov. 14. A copy of the draft decision may be found at http://www.dpuc.state.ct.us/DOCKCURR.NSF/2b67041f3f12d444852569ff 005bcf7c/d700b3ee7c6f011f85256aef0054ac51/$FILE/Df000435.doc. (Docket 00-04-35, Application of MCI WorldCom Communications, Inc., MCI Metro Access Transmission Services, Inc., and Brooks Fiber Communications of Connecticut, Inc., for Mediation) ______________________________________________________ NORTH CAROLINA -- Gov. Easley signs bill streamlining telcos' taxes Gov. Mike Easley (D.) has signed a bill eliminating the franchise tax on telecom companies' gross receipts and making interstate calls subject to the state sales tax. Most local calls are now subject to a 3% state sales tax and a 3.22% franchise tax. HB 571 eliminates the 3.22% franchise tax and replaces both taxes with a 4.5% sales tax. About 24% of the proceeds from the new sales tax will be distributed to local governments. HB 571 also (1) taxes prepaid phone cards at the point of sale instead of the point of use and (2) authorizes state and local governments to tax wireless communications if the source of the communications is located in the state. The "source" is considered the subscriber's service address. HB 571 takes effect Jan. 1, 2002. ______________________________________________________ MARYLAND -- WorldCom calls for an end to Verizon's 'alt-reg' plan WorldCom, Inc., has asked the Public Service Commission to terminate Verizon Maryland, Inc.'s current alternative regulation plan because the plan has "failed to comply with Maryland law." Under state law, the plan must foster competition. WorldCom pointed out that FCC market share data shows that Verizon has retained 96% of the local market. The PSC said it would review Verizon's current alternative regulation plan in the sixth year of the plan--January 2002. The General Assembly passed legislation in 1995 that granted the PSC authority to adopt alternative regulation plans if the plan (1) produces affordable and reasonable local exchange service in the state; (2) ensures quality, availability, and reliability of telecommunications services; (3) encourages competition; and (4) is "in the public interest." WorldCom said that although Verizon's rates increased very little since the plan's inception, they are excessive, as shown by the incumbent's 33% return on equity. That amount is double the returns before the plan was implemented, WorldCom said. In addition, WorldCom asserted that local competition has been stymied by Verizon's legal challenges to unbundled network element (UNE) rates, UNE combinations, operations support systems (OSS) testing, interconnection arbitrations, and other legal battles. WorldCom blamed these "battles" for the bankruptcy of competitive local exchange carriers (CLECs) operating in the state, including PSINet, Inc., Teligent, Inc., e.spire Communications, Inc., NorthPoint Communications Group, Inc., and Rhythms Links, Inc. WorldCom has asked the PSC to consider a new plan that would require Verizon to (1) provide network elements to competitors, (2) unbundle these elements in technically feasible combinations, (3) ensure that competitors gain access to network elements, (4) set UNE rates using a total element long run incremental cost methodology, (5) provide "commercially viable" OSS, and (6) provide a performance assurance plan. ______________________________________________________ WASHINGTON -- 1-800-RECONEX asks to leave market 1-800-RECONEX, Inc., has asked the Utilities and Transportation Commission for authority to cease doing business in the state. The company filed its application to withdraw its registration the day it was required to pay the commission a $166,000 penalty, a UTC staff member told TR. RECONEX was fined $166,00 in September for failing to make agreed-upon improvements to its basic local telephone service. (9/20/01) The company didn't pay the fine, the staff member added. The staff member said the commission hasn't decided on the "best response" to the company's action. RECONEX could face penalties of up to $1,000 per day for failing to pay the fine on time. The company also will be required to follow the commission's service-termination rules, which include notifying its customers of its plans to exit the market. ______________________________________________________ MAINE -- Carriers must file infrastructure, service area maps The Public Utilities Commission has adopted rules requiring all utilities to submit service area and infrastructure data in geographic information systems (GIS) format for the state's database. GIS format creates a database that can correlate utility data "indefinitely," a spokesman for the PUC told TR. System disruptions will be more easily responded to and recovered from by using GIS, he said. The new format will force telecom companies in the state to modernize, the spokesman added. The rules apply to incumbent local exchange carriers (ILECs), competitive local exchange carriers (CLECs) that the commission has designated as eligible telecommunications carriers (ETCs) pursuant to the federal Telecommunications Act of 1996, and interexchange carriers (IXCs) with facilities in Maine. The rules direct carriers to "maintain current service area maps" by updating files when boundaries change. Initial copies are due from ILECs July 1, 2002, and from CLECs designated as ETCs on Apr. 1, 2004. Utilities must file annual infrastructure maps by April 1 for infrastructure in place as of Dec. 31 of the previous year. All submissions must be made using GIS format, unless the PUC authorizes a waiver. A copy of the rules is available at http://www.state.me.us/mpuc/rules/Part%201/ch-140.pdf. The commission order is available at http://www.state.me.us/mpuc/orders/2001/2001-284oar.htm. (Docket 2001-284) ______________________________________________________ MICHIGAN -- Law enforcement bill would allow wiretapping Rep. Andrew Raczkowski (R., District 37) has sponsored HB 5240, which would give law enforcement officials the authority to intercept communications and use interception devices for drug trafficking offenses. A House Criminal Justice Committee spokesperson told TR that Michigan laws currently don't authorize state and local law enforcement officials to engage in wiretapping activities to fight crime. He said that Michigan has no statutes on the subject at all. The spokesperson added that if this measure were approved, it would limit law enforcement officials to "drug crimes" only. The committee spokesperson told TR that in the wake of the recent terrorist events, it was "very likely" that an amendment would be proposed to give law enforcement officials expanded power to use surveillance capabilities like wiretapping to combat domestic terrorism. HB 5240 has been referred to the House Committee on Criminal Justice. Other sponsors include Rep. Barb VanderVeen (R., District 89), Rep. Joanne Voorhees (R., District 77), Rep. John Pappageorge (R., District 41), Rep. John Stewart (R., District 20), and Rep. Patricia Birkholz (R., District 88). ______________________________________________________ TEXAS -- PUC tentatively backs 'overlay' for '903' area code The Public Utility Commission has tentatively recommended implementing an "overlay" to relieve number "exhaust" in the "903" area code. Permissive 10-digit dialing should begin April 20, 2002, with mandatory dialing starting Oct. 19, 2002, the PUC said. The PUC will request comments on its plan, but hasn't established a comment schedule yet. Without a relief plan, number resources in the 903 area code are projected to exhaust during first quarter 2003. (6/21/01) (Project 22749) ______________________________________________________ TENNESSEE -- TRA to develop procedures for intercompany complaints The Regulatory Authority has decided to develop rules establishing procedures for reviewing complaints between telecom companies. The revised procedures would govern disputes about reciprocal compensation payments as well as other complaints, the TRA staff told TR. (10/19/01) The TRA will develop and request comments on proposed rules within the next two weeks, the staff told TR. ______________________________________________________ NEVADA -- Gov. Guinn names state CIO Gov. Kenny Guinn (R.) has appointed Terry Savage the state's chief information officer. He will be responsible for the guidelines, policies, coordination, and oversight of the technology used to process and move electronic information for state government. Mr. Savage will report to the governor and will be the chairman of the Nevada Information Technology Operations Committee. Mr. Savage joined the Department of Information Technology as deputy director in January 2000. He was appointed director by Gov. Guinn in August 2000. ______________________________________________________ TEXAS -- AT&T launches call trace, repeat dial, call return features AT&T Communications of Texas L.P. has launched call trace, repeat dial, and call return service. The company charges $7 per use for call trace. Repeat dial is available for 75 cents per use, and call return is available for 95 cents per use. ______________________________________________________ ALASKA -- UUI to change Lifeline eligibility criteria United Utilities, Inc. (UUI) has filed a tariff revision with the Regulatory Commission to change its Lifeline qualification criteria. UUI is a local exchange carrier in the state. UUI proposed deleting a provision that said, "A customer who has more than one telephone line at a location or who has telephone service in the same name at another location is not eligible for assistance." The company wants to add a provision that states, "While a Lifeline customer may have more than one telephone line at a location or have telephone service in the same name at another location, only the primary residential service is eligible for Lifeline service." Comments on the tariff revision are due Nov. 23. (TA56-249) ______________________________________________________ WASHINGTON -- Technology institute launched Gov. Gary Locke (D.) and state and local leaders yesterday formally launched the new Institute of Technology at the University of Washington, Tacoma. The institute was established with more than $5 million in state funds in June, along with nearly $4 million from local government and private donors. The governor launched the state's Strategy for the Innovation Economy earlier this summer to ensure that "Washington becomes the state that technology-driven, fast-growing, high-paying businesses call home--the state where innovation is a way of life and technology is the tool that powers our prosperity." The institute is one of several steps the South Sound region is taking to create a tech-based future. Those steps include providing the bandwidth that technology-based companies demand. The institute opened its doors this fall with 170 students working towards bachelor's degrees in computing and software systems. Next year the institute plans to offer a professional master's degree and will add other degree and certificate programs soon. ______________________________________________________ MONTANA -- PSC seeks comments on PAP The Public Service Commission has asked for comments by Nov. 1 on a report issued by a facilitator, Liberty Consulting Group, on Qwest Corp.'s performance assessment plan. The PAP seeks to ensure that the local market remains open after Qwest receives authorization from the FCC to provide in-region interLATA (local access and transport area) service under section 271 of the federal Telecommunications Act of 1996. The commission is part of a multistate group examining Qwest's plan. The states used the PAP adopted by the Texas Public Utility Commission for Southwestern Bell Telephone Co. as a starting point. The collaborative adopted Texas's two-tiered payment approach where Tier 1 payments go to competitive local exchange carriers and Tier 2 payments go to the states. The collaborative eliminated the Texas plan payment caps on individual performance measures, restructured collocation payments, and raised Tier 1 performance measures classified at "medium" to "high." The Liberty Group recommended several PAP changes in its report that would help Qwest meet its goals and "fall within what we construe as the FCC standards applicable for such plans." For example, although the Liberty Group said the hard 36% penalty cap as proposed by Qwest was consistent with previous FCC decisions, the group recommended that the states include several cap- movement principles. (10/23/01) The report is available at http://www.libertyconsultinggroup.com/OSS_and_PAP/FINAL%20QPAP%20 REPORT.DOC. (Docket D2000.5.70) ______________________________________________________ TEXAS -- Staff proposes revisions to 'slamming' rules The Public Utility Commission staff has proposed revisions to the PUC's "slamming" rules. Slamming is the unauthorized switch of a customer's preferred carrier. The proposed revisions would (1) add verification requirements adopted by the FCC after the rules took effect, (2) add electronic LOAs (letters of authorization) as a verification method for switching telecom service, and (3) require telecom companies to submit change orders within 60 days after receiving a customer's verification. The PUC is slated to review the staff's proposed rules Nov. 1, but AT&T Communications of Texas L.P. asked the commission to postpone its decision so that the staff can conduct a workshop to discuss additional proposed revisions to the rules. Some incumbent local exchange carriers have attempted to implement their own local slamming "penalties," often before there is a determination of whether an improper switch has occurred, AT&T said. The revised rules should prohibit this "unreasonable and anticompetitive" activity, AT&T said. (Project 24626) ______________________________________________________ NEW YORK -- PSC postpones Verizon number 'pooling' deadline The Public Service Commission has extended the deadlines for Verizon New York, Inc., to "pool" unused 1,000-number blocks in the "646" and "347" area codes because of the September terrorist attacks in New York City. Verizon said that the numbers which would "otherwise be available" are now in use for displaced customers and emergency services. The PSC said the postponement was "consistent with recent actions. . .to suspend other regulatory requirements affecting Verizon in the wake of the World Trade Center attacks." The commission further noted that the postponement allows Verizon to devote its full attention to the restoration efforts in New York City. The 646 area code was originally slated to be pooled by Oct. 31, and the 347 area code was scheduled for pooling by Nov. 30. Both deadlines are now extended to Feb. 28, 2002. The order may be found at http://www.dps.state.ny.us/fileroom/doc10650.pdf. (Case 98-C-0689) ______________________________________________________ ILLINOIS -- Ameritech expands EAS Ameritech-Illinois has announced that it is offering three new flat-rate plans that provide unlimited local service to its Illinois consumers. The extended area service (EAS) plans allow consumers to make unlimited local calls within about 15 miles of their home calling area for $12.50. Ameritech said that customers can choose from their Economy, Sensible, or Complete Solutions calling plans that allow consumers to elect additional services and features that best fit their calling needs. "The competitive market means not only offering customers competitive pricing, but being sure that they are using the packages that fit their calling patterns," said Steve Dimmitt, vice president-marketing for SBC-Ameritech. Verizon Communications, Inc., earlier this week, said that it was offering EAS service to more than 50 exchanges in Illinois and that it filed a request with the Commerce Commission to offer EAS service to another 23 exchanges. Under Verizon's 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. SBC Communications, Inc., Ameritech's parent company, said that later this month Ameritech-Michigan would be expanding its EAS service and that Ameritech-Wisconsin would be introducing EAS service for the first time. ______________________________________________________ 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 Northeast 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 will now have access to about 386,000 households in Time Warner's Northeast Ohio service area, which includes Cleveland, Akron, Canton, and surrounding areas. ______________________________________________________ MASSACHUSETTS -- Forrester to hold forum on 'X Internet' Forrester Research, Inc., an independent technology research firm, will hold its Executive Strategy Forum Nov. 7-9 in Boston. The forum will discuss the "X Internet," an "extended, executable Internet," considered the "next step" in technology, Forester said. As the Internet expands, the firm explained, two new waves of innovation are already eclipsing the Web-- (1) an executable Internet that greatly improves the online experience and (2) an extended Internet that connects the real world. Forrester has dubbed this the X Internet. Issues will include new Internet applications, new combinations of hardware and software being developed, how the new Internet "paradigm" will improve customer relations, new technology skills companies should be prepared for, and a summary of vendors that could "lead the move toward the X Internet." Speakers include Richard Belluzzo, president and chief operating officer of Microsoft Corp., Chet Huber, president of OnStar Corp., Dr. Jim Mitchell, vice president and director of Sun Laboratories and fellow for Sun Microsystems Inc., and Ray Ozzie, chairman and chief executive officer of Groove Networks, Inc. For more information on the forum, visit http://www.forrester.com/Events/Overview/0,5158,309,00.html. ______________________________________________________ UTAH -- Verizon Wireless launches digital service Verizon Wireless has started offering digital service in St. George and Cedar City. Digital service will provide customers with greater call clarity and security and longer battery life and talk time. The new coverage is part of the company's $18 million investment in the state during 2001. Previously, Verizon only offered analog service in southern Utah. ______________________________________________________ WASHINGTON -- UTC reschedules PAP hearings A Utilities and Transportation Commission administrative law judge has told TR that the commission has rescheduled its hearings on Qwest Corp.'s performance assessment plan (PAP) for Dec. 18-21. TR incorrectly reported that the hearings were scheduled for Dec. 5-7 in its Oct. 22 edition. The hearings were rescheduled Oct. 11. The PAP seeks to ensure that the local market remains open after Qwest receives authorization from the FCC to provide in-region interLATA (local access and transport area) service under section 271 of the federal Telecommunications Act of 1996. The UTC is a part of a multistate collaborative examining the PAP. The Liberty Consulting Group is working with the collaborative and released its report on Qwest's PAP earlier this week. (10/23/01) The report was originally scheduled to be released Oct. 12. ______________________________________________________ GEORGIA, NEVADA, NORTH CAROLINA, SOUTH CAROLINA, TENNESSEE -- Cingular rolls out 2.5G wireless service Cingular Wireless has launched its GPRS (general packet radio service) Internet Express service in Las Vegas, the Carolinas, eastern Tennessee, and coastal Georgia (including Savannah, Augusta, and Brunswick). The service is already available in Washington. (8/28/01) Internet Express provides customers with "always on" access to the wireless Internet at speeds up to 10 time faster than current technologies, the company said. The service enables customers to toggle between an Internet session and a voice call or text message without abandoning their Internet connection. ______________________________________________________ NEVADA, OHIO -- Leap launches service in Reno, Toledo Leap Wireless International, Inc., today said it is offering its Cricket Comfortable Wireless service in Reno, Nev. and Toledo, Ohio. Under the wireless calling plan, customers can make and receive calls for a single flat-rate. With the addition of Reno and Toledo, Leap now offers its Cricket service in 29 markets in 16 states across the country. ======================== 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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