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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* December 26, 2001 STATES MICHIGAN -- Ameritech to pay $443K in penalties OKLAHOMA -- Gov. Keating proposes new telecom tax VIRGINIA -- SCC says, bring 'recip-comp' dispute to FCC TEXAS -- SW Bell calls new DSL PMs 'extreme,' 'punitive' VIRGINIA -- Broadstreet customers must find a new carrier WISCONSIN -- Gov. McCallum appoints commerce secretary ALASKA -- USLD to lower calling card rate CALIFORNIA -- Superior Court judge appointed CALIFORNIA -- Gov. Davis nominates appeals court judges **TR's Survey of Cellphone Legislation** ______________________________________________________ MICHIGAN -- Ameritech to pay $443K in penalties Ameritech-Michigan must pay $443,000 in penalties for failing to meet wholesale service-quality standards during October, according to a report issued by the incumbent. The company must pay $173,000 to the Public Service Commission and $205,000 to its wholesale customers. Ameritech's October penalties mark an increase in service-quality payments compared to penalties assessed in September. For example, Ameritech paid $96,000 to its wholesale customers, and it wasn't required to pay any fines to the commission for September. Meanwhile, Ameritech-Illinois must pay more than $480,600 in penalties for failing to meet wholesale service-quality standards during October, according to a report it issued. The company must pay $275,000 to the Illinois Commerce Commission and $205,000 to its wholesale customers. (12/20/01) In Ohio, Ameritech must pay more than $68,300 in penalties to the Ohio Public Utilities Commission for failing to meet service- quality standards during October. The company must also pay $6,700 to its wholesale service competitors. Ameritech's service-quality payments in Ohio have dropped since its September fines. The company paid fines totaled $265,000 in September, compared to $75,000 in October. (12/27/01) In Indiana, Ameritech must pay $3,200 in penalties for failing to meet wholesale service-quality standards during October. (12/21/01) Meanwhile, Ameritech-Wisconsin was granted a stay by the District 1 Circuit Court, which will allow it to defer payment of more than $2.5 million in penalties for failing to meet wholesale and retail service-quality standards for October. (12/21/01) The company paid $575 for wholesale service-quality penalties in September. In total, Ameritech Corp., will pay more than $1 million in penalties in October for failing to meet wholesale service- quality standards in established by the public utility commissions in its incumbent territory. The company may also pay an additional $2.5 million in penalties assessed by the Wisconsin Public Service Commission for October. In September, Ameritech paid $863,000 in penalties for failing to meet wholesale service-quality standards in its operating region. (12/27/01) ______________________________________________________ OKLAHOMA -- Gov. Keating proposes new telecom tax Gov. Frank Keating (R.) has recommended assessing a 5.9% tax on telecom services as part of a plan that would replace the state income tax with a tax on several services. Rep. Clay Pope (D.), chairman of the House Revenue and Taxation Committee, said he didn't have all the data necessary to make an "informed judgment" about Mr. Keating's proposal. "Extending a 5.9% state tax to telephone and utility bills, barber shops and beauty salons, apartment rentals and hotel rooms, bank fees, and services would increase expenses for most Oklahomans," Mr. Pope said. "The governor claims that under his proposal everyone would get an immediate raise," Mr. Pope added. "But if his plan is indeed 'revenue neutral', then somebody will have to pay for someone else's tax exemptions. At this point, it is impossible for us to know who would be the winners and who would be the losers." "The current Republican tax plan appears to be counter-productive to helping create an environment in Oklahoma that encourages growth and opportunity," House Majority Leader Danny Hilliard (D.) said. ______________________________________________________ VIRGINIA -- SCC says, bring 'recip-comp' dispute to FCC The Corporation Commission has told KMC Telecom of Virginia, Inc., to bring its interconnection dispute related to Verizon Virginia, Inc.'s nonpayment of reciprocal compensation charges to the FCC. KMC asked the SCC to enforce its agreement with Verizon, which it said requires reciprocal compensation for payment of Internet service provider (ISP) traffic. The agreement requires the companies to pay reciprocal compensation for local calls. KMC pointed out that the SCC determined in an earlier case that ISP traffic should be considered local. The company said the FCC's recent decision on compensation for ISP traffic shouldn't affect the SCC's decision. KMC noted that the FCC said its decision doesn't "alter existing contractual obligations" and "does not preempt any state commission decision regarding compensation for ISP-bound traffic for the period prior to the effective date of the interim regime we adopt here." The FCC's order excluded ISP traffic from reciprocal compensation and ordered a 36-month transitional scheme governing compensation for Internet traffic. The SCC said it "remains steadfast in its concern regarding the possibility of conflicting results by the [Virginia] commission and the FCC." The SCC added, "the most practical action is for this commission to decline jurisdiction and allow the parties to present their case to the FCC." (Case PUC010239) ______________________________________________________ TEXAS -- SW Bell calls new DSL PMs 'extreme,' 'punitive' Southwestern Bell Telephone Co. has asked the Public Utility Commission to reconsider or stay its decision revising the incumbent's DSL (digital subscriber line service) performance measures. SW Bell said the new measures were "extreme" and "punitive." SW Bell asked the commission to consider the financial and operational costs of implementing the performance changes compared to the benefits "if any" to CLECs (competitive local exchange carriers). In October, the commission changed SW Bell's penalty structure for missing DSL performance measures from a "per occurrence" to a "per measure" method. The commission also required SW Bell to (1) improve the accuracy level of its LFACS (loop facilities assignment and control system) database, which competitors use to qualify loops, and (2) test the accuracy of its loop qualification information. SW Bell said the revised penalty structure increased its potential DSL-related penalty payments to more than $35 million a year. The "per measure" payments require SW Bell to pay huge penalties regardless of volumes inviting competitors "to arbitrage the remedy plan as an additional revenue source," SW Bell said. The "per measure" penalty structure could require SW Bell to pay hundreds of thousands of dollars per month to a competitor that has only one missed order, SW Bell added. The new accuracy requirements would require SW Bell to manually inventory every plant record in the state, the incumbent said. The potential cost associated with this effort could exceed $1 billion, SW Bell said. Testing a sample of its loop qualification information would cost more than $1 million, SW Bell added. (Project 20400) ______________________________________________________ VIRGINIA -- Broadstreet customers must find a new carrier About 450 Broadstreet Communications business customers in Tidewater and Richmond have until Jan. 2, 2002, to find a new telephone carrier, the Corporation Commission has reported. Service to those customers was cut off Dec. 18 following a payment dispute between Broadstreet and its underlying carrier, Dominion Telecom. Service was restored Dec. 19 at the commission's request, but Dominion only agreed to provide dial tone until Jan. 2, 2002. An SCC spokesman told TR that most of the customers have already begun to migrate to other carriers. The company was in the process of informing customers that it would be terminating service in about 30 days. Dominion told Broadstreet its connection would be terminated for non-payment 10 days before the service was cut off, the commission said. Verizon Virginia, Inc., and Verizon South, Inc., are the incumbent carriers in the region. ______________________________________________________ WISCONSIN -- Gov. McCallum appoints commerce secretary Gov. Scott McCallum (R.) has appointed Phil Albert as secretary of the Department of Commerce. Mr. Albert has been the agency's acting secretary since August. (9/04/01) Mr. Albert was the agency's deputy secretary before being appointed acting secretary. ______________________________________________________ ALASKA -- USLD to lower calling card rate U.S. Long Distance, Inc., has filed a tariff revision with the Regulatory Commission lowering the rate for its prepaid calling rate from 66-cents per "unit" to 35-cents per "unit." The card comes in preset values of $5, $10, and $25. Comments on the request are due Jan. 10, 2002. (TA8-462) ______________________________________________________ CALIFORNIA -- Superior Court judge appointed Gov. Grey Davis (D.) has appointed San Francisco Court Commissioner Newton J. Lam as a judge of the San Francisco Superior Court. Mr. Lam has been a commissioner in the San Francisco Municipal and Superior Courts since 1993. He will fill the vacancy created by the retirement of Judge Ina Gyemant. ______________________________________________________ CALIFORNIA -- Gov. Davis nominates appeals court judges Gov. Gray Davis (D.) has nominated Sacramento Superior Court Judge Ronald B. Robie as an associate justice of the Court of Appeal, Third Appellate District (Sacramento). His nomination is subject to confirmation by the Commission on Judicial Appointments, which will consist of the chief justice of the California Supreme Court, the attorney general, and the presiding justice of the third appellate district, Justice Arthur G. Scotland. The governor also nominated several judges to be on the California Court of Appeal, First Appellate District (San Francisco). He nominated Associate Justice Laurence D. Kay as presiding justice of division four, Associate Justice James J. Marchiano as presiding justice of division one, San Mateo Superior Court Judge Linda M. Gemello as an associate justice in division five, Alameda County Superior Court Judge Sandra L. Margulies as an associate justice in division one, San Francisco Superior Court Judge Stuart R. Pollak as an associate justice in division three, and Contra Costa Superior Court Judge Maria P. Rivera as an associate justice in division four. Each of these nominations is subject to confirmation by the Commission on Judicial Appointments, which will consist of the chief justice of the California Supreme Court, the attorney general, and Presiding Justice Anthony J. Kline of the First Appellate District. ______________________________________________________ **TR's Survey of Cellphone Legislation** -- The issue of whether drivers should be allowed to talk on wireless phones proved to be a contentious issue during the 2001 legislative season. Although 36 state legislatures introduced bills during 2001 related to the use of wireless phones while driving, only one state--New York--implemented a law banning the use of hand-held wireless phones while driving. The Rhode Island General Assembly passed a similar bill, but Gov. Lincoln Almond (R.) vetoed it. The issue is sure to be considered by lawmakers during the 2002 legislative sessions. Delaware Rep. Joseph E. Miro (R., District 22), for example, has told TR he plans to sponsor legislation restricting the use of wireless devices while driving. The measure will be introduced when the Delaware Legislature convenes Jan. 8, 2002. Click here for TR's Survey of 2002 Cellphone Legislation: http://www.tr.com/insight.asp <http://www.tr.com/insight.asp ======================== 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 Associate Editor 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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