20071102Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER KEMPTON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CAROLEE HALL
DATE:OCTOBER 30, 2007
RE:APPLICATION FOR APPROVAL OF NEGOTIATED AGREEMENT
BETWEEN ALBION TELEPHONE COMPANY, INc. ("ALBION") AND
VERIZON WIRELESS ("VERIZON"
).
CASE NO. ALB-07-04.
BACKGROUND
Under the provision of the federal Telecommunications Act of 1996, interconnection
agreements must be submitted to the Commission for approval. 47 C. g 252(e)(I). The
Commission may reject an agreement adopted by negotiations only if it finds that the agreement:
(1) discriminates against a telecommunications carrier not a party to the agreement; or (2)
implementation of the agreement is not consistent with the public interest, convenience and
necessity. 47 U.C. g 252(e)(2)(A). As the Commission noted in Order No. 28427 , companies
voluntarily entering into interconnection agreements "may negotiate terms, prices and conditions
that do not comply with either the FCC rules or with the provision of Section 251 (b) or ( c)." Order
No. 28427 at 11 (emphasis in original). This comports with the FCC's statement that "a state
commission shall have authority to approve an interconnection agreement adopted by negotiation
even if the terms of the agreement do not comply with the requirements of (Part 51)." 47 C.R. g
51.3.
CURRENT APPLICATION
The Agreement between Albion and Verizon in Case No. ALB-07-04 was filed October
2007. The Company states that this is an Application for approval of a "Negotiated
Agreement". The Company also sets out in its Recital that Albion "is entitled to maintain that it is a
rural telephone company and that by entering into this Agreement, it is not waiving its right to
maintain that it is a rural telephone company and its right to maintain that it is exempt from 251 ( c)
DECISION MEMORANDUM - 1 -OCTOBER 30 , 2007
under 47 U.C. 251 (f) of the Act. The Agreement states that it was jointly entered into by the
parties through voluntary negotiations and sets out rates, terms and conditions pertaining to
Reciprocal Compensation.
Reciprocal Compensation, as set forth in the Agreement, is defined as a compensation
arrangement between two carriers in which each of the two carriers receives compensation from the
other carrier for the Transport and Termination on each carrier s network facilities of
Telecommunications Traffic that originates on the network facilities of the other carrier.
47 c.F.R. g 51.07 (E).
STAFF ANALYSIS
Staff has reviewed the Application and while they have no effect on Staffs ultimate
recommendation for approval of this Agreement, there are two points Staff makes concerning its
recommendation. First, Albion makes a point of not referring to this as an interconnection
agreement. This agreement sets forth the terms, conditions and rates under which Albion and
Verizon will exchange traffic. Although Staff hesitates to argue semantics, this constitutes an
interconnection agreement regardless of what the companies choose to call it.
Secondly, the agreement "acknowledges that Albion is entitled to maintain that it is a rural
telephone company (as defined in 47 U.C. 153) as provided by 47 u.S.C. 251(f) ofthe Act."
Staff does not consider this statement binding or establishing precedence. Such a determination will
be made when this is a claim for a rural exemption in accordance with Section 251 (f) ofthe Act.
Staff does, however, find that this Agreement is consistent with the public interest as
identified in the pro-competitive policies of this Commission, the Idaho Legislature, and the federal
Telecommunications Act of 1996. Accordingly, Staff believes that the Agreement merits the
Commission s approval.
COMMISSION DECISION
Does the Commission wish to accept and approve this Interconnection Agreement?
i:udmemos/interconnection agreements/ALB-O7-04 ALBION AND VERIZON
DECISION MEMORANDUM - 2 -OCTOBER 30 2007