20080527_2256.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
CO MMISSI 0 NER KEMPTON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:MAY 23, 2008
RE:FREMONT TELECOM CO. DBA F AIRPOINT COMMUNICATION'
TARIFF ADVICE LETTER NO. ID-08-02 FOR BUNDLED RESIDENTIAL
SERVICES.
On May 14 2008, Fremont Telecom Co. dba Fairpoint Communications (Fairpoint)
submitted a filing for Commission approval to add bundled residential service offerings. In the
filing, Fairpoint asserts it has received several requests for bundled services and would like to
offer a variety of packages to meet the residential customers' needs. The bundled service
packages include various combinations of local service, domestic long distance calling, custom
calling features (i.e. caller identification, call waiting, voice mail, etc.), Digital Subscriber Line
(DSL) options, and Direct TV. Fairpoint will continue to offer individual service offerings for
customers who do not wish to sign up for a bundled service package. The Company requests an
effective day of June 12 2008.
STAFF ANALYSIS
Staff received calls from Fairpoint and its consultant regarding the Tariff Advice. During
these conversations, Staff was informed that Fairpoint residential customers received flyers in
the mail advertising its new residential bundled packages in advance of Commission approval of
the service. This mix-up occurred from a lack of coordination between the marketing and
regulatory departments ofthe Company. The flyers generated customer calls to the Company,
and, during the month of May, approximately 82 residential customers were signed up for
bundled service packages by Fairpoint customer service representatives. Customers will receive
DECISION MEMORANDUM - 1 -MAY 23 , 2008
a June 1 bill that reflects the change to the new service. Fairpoint wishes to avoid billing
adjustments for these customers and requests that the Commission consider an expedited
effective date in May instead of the Tariff Advice date of June 12 2008.
Staff has reviewed the filing and believes the bundled service options will benefit
customers by providing them with increased choices for residential telephone service. A June
, 2008 effective date will create an administrative issue for Fairpoint that could cause billing
problems for the customers who have signed up for one of the bundled service packages. Upon
review of the situation, Staff sees no benefit to the customers or the Company of denying
Fairpoint's request for an earlier effective date. Staff, therefore, recommends Commission
approval ofthe filing with an effective date of May 30, 2008.
COMMISSION DECISION
Does the Commission wish to approve Fairpoint's Tariff Advice Letter No. ID-08-02 as
recommended by Staff with an effective date of May 30, 20087
/Aa-u
race Seaman
GS:udmemos/FairpointID-O8-02 dec memo
DECISION MEMORANDUM - 2 -MAY 23, 2008