19990526Decision Memo.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
RON LAW
TONYA CLARK
LYNN ANDERSON
STEPHANIE MILLER
DAVE SCHUNKE
JOE CUSICK
DON HOWELL
BEV BARKER
DAVID SCOTT
DOUG COOLEY
WORKING FILE

FROM: CHERI C. COPSEY

DATE: MAY 26, 1999

RE: IN THE MATTER OF THE PETITION OF CENTURYTEL OF THE GEM STATE, INC. FOR SUSPENSION OF THE DIALING PARITY OBLIGATIONS OF 47 U.S.C. §251(b)(3) PURSUANT TO 47 U.S.C. §251(f)(2) – CGS-T-99-2.

On April 22, 1999, pursuant to 47 U.S.C. §251(f)(2), CenturyTel of the Gem State, Inc. filed a Petition requesting a limited suspension of its dialing parity obligations imposed by 47 U.S.C. § 251(b)(3) for eighty-eight (88) access lines in its Grasmere-Riddle, Idaho exchange. CenturyTel states that these access lines are served out of CenturyTel’s DCO switch located in Owyhee, Nevada, and the switch is currently technically incapable of providing dialing parity. It further states that a new remote switch served through new fiber optic cable located in Grandview, Idaho, is scheduled to be installed by the end of the second quarter of the year 2000. Cost estimates submitted to the Nevada Commission are approximately $2.5 million for the project. Until then, CenturyTel states it cannot offer dialing parity to those eighty-eight (88) access lines.
Decisions concerning the cost allocations and the effect on ratepayers have not been addressed at this time. With these upgrades, intraLATA dialing parity will be made available. In addition, CenturyTel must obtain rights-of-way and permits from the Shoshone-Paiute Nation and the Army Corps of Engineers for routing through a federally protected area.
Therefore, CenturyTel alleges that it is in the public interest to suspend its dialing parity obligations imposed by 47 U.S.C. § 251(b)(3) until the third quarter of the year 2000. CenturyTel filed a timely dialing parity plan as required by the Federal Communications Commission (FCC) order dated March 23, 1999, in FCC Docket No. 96-98, that requires all Local Exchange Carriers (LECs) to file their dialing parity plans with state commissions by April 22, 1999.

BACKGROUND
Toll dialing parity, also referred to as “1 plus equal access” or carrier presubscription, allows a customer to pre-select a carrier for intrastate, intraLATA toll calls and then access his chosen carrier simply by dialing 1 plus the telephone number. Without dialing parity, a customer wishing to use a specific toll carrier may be required to dial a series of numbers before dialing the telephone number.
Section 251(b)(3) of the Telecommunications Act of 1996 requires all LECs to provide dialing parity. By order dated March 23, 1999, in FCC Docket No. 96-98, the FCC requires all LECs to file their dialing parity plans with state commissions by April 22, 1999. Upon Petition by a local exchange carrier with fewer than two percent (2%) of the Nation's subscriber lines installed in the aggregate nationwide, the Commission may suspend or modify any of the obligations of Section 251(b), provided the Commission determines that such suspension or modification is necessary to:
avoid a significant adverse economic impact on users of telecommunications services generally;

avoid imposing a requirement that is unduly economically burdensome; or

avoid imposing a requirement that is technically infeasible; and

be consistent with the public interest, convenience, and necessity.

47 U.S.C. § 251(f)(2). The Commission must act upon the Petition within one-hundred eighty (180) days after receiving the Petition. Id.
CenturyTel has fewer than two percent (2%) of the Nation's subscriber lines installed in the aggregate nationwide.
Staff Recommendation
Staff reviewed the Petition and consulted with the Nevada Commission regarding this matter. Based on its review, Staff recommends granting the Petition and ordering the intraLATA toll dialing parity obligations be suspended until September 30, 2000. Staff agrees with CenturyTel that intraLATA toll dialing parity for those CenturyTel customers served out of CenturyTels Owyhee central office is technically infeasible at this time and suspension is consistent with the public interest, convenience, and necessity. Therefore, Staff finds that CenturyTel meets the criteria for eligibility for a suspension under 47 U.S.C. § 251(f)(2)(iii) and recommends granting the suspension.
Commission Decision
Does the Commission want to grant the Petition and suspend CenturyTel’s dialing parity obligations until September 30, 2000?

___________________________
Cheri C. Copsey
Lmemos\cgst992_cc2.doc

DECISION MEMORANDUM 1