20090526_2582.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:MAY 22, 2009
RE:FREMONT TELECOM CO. DBA F AIRPOINT COMMUNICATIONS
TARIFF ADVICE NO. AL-09-01 TO INTRODUCE VOLUME
DISCOUNTS FOR BUSINESS CUSTOMERS.
On April 27, 2009, Fremont Telecom Co. dba Fairpoint Communications (Fremont) filed
Tariff Advice No. AL09-0l requesting Commission approval to introduce term and volume
discounts for Fremont's business customers. With this filing, Fremont introduces one-, two-
three- and five-year terms with corresponding discounts based on the number of business lines.
In a subsequent correspondence, Fremont states that this initiative is company-wide and it
does not have any specific data relating to rate and revenue impact in Idaho. Fremont states that
this filing will allow for consistency among product offerings, customer service, and billing
throughout its service areas. Further, the discount structure provides an additional tool to slow
the access line losses Fremont has experienced for the past few years. The Company projects no
additional revenue from the proposed term and volume discount structure, but hopes it will halt
the projected line loss on a going forward basis and, therefore, maintain the current level of
revenue associated with business lines. Fremont estimates that approximately $25 000 of annual
revenue loss may be avoided by implementing this filing.
STAFF ANALYSIS
Staff has reviewed the filing and believes the proposed term and volume discount
structure offers the business consumer an option for basic local service at a reasonable price.
Staff recommends approval of this filing.
DECISION MEMORANDUM - 1 -MAY 22, 2009
COMMISSION DECISION
Does the Commission agree?
GS:udmemosfFremontAL-O9-01 dec memo
DECISION MEMORANDUM - 2 -
Grace Seaman
MAY 22, 2009