HomeMy WebLinkAbout19971216Comments.docCHERI C. COPSEY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-0314
Street Address for Express Mail:
472 W WASHINGTON
BOISE ID 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF ) CASE NO. GEM-T-97-1
GEM STATE UTILITIES CORPORATION )
d/b/a/ PTI COMMUNICATIONS TO BE ) COMMENTS OF THE
DESIGNATED AS AN ELIGIBLE ) COMMISSION STAFF
TELECOMMUNICATIONS CARRIER. )
)
____________________________________________ )
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Cheri C. Copsey, Deputy Attorney General, in response to Order No. 27238, the Notice of Petition and Notice of Modified Procedure in Case No. GEM-T-97-1, issued December 2, 1997, submits the following comments.
BACKGROUND
On November 21, 1997, Gem State Utilities Corporation, d.b.a. PTI Communications, (PTI) filed an Petition requesting that the Commission designate PTI as an eligible telecommunications carrier (ETC) pursuant to the Telecommunications Act of 1996 for the purposes of receiving federal universal service support and other benefits in accordance with the federal Telecommunications Act. PTI further requested the Commission apply the ETC designation throughout PTIs Idaho study area. The Petition was supported by an affidavit by PTI Communications Vice President, Ms. Bernadette B. Murrays affidavit, confirming PTIs status as a rural telephone company within the meaning of Section 153(47) of the Act.
Ms. Murray testified that with the exception of toll control, PTI meets the criteria of ETC designation. PTI requested the Commission suspend or waive any requirement that it provide toll control.
On December 2, 1997, the Commission issued Order No. 27238 which gave public notice of the Petition and notice that the proceeding would be conducted according to the Commissions Rules for Modified Procedure.
STAFF ANALYSIS
1. Designation as Eligible Telecommunications Carrier.
Before a telecommunications carrier may receive federal Universal Service Fund support, it must be designated as an eligible telecommunications carrier by the state regulatory commission. 47 U.S.C. 214(e)(2). Federal universal service support includes high-cost support, reimbursement for discounts provided to low-income customers in the Lifeline and Link Up programs, and support for schools, libraries and health care providers.
To be designated as an eligible telecommunications carrier, a LEC must offer services that are supported by federal universal service support mechanisms under Section 254(c), either using its own facilities or a combination of its own facilities and resale of another carriers services and advertise the availability of such services and the charges therefore using media of general distribution. 47 U.S.C. 214(e). In its Order released May 8, 1997, the FCC designated the following services as required core services supported by universal service support mechanisms under Section 254(c) that must be provided by the LEC in order to qualify as an ETC:
single-party service
voice grade access to the public switched network
touch-tone service
access to emergency services, including 911 and E911
access to operator services
access to interexchange service
access to directory assistance
toll limitation services for qualifying low-income consumers
FCCs Universal Service Order, CC Docket No. 96-45, FCC 97-157 at 61-82 (codified at 47 C.F.R. 54.101). In its Petition, PTI claims that, with the exception of toll control, it meets the requirements for designation as an eligible telecommunications carrier for its Idaho service area.
Staff confirmed that PTI offers the above-listed services using its own facilities and generally advertises the availability of these services with the possible exception of toll control as defined by the FCCs Universal Service Order, (FCC 97-157), at 383, codified at 47 C.F.R. 54.400(c) (effective January 1, 1998).
PTI requests the Commission grant it a waiver of the toll control requirement, and as explained more fully below, Staff recommends granting a waiver. Therefore, Staff finds
PTI meets the minimum criteria for designation as an eligible telecommunications carrier and recommends granting this request.
2. ETC Service Area.
In designating a telephone carrier as an ETC, the Commission must also designate the appropriate service and support areas. 47 U.S.C. 214 (e)(2) and 47 U.S.C. 214 (e)(5). PTI requested the ETC designation apply throughout PTIs Idaho study area. The Telecommunications Act of 1996 Act defines the ETC service area as the geographic area established by a state commission for the purpose of determining universal service obligations and support mechanisms. 47 U.S.C. 214 (e)(5). In the case of an area served by a rural telephone company, [service area] means such companys [study area] unless and until the Commission and the States, after taking into account recommendations of a Federal-State Joint Board instituted under Section 410(c), establish a different definition of service area for such company. Id.
PTI claims it is a rural telephone company and Staff does not dispute this claim. Staff therefore concurs with the request for designation of PTIs entire Idaho study area as the service area for the ETC designation.
3. Suspension of Toll Control Requirement.
Toll limitation is one of the services that must be provided in order to be eligible for the federal universal service support mechanisms. FCCs Universal Service Order (FCC 97-157), 82. The FCCs definition of toll limitation includes both toll blocking which allows customers to block toll calls and toll control which allows customers to limit in advance their toll usage per month or billing cycle. Id. at 383; 47 C.F.R. 54.400(a)(4) (effective January 1, 1998). In its Petition, PTI claims it has the ability to provide toll blocking, but not toll control. PTI, therefore, requests the Commission suspend or waive any toll control requirement.
The FCC authorized state commissions to grant a waiver of the requirement of providing toll control or other toll limitation services upon a finding that exceptional circumstances prevent an otherwise eligible telecommunications carrier from providing . . . toll limitation. FCCs Universal Service Order (FCC 97-157), 388; codified at 47 C.F.R. 54.101(c). The FCC also suggested that any waiver period be limited to the existence of those exceptional circumstances and not extend beyond the time necessary for that eligible telecommunications carrier to complete network upgrades. Id.
Providing toll control requires substantial integration between the central office switch and the billing records of the customer. To provide toll control services will require significant upgrades to the equipment and/or procedures used by PTI, because it does not currently have this ability. Such upgrades cannot reasonably be expected to be implemented in a short period of time. In addition, previous experience demonstrates that significant customer education is required for an effective toll control program. Implementing such a complex effort without ensuring that all the procedures are in place and that proper staff and customer education have been completed invites customer confusion, rather than acceptance. Therefore, Staff finds these circumstances are exceptional and recommends granting a waiver of the requirement to provide toll control to PTI.
Staffs experience with the provision of toll control by GTE Northwest, Inc. demonstrates that a period of two to three years is appropriate for the introduction of such a complex service. PTI stated that toll blocking is being provided and did not seek a waiver for this feature. Because at least one form of toll limitation will be available to PTIs customers, there is no need to rush the implementation of toll control. Toll control should be implemented in a controlled and orderly manner. Staff recommends the waiver be granted for a three-year period.
SUMMARY OF STAFF RECOMMENDATIONS
1. The Commission designate PTI as an Eligible Telecommunications Carrier.
2. The service area for the ETC designation be the same as PTIs entire Idaho study area.
3. PTI be granted a waiver of the requirement to provide toll control for a period of three years.
DATED at Boise, Idaho, this day of December 1997.
_______________________________
Cheri C. Copsey
Deputy Attorney General
Technical Staff: Wayne Hart
CC:WH:gdk/umisc/comments/971.ccw
STAFF COMMENTS 1 DECEMBER 16, 1997