20120424Decision Memo.pdf

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DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE CASE
FROM: CAROLEE HALL
DATE: APRIL 18,2012
RE: STAFF'S REQUEST TO OPEN A DOCKET TO REVIEW ACCESS
RATES OF LOCAL TELECOMMUNICATIONS COMPANIES
PURSUANT TO THE FEDERAL COMMUNICATIONS COMMISSION
REPORT AND ORDER FCC 11-161.
BACKGROUND AND DISCUSSION
On November 18, 2011, the Federal Communications Commission (FCC) released its
order on "Universal Service and Intercarrier Compensation Reform." In the Matter of
Estabi ishing just and Reasonable Rates for Local Exchange Carriers, et al, WD Docket No. 07-
13 5 el al., Report and Order and Further Notice of Proposed Rulemaking, FCC 11-161 (rd. Nov.
18, 2011), hereinafter referred to as the "ICC Reform Order". In the Order, the FCC adopted a
transitional intercarrier compensation restructuring framework for both intrastate and interstate
telecommunications traffic exchanged with a local exchange carrier. The FCC directed that
these access tariffs will ultimately result in a bill and keep arrangement between carriers. During
the first phase of the intercarrier compensation restructuring, the FCC directed that for most
carriers intrastate rates must be reduced by fifty percent (50%) of the differential between the
carrier's intrastate and interstate access rates by July 1, 2012, using the methodology set forth in
47 C.F.R. §5 1.907, 51-909 and 51-911. This requirement affects price cap carriers, rate-of-
return carriers, and certain competitive local exchange carriers (CLECs) with intrastate
terminating switched end office and transport rates, originating and dedicated transport rates and
reciprocal compensation rates that are above the carrier's interstate access rates.
In order to allow for a implementation of the FCC required reductions, Staff requests that
the Commission open a docket and order all affected local exchange carriers (incumbent local
DECISION MEMORANDUM APRIL 18, 2012
I .
exchange carriers 'C' and competitive local exchange carriers CLBCS') to file the
appropriate tariff/price list revisions on or before June 1, 2012. A June 1, 2012 deadline will
provide Staff, the Commission, and others the opportunity to review the proposed tariff filings
prior to the July 1, 2012 deadline established by the FCC. The tariff filings should include
supporting calculations for the proposed transitional intrastate access rates.
STAFF RECOMMENDATION
To accommodate this review, and comply with the FcC's rules at 47 CPR §51,907,
§51.909 and §51.911, Staff recommends that a docket be opened to review all access tariff
filings with supporting documentation from all telecommunication providers in Idaho
COMMISSION DECISION
Does the Commission agree?
u/chall/Acccss Rate TaritTs/ Decision Memo requesting a docket 4-I I20I2
DECISION MEMORANDUM APRIL 18, 2012