20021101Comments.pdf

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MARY S. HoBsoN
Dired Aoq 387-4277
mshobson@stoel-com
Oregon
Washington
C a lif o r n ia
tltah
ldaho
November 1,2002
VIA HAI\D DELIVERY
Jean Jewell, Secretary
Idaho Public Utilities Commission
47 2 W est Washington Sfreet
Boise, rD 83720-Yfuf
Re: case Noypd-T-oryLf th
Dear Ms. Jewell:
Enclosed for {iling are an original and eight (8) copies of the Comments of Qwest Corporation.
If you have any questions or comments, please let me know.
Very truly yours,
. .l /- L . ,r /r'i'\ llt: i'l' z
Mary S. #uro,
:blg
Enclosures
cc: Service List
Boise-l 48288. 1 00291 64-00012
Ir[cEtvto m
MaryS. Hobson (ISB#2142) flL[D n
Stoel Rives LLP
101 South capitol Boulevard - Suite 1900 ZfiB? t{Std - | PH l+: 35
Boise,ID 83702-5958 i:,. . , .: , ,i
Telephone: [phone] UIILIl'itS CJtitilf5lgg
FAX: [phone]
[e-mail]
Adam L. Shen (WSBA #25291)
Qwest
1600 7th Avenue - Room 3206
Seattle, WA 98191
Telephone: [phone]
FAX: [phone]
[e-mail]
Attomeys for Qwest Corporation
BEFORE THE IDAIIO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
POTLATCH TELEPHONE COMPA}I"Y;
CENTURYTEL OF IDAIIO; CENTURYTEL OF
THE GEM STATE; AND THE IDAHO
TELEPHONE ASSOCIATION FOR A
DECLARATORY ORDER PROHIBITING THE
USE OF * VIRTUAL" NXX CALLING
GNR-T-02-16
COMMENTS OF QWEST
CORPORATION
Qwest Corporation (Qwest), pursuant to Commission Order No. 29125, provides the
following comments on the Petition for Declaratory Order Regarding the Use of Virtual
NPAAIXX Calling Patterns (Petition) filed August27,2002.
COMMENTS
Qwest generally supports the Petition. Companies should not be entitled to "free"
transport between exchanges for non-local calls. Decisions of the Federal Communications
COMMENTS OF QWEST CORPORATION - Page I
Boise-1 49033. I 0029 I 64-00086
Commission (the "FCC") and this Commission, and the interconnection agreements approved in
Idaho make that clear.
1. The Nature of Yirtual NXX Calls
In a recent decision, the Public Service Commission of South Carolina succinctly
articulated the virtual NXX concept, or scheme, as follows:
Virtual NXX allows a customer to obtain a telephone number in a local calling area in
which the customer is not physically located. As far as the person calling the number is
concemed, the call is a local call, but the party answering the call is actually located
somewhere else within the LATA. This tlpe of arangements is referred to as "virtual
NXX" because the customer assigned to the telephone number has a "virtual" presence in
the associated local calling area. This presence, however, "is just a virtual presence, not a
physical one". "Virtual NXX is similar to foreign exchange ("FX") service provided by
an ILEC. However, unlike FX service, "virhral NXX" does not use lines dedicated to
particular customers for transporting the call between rate centers. "Virtual NXX" also
closely parallels 800 service.l
Virtual NXX (VNXX) enables carriers to assign a telephone number in a local calling
area in which they do not maintain a physical presence. The use of VNXX affects the rating of
the call because the rate charged to the originating party is based on an examination of the
originating and terminating NXX codes.
One use of the \,rNXX concept arises when CLEC customers are providing access to the
intemet. Using \INXX, a CLEC can assign telephone numbers to internet service providers
(ISPs) so that regardless of the location of the caller (end user), the numbers are perceived and
billed as local calls. With \rNXX the CLEC need not establish a physical presence in the
geographic area within which it seeks to establish a local presence.
' In re: Petition of Adelphia Business Solutions of South Carolina, Inc. for Arbitration of an Interconnection
Agreement with BellSouth Telecommunications, Inc. Pursuant to Section 252(b) of the Communications Act of
1934, as Amended by the Telecommunications Act of 1996, Docket No. 2000-516 Order on Arbitration No. 2001-
045 (So. Car. P.S.C., Jan. 16, 2001), pp. 4-5 (Attachment A).
COMMENTS OF QWEST CORPORATION - Page 2
Boise-l 49033. I 00291 64-00086
2. Issues Raised by VNXX
The Petition raises several direct and indirect issues of telecommunication policy
including questions of numbering allocation and resources, traffic routing, and inter-carrier
compensation. Nationally these issues have been addressed by numerous state commissions in
the context of the \/NXX discussion.
a. lntercarrier Compensation
Qwest is concerned that, with the prospect of VNXX on the horizon, incumbent
local exchange carriers, including Qwest, will be responsible for hauling non-local traffic
(whether ISP-bound or otherwise) between a distant rate center and CLECs' respective points of
interconnection without compensation. Qwest questions how CLECs intend to use local
interconnection facilities and how interstate traffrc, specifically interstate Internet traffic, figures
into these questions of local facilities.2
Implementation of VNXX raises at least two major inter-carrier compensation
issues. First, how will the transporting carrier be compensated for the use of its network?
Second, how will the ISP-bound traffic be treated?
Traditionally, calls terminating in a non-local exchange have been subject to
switched access charges, while Qwest's interconnection agreements properly limit the traffic
exchanged under their terms to local traffic between Qwest and CLECs. In both scenarios, the
carriers whose facilities are being used to complete the call receive compensation.
' lnthe Order on Remand and Report and Order, In the Matter of Implementation of the Local Competition
Provisions in the Telecommunications Act of 1996, Intercarrier Compensationfor ISP-Bound Traffic, CC Dkt. Nos.
96-98 & 99-68, FCC 0l-131,2001 FCC LEXIS 2340,1fr52,57,65, (rel. Apr.27,2001), remanded, lVorldCom,
Inc. v FCC,288 F.3d 429 (D.C. Cir. 2002) ("ISP Remand Ordef') the FCC ruled that Internet haffic is interstate,
not local. Accordingly, Intemet traffic is outside the scope of the FCC's reciprocal compensation rules.
COMMENTS OF QWEST CORPORATION - Page 3
Boise-149033. I 00291 64-00086
By placing a VNXX in a particular exchange and demanding that Qwest deliver
the call to another exchange outside the local calling area, CLECs would be attempting to change
established local calling boundaries for Qwest's customers. Only the Commission has the right
to set the local calling boundaries for Qwest's local customers. This Commission has always
treated calls between two local calling areas as interexchange, or toll traffic, which is subject to
switched access charges.
However, under a VNXX arrangement, the additional costs of carrying the calls
from a distant exchange to the CLEC's point of presence are borne by the local exchange
providers, not the new entrants providing the VNXX. And, while \n\XX calls are interexchange
calls, or toll calls, CLECs deploying \fNXX arrangements avoid paylng access charges and end
users avoid paylng toll charges.
Under the interconnection agreements, each party will bear a portion of the cost of
the entrance facilities and direct trunk transport facilities based strictly upon the party's relative
use of the facilities for the transmission of local traffic. In this way, the party that causes the cost
pays for the portion of the facilities that it uses in the conduct of its business as a local service
provider. However, with a'trNXX arrangement, the interexchange transport would not be
compensated for if deemed local traffic. If the Commission allows for VNXX traffic to be
included in the definition of local traffic, every other local exchange provider in Idaho, would
bear virtually all of the costs of the interconnection facilities. CLECs utilizing \fNXX would be
able to improperly shift the costs of interconnection trunks entirely onto Qwest and other local
exchange providers in Idaho.
It is also important to note that because interconnection agreements are limited to
the delivery of local traffic, they do not apply to traffic bound for Internet service providers,
COMMENTS OF QWEST CORPORATION - Page 4
Boise-149033. I 00291 64-00086
which has been defined by the FCC as interstate in nature.3 Use of the \INXX concept should
not be permitted to undermine this FCC determination and re-open debate about reciprocal
compensation for such traffic.
b. Numbering Allocation Issues.
\INXX a:rangements potentially entail excessive demand for telephone numbers.
CLECs may only require a few telephone numbers in any particular exchange in order to provide
\,rNXX service to their customers. However, the assignment of an NXX to a CLEC with only
minimal "virtual" needs uses a large amount of numbering resources. Where pooling is
available, CLECs would receive 1,000 telephone numbers, and where pooling is not deployed, an
entire NXX code (consisting of 10,000 numbers) would be used, although the vast majority of
the telephone numbers will go unused and unusable by other carriers.
Although Qwest does not object to CLECs obtaining NXXs, they must comply
with the requirements of the independent numbering association and applicable FCC rules. The
FCC requires that numbers are provided only to local exchange carriers and not to other types of
telecommunications caxriers, such as interexchange carriers. This underscores that careful
analysis of the \fNXX concept is required before it is allowed to go into effect. Scarce
numbering resources, for example, should not be misused by companies attempting to avoid
legitimate charges for what is truly interexchange traffic.
c. Impact on the Idaho Universal Service and Telecommunications Relay
Services Funds
Petitioners point out a legitimate concern about the impact of VNXX
implementation on Idaho's Universal Service (USF) and Telecommunications Relay Services
(TRS) funds. Most obviously, improper conversion of interexchange calls to "local" status
' Id.
COMMENTS OF QWEST CORPORATION - Page 5
Boise-149033. I 00291 64-00086
adversely impacts the revenues of USF recipients, thereby potentially increasing the demand on
this funding source. Increased USF draws are funded by telecommunications consumers in
Idaho, many of whom will experience no benefit from the deployment of VNXX.
In addition, the mechanisms for these funds depend, in part, on the number of toll
minutes generated in the state. To the extent that VNXX subverts the rating of interexchange
calls, it eliminates toll minutes from the assessment and increases the surcharges that must be
levied on other services to maintain funding levels. Again Idaho consumers are left paying the
bill.
d. Number portability
Petitioners raise the concern of a single NPAAIXX being assigned to multiple rate
centers. Qwest agrees that this is an important issue that should be addressed in this proceeding.
Local Number Portability (LI.IP) is limited to the ILEC rate center. Assigning a single NXX to
multiple rate centers would impact LNP and could be in violation of FCC rules designed to
ensure that carriers will be able to port numbers and receive ported numbersa
CONCLUSION
The Commission should prohibit the use of VNXX as a means to avoid access charges on
interexchange and interstate calling. ln addition, the Commission should ensure that all
numbering resources are utilized in a manner consistent with established rules and guidelines.
o Sr. e.g.,471CFR $ 52.26.
COMMENTS OF QWEST CORPORATION - Page 6
Boise-l 49033. I 00291 64-00086
RESPECTFULLY SUBMITTED This 1't day of November,Z}}2.
,14,,,,1 {hlro-'/
Stoel Rives LLP
Adam L. Sherr
Qwest
Attomeys for Qwest Corporation
COMMENTS OF QWEST CORPORATION - Page 7
Boise-l 49033. 1 00291 64-00086
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the I't day of November, 2OO2,I caused a true and
correct copy of the foregoing COMMENTS OF QWEST CORPORATION to be
served by the method indicated below, and addressed to the following:
Jean D. Jewell, Secretary t X I Hand Delivery
Idaho Public Utilities Commission t_l U. S. Mail
472West Washington Street tJ Ovemight Delivery
P.O. Box 83720 tJ Facsimile
Boise,ID 83702-5983 tJ Email
Telephone: [phone]
ij ewell@puc. state. id.us
DougCooley t X I HandDelivery
Telecommunications Analyst t_-] U. S. Mail
Idaho Public Utilities Commission t_l Overnight Delivery
472West Washington Street tl Facsimile
P.O. Box 83720 tJ Email
Boise, D 83702-5983
dcooley@puc. state.id.us
Donaldl.Howell,fl t X ] HandDelivery
Deputy Attorney General tJ U. S. Mail
Idaho Public Utilities Commission t-] Overnight Delivery
T2WestWashington tl Facsimile
P.O. Box 83720 t_l Email
Boise, D 83720-0074
dhowell@puc. state.id.us
Weldon Stutzman, DeputyAttomey General t X ] Hand Delivery
Idaho Public Utilities Commission t I U. S. Mail
472West Washington Street t_l Overnight Delivery
P.O. Box 83720 t_l Facsimile
Boise,ID 83702-5983 t_l Email
Telephone: [phone]
Facsimile: (208) 334-37 62
wstutzm@puc. state.id. us
Peter Blisard tJ Hand Delivery
Level3 Communications, LLC t X I U. S. Mail
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Broomfield, CO 8002t I I Facsimile
[e-mail] t_l Email
COMMENTS OF QWEST CORPORATION - Page I
Boise-149033. I 0029164-00086
Cathy L. Brightwell t I Hand Delivery
AT&T Communications of the Mountain States, L.. I X ] U. S. Mail
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Olympia, WA 98502-1106 tl [e-mail] t_l Email
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Western Wireless Corporation tl Overnight Delivery
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gene. dej [e-mail]
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COMMENTS OF QWEST CORPORATION - Page 2
Boise-l 49033. I 0029 I 64-00086
Dean J. Miller
McDevitt & Miller LLP
P.O. Box 2564
Boise,ID 83701
i oe@mcdevitt-miller. com
Dean Randall
Specialist - Regulatory Affairs
Verizon Northwest, lnc.
P.O. Box 1100
Beaverton, OR 97075-1 100
Dean. randall@verizon. com
Morgan W. Richards
Moffatt Thomas Ba:rett Rock & Fields
101 South Capitol Boulevard - l0th Floor
P.O. Box 829
Boise,ID 83701
Telephone: [phone] I
[e-mail]
Clay Sturgis, Senior Manager
Moss Adams LLP
601 Riverside - Suite 1800
Spokane, WA 99201-0663
[e-mail]
Brian Thomas
Time Warner Telecom
223 Taylor Avenue North
Seattle, WA 98109
Brian. [e-mail]
Susan Travis
WorldCom,Inc.
707 lTth Street - 36th Floor
Denver, CO 80202
Susan. [e-mail]
COMMENTS OF QWEST CORPORATION - Page 3
Boise-1 49033. I 00291 64-00086
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Mary B. Tribby
Rebecca B. DeCook
AT&T Communications of the Mountain States, Inc.
1875 Lawrence Street - Suite 1401
Denver, CO 80202
[e-mail]
Conley Ward
Givens Pursley, LLP
277 North 6th Street
P.O. Box 2720
Boise,ID 83701
cew@ givenspursley. com
COMMENTS OF QWEST CORPORATION - Page 4
Boise- I 49033. I 00291 64-00086
Legal Secretary to Mary S. Hobson
Stoel Rives LLP
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Brandi L. Gearhart, PLS