HomeMy WebLinkAbout19960624Decision Memo.doc DECISION MEMORANDUM
TO: COMMISSIONER NELSON
COMMISSIONER SMITH
COMMISSIONER HANSEN
MYRNA WALTERS
STEPHANIE MILLER
DAVID SCHUNKE
DON HOWELL
WELDON STUTZMAN
EILEEN BENNER
BILL EASTLAKE
JIM LONG
JOE CUSICK
BEVERLY BARKER
GARY RICHARDSON
TONYA CLARK
WORKING FILE
FROM: BIRDELLE BROWN
DATE: JUNE 24, 1996
RE: GTE ADVICE 96-10 TO REMOVE RESALE PROHIBITION ON INTRALATA TOLL AND PROVIDE A WHOLESALE DISCOUNT FOR MTS, EFFECTIVE JUNE 24, 1995
GTE has submitted this advice to remove the Not for resale restrictions from the following intraLATA toll services: Econo Calling, Preferred Area Calling Service (Tensed/Bluebell), and Idaho State Government Network II. Additionally, the tariff provides for a 5% discount on dialed station-to-station calls provided for resale to companies with authorization from the IPUC to resell the service. GTE says
The purpose of this filing is to remove the existing resale prohibition in the companys tariff applicable to 1+ intraLATA toll. The Company is filing this tariff as a proactive competitive measure to allow all competing carriers instant intraLATA toll dialing parity given GTE Long Distances market entry in Idaho.
GTE presents this tariff as an interim measure until intraLATA equal access is fully implemented and says the pricing (e.g., the 5% discount) does not represent, nor is it intended to be, a final rate as contemplated by the Federal Telecommunications Act of 1996 (the Act). GTE has not provided any cost support data to justify the 5% discount; Staff assumes it represents avoided costs. GTE said it would revise this discount rate to accurately reflect its avoided costs no later than November or December, after it has had time to evaluate and apply the rules for resale pricing that are generated by the FCC. No revenue effect is known at this time.
On June 24 the Commission received a faxed letter from AT&T expressing concern about the anticompetitive nature of the proposed charges. AT&T is also worried that accepting this tariff in Idaho could influence commission decisions in other states where GTE has filed.
Because of AT&Ts concerns, Staff recommends that the Commission initiate a modified
procedure to establish a 21-day comment period to receive comments from other telecommunications providers. This would require a suspension of the tariff; however, Staff does not believe GTE will be harmed by this delay.
Does the Commission agree?
Birdelle Brown
corresp\dmemos\adv9610.gte
DECISION MEMORANDUM 1 JUNE 24, 1996