20130520_4049.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CAROLEE HALL
DATE;MAY7,2013
RE:FREMONT TELECOM’S TARIFF ADVICE NO.13-02 REQUESTING
COMMISSION APPROVAL TO GRANDFATHER ITS LOCAL
MEASURED SERVICE,TERMINATE MEASURED SERVICE,AND
FREEZE THE EXISTING 516 PER MONTH RECURRING CHARGE
FOR LOCAL MEASURED SERVICE FOR 24 MONTHS.
BACKGROUND AND DISCUSSION
Blackfoot Telecommunications Group (“BTG”)recently acquired Fremont from
FairPoint Communications.See Case No.FRE-T-12-O1.As a result of the acquisition,BTG is
actively working toward a conversion in billing and other systems from FairPoint to Blackfoot.
In this process,Blackfoot has identified a billing problem where Blackfoot would incur
substantial costs if it were to maintain the Local Measured Service currently offered to
approximately Il 7 subscribers who have very little usage.
Currently Fremont offers local measured service at a flat rate of$16.00 per month with a
usage rate of $03/minute for all usage beyond a 90-minute monthly allowance.Typically this
service is used by vacation residents who are seasonal occupants in the Fremont Island Park area
and have little or no usage.
The Company proposes a three-step process to transition customers over and keep the
costs low.The transition proposal is:
I.Grandfather the Local Measured Service offering to the current 117 customers.
2.Terminate the measurement or billing of the “overage”(billable minutes,which
would effectively reduce the overage usage rate to $0).
DECISION MEMORANDUM MAY 7,2013
3.Freeze the existing $16.00 per month rate for 24 months and effective June 1,2015
increase the Residential rate to the then current local Residential rate.’
The Company provided a detailed cost study for the proposed transition.As proposed,
the revenue impact for the Company will be de minimis.Moreover,the Company will avoid
substantial costs if it is not required to convert the billing system over to accommodate a small
number of customers who are subscribed to Local Measured Service with little or no usage.
STAFF RECOMMENDATION
Staff has reviewed this filing and finds the transition proposal offered by the Company to
be reasonable,having the least revenue impact with the most benefit for the majority of Fremont
ratepayers.Therefore,Staff recommends approval.
Does the Commission agree?
all
i:udmemos/Frcmunt Tclccom 13-02
Current Rates in 2015 will be subject to the Rate FlooringlAccess Rates as prescribed by the Federal
Communication Commission’s Connect America Fund &Intercarrier Compensation Reform Act.
OrderNo.FCC 11-161.
DECISION MEMORANDUM MAY 7,2013