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HomeMy WebLinkAbout20021018McIntyre Rebuttal.pdfMary S. Hobson, ISB #2142 Steel Rives LLP 101 S. Capitol Blvd., Suite 1900 Boise,ID 83702-5958 Telephoce: (208) 389-9000 Facsimile: (208) 389-9040 Stephanie L. Boyett-Colgan Qwest Services Corporation 1801 California Street, 47th Floor Denver,CO 80202-1984 Telephone:(303) 896-0784 Facsimile:(303) 896-8120 Attorneys Representing Qwest Corporation BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IDAHO TELEPHONE ASSOCIATION,J CITIZEN TELECOMMUNICATIONS ) CASE NO. QWE-T-02-11 COMPANY OF IDAHO, CENTURY TEL OF 1 IDAHO, CENTURY TEL OF THE GEM ) STATE, POTLATCH TELEPHONE COMPANY ) And ILLUMINET, INC.) Complainants vs. QWEST COMMUNICATIONS, INC. Respondent REBDTTAL TESTIMONY OF SCOTT A. MCINTYRE QWEST CORPORATION OCTOBER 10, 2002 1 IDENTIFICATION OF WITNESS 2 3 Q. A. Q. A. PLEASE STATE YOUR NAME, TITLE, AND ADDRESS. 4 5 6 7 8 My name is Scott A.McIntyre.I work for Qwest Corporation as a Director for Product and Market Issues. My work address is 1600 Bell Plaza, Seattle, Washington. HAVE YOU PRRVIOUSLY PROVIDED TESTIMONY IN THIS PROCEEDING? 9 10 Yes,I filed Direct testimony in this proceeding on September 27, 2002. 12 PURPOSE 13 14 Q. A. WHAT IS THE PURPOSE OF YOUR TESTIMONY? 15 16 17 18 19 20 21 22 23 24 25 The purpose of my testimony is to respond to the Direct testimonies filed on September 27,2002 by Citizens Telecommunications Company of Idaho ('*CitizensU) , Electric Lightwave Inc.("ELI"),Idaho Telephone Association ("ITA"),and Illuminet,Inc. ("Complainants") in opposition to the application of new Signaling System 7 ("SS7") rate elements introduced by Qwest on June 1, 2001. Mr.Paul Florack filed testimony on behalf of Illuminet and Mr. F. Wayne Lafferty filed on behalf of Citizens,ELI, ITA,and Illuminet,Inc. I will address the issues raised by the Complainants in QWE-T-02-11 McIntyre, (Reb)-l- October IS, 2002 Qwest Corporation 1 2 3 the testimony that follows and demonstrate that Complainants should be required to comply with the terms of the Catalog. 4 5 BACKGRODND 6 7 Q. 8 WHAT IS THE ALLEGED RELATIONSHIP BETh'EEN THE COMPLAINANTS IN THIS CASE? 9 A. 10 11 12 13 14 15 16 17 18 19 20 Mr. Lafferty describes Citizens and the ITA members as incumbent local exchange carriers'and ELI2 as a competitive local exchange carrier ("CLEC") operating in Idaho. Mr.Lafferty also indicates that several ITA members have CLEC subsidiaries or operations in Idaho. (Lafferty, Pages 10, 11).He alleges that Illuminet is the SS7 service provider "agentfl for these companies in Idaho.(Lafferty, Page 1)Mr. Florack,on the other hand,indicates that Illuminet is the SS7 provider for mcertainfl of the Co-Complainants in this proceeding. (Florack, Page 8, Lines 28-29) ’ Citizens also operates as a CLEC and has an approved Interconnection Agreement with Qwest in Idaho. ' Interestingly, although Mr. Lafferty's (and Mr. Florack's) testimony primarily positions his allegations from the CLEC ~perspective, ELI is the only Idaho CLEC participating in this proceeding. QWE-T-02-11 McIntyre, (Reb)-2- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 a finished service from Qwest's Idaho Access Service Catalog. 3) CLECs and wireless providers may purchase SS7 from a third party provider. Q.WOULD YOU PLEASE REVIEW THE OPTIONS INDEPENDENT LOCAL EXCI-U+NGE CARRIERS ("ILECS") HAVE- TO OBTAIN SS7? A.Yes.As also explained in my Direct Testimony, ILECs also have three options: .1) ILECs may choose to purchase SS7 from Qwest via a negotiated SS7 Infrastructure Sharing Agreement ("ISA"). 2) Just like CLECs and wireless providers, ILECs may purchase SS7 as a finished service from Qwest through Qwest's Idaho Access Service Catalog. 3) Just like CLECs and wireless providers, ILECs may purchase SS7 from a third party provider, such as Illuminet. Q.HOW ARE TRE COMPLAINANTS IN THIS CASE OBTAINING SIGNALING? A.Mr. Lafferty represents that Illuminet is the SS7 service provider for its clients,Citizens,ELI,and ITA. (Lafferty, Page 1, Lines 14, 15)Illuminet is the only ' Further references to ITA in this testimony is limited to those memixrs serviced by Illuminet, i.e. Fremont Telcom, and Farmers Mutual. QWE-T-02-11 McIntyre, (Reb)-4- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 7 8 Q. 9 10 11 12 A. 13 14 15 16 17 18 19 20 21 22 23 signaling customer of Qwest.None of Illuminet's carrier/customers are signaling customers of Qwest. Illuminet obtains SS7 from Qwest through the Access Services Catalog. VOICE/DATA "TRAFFIC" VS. SIGNALING "MESSAGES" THROUGHOUT THEIR RESPECTIVE TESTIMONIES,THE COMPLAINANTS IN THIS PROCEEDING CONFUSE SIGNALING "MESSAGES" WITH VOICE AND DATA "TRAFFIC."WOULD YOU PLEASE CLARIFY? Yes. As I explained in my Direct Testimony,ntrafficO consists of voice and data calls transported over the public switched telecommunications network.Signaling wmessagesfl occur over a special signaling network fully separate from the public voice switched network that carries the actual call.Complainants,by their own admission,recognize the separateness of the networks. Illuminet is a non-common carrier and, as such, does not carry any end user traffic of its own or of its own carrier customers.Illuminet carries SS7 messages only. (Florack p. 2, Lines l-3.) QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-5. Qwest Corporation 1 2 3 4 5 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Complainants fail to make the distinction between signaling Umessagesfl and voice/data ntraffic,M rather they use these terms interchangeably.It is critical for the Commission to understand the difference between signaling "messages" and voice and data "trafficfl as it wades through the misleading and misdirected allegations of the Complainants.For example,Complainants propose that Qwest separate signaling messages by call type. (Florack, Page 22, Lines l-11; Lafferty, Page 33, Lines 15-16.)However,signaling messages apply without regard to the nature of the underlying voice/data traffic.There is no reason to separate messages by call type because signaling charges apply to all types of voice/data traffic. The Complainants in this case also discuss various forms of billing arrangements and agreements. (Lafferty,Pages 20-23; Florack, Page 27, Lines 18-25.) This is another example of where the complainants are confusing a signaling Vmessagefl with voice/data Utraffic.m It is pointless to get into ,a discussion on how meet point billing or bill-and-keep compensation mechanisms should or should not be applied in relationship to this case, as those mechanisms are billing instruments concerning voice and data "traffic“ QWE-T-02-11 McIntyre, (Reb)-6- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 rather than signaling ‘\messages. n There is a clear distinction between voice/data "traffic" and signaling nmessages. n Q.COMPLAINANTS ALLEGE TI-IAT CERTAIN SIGNALING MESSAGES ARE "NON-CHARGEABLE" WITH RESPECT TO TRE SS7 RATES CONTAINED IN QWEST'S ACCESS CATALOG.IS THAT A VALID ALLEGATION? A. No.Complainants allege that Qwest cannot charge Illuminet its SS7 rates in the Access Services Catalog for signaling associated with local and RAS end-user traffic,jointly provided exchange access traffic, intraMTA wireless traffic,and toll traffic exchanged between Qwest and other carriers (Lafferty, Page 4, Lines 2-7; Florack,Page 13,Lines 2-9.) Complainants assert that the voice/data traffic and the signaling messages are inextricably intertwined and therefore the underlying nature of the voice/data traffic should govern how charges are assessed, rather than applying the ss7 rates in the Access Services Catalog to Illuminet.(Florack, Page 19,Lines 14-25; Lafferty, Pages 19-22.) As I have previously stated, the voice/data traffic network is separate from the signaling network and the nature of the underlying call does not govern how charges are assessed.There are separate costs and L+ QWE-T-02-11 McIntyre, (Reb)-7- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 ? a pricing for both.Charges for signaling should be assessed to carriers and third party SS7 providers that generate the costs associated with provisioning signaling service,regardless of the type of end user services being provisioned.To do otherwise would result in discrimination among carriers. Q.QWEST ASSESSES CHARGES FOR SS7 MESSAGES REGARDLESS OF WHERE THE SIGNAL OR UNDERLYING CALL ORIGINATES, IS THAT 9 CORRECT? 10 11 12 13 14 15 A.Yes,Qwest assesses a SS7 message charge for every message that traverses the SS7 customer's link without regard to origination or termination of the message. In other words,what customers pay for is the connectivity to terminate messages to Qwest and to receive messages from Qwest. 16 17 la 19 20 Q.HAVE THE COMPLAINANTS IN THIS CASE DISPUTED THAT THERE ARE COSTS ASSOCIATED WITH THE PROVISIONING OF SS7? 21 22 23 24 A. No.This is clear not only from their ~Complaint, but also from their testimony.For example,Mr. Florack states on Page 24 of his testimony,"At least conceptually,Qwest should have apportioned its SS~ SS7 CHARGES QWE-T-02-11 October la, 2002 McIntyre, (Reb)-a- Qwest Corporation 1 A.Mr. Lafferty alleges that Qwest is violating the FCC's 2 Order by not separately identifying and billing SS~ 3 4 5 6 7 a 9 install metering or other equipment necessary to measure 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 charges associated with local, EAS,and wireless traffic from ss7 charges associated with interstate and intrastate toll traffic.Contrary to Mr.Lafferty's assertion,Qwest is K in violation of the FCC's SS7 Order. In commenting on the need for incumbent LECs to third party usage of signaling facilities,the FCC stated: Although we encourage actions that would promote disaggregation and unbundling of SS7 services, we will not require incumbent LECs to implement such an approach and incur the associated equipment costs of doing so.The record indicates that, as a general matter,the costs of mandating the installation of metering equipment may well exceed the benefits of doing so.' Consistent with the FCC's Order, Qwest determined that the cost of implementing equipment to reach the level of detail suggested by the Complainants as necessary to accurately bill SS7 is unwarranted.Qwest uses the Percent Interstate Usage ("PIU") methodology to jurisdictionalize signaling messages, which is in full compliance with the FCC's Order.Mr.Lafferty's ' ' FCC First Report and Order, Access Charge Ref&m Docket, CC Docket No. 96-262,12 FCC Red Page 15982, lj252, released May 1.6, 1997. QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-lO- Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 allegations that Qwest is in violation of the FCC's Order on this matter are inaccurate and misleading. Q. MR.FLOMCK MAINTAINS THAT THERE IS A POTENTIALs FOR QWEST TO DISCRIMINATE BETWEEN CUSTOMERS WREN CHARGING FOR SS7.WHAT IS YOUR RESPONSE? A.In his testimony,Mr.Florack alleges "there is a potential for anti-competitive and discriminatory treatment by Qwest in the way Illuminet and its carrier/customers are charged for SS7 signaling messages by Qwest associated with non-chargeable traffic, particularly local traffic,versus how Qwest may charge its own direct connect ss7 signaling customers.V (Florack,Page 16,Lines 14-18)It is not discriminatory or anti-competitive for an ILEC to directly connect with Qwest through a SS7 Infrastructure Sharing Agreement for the purchase of SS7, or for a CLEC or wireless provider to directly connect and purchase ss7 out of its Interconnection Agreement.The Telecommunications Act of 1996 ("Act"),which was designed to foster competition,allows Qwest to enter into ss7 Infrastructure Sharing Agreements and Interconnection Agreements with ILECs and CLECs or wireless providers respectively.The fact that Illuminet is not a telecommunications carrier and cannot QWE-T-02-11 McIntyre, (Reb)-ll- October 18, 2002 Qwest Corporation 2 3 4 5 6 7 8 9 I.0 Q. 11 12 13 A. 14 15 16 17 18 Q. 19 20 A. 21 22 23 enter into one of those agreements does not mean that Illuminet is being treated in a discriminatory or anti- competitive manner.Furthermore, Mr.Florack's allegations that Qwest may discriminate in favor of customers that connect directly to its SSI network by not charging them are outrageous.If Mr.Florack has any evidence that supports such allegations,he should produce it and not merely speculate about the possibility. DO SS7 INFRASTRUCTURE SRARING AGREEMF,NTS AVAILARLE TO INDEPENDENT LOCAL EXCRANGE CARRIERS INCLUDE SIGNALING MESSAGE CHARGES RELATED TO LOCAL EXCRANGE/EAS TRAFFIC? N O .Qualifying ILECs may enter into a SS7 ISA with Qwest pursuant to Section 259 of the Act.An ISA includes charges for Links and Ports, but no signaling message charges because the parties to the Agreement "share'!infrastructure. DOES TRE USE OF ISAs SINGLE OUT ILECs FOR SPECIAL TREATMENT? Yes.To the extent that ILECs receive unique treatment, this treatment is sanctioned by the Act.Section 259 of the Act specifically requires incumbent local exchange carriers to make their infrastructure available to QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-12- Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 qualifying independent local exchange carriers.6 The Act specifically does not extend this infrastructure sharing requirement to CLECs.Although I am somewhat speculating, it is my guess that Congress may have wanted to provide a vehicle to preserve local inter- company arrangements that provided end user customer benefit like ILEC/RBOC EAS arrangements. However,it is a mistake to think that the status of the purchaser of a service does not ordinarily affect the services and prices the purchasers pay for service in the telecommunications industry.For example, CLECs pay different prices than resellers,UNE-P purchasers pay different rates from resellers,interexchange carriers ("IX&.?") pay different rates than CLECs for access to the RBOC's network to place calls.In fact, there are many examples where the status of the purchaser affects the price and terms.The fact that the Act provides for Section 259 agreements underscores that distinguishing between ILECs and others who may wish to use parts of the network is permissible. ' In order to qualify, the carrier must lack economies of scale or scope and offer telephone exchange service, exchange access, and any other service that is included in universal service, to all consumers without preference throughout the service area for which such carrier has been designated as an eligible telecommunications carr<er under Section 214(e) of the Act. QWE-T-02-11 McIntyre, (Reb)-13- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Q.ON PAGE 11, LINES l-8, MR. FLOPACK ALLEGES THAT QWEST IS SHIFTING ITS SSI COSTS TO ILLUMINET'S CARRIER/CUSTOMERS DUE TO ITS "INABILITY TO DISAGGREGATE AND BILL FOR SSI ON ONLY CERTAIN TYPES OF CALLS.“PLEASE COMMENT. A, Mr.Florack seems to imply that if the signaling messages were disaggregated,it would somehow change the manner in which Qwest assesses its signaling charges. It would not.As explained above,signaling costs are incurred on every type of voice/data call. Qwest is not inappropriately shifting costs to anyone.Qwest's restructure of SS7 results in the party generating the cost to Qwest's SS7 network p.aying for that cost.Prior to the restructure,interexchange carriers paid a disproportionate amount of signaling costs.With the restructure,each SS7 customer pays for the cost it generates,resulting in a more fair and equitable allocation, Furthermore,Illuminet's carrier/customers are not Qwest's signaling customers.They purchase SS7 from Illuminet.Illuminet is Qwest's customer and Illuminet is the customer being billed for the SS7 service.How Illuminet charges its customers is irrelevant in this proceeding. QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-14- Qwest Corporation 1 2 3 4 Q.COULD QWEST SEPAMTE SIGNALING MESSAGES BY CALL TYPE AS MR.FLORACK SUGGESTS ON PAGE 22,LINES l-11 OF HIS TESTIMONY AND MR.LAFFERTY PROPOSES ON PAGE 33, LINES 15-16 OF HIS TESTIMONY? 5 6 7 8 9 A.There is no reason to separate messages by call type because signaling charges apply to all types of calls. Whether or not Qwest can separate signaling messages based on voice/data call type is irrelevant as I have indicated previously.This is just another smokescreen 10 11 12 13 14 15 16 17 on the part of the Complainants to confuse the issue. If Qwest were to separate signaling charges by call. tme,it would be inefficient and lead to additional costs that would require increased rates.Furthermore, the FCC does not require Qwest to implement metering equipment that would separate signals by call type. Q.DO YOU AGREE WITH MR.LAFFERTY THAT QWEST IS DOUBLE RECOVERING SIGNALING COSTS UNDER THE NEW SS7 RATE 18 STRUCTURE? 19 20 21 22 23 24 A.No.Mr. Lafferty alleges that the costs associated with SS7 message signaling associated with originating and terminating EAS traffic is included in the local exchange rate.(Lafferty, Page 17, Lines 2-6)However, Mr.Lafferty offers no factual support for this allegation.Certainly no evidence .has y been presented QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-15- Qwest Corporation 1 2 3 4 5 6 7 8 9 10 here about what SS7 costs were recovered in any prior EAS case.To my understanding,based on discussions with Qwest's Idaho Policy and Law representatives,all that the Commission determined in a typical EAS decision was whether EAS should be granted and what rate impact, if any,would be experienced by retail customers if a former toll route was converted to local service.The costs of SS7 signaling were not discussed in any detail, if at all,in those dockets. The fact that only retail rates for end user local 11 12 13 14 15 exchange customers were affected by this Commission-% EAS orders is significant.Third party SS7 providers were not parties to those cases,and I do not believe that Illuminet can claim the Commission made any decision about their rates in those cases. 16 17 18 19 20 21 22 23 Further,as this Commission knows,retail service prices have never been directly tied to the cost of providing a service.Thus,there can be no showing of which SS7 costs,if any, were "recovered" in any given EAS case.It is impossible for Mr.Lafferty to affirmatively claim and prove that there is "double recovery"of those costs. Q. MR.LAPPERTY STATES OW PAGE I7, LIWES 17-19, TBAT QWEST 24 CLAIMS IT "SIMULTAWEOUSLY LOWERED IXC ACCESS RATES BY AW QWE-T-02-11 McIntyre, (Reb)-16- October 18, 2002 Qwest Corporation 1 2 AMOUNT EQUAL TO ONE HALF OF THE DOUBLE RECOVERY...."DID QWEST MARE ANY SUCH STATEMENT? 3 4 5 6 7 6 9 10 11 A.Absolutely not.Qwest denies there is any double recovery.In response to ITA data request Number 49, Qwest stated that it reduced the end office local switching,carrier common line and tandem switching rate elements as part of the signaling restructure. Confidential ~Attachment A to that response demonstrates that the reductions equaled the revenue increase expected from the SS~ restructure.See Confidential Exhibit 504. 12 13 Q.ARE THE CONCERNS VOICED BY COMPLAINANTS THAT Tl-lE NEW SS7 RATE STRUCTURE WILL INCREASE THEIR BUSINESS COSTS VALID 14 SUPPORT FOR AN ARGUMENT OF AWIX-COMPETITIVE BEHAVIOR ON 15 TBE PART OF QWEST? 16 17 1s 19 20 21 22 23 24 A. No.From Illuminet's perspective, Mr. Florack indicates it is simply going to pass through these costs to its customers.(Florack, Page 26, Lines 6-9) Mr. Florack claims that Illuminet supports the concept of unbundling (Florack, Page 27,Lines 12-13) and claims Illuminet is not trying to avoid paying the costs it imposes on Qwest's network (Florack, Page 24, Lines 21-23).HOW can he then claim that assessing these charges is anti- competitive? QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-17- Qwest Corporation 4 5 Q. 6 ? 8 A. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 is to be consistent, it should not balk at paying message-sensitive charges associated with network usage, rather than trying to prolong subsidization of its use of the network by other companies. MR.LAFFERTY CLAIMS THAT THE SS7 RESTRUCTURE REVERSES THE COMMISSION'S DECISION REGARDING EAS PRICING. (LAFFERTY, PAGE 16, LINES 5-14) DO you AGREE? No. Mr.Lafferty argues that introduction of usage- sensitive rates for SS7 results in re-instituting usage- sensitive pricing for EAS traffic that is now priced on a flat-rated basis.That is simply not the case.The EAS rate structure,which concerns voice/data traffic, has not changed.Flat rate local exchange customers still enjoy expanded local calling as part of their flat-rated local service.Measured service customers, of course,pay for any local call on an incremental basis once they have used their monthly minute allowance. The relevant price change here is not for RAS calling,it is for SS7 signaling.And Illuminet is the only party in this case that purchases SS7 signaling from Qwest,Since Illuminet deals in signaling messages,not voice/data traffic,the EAS decision that QWE-T-02-11 McIntyre, (Reb)-19- October 18, 2002 Qwest Corporation 1 2 3 Q. 4 5 6 7 8 A. 9 10 11 12 13 14 15 16 17 18 19 20 21 Q. 22 23 expanded the local calling areas of local exchange customers does not affect Illuminet. BUT ISN'T IT THE CASE THAT WHEN EAS WAS IMPLEMENTED, THE ILECs DID NOT FACE A PER MESSAGE SS7 CHARGE ASSOCIATED WITH AN EAS CALL AND NOW THEY DO TO THE EXTENT, AS ALLEGED, THAT ILLUMINF,T PASSES ON THE PER MESSAGE CHARGE TO ITS CARRIER/CUSTOMERS? No.ILECs who purchase SS7 from third party providers like Illuminet may experience an increase in what they pay i3 their ss7 provider as a result of Qwest restructuring its Access Services Catalog if the contract between Illuminet and its carrier/customers directs Illuminet to pass through its SS7 costs to its carrier/customers.Of course,they may experience increases and decreases in aw number of expenses associated with their operations.Illuminet's carrier/customers need to make the business decision as to whether Illuminet's contractural obligation to pass through its ss7 costs justifies looking for other alternatives for acquiring SS7. IS THERE A SIGNALING OPTION POR ILECs THAT DOES NOT INCLUDE SIGNALING MESSAGE CHARGES RELATED TO LOCAL EXCHANGE/EAS TRAFFIC? QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-2o- Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A.Yes.To the extent that the ILECs in this case wish to return to an arrangement that is more similar in expense to what they experienced when EAS was originally implemented,the ISA may be the answer.However, I emphasize that this is their business decision,since they may have other compelling reasons to want to continue with Illuminet. Q.MR. LAFFERTY STATES THAT THE INTRODUCTION OF SS7 MESSAGE RATES IS A CHANGE IN "LONG STANDING REGULATORY POLICY AND INDUSTRY PRACTICES IN THE STATE OF IDAHO." (LAFFERTY,PAGE 3,LINES 7-8.)ISN'T THIS A MISC~CTERIZATION? A.Yes.In his testimony, Mr.Lafferty alleges that Qwest "should not be allowed to change public policy in the state of Idaho (or anywhere else) without providing the Commission an opportunity to properly investigate the implications of the changes."Significantly, Mr. Lafferty does not enumerate the -long standing regulatory policy and industry practices" he alleges are being violated.Certainly there is nothing in Idaho statute or regulation that would suggest that Qwest cannot charge users of its network for that use.In fact,in Idaho,the only time the Commission regulates the level of that charge for Qwest ,is when the service QWE-T-02-11 McIntyre, (Reb)-2l- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 provided is "basic local exchanqe .service" as that term is defined in Idaho Code §62-603(l) or when CLECs are seeking unbundled network elements and the Commission is asked to set total element lonq run incremental costs for those elements.The provision of SS7 to a third party does not fall within one of these categories. To put it bluntly,there is no Commission policy or industry practice on this subject in Idaho.What does signal an attempted policy shift here is the effort of the Complainants to persuade this Commission to take jurisdiction over a dispute about the application of charqes for a derequlated service. Q-IS MR.LAFFERTY'S CONTENTION THAT THE SS7 SIGNALING CHARGES ARE "REGULATED" UNDER TITLE 62 ACCURATE? A.No.The services Qwest offers under its Access Services Cataloq are derequlated under Title 62 in Southern Idaho.Qwest is not required to obtain Commission approval prior to implementing any Access Services Catalog revision.Nor does the Commission requlate the level of charges for services offered under Title 62. Q. MR.LAFFERTY ALLEGES THAT QWEST ENGAGED IN A "CLEAR AND UNWAR-ED SUBSIDY OF UNREGULATED IXC TWGFIC BY REGULATED INDUSTRY PARTICIPANTS AND THEIR CUSTOMERS." (LAFFERTY, PAGE 17, LINES 18-20) PLEASE COMMENT. QWE-T-02-11 McIntyre, (Reb)-22- October 18, 2002 Qwest Corporation 1 2 Q.ON PAGES 19 AND 20 OF HIS TESTIMONY, MR. FLORACIZ ALLEGES THAT ILLUMINET IS AN AGENT OF ITS CARRIER/CUSTOMERS FOR 3 THE PURCHASE OF SS7. IS HE CORRECT? 4 5 6 7 8 9 10 11 12 A.NO.Illuminet is not an agent of its carrier/customers for SS7.In response to Qwest's Interrogatory Number 40,Citizens and ELI both stated that the Letters of Agency (LOA) authorized Illuminet to use their point codes.See Exhibits 505 and 506.The LOAs, however, go no further.The LOAs provide no additional authorization to Illuminet for the purchase of signaling on their behalf.See Exhibits 507 and 508. Q. DO COMPLAINANTS FAIRLY CWCTERIZE THE SCOPE OF 13 ILLUMINET'S ADTHORITY G-ED IN THE LOAs? 14 15 16 17 18 19 20 21 A.No.Mr.Florack would like Qwest to expand. the authority provided under the Letters of Agency (LOA) to allow Illuminet to take advantage of the billing arrangements its customers have with Qwest for voice/data traffic,such as ELI's Interconnection Agreement. Q.WHAT IS THE BASIS FOR STATING TBAT COMPLAINANTS HAVE MISCBARACTERIZED TBE SCOPE OF ILLUMINEiT'S AUTHORITY? 22 23 24 A.As Mr. Lafferty correctly points out in Lines 18-19 on Page 11 of his testimony,the LOA was initiated by Qwest.Qwest witness Joe Craig explained in his Direct QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-24- Qwest Corporation 1 Testimony that Qwest requires proof from Illuminet that 2 its customers have authorized its use of their point 3 codes.(Qwest only requires LOAs from its third party 4 provider signaling customers.)In actuality,Qwest 5 never requested Illuminet provide proof it was 6 authorized to purchase SSI services for its 7 carrier/customers.Illuminet has never negotiated with 8 Qwest for signaling services, nor does Illuminet have an 9 Interconnection Agreement with Qwest.Illuminet 10 purchases SS7 services from Qwest's Access Services 11 Catalog,and as stated elsewhere,Qwest does not 12 ~negotiate the terms of its Catalog.At no time has 13 Illuminet negotiated with Qwest, on behalf of ELI or any 14 other CLEC or wireless provider,SS7 message rates as 15 part of an Interconnection Agreement.Rather, 16 Illuminet's customer,ELI,negotiated its own 17 Interconnection Agreement with Qwest and elected to 18 purchase SS7 from Illuminet rather than out of its 19 Interconnection Agreement. 20 Q.DOES MR.LAFFERTY MAINTAIN TRAT TRR LOA'S ADTHORIZE 21 ILLIJMINRT TO PURCIDGE ss7 SERVICES THROUGH 22 INTERCONNECTION AGREEMENTS? 23 A.Yes.For example, in Mr.Lafferty's testimony at Page 24 11,Lines 11-19, he states: QWE-T-02-11 McIntyre, (Reb)-25- October 18, 2002 Qwest Corporation 1 A.Yes,Qwest has an Interconnection Agreement with ELI,' 2 3 however,ELI chose to purchase ss7 from Illuminet, rather than Qwest.As a result,terms of the ELI 4 5 6 7 Interconnection Agreement and other billing arrangements such as reciprocal compensation or bill-and-keep, do not apply.Illuminet's Co-Complainants are not Qwest's customers for SS7 services. 8 9 Q.DOES MR.LAFFERTY CLAIM THAT SIGNALING ASSOCIATED WITH LOCAL SERVICE SHODLD BE COVERED BY THE TERMS OF CLECS' 10 (SUCH AS ELI) INTERCONNECTION AGREEMENTS? 11 12 13 14 15 16 17 A.Yes. Mr.Lafferty refers several times in his testimony to the fact that he believes ELI's Interconnection Agreement should apply for signaling associated with local calls rather than the SS7 rates which appear in the Access Services Catalog. Q.DOES ELI'S INTERCONNFCTION AGREEMENT WITH QWEST CONTAIN A SIGNALING PROVISION? 18 19 20 21 22 A.Yes.Section (E)l5 provides the signaling provision. It provides the terms and conditions, rate elements and ordering information.The signaling charges, including per message usage charges,are set fo,rth in part I of the Agreement.See Exhibit 509. ' Qwest also has an Interconnection Agreement with.,the CLEC affiliate of Citizens,not a party to this case. QWE-T-02-11 McIntyre, (Reb)-27- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. A. Q. A. Q. A. DO THE SIGNALING RATES SET FORTH IN PART I OF ELI'S INTERCONlJECTION AGREEMENT APPLY IN THIS CASE,AS MR. LAFFERTY CONTENDS? No.As stated previously,ELI has chosen not to purchase SS7 from its Interconnection Agreement with Qwest, but from Illuminet instead. DOES THE ELI INTERCONNECTION AGREEMENT ALLOW ILLUMIIiET TO ACT AS ELI'S AGENT FOR THE PURCHASE OF SS7 SERVICES? No.Section (A)3.23 of ELI's Interconnection Agreement with Qwest excludes third party beneficiaries. Specifically,third parties are afforded no "remedy, claim,liability,reimbursement,cause of action, or other privilege."See Exhibit 510. DOES ILLUMINET'S ATTEMPT TO UTILIZE ITS CARRIER/CUSTOMERSt INTERCONNECTION AGREEMENTS POSE PROBLEMS UNDER THE ACT? Yes.Conveying authority to Illuminet as ELI describes in Mr.Lafferty's testimony (Lafferty, Page 11, Lines 11-19) is contrary to the intents and purposes of the Act.In order to do so,the Commission would have to carve out a special class of customer simply to circumvent application of a valid Catalog.As indicated elsewhere in this testimony,Illuminet is not entitled to Section 251 Interconnection Agreement status. QWE-T-02-11 McIntyre, (Reb)-28- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. A. Furthermore,granting Illuminet this status would force Qwest to discriminate between customers in the same class,i.e.those other customers purchasing out of the Catalog.That would be inequitable. ELI cannot circumvent the Act by simply claiming that Illuminet is acting on its behalf for the purpose of purchasing signaling services.The fact of the matter is that Qwest does not have a relationship with ELI for SS7 services and Illuminet is not authorized to purchase SS7 on its behalf from the Interconnection Agreement. ALLEGED BY MR. FLORACK? Yes,there are several additional reasons that Mr. Florack's agency allegations should be dismissed.Mr. Florack is apparently making the assumption that just because a CLEC or wireless provider has an Interconnection Agreement with Qwest, it must purchase SS7 signaling out of that Interconnection Agreement. This is certainly an option, but as stated earlier in this testimony,as well as in my Direct Testimony, CLECs and wireless providers may also purchase signaling as a finished service out of Qwest's Access Services Catalog, or from a third party provider such as Illuminet. QWE-T-02-11 McIntyre, (Reb)-29. October 18, 2002 Qwest Corporation 8 9 10 11 12 13 14 15 Q. 16 17 18 19 20 A.In addition to the fact that Illuminet's 21 22 23 carrier/customers are not Qwest's customers for SS7 services,as explained above,there is no need to go through all of the gyrations suggested by Mr. Florack, Additionally,Mr. Florack overlooks the fact that Illuminet is Qwest's customer.Illuminet's customers, such as Complainants ELI,Citizens and the ITA in this case,are not Qwest's customers for SS7 service.They have chosen to purchase SS7 from Illuminet,and thus Qwest has no relationship with them regarding SS7. CLECs such as ELI certainly have the option of having an SS7 relationship with Qwest by purchasing SS7 out of their Interconnection Agreements,but are under no obligation to do so.For Illuminet to infer that Qwest should utilize the Interconnection Agreement to Bills a CLEC or wireless provider for a service they have not ordered from Qwest out of that Agreement is inappropriate. MR.FLORACK SUGGESTS A COMPLEX PROCESS BY WEIGH QWEST EAY IDEETIFY ILLUMIEET'S CLEC CARRIER/CUSTOMERS SO TBAT CEARGES MAY BE ASSESSED DIRECTLY TO THOSE CLECS THROUGH THEIR RESPECTIVE INTERCONNECTION AGREEMFsNTS.PLEASE COMMENT. QWE-T-02-11 McIntyre, (Reb)-3o- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 as the existing options available to CLECs are fully sufficient to allow accurate billing for SS7. Q.SHOULD INTERCONNECTION AGREEMENTS BE A CONSIDERATION IN THIS CASE? A. No.In this case,Illuminet is Qwest's customer for SS7 services. - not ELI or Citizens or ITA.Illuminet is not a CLEC or a wireless provider;therefore, it cannot purchase out of an Interconnection Agreement. Furthermore,Illuminet is not an agent of its customers and,as such,cannot stand in the shoes of its customers for the purpose of purchases signaling out of an interconnection agreement. Illuminet and other third party signaling providers purchase services out of Qwest's Access Services Catalog.Because Illuminet purchases out of the Catalog,it is required to pay Catalog rates.ELI has chosen not to purchase S.57 out of its Interconnection Agreements.Thus,the Interconnection Agreements are not applicable. Q.THE COMPLAINANTS IN THIS CASE DISCUSS VARIOUS FORMS OF BILLING ARRANGEMENTS AND AGREEMENTS.(E.G., MR. LAFFERTY ON PAGES 20-23 AND MR.FLORACE ON PAGE 21, LINES 18-25.)IS THIS APPROPRIATE CONSIDERATION? QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-3l- Qwest Corporation 1 A.This statement is simply another smokescreen designed to 2 3 4 5 6 7 8 9 10 11 12 13 14 15 17 18 19 20 21 22 23 24 confuse the central issue in this proceeding.Illuminet is not acting on Qwest's behalf as a signaling aggregator.Illuminet's customers in this case are ELI, Citizens and the ITA.Illuminet offers no perceivable benefit to Qwest.If Illuminet was not in business, SS~ messages would still set up and take down,calls would still be completed,and end USe?X would still have telephone service.Illuminet is,to be very frank, in the business to make money and it has done so in the past by capitalizing on a rate structure that allowed it to use the SS7 network without being appropriately charged.Illuminet has utilized Qwest's signaling network without paying rates commensurate for services received.There is no benefit to Qwest in that. REVENUE NRUTRALITY Q. DO TRE COMPLAINANTS CONFUSE THE ISSUE OF REVRWUR NEUT~ITY ASSOCIATED WITH QWEST's RESTRUCTURE OF ITS SS7 UTES? A.Yes.Mr.Lafferty confuses the issue of revenue neutrality for Qwest overall with the issue of revenue neutrality for a particular customer:Qwest has made no QWE-T-02-11 McIntyre, (Reb)-33- October 18, 2002 Qwest Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 claim that the establishment of discrete SS7 rates would be revenue neutral with respect to individual customers. The rate impacts felt by individual customers is determined by how they connect with Qwest and by what services they purchase.The overall bill will go up for some customers and down for others.(At this point in time,Illuminet has not and is not paying Qwest for SS7 services rendered.) Qwest also can make no claim as to the effect of customers changing their network connections as a result of business decisions they may make as a result of these changes.Qwest does, however,attest that the revenues generated by the new rate elements have been offset by reductions in switching rate elements,i.e.,local switching and tandem switching, as well as carrier common line minutes of use rates.Qwest is not double billing for these rate elements and is not double recovering any costs.The revenue neutral nature of Qwest's action in Idaho is consistent with the revenue neutral filing at the federal level. The data request responses provided by Qwest'clearly show the SS7 Access Services Catalog revisions were revenue neutral, which I have described above. QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-34- Qwest Corporation 1 2 3 4 5 6 I Q.IS THE SS7 RESTRUCTURE REVENUE NEUTML WITHIN THE STATE OF IDAHO?(LAFFERTY, PAGE 17, LINES 12-14) A.Yes.Qwest utilized Idaho-specific demand in its revenue neutral calculation.Qwest demonstrated this to Complainants in its response to ITA Request No. 49, specifically Confidential Attachment A to that response. The SS7 restructure is revenue neutral. 8 9 ACCESS CATALOG 10 11 12 13 Q. MR.FLORACK PROVIDES A DESCRIPTION OF QWEST'S SOUTHERN IDAHO ACCESS CATALOG.~FLORACK, PAGE 14, LINES~.~~~E.) IS HIS DESCRIPTION ACCURATE? 14 15 16 17 18 19 20 21 22 A.No.Qwest's Access Services Catalog applies to Carrier Common Line,Switched Access,Expanded Interconnection Service,and other xniscellaneous cervices (emphasis added) .'Qwest's SS7 product is not an uexchange access" product (i.e., toll).Qwest specifically denied this allegation by Complainants in its response to data request Number 28.(See Exhibit 511.)Qwest's SS7 product is an "access"product,meaning that it facilitates "accessfl into Qwest's SS7 network. 8 see,for example, Qwest's response to 1'rA 01.049. QWE-T-02-11 McIntyre, (Reb)-35. October 18, 2002 Qwest Corporation 1 Q.WHY IS IT APPROPRIATE FOR SS7 CHARGES TO APPEAR IN 2 3 A. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Q. 18 19 20 QWEST'S ACCESS SERVICES CATALOG? The FCC defined SS7 as an access service (in Part 69 rules)and it CAlaS therefore implemented in the FCC Access Services Tariff,and similarly implemented in the Southern Idaho Access Services Catalog.The Catalog contains services that are offered on a wholesale rather than a retail basis.Non-exchange access (non-toll) services such as DSl and DS3 are also available through the Idaho Access Services Catalog.Feature Group services are billed via access minutes of use rates for all traffic that goes over the trunks regardless of whether it is local,EAS,intraLATA/intrastate or interLATA/intrastate. The Idaho Access Services Catalog is not limited to toll providers, nor their provision of toll services,as Mr. Florack interprets. THE COMPLAINANTS PROTEST THAT QWEST, IN ESTABLISHING THE SS7 CHARGES,DID NOT NEGOTIATE THE NEZW SS7 CHARGES WITH ELIIO PRIOR ~0 I&~PLEMENTATION. (LAFFERTY, PAGE 24, LINES 4-7 )SHOULD QWEST HAVE DONE SO? ' Qwest Corporation Access Services Catalog, Section 1, Page I, Effective 9-21-01. lo In his testimony,Mr. Lafferty indicated he references the InterConnection Agreement between U S WEST and ELI to %*help illustrate the implications of Qwest's new SST message signaling ~charges for CLECs." (Lafferty, Footnote 4.) QWE-T-02-11 McIntyre, (Reb)-36- October 18, 2002 Qwest Corporation 1 A. 2 3 4 5 6 No.Illuminet purchases SS7 services out of the Access Services Catalog.The catalog sets out standard pricing; it is not negotiated with carriers.Qwest negotiated ss7 rates with ELI as part of the Interconnection Agreement negotiations.However, because ELI chose to purchase SS7 services from a third I El 9 10 11 12 13 14 party,i.e.,Illuminet,rather than from its Interconnection Agreement,these negotiated rates do not v+y. The Complainants'testimony in this proceeding is filled with misleading allegations and assertions designed to camouflage the true issue at hand. Illuminet has been benefiting from an outdated and archaic rate structure and has shared that benefit with 15 16 17 its carrier/customers.Illuminet is now faced with paying charges aligned with services received.It's as simple as that. 18 19 CONCLUSION 20 21 Qs WOULD YOU PLEASE SUMMARIZE YOUR REBUTTAL TESTIMONY7 22 A. 23 24 Yes.Illuminet is Qwest's customer for the purchase of ss7.Illuminet provides SS7 services to certain of the other Complainants in this case.'Qwest lawfully QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-3?- Qwest Corporation 1 2 3 4 5 6 I 8 9 10 11 12 13 14 15 16 17 18 I.9 20 Q. 21 A. revised its Catalog to establish discrete SS7 rate elements to ensure that the customers using SS7 services were paying for them.Illuminet should not be allowed to circumvent these charges. Billing arrangements and Interconnection Agreements Qwest may have with CLECs and wireless providers have absolutely no bearing in this proceeding, as ELI, the only Idaho CLEC participating in this proceeding, chose not to purchase SS7 services out of its Interconnection Agreement.Instead,ELI chose to purchase SSX from Illuminet and Illuminet. is not a party to the billing arrangements and Interconnection Agreement between ELI and Qwest.Illuminet has purchased SS7 services out of Qwest's Access Services Catalog,the charges within that Catalog are valid,and Illuminet should be required to pay for signaling services provided by Qwest and denied any refund.The Commission should find that the application of Qwest's Idaho Access Services Catalog is fair and equitable. DOES THIS CONCLUDE YOUR REBUTTAL TESTIMONY? Yea. QWE-T-02-11 October 18, 2002 McIntyre, (Reb)-38. Qwest Corporation 1 2 3 4 5 6 I 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Mary S. Hobson, ISB #2142 Steel Rives LLP 101 S. Capitol Blvd., Suite 1900 Boise,ID 83702-5958 Telephone: (208) 389-9000 Facsimile: (208) 389-9040 Stephanie L. Boyett-Colgan Qwest Services Corporation 1801 California Street, 47th Floor Denver,CO 80202-1984 Telephone:(303) 896-0784 Facsimile:(303) 896-8120 Attorneys Representing Qwest Corporation BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IDAHO TELEPHONE ASSOCIATION,1 CITIZEN TELECOMMUNICATIONS ) CASE NO. QWE-i-02-11 '~, COMPANY OF IDAHO, CENTURY TEL OF ) IDAHO, CENTURY TEL OF THE GEM 1 STATE, POTLATCH TELEPHONE COMPANY ) And ILLUNINET, INC.) Complainants vs. QWEST COMMUNICATIONS, INC. Respoudent EXHIBITS TO THE REBUTTAL TESTIMONY OF SCOTT A. MCINTYRE QWEST CORPOUTION OCTOBER 18, 2002 EXHIBIT NO. 503 CASE NO. QWE-T-02-11 S. McIntyre; Qwest Corporation Conley Ward ISB #1683 GIVENS PURSLEY LLP 277 North 6th Street, Suite 200 P.O. Box 2720 Boise, ID 83701 (208) 388-1200 (208) 388-1300 (fax) BEl?ORE TJ3E IDAElO PUBLIC UTILITIES COMMISSION IDAHO TELEPHONE ASSOCL4TION, CITIZENS TELECOMMUNICATIONS COMPAl& OF IDAHO, CENTURYTEL OF IDAHO, CENTURYTEL OF m GEM STATE, POTLATCH TELEPHONE COMPANY and ILLUMINET, INC. Complainants vs. QWEST COMMXlNICAtiONS, INC.,= ~-~ : CASE NO. QWE-T-02-11 COIvPMANT, IDAHO TELEPHONE ASSOCATION’S RESPONSES TO RESPONDENT’S FIRST SET OF INI’ERROGATORIES A N D RBQUEST FOR PRODUCTION OF DOCUMENTS .I Respondent. : Idaho Telephone Association (“ITA”), by and through its attorneys of record Givens Pursley LLP, hereby submits the following responses to Respondent’s First Set of Interrogatories and Request for Production of Documents.All answers were prepared by Conley Ward, attorney for the ITA. INTERROGATORY NO. 1: Identify each member of ITA and describe whether each member operates as an ILEC or as a CLEC in the state of Idaho. RESPONSE TO INTERROGATORY NO. 1: Silver Star Telephone Compsny,‘Inc. (ILEC); Cohm>bine Telephone Company, Inc., d/b/a Teton Telecom (ILEC); Project Mutual Telephone Cooperative Association, Inc. (ILEC & CLEC); Custer- Telephone Cooperative, Inc. (ILEC); Mud Lake Telephone Cooperative Association, Inc. (ILEC); Fremont Telcom Co. COMPLAINANTS’ WSCOVER~ RI%QUESTS TO RESPONDENT- 1 Exhibit 503 Case No. QWE-T-02-l I S. McIntyre; Qwest Corpwation @EC); Farmers Mutual Telephone Company, Ltd. (ILEC); Inland Telephone Company (ILEC); Filer Mutual Telephone (&EC); Midvale Telephone Exchange, Inc. (ILEC); Direct Communications Rockland, Inc. (ILEC); Rural Telephone Company @EC); Albion Telephone Company &EC); and Cambridge Telephone Company (ALEC). INTERROGATORY NO. 2:To the extent that any ITA member operates as both an ILEC and a CLEC please identify each corporate entity operating within Idaho and explain which entity(s) operate as lLEC’s and which as CLECs. RJCSPONSE TO INTERROGATORY NO. 2: Project Mutual’s ILK and CLEC operations are conducted by one entity. II-I addition, the following companies have CLEC affiliates or sister companies operating in Idaho: Fremont Telcom (Fretel Communications, LLC), Cambridge Telephone (CTC Telecom, Inc.), and Midvale.Telephone(Rural Network Services, Inc.)...‘~ ~~.~. ,=~.? ~~,T INTERROGATORY NO. 3:For each ITA member explain how it provides SS7 signaling to it end use customers. RJLSPONSE TO INTERROGATORY NO. 3: Fremont Telcom uses Illuminet for SS7 services. Farmers Mutual uses Ilhnninet for its wireless traffic only. Filer Mutual uses Qwest. Iuland Telephone is located in northern Idaho and is therefore not relevant to this proceeding. All other ITA members use Syringa Networks LLC for SS7 signaling. INTERROGATORY NO. 4: Referencing paragraph 17 of the Complaint, identify each CLEC referenced therein and identify the exact provision in each interconuection agreement that is alleged violated. RESPONSE TO INTERROGATORY NO. 4: The ITA does not kuow how many interconnection agreements exist between Qwest aud Idaho CLECs, nor is it privy to the COMPLAINANTS’ DISCOVERY REQUESTS TO RESPONDENT- 2 . . ,,,* language included in those contracts, all of which are presumably in Qwest’s possession.With respect to interconnection agreements with ITA members or affiliates, the ITA believes that direct or indirect billing for SS7 signaling for local or EAS calls is a violation of paragraphs 5.1 and 5.4.1.1 of the attached intercomiection agreements between Qwest and Project Ivlutual Telephone Cooperative Association, Inc. (Exhibit A), CTC Telecom, Inc. (Exhibit B), and Rural Network Services, Inc. (Exhibit C). To the extent that similar provisions are contained in other intercomection agreements between Qwest and Idaho CLECs, the ITA believes that direct or indirect billing for SS7 signaling for local or EAS calls is likewise a violation of those agreements. REOUEST FOR PRODUCTION OF DOCUMENTS REOUEST FOR PRODU~CTION NO. 1: Produce each document ITA intends to offer in evidence at the hearing in this case. RFSPONSE TO REOUEST FOR PRODUCTION NO. 1: The Complainants will file with the Commission, aud serve upon Qwest, their pre-filed testimony and exhibits they intend to offer at hearing on this matter, their rebmt.al/responsive testimony and exhibits required in light of Qwest’s pre-filed testimony and any hearing exhibits that s~~pport the allegations contained in the Complaint that initiated this proceeding. In addition, please see the attached contracts identified in Response to Interrogatory No. 4 (above). Respectfully submitted this 6th day of September 2002. GIVBNS PURSLEY LLP COMPLAINANTS’ DISCOVERV REQUESTS TO RESPONDENT- 3 EXHIBIT NO. 504 CASE NO. QWE-T-02-11 S. McIntyre; Qwest Corporation Idaho Case No. QWE-T-02-11 ITA, et al. 01-049 INTER”ENOR:IDAflO TELEPHOIiE ASSOC, CITIZEIiS TEL!3COM co OF ID, CENTURYTEL OF ID, CENT"RYTEL OF THE GE?, STATE, POTLATCH TELEPHONE CO and ILLLMINET, INC. REQ"EST NO:049 Did Qwest reduce its access rates and revenues in Idaho when it unbundled SSI signaling from its existing access rates? If so,identify which rate elements were reduced, how Cyest selected the rate elements to be reduced, and how Quest calculated the reductions (including, but not limited to, the demand calculations used by Quest). Qwest reduced the end office local switching, cm~?~!er comon'lin~~,,and ~~a~~em --: ~: switching rate elements.'rhese elemental w&r& sFle?ted because <lle"$ign+ling ~,'-I. before unbundling was recovered on a minute of use-basis and redking the% elements was appropriate from that respect: -'. Please see Confidential Attachment A which is the pricing spreadsheet that was used to calculate revenue neutrality. Confidential Attachment A will be provided upon execution of an appropriate protective agreement. Respondent:Herb Ruprecht Case No. QWE-T-02-11 ATTACHMENT A TO EXHIBIT 504 OF S. MCINTYRE REBUTTAL TESTIMONY CONFIDENTIAL EXHIBIT NO. 505 CASE NO. QWE-T-02-11 S. McIntyre; Qwest Corporation EXHIBIT NO. 506 CASE NO. QWE-T-02-11 S. McIntyre; Qwest Corporation EXHIBIT NO. 507 CASE NO. QWE-T-02-11 S. McIntyre; Qwest Corporation G, ., TO:..L&WEST FROM:aTlzENscoMMuNIcAnoNs . IlAm o!i-2749 -,-: SuBk LEI-l-ER OF ACZ?X!Y- Thig leua will remain in efE&tutil rchnded in witins by CZlZENS COMMUNI~~ATIO~. Exhibit SO7 Case No. QWE-T-02-, , S. Mclntyx; QWW Corporation TOZ FROM: l3Al-E SUBJZ NETWORKENGE’EEFUNG S6OO HcadQumemDr. Phoo, l-e%as 7sazs 469-36s 3ooo FAXZ 469d65.4059 USWEST CITIZENS COhMUNICATIONS 01-0441 LElTER OF AGENCY CITlZENS COMMUNLlTIONS is authorizing ILLUMD-JET KI conducr all negotiations id issue or$crs hr ISU? TRUNWG for poht mdes lhted below in all US WEST L.ATAh.POm CODES ~8~~~Oul;i~~~O~,21~~.W3,2ib~XIW, 218it35.005; 218~.fJO6,2tik.~7, @33SJlO&3 qfL2wJo9,21g+35.011., ~, This letrcr will remain in e&ct w.6.l rescinded in ->l:itig by Cm S ,OMMUNICA~ON S. , Sinwrely. aeven C. Hutfield. SienatureOn File RaGz.02 EXHIBIT NO. 508 CASE NO. QWE-T-02-11 S. McIntyre; Qwest Corporation Mdhg h&remfkmk ‘@wwc, ;a=.*c&w.: ,7n+*“cwe sir ELfCTRiC “,#muwr, WasN”gccm W6Uomi ~76Jccd ~ax!36al.9~.589~~.~.~.~~~~ . . ...” . . . . . . . . ...” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...” . . . . . . . . . . . . . . . . . . . . . . . ...” . ..-......................-..” .,..............-..- - m-w74097KIS.alb194 2w2.a202 zts-242-2-O I C1054lS-098 oos-ols~099 2Taam-2012L!-l~?fMQ2 -aos-ot1.w2 09s-oll.193 WS4WO96m.m-o97 ws.w%w8. c45.08w10 Exhibit 508 Case No. QWE-T-02-l I S. McIntyre; Qwest Corporation EXHIBIT NO. 509 CASE NO. QWE-T-02-11 S. McIntyre; Qwest Corporation LOCAL INTERCONNECTION AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC. AND ELECTRIC LIGHTWAVEJNC. FOR IDAHO June 22, 2milhd/Eli-Idahe-IinaLdm CDS4,30612-0162/C Page i Exhibit SO9 Case No. QWE-T-02-, , S. Mclnty~e; @vest Corporation Part I- Rates CLASS - Selective Cdl Re@zticm CIASS - Ancfl~cus call Rejection Call Palk (store & lMllW2) h&sage Waiting h-diilion Lvv 1.2w 12.5w P.U.C. Oregon No. 26, Section 10, 0. 14 l.ZS3,S 12.503~~P.U.C. Oregm No. 26, Ssction 10, p. 14 0.0335~m-z Iowa Tatitl No. 5, Section 10, p. 8 0.0356~8.5F Iowa Twiti No. 5, S&ion 10, p 10 EXHIBIT NO. 510 CASE NO. QWE-T-02-11 S. McIntyre; Qwest Corporation Part AGeneral Terms Denver, CO 80202 ELI Government and Industry Affairs 4400 N.E. 77th Avenue Vancouver WA, 98662 Each Party shall inform the other of any changes in the above addresses. (A)3.22 Responsibility of Each Party Each Party is an independent contractor, and has and hereby retains the right to exercise full control of and supervision over its own performance of its obligations under this Agreement and retains full control over the employment, direction, compensation and discharge of all employees assisting in the performance of such obligations.Each Party will be solely responsible for all matters relating to payment of such employees, including compliance with social security taxes, withholding taxes and all other regulations governing suchmatters. Each Party will be solely responsible for proper handling, storage,; .,:a;: :,i:c !Q <y “~tr$ficwK dhd~&#&al & its &J+&$jen~e 61 all (I) s&&n&$ sr f&~~& Ihat it,.-J :,..! ~,J ~!;or its oontractore or agents bring to, create or ‘assume controF%WrF~ at work..; ,,*~ ;.k, t focatidns &, (fi)~%vaste ‘resulting ~therefrom or’othetiise generdied in&&Tnectionr:;, : 3,’ . 3 with itc or% i%htractors’ or ‘ageYft& activitiesat’the work locatiohs:~Subject to ’ the lirmitabons~oh cliabilify andM%pt as otherwise, provided <in: this Agreement;.I ~*each~~Party shall be responsible?;for (i) its .own acts and perfomTance of all oblig~ation~~imposed by’ applicable law in connection with. its activities, legalstatus land :property, real or personal and, (ii) the acts of itsown%ffiliates,~% i.::y f.i@J emplciyees;!; agents and contraofdrs during, the performance of fFr%It Partys-<::): : T .,~‘$$obligations hereunder.“‘!’.!.~,,.. ~~%!.,v. .;.(A)3.23 No Third Party Beneficiaries This Agreement does not provide and shall not be construed to provide third parties with any remedy, claim, liability, reimbursement, cause of action, or other privilege. (A)3.24 Referenced Documents All references to Sections shall be deemed to be references to Sections of thisAgreement unless the context shall otherwise require. Whenever any provision of this Agreement refers to a technical reference, technical publication, ELI practice, USW practice, any publication of telecommunications industry administrative or technical standards, or any other document specificallyincorporated into this Agreement, it will be deemed to be a reference to the most recent version or edition (including any amendments, supplements, addenda, or successors) of such document that is in effect, and will include the most recent version or edition (including any amendments, supplements, addenda, or successors) of each document incorporated by reference in such a technical reference, technical publication, ELI practice, USW practice, or publication ofindustry standards.The existing configuration of either Party’s network may not EXHIBIT NO. 511 CASE NO. QWE-T-02-11 S. McIntyre; Qwest Corporation Idaho Case No. QWF-T-02-11 ITA, et al. 01-028 1NTER”ENOR:ID?xHO TRLEWONE ASSOC, CITIZENS TELECON CO OF ID, CENT"RYTEL OF ID, CENTURYTEL OF THE GRM STATE,POTLATCH TELEPHONR CO and ILL"MINET, INC. REQ"EST NO:028 Does Quest consider the offering of access to its SS7 facilities under the Service Catalog to be "exchange access"as that term is defined in 47 U.S.C. s 153(161? Qwest objec,ts~to this request on the grounds that it is vague, overbroad, and not reasonably calculated to lead to the discovery of admissible evidence.Q.uest also abjec-ts to this request as it calls for a legal conclusion., Notwithscanding~these objections, west answers no. Respondent:. Don Lewis, ,,Man+e~r Exhibits, 1 CaseNo.QWE-T-02-11 S. Mclnty~e;Qwest Corpxation CERTIFICATE OF SERVICE I hereby certify that on this 181h day of October, 2002, I served QWEST CORPORATION’S REBUTTAL TESTIMONY OF SCOTT A. MCINTYRE as follows: Ms. Jean Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83720-0074 jiewell~vuc.state.id.us Conley Ward Givens Parsley 277 North @’ Street-Suite 200 P.O. Box 2720 Boise, ID 83701 cew@tivensuurslev.com Morgan W. Richards Moffatt Thomas 101 Sooth Capitol Boulevard - 10’ Floor Boise, ID 83701 mwr@moffatt.com Thomas J. Moorman Kraskin, Lesse & Cosson LLP 2 120 L Street NW - Suite 520 Washington DC 20037 Phone: (202) 296-8890 Fax: (202) 296-8893 tmoorman@klctele.com Clay Stugis Moss Adams LLP 601 West Riverside - Suite 1800 Spokane, WA 99201-0663 Ted Hankins, Director State Government Relations P.O. Box 4065 Monroe, LA 71211-4065 Gail Long, Manager External Relations P.O. Box 1566 Oregon City, OR 97045-1566 [X] Hand Delivery u U. S. Mail u Overnight Delivery u Facsimile u Email [z] Hand Delivery u U. S. Mail u Overnight Del&q u Facsimile u Email m Hand Delivery U U. S. Mail U Overoiiht Delivery U Facsimile U Email U H a n d Deliwry m] U. S. Mail U Overnight Delivev U Facsimile [L] Email U H a n d Delivq [z] U. S. Mail U Overnight Delivery U Facsimile U H a n d Delivq [x] U. S. Mail U Overnight Delivery U Facsimile U Hand Delivery [x] U. S. Mail [A Overnight Delivery U Facsimile QWEST CORPORATION3 DIRECX TESTIMONY OF JOSEPH CRAIG AND SCOT-I A. MCINTYRE - Pa@ 1 soise-l47508., co~91644mls2 Richard Wolf Illuminet, Inc. 4501 lntelco Loop SE P.O. Box 2909 Olympia, WA 98507 Lance Tade Citizens Telecommunications 4 Triad Center - Suite 200 Salt Lake City, UT 84180 F. Wayoe Lafferty LKAM Services, Inc. 2940 Cedar Ridge Drive McKinney, TX 75070 L] Hand Delivery [L] U. S. Mail u Overnight Delivery u Facsimile m Hand Delivery [A] U. S. Mail u Overnight Delivery [A Facsimile U Hand Delivery w] U. S. Mail U Overnight Delivery u Facsimile Brandi L. Gearhart, PLS Legal Secretary to Mary S. Hobson Steel Rives LLP QWEST COPZORATION’S DIRECT TESTIMONY OF JOSEPH CRAIG AND SCOTT A. MCINTm - Page 2 Boise-l475os.~ ow29,64ooos2