20050606Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:JUNE 6, 2005
SUBJECT:QWEST PETITION FOR FURTHER CONSOLIDATION OF RATE
CENTERS IN SOUTHERN IDAHO, CASE NO. QWE-05-
On April 29, 2005 Qwest filed a Petition requesting an Order authorizing the
consolidation of its Meridian and Boise rate centers. Because the rate centers do not have
identical local calling areas, consolidation of the two centers would require the Commission to
expand the local calling area of the Kuna, Meridian, Middleton and Star exchanges to include
Lowman. Lowman is served by Cambridge Telephone Company. Qwest in its Petition proposes
that the Commission grant one-way EAS between its exchanges and the Lowman exchange.
The Commission previously investigated consolidation of rate centers as a way to
conserve NXX prefixes. In February 2001 the Commission issued Order No. 28943 , which
consolidated rate centers in Qwest's service area. The new Boise rate center includes the Boise
and Idaho City exchanges, and the Meridian rate center includes the Kuna, Meridian, Middleton
and Star exchanges. Qwest's Petition asserts that consolidation of the Boise and Meridian
exchanges is necessary for it to port local numbers between Boise and Meridian for its
customers.
Consolidating the Boise and Meridian exchanges would require modification of the
local calling area for Meridian customers. Customers in the Boise and Idaho City exchanges
have toll-free extended area service (EAS) to the Lowman exchange, and customers in the
Meridian rate center do not. Qwest proposed to provide one-way EAS from the exchanges in the
Meridian rate center to Lowman. Service is provided in Lowman by Cambridge Telephone
Company. Qwest does not seek reimbursement for implementing EAS for its Meridian rate
DECISION MEMORANDUM
center customers. Should Cambridge Telephone decide to expand the Lowman EAS to include
the Meridian exchanges, Qwest asserted it would implement two-way EAS without
compensation for lost access and toll revenues.
Staff filed comments recommending the Commission approve Qwest's Petition for
consolidation of Boise and Meridian rate centers and that two-way EAS be implemented
between Cambridge Telephone s Lowman exchange and the Qwest exchanges in the Meridian
rate center that includes Meridian, Kuna, Middleton, and Star, with each company bearing any
cost to implement EAS. Cambridge Telephone filed comments stating it is willing to extend
two-way EAS from its Lowman exchange to the Meridian rate center. Cambridge stated it does
not seek reimbursement for its immediate costs of implementing EAS, but did request
reimbursement from the state Universal Service Fund for lost access revenues in the amount of
$1 ,404 per year.
COMMISSION DECISION:
Should the Commission issue an Order
(a) approving consolidation of Qwest's Boise and Meridian rate centers;
(b) expanding the local calling area of the Kuna, Meridian Middleton and Star
exchanges to include Lowman by
(i) implementing one-way EAS between the Qwest exchanges and the Lowman
exchange served by Cambridge Telephone, and directing the costs of implementing
the expanded EAS to be paid by Qwest, or
(ii) implementing two-way EAS between the Qwest exchanges and the
Cambridge Telephone Lowman exchange, and directing the costs to be paid by
Qwest and Cambridge, unless the Commission approves recovery of lost access
revenue and authorizes Cambridge to be reimbursed from the state USF in the
amount of $1 ,404 per year?
0) ~-Weldon B. Stutzman
bls/M:QWETO510 ws2
DECISION MEMORANDUM