20101029Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: OCTOBER 27, 2010

SUBJECT: CASE NO. QWE-T-08-04
QWEST CORPORATION’S AMENDED PETITION TO REMOVE
PERFORMANCE ASSURANCE PLAN; MOTION TO APPROVE
CHANGES

On July 30, 2010, Qwest Corporation filed an Amended Petition that “supersedes the
pending portion of Qwest’s Petition filed herein on May 2, 2008, in which Qwest sought
permission to withdraw its Statement of Generally Available Terms and Conditions (SGAT).”
Amended Petition, p. 2. In Order No. 30750, issued March 17, 2009, the Commission granted
Qwest’s request to withdraw the SGAT, but left open consideration of Qwest’s proposal to also
withdraw its Performance Assurance Plan (QPAP) and associated performance indicator
definitions (PIDs) that were part of the SGAT. The QPAP, normally part of interconnection
agreements between Qwest and other telecommunication providers, gives assurance that Qwest
will provide fair and reliable access to its network.
In its Amended Petition, Qwest proposes a new Performance Assurance Plan (QPAP
II) that Qwest states will provide economic incentive to Qwest to provide non-discriminatory
service to competitive local exchange carriers (CLECs) as required under the federal
Telecommunications Act of 1996. According to Qwest’s Amended Petition, QPAP II
streamlines the measurements used to determine service levels, removes measurements that are
currently in the PIDs but are not in the current QPAP, and moves some measurements into
categories that continue to track the information for possible future reinstatement of the
measurements. The proposed QPAP II also streamlines product categories by combining the
DECISION MEMORANDUM 2
reporting for similar products or processes into one product category and removing products that
have very low activity levels. Amended Petition, pp. 11-12.
On October 8, 2010, Qwest filed a Motion to Approve QPAP changes. Qwest’s
Motion is based on a Stipulation the Company filed on October 4 stating the parties had reached
an agreement regarding three specific changes to Qwest’s QPAP. Qwest’s Motion identifies the
three changes for approval by the Commission as (1) removal of the service known as
“unbundled network element – platform (POTS)” or “UNE-P (POTS),” (2) changing the form of
computer-to-computer interface used by CLECs from Electronic Data Interchange (EDI) to
Extensible Markup Language, and (3) removal of the Tier 2 payment provisions. The Stipulation
filed by the parties on October 4, 2010, states that Staff and Intervenors do not oppose Qwest’s
proposal that the unbundled network element – platform be removed from the Idaho PAP, and
that the Staff and Intervenors support Qwest’s proposal to modify the form of computer-to-
computer interface used by CLECs from Electronic Data Interchange to Extensible Markup
Language. Finally, the Stipulation states that Staff and Intervenors do not oppose Qwest’s
proposal to remove Tier 2 payment provisions from the QPAP.
The QPAP currently provides for Qwest to make payments to CLECs if it fails to
meet specific performance standards (Tier 1 payments) and to make payments to a fund
administered by the Commission if additional specific standards or benchmarks are not met (Tier
2 payments). Tier 2 payments are made to a Special Fund account and to a Discretionary Fund
account. The Special Fund is to be used for QPAP administrative expenses and oversight
activities. More specifically, the Special Fund was used for audits in 2005 and 2007, as well as
the more thorough review completed by Liberty Consulting in 2009 that is part of this case.
Since 2003 when the Special Fund was opened, approximately $16,300 has been used for
administration and audit activities. The current balance in the Special Fund is $34,713.14.
Qwest also established the Discretionary Fund in 2003, and its stated purpose “shall
be limited to competitive neutral Idaho telecommunications initiatives” as determined by the
Commission. The fund was established with $14,000, and has grown to a current balance of
$56,698. To date the Commission has not approved a use for any Discretionary Funds.
Staff recommends the Commission grant Qwest’s Motion to Approve Changes to its
QPAP as stated in the Stipulation.

DECISION MEMORANDUM 3
COMMISSION DECISION
Should the Commission grant Qwest’s Motion to Approve the three discreet changes
to the QPAP as identified by the Stipulation of the parties filed on October 4, 2010?

Weldon Stutzman
Deputy Attorney General

bls/M:QWE-T-08-04_ws7