20030320McManamon Direct.pdf

John Gannon, State Bar No. 1975
Attorney At Law
1101 West River, Suite 110
Boise ID 83702
Phone: [phone]
Fax: [phone]
Attorneys Representing Intervenors Meierotto, et al
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF QWEST CORPORATION FOR PRICE
DEREGULATION OF BASIC LOCAL
EXCHANGE SERVICES
DIRECT TESTIMONY OF
Dennis McManamon
on behalf of
Intervenors Meierotto, et al
March 6, 16, 2003
CASE NO. QWE-02-
I. INTRODUCTION
Q. Please state your name, address and background.
My name is Dennis McManamon and I reside at 3741 Cayuga Place, Boise, Idaho
I have been involved in sales or managment of small businesses for the last 20 years.
From 1993 - 1995 I was a salesman of telephone systems for The Telephone Exchange in
Boise. For three years thereafter I worked primarily for Mountain States Communications
selling radio and wireless telephone systems in Southwestern Idaho. From 1998 to 2000 I
sold wireless, primarily cell phones, including Nextel and Sprint, for Cellular Technology,
which went out of business in 2000. Because of instability in the phone industry I opted to
change, and since 2001 I have been manager of Awnings Unlimited in Meridian where I
supervise the office and engage in the sale and supervision of awning installation throughout
the Treasure Valley.
In connection with my phone system/wireless employment I was present at many
presentations and instructional meetings regarding the products and equipment I have
described. Most of them were for 1h day or so. In 1995 I attended a 3 day training program
in Seattle dealing with the Toshiba America Telephone System. I attended a 3 day course in
Boise sponsored by Nextel in 1999 that was required by them in order to sell their products.
While employed at the Telephone Exchange I sold and helped supervise in 1995 the
installation of a Toshiba phone system that connected every classroom in the Mountain Home
School District.
Because of my background in telephone systems and cell phone technology, I keep
up to date on new developments and pay special attention to our telephone needs.
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March 6, 16 2003
MCMANAMON D
INT MEIEROTTO
n PHONE COMMUNICATIONS AT AWNINGS UNLIMITED
Q. What is the nature and extent of phone communications at your present
employer, Awnings Unlimited?
A. Awnings Unlimited has a three land line phone system, a fax line and a DSL
dedicated line for communication with our Salt Lake City headquarters. We have four phone
locations at our business. We also have a Nextel package of 4 cell phones which are
distributed to each of the 4 employes at our Meridian office. These cell phones have a two
way radio feature.
Q. When do you and your employes use these communication devices?
A. Employes are encouraged to use the land line phone as much as possible when
on the premises. We encourage them to use the two way radio feature when they are away
ITom the office, and to use the cell phone if the radio cannot be used.
Q. Why do you have these policies?
A. Cost concerns. We have found that cell phones are the most expensive calling
device because the minute use is monitored and there can be unforseen charges when our
people are out in the field contacting customers regarding estimates or doing installations.
The two way radio feature keeps the cell phone bills down.
n CELL PHONE EQUIVALENCY
Q. Why don t you just substitute cell phones for your land line system?
A. Our land line system is part of a phone system which has 4 locations in the office.
F or office work we need a system that can receive and transfer calls; put callers on hold and
allow another person to answer; rollover phone calls so that an incoming call can be answered
by another person if the receptionist is busy; and perform other functions. There is no cell
phone phone system available on the market that could substitute for our land line telephone
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INT MEIEROTTO
system at Awnings Unlimited. Cell Phone technology has not developed such that any
combination of cell phones could allow all lines to be included in one phone and in all
extension phones. In fact no extension phones are available for cell phones. A common
receptionist would simply not work. Others in the office could not access all the telephone
lines, and answering the phone and directing calls would not be possible.
Q. Does your land line system have a rollover feature and is that
important?
A. A rollover network is essential for my office because if line 1 is in use, the
receptionist or other personnel can answer or use the phone on line 2 or three. Cell phones
have individual numbers, which cannot roll over to another number.
Cell phones do have a call forwarding feature, but this cannot replace a rollover phone
system because of access issues. If two cell phones were substituted for two land lines, the
cell phones could be in different locations, so that answering them would be inconvenient for
anyone except the person in proximity to the cell phone. . Ifboth cell phones were answered
at the same location, then hand delivery of the unit would be required if the phone call was
for someone else in the office.
Further, a receptionist cannot put a call on hold, and allow another person at a
different location to pick up the call.
Q. Are there any other reasons why you need to have the land line phone system
you have described?
A. Yes. A facsimile machine is essential for my office and we use this inexpensive
device so much that we have a dedicated line for it. A cell phone cannot be used to operate
the fax machine.
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Q. While employed in cell phone sales, did you ever try to sell cell phones to
small business customers as a replacement for their land line system?
A. Yes, and I was unsuccessful. The technology is simply not here yet to enable most
serious small businesses to operate without a land line system. Certainly, I occasionally sold
cell phones to someone who worked part time out of the home or did a little consulting. But
small business even today, two years later, has to have a land line phone system for the
reasons I have described. In addition, many credit card/debit card machines need a land line
to operate. Ours at Awnings Unlimited operates that way. And there is our DSL service.
Q. Do you believe that the public interest would be served by deregulating local
service line charges?
A. No, because cell phones can t compete, as I have described, so prices would just
go up.
Q. Qwest is asking to deregulate local service line charges in order to better
compete with cell phones. Do you believe there is presently anything that regulators
or the government can do that would promote fairer competition if deregulation of the
line charges is inappropriate?
A. Yes. Land lines pay much more in taxes and fees than cell phones, yet they both
are involved in communications. I think residential pays around $8.50 in addition to the
$17.50 land line and business pays around $11 in addition to the $32 land line charge. I think
wireless pays a dollar or two. However, adjusting the tax and fee issue will only be of help
in the residential area, because you simply can t use the cell phone for the small business
office. But a revenue neutral approach that reduces the land line charges, and increases cell
phone charges accordingly would make land line residential use generally more attractive.
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