20100514Laine Direct.pdf

BATI FISH.eft' PUSCH 8i ALDERMAN LLP
AT T O.R N E Y SAN D C 0 U N S E L 0 ¡t SAT L A IV
John R. Hammond Jr.. e-mail: jrh(a)battfisher.com
May 13, 2010 s..r_::Q
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Via Hand Delivery :i
J:.-N-Jean Jewell, Commission Secretar
Idao Public Utilities Commission
472 W. Washington Street
P. O. Box 83720
Boise,'Idaho 83720-0074
Re: Prefilèd Direct Testimony of Julie Laine in Support of Application of Time
Warner Cable Inf(Jrmation Services (Idaho), LLC's For a Certifcate of Public
Convenience ami Necessity, Case No. TIM-T-08-01
Dear Ms. Jewell:
Enclosed arè thè original plus nine (9) copies ofthe Prefied Direc( Testimony of Julie
Laine, Group Vice President, Regulatory of Time Warer Cable, in Support of Time Warer
Cable Information Services(Idaho), LLC's Application for a Certificate of Public Convenience
and Necessity to Provide Competitive Facilities-Based Local and Interexchange
Telecommunications Services Within the State ofIdaho. Kindly retu a fie stamped copy of
this letter a~d testimony., ,
If you ,have any questions or need additional information,~lease do not hesitate to contact
me.
Sincerely,
. LLP
JR:dm
Enèlosures
cc: Yin Paladin
T 208.331.1 000 . F 208.331.2400 . P.O.Box 1308 Boise, Id 83701 '. Suite 500, US Bank Plaza 101 S. Capitoll3lvd. . Boise, Id 83702
John R. Hamond, Jr., ISB No. 5470
Batt Fisher Pusch & Alderman LLP
U.S. Ban Plaza, 5th Floor
101 S. Capitol Boulevard, Suite 500
Post Office Box 1308
Boise, ID 83701
Telephone: [phone]
Facsimile: [phone]
Attorney for Time Warner Cable
Information Services (Idaho), LLC
R- r-r:i:jl ir-..,c:v...vi:u
inlD HAY 13 PH 4: 21
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
Application of )
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TIME WARR CABLE INORMATION )
SERVICES (IDAHO), LLC )
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For a Certificate of Public Convenience and
Necessity to Provide Competitive Facilities-
Based Local and Interexchange
Telecommunications Services within the
State ofIdaho
Case No. TIM-T-08-01
DIRECT TESTIMONY OF JULIE LAINE
ON BEHALF OF TIME WARER
CABLE INFO~ATION SERVICES
(IDAHO), LLC
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PLEASE STATE YOUR NAME, TITLE, AN BUSINESS ADDRESS FOR THE
RECORD.
My name is Julie Laine and I am Group Vice President, Regulatory of Time Warner
Cable. My business address is 60 Columbus Circle, New York, NY 10023. My
telephone number is [phone] and my email address isjulie.laineCÐtwcable.com.
WHAT AR YOUR JOB RESPONSIBILITIES?
I am responsible for legal and regulatory matters relating to Time Warer Cable's voice,
video, and data services.
PLEASE GIVE A BRIF DESCRIPTION . OF YOUR BACKGROUN AN
EXPERIENCE.
I am an attorney who has specialized in the area of communications. I began my law
career asa law clerk in the U.S. Distrct Cour for the District of New Jersey and later
served as an Adjunct Professor at the Seton Hall Law SchooL. I then practiced
communications law in private practice in Washington, D.C. for several years. I later
served as an Attorney Advisor in the Policy Division of the Federal Communcations
Commission's Common Carier Bureau, where I worked on issues relating to local
telephone competition, broadband deployment, and telecommunications mergers. I
joined Time Warer Cable in 2002 after working for Net2Phone, Inc., an IP telephony
provider, where I was Associate General CounseL. Prior to becoming Time Warer
Cable's Group Vice President, Regulatory, I was Vice President and Chief Counsel,
Telephony. I received my undergraduate degree from the University of Pennsylvana and
my law degree from the College of Wiliam & Mar. I am a recent graduate of the Betsy
Magness'Leadership Institute, Women in Cable Telecommunications' flagship executive
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development program that provides intensive, yearlong training for senior-level women
ready to take on significant leadership responsibilities.
PLEASE BRIEFLY DESCRIBE YOUR COMPANY'S CORPORATE STRUCTURE.
Time Warner Cable Information Services (Idaho), LLC ("TWCIS") isa limited liability
company organized under the laws of the State of Delaware. TWCIS is a wholly owned,
indirect subsidiary of Time Warer Cable Inc. ("TWC").
DOES TIME WARR CABLE INC. HAVE OTHER SUBSIDIARIS OUTSIDE
IDAHO THAT OPERATE AS CERTIFICATED COMPETITIVE LOCAL
EXCHAGE CARRS' AN OFFER TELECOMMUICATIONS SERVICES
COMPARLE TO THOSE THAT TWCIS SEEKS TO INTRODUCE?
WHAT IS THE PUROSE OF YOUR TESTIMONY?
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The purose of my testimony is to present evidence concernng TWCIS's application for
a CPCN to provide local telecommunications service and intrastate toll service in Idaho,
to explain that granting the application would benefit the public interest and be consistent
with Idaho state law and policy, and to describè why TWCIS would be unable to enter
the Idaho market, or offer a competitive alternative to entrenched ILEC services, in the
absence of a CPCN.
PLEASE DESCRIE THE SERVICES THAT TWCIS PROPOSES TO PROVIDE IN
IDAHO.
TWCIS. wil provide competitive, facilities-based wholesale and retail local intrastate
telecommunications services for compensation within the State of Idaho. Such services
may include point-to-point, private line, access, interconnection and transport services.
In paricular, TWCIS's Local Interconnection Service will enable two-way
interconnection between the facilities of TWCIS's customers and the public switched
telephone network ("PSTN"). This service will be offered on a wholesale basis to
facilities-based providers of interconnected VoIP services, and wil provide for, among
other things, two-way interactive switched voice communcations that wil be transported
and terminated in Idaho. Local Interconnection Service also wil provide TWCIS's
interconnected VoIP provider customers with access to domestic and international toll
services, operator services, telephone number resources, 911 calling, and related services
and features.
DOES TWCIS QUALIFY AS A "TELEPHONE CORPORATION" UNDER IDAHO
STATE LAW?
Yes. TWCIS's Local Interconnection Service, in addition to the other services TWCIS
intends to offer in Idaho, falls within the statutory definition of "telecommunication
service" under the Idaho Code. Thus, TWCIS is a "telephone corporation" as defined by
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Idaho law. Further, TWCIS's Local Interconnection Service should be classified as a
"basic local exchange service" under Idaho Code § 62-603(1). Therefore, to the extent
that Title 61 requires the actual provision of basic local exchange service at the time a
CPCN is granted-a point that that TWCIS does not ccmcede-TWCIS has satisfied that
requirement.
HAS THE COMMISSION PREVIOUSLY GRATED CPCNS TO OTHER
APPLICANTS THAT PROPOSED TO OFFER SERVICES COMPARLE TO
THOSE PROPOSED BY TWCIS?
Yes. The Commission has done so on several occasions. For example, in its application
for a CPCN, ALEC Telecom, Inc. ("ALEC") proposed to offer "wholesale switching and
interconnection services to other telephone service providers and similarly-positioned
wholesale business customers."i The Commission granted ALEC's request for a CPCN.
Similarly, in its application for a CPCN, Eltopia Communications, LLC ("Eltopia")
represented that it would primarly provide high-speed data. services and protocol
conversion services that did not require certification? Yet the Commssion granted
Eltopia's application after noting that Eltopia had the capability to provide both voice and
data services over the same tru, and recognizing the company's desire to maintain the
flexibility to configure its service according to its customers' specifications.3 Whle Staff
has' attempted to distinguish these applications from that submitted by TWCIS, the fact
remains that, immediately following certification, ALEC and Eltopia provided the same
1 See Application of ALEC Telecom, Inc. for a Certifcate of Public Convenience and
Necessity to Provide Local Exchange and Telecommunications Services, Case No. ALE-
T-09-01, Order No. 30944, at 4-5 (Nov. 13,2009).
Application of Eltopia Communications LLC for a Certifcate of Public Convenience and
Necessity to Provide Local Exchange and Telecommunications Services, Case No. ECL-
T-07-01, OrderNo. 30442 (Sep. 24,2007).
Id.
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types of services proposed by TWCIS.4 Yet, in those cases Staff supported certification.
There is no justification for treating TWCIS differently.
IN YOUR OPINION, WILL THE ISSUANCE OF A CERTIFICATE TO TWCIS BE IN
THE PUBLIC INTEREST?
Yes. A CPCN will enable TWCIS to provide facilties-based wholesale and retail
intrastate telecommunications services to commercial customers in Idaho. These services
wil, in tum, be used to make available new and competitive service offerings that wil be
available to residential and commercial consumers in Idaho, in fuherance of the public
interest. It is well-established that increased competition leads to lower prices, service
innovation, more responsive customer service, and other benefits that increase consumer
utilty and stimulate demand for the services supplied by all providers, including the
ILECs. Moreover, ILECs respond to robust competition by improving the efficiency of
their operations and expanding the market to which they offer their services, ultimately
benefiting consumers and the Idaho economy statewide.
DOES THE ESTABLISHED PUBLIC POLICY OF THE STATE OF IDAHO FAVOR
GRAT OF THEREQUESTED CPCN?
Yes. The Idao Telecommunications Act of 1988 was enacted in large par to promote
competition in the telecommunications marketplace within Idaho-in recogntion of the
many benefits of competition, including those that'I have just identified. Consequently,
Title 62 reflects a clear state policy in favor of promoting "effective competition," i.e.,
"substantive and meaningful competition throughout the incumbent telephone
corporation's local exchange calling area." See Idaho Code §62-601(2). In fact,
4 For example, while ALEC represented to the Commission that it planed to provide other
services in the future that fell within the category of "basic local exchange service," the
fact remains that it was not providing any retail local exchange servce at the time it
received a CPCN, thus undercutting any assertion that the provision of such a retail
service is a prerequisite to certification.
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encouraging entry by new service providers, such as TWCIS, is the overrding objective
of the Act-and one that the Commission has broad authority to pursue.
DOES ANTHING IN IDAHO STATE LAW PRECLUDE THE COMMISSION
FROM GRATING THE REQUESTED.CPCN?
No. Even if TWCIS'sLocal Interconnection Service were not deemed a basic local
exchange service-which would mean that Idaho Code § 62-604 would exempt TWCIS
from the requirement to obtain a CPCN in order to provide this service-nothing in that
exemption forecloses TWCIS from seeking a CPCN on a voluntar basis. As TWCIS
has explained, it is not seeking certification for the purpose of subjecting itself to
burdensome regulations, but rather is seeking a CPCN because such authority is
necessary for TWCIS to enter the Idaho telecommunications market. Nothing in. the
Idaho Code compels TWCIS to forego, orthe Commission to deny, this vital prerequisite.
In fact, as just explained, clear state law and policy compel the opposite result.
WILL TWCIS BE ABLE TO ENTER THE IDAHO MART, AN DELNER THE
PUBLIC INTEREST BENEFITS THAT YOU HAVE DESCRIED, WITHOUT A
CPCN?
No. A CPCN is critical to enable TWCIS to obtain inputs and assistance critical to its
ability to operate in Idaho. For example, incumbent LECs wil refuse to interconnect
with an entity that does not hold a CPCN granted by the relevant statecoimission.
Without such interconnection, TWCIS wil be unable to complete local telephone calls or
otherwise provide a viable service offering. Therefore, TWCIS's ability to interconnect
with other carrers is a fundamental requirement of its proposed business activities.
HAS TWCIS ATTEMPTED TO ENTER INTO ANY INTERCONNCTION
AGREEMENTS WITH INCUMBENT LOCAL EXCHANGE CARERS
OPERATING IN IDAHO?
Yes. TWCISrecently attempted to enter into an interconnection agreement with Verizon,
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to the point of submitting signed interconnection agreement documents for Verizon to
counter-sign. However, Verizon refused to do so on the grounds that it had not received
the "required certification information" demonstrating that TWCIS holds a CPCN,
making clear its view that the absence of certification made the otherwise-acceptable
interconnection agreement "non-operationaL."s TWCIS informed Verizon of ths
Commission's ruling that TWCIS did not require a CPCN to obtain interconnection, but
Verzon refused to accept any alternative to a CPCN as sufficient to demonstrate
TWCIS's entitlement to interconnect as a qualified telecommunications carrer.
WILL TWCIS FACE ANY OTHER OBSTACLES IF IT DOES NOT OBTAI A CPCN
FROM THE'COMMISSION?
Yes. In addition to precluding interconnection, the denial of a CPCN would leave
TWCIS without the ability to obtain telephone numbers, route calls, and obtain other
inputs necessar to operate as a CLEC.6' For instance, when a carer requests telephone
number blocks, that entity's status as a holder of a CPCN is verified by the numbering
authority before number blocks' are assigned.. Similarly, TWCIS could not be listed in the
Local Exchange Routing Guide, which. is essential to routing local calls, without an
Operating Company Number ("OCN"), and the National Exchange Carier Association
assigns such OCNs only to entities that hold CPCNs. Without anOCN, TWCIS will be
unable to obtain company codes that identify it and permit it to pay and collect access
charges for the traffc it intends to car or to be listed in industr databases that are
necessary for the provision of service to customers. For example, TWCIS must have a
CPCN to obtain Local Routing Numbers ("LRNs"), which convey essential end user call
5 See Letter from Scott Miles, Contract Management, Verizon Global Wholesale to Mark
Swan, Time Warner Cable (Apr. 29,2010) (attached hereto as Exhibit A).
6 See, e.g., Telephone Number Requirements for IP-Enabled Services Providers, Report
and Order, 22 FCC Rcd 19531, at' 12' (2007) (noting that NANP A "provides numbers
only to entities that are licensed or certificated as carers under the (Federal
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routing information. Moreover, to paricipate in number porting, TWCIS must have an
OCN and provider proof of its CPCNto obtain a Service Provider Identification Number
("SPID") from the Number Portability Administration Center ("NP AC") and register as a
user for the NP AC' s Service Management System ("SMS").
DOES FEDERAL LAW PRECLUDE THE COMMISSION FROM GRATING THE
REQUESTED CPCN?
No. To the contrary, the Communcations Act of 1934, as amended, establishes a clear
nationwide policy in favor of competition and expressly prohibits state legal requirements
that prohibit or have the effect of prohibiting competitive. entr by new service
providers.7 Moreover, the Federal Communications Commission ("FCC") has made
clear that that "providers of wholesale telecommunications services" such as TWCIS
"enjoy the same rights as any 'telecommunications carrer' under. . . the Act."s As noted
above, state law and policy are fully consistent with these federal objectives. In any
event, where, as here, a state commission's refusal to grant aCPCN would result in
prohibiting the applicant from providing telecommunications services in fuherance of
Congress'sprocompetitive objectives,. such action would be subject to preemption under
Section 253 of the Act.
DOES THIS CONCLUDE YOUR TESTIMONY?
Yes.
Communications) Act. ").
7 See 47 U.S.C. § 253(a).
8 Time Warner Cable Requestfor Declaratory Ruling that Competitive Local Exchange
Carriers May Obtain Interconnection Under Section 251 of the Communications Act of
1934, as Amended, to Provide Wholesale Telecommunications Services to VoIP
Providers, Memorandum Opinion and Order, 22 FCC Rcd 3513, at' 9 (WCB 2007)
DIRECT TESTIMONY OF JULIE LAINE - 8
RECElV
iUlßl1AY l 3 PM 4: l¡1
EXHIBIT A
Scott Miles
Contract Management
Verizon Global Wholesale \ ~ë1.~onVIA FEDEX OVERNIGHT
Verizon Global Wholesale
600 Hidden Ridge
HQWMNOTICES
Irving, TX 75038
Phone [phone]
Fax [phone]
ScotL.Miles(§verizon.com
April 29, 2010
Time Warner Cable
Mark Swan
7800 Crescent Executive Drive
Charlotte, NC 28217
Subject:NOTICE OF NON-OPERATIONAL DOCUMENTS AND RETURN OF
ORIGINAL DOCUMENTS
On September 3, 2009, Verizon received executed signature pages for Time Warner
Cable Information Services (Idaho), LLC's ("TWCIS") Interconnection Agreement
documents for the State of Idaho. However, despite several requests for the
information, we have not received the required certification information needed to
execute, deliver and fie the Interconnection Agreement documents. Therefore, Verizon
considers the Interconnection Agreement documents non-operationaL.
Enclosed are your voided, executed signature pages. Once TWCIS has received
certification to be a provider of local exchange service, please submit a written request
for Negotiations to:
Kathleen Robertson
Verizon Global Wholesale - Interconnection Negotiations
600 Hidden Ridge, HQE03D44
Irving, TX 75038
Telephone: [phone]
Fax: [phone]
E-Mail: contract.management(gverizon.com
NOTICE OF NON-OPERATIONAL DOCUMENTS AND RETURN OF ORIGINAL DOCUMENTS (lCIS)
April 29, 2010
As per the Telecommunications Act of 1996, the request date will be the date Verizon
receives the written request.
Sincerely,
.xtøl. :JU
Scott Miles
Contract Management
Verizon Global Wholesale
Enclosures (4)
Cc: Time Warner Cable
Julie P. Laine
60 Columbus Circle
New York, NY 10023
2
SIGNATURE PAGE
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of
the Effective Date.
TIME WARNER CABLE INFORMATION
::~li¡iiJ
VERIZON NORTHWEST INC.
By:
Printed: Gerald D. Campbell Printed: Jeffrey A. Masoner
Title: EVP, Commercial Services Title: Vice President - Interconnection Services
2009_11_05_ TWCIS (ID) VZ Comprehensive ICA Ver3.3-1-ID.doc 27
SIGNATURE PAGE
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of
the Effective Date.
TIME WARNER CABLE INFORMATION
SERVICES (IDAHO), LLC r ¿II
By~~¡1\Ø
¡
VERIZON NORTHWEST INC.
By:
Printed: Gerald D. Campbell Printed: Jeffrey A. Masoner
Title: EVP, Commercial Services Title: Vice President - Interconnection Services
2009_11_05_ TWCIS (10) VL Comprehensive ieA Ver3.3-1-10.doc 27
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be
executed as of the Amendment Effective Date.
TIME WARNER CABLE INFORMATION
SERVICES (IDAHO), LLC
By: 6J!f
Printed: Gerald D. Campbell
Tite: EVP, Commercial Services
Rate Plan B Amendment v062708
VERIZON NORTHWEST INC.
By:
Printed: Jeffrey A. Masoner
Tite: Vice President -interconnection Services
5
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be
executed as of the Amendment Effective Date.
TIME WARNER CABLE INFORMATION
SERVICES (IDAHO), LLC
BY~~l\)
Printed: Gerald D. Campbell
Title: EVP, Commercial Services
Rate Plan B Amendment v062708
VERIZON NORTHWEST INC.
By:
Printed: Jeffrey A. Masoner
Title: Vice President - Interconnection Services
5