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Home My WebLink About20041223Comments.pdf~:t\LJ v L!J WELDON B. STUTZMAN DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0318 IDAHO BAR NO. 3283 ".' :' .. \ ,. ",-, r-= ;".... inti!.,r:r ? 1 ~~ ~ "1 1\: 53dlu"i th- ,,' (.. v . ,, . ; i ULlL: ,,; ;' P!'Ji\'tj(~C~' ' ~, i \L.i IL:"::,, l.n.Jj II ll.....v' Street Address for Express Mail: 472 W. WASHINGTON BOISE, IDAHO 83702-5983 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE PETITION OF VCI COMPANY FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER PROVIDING SERVICE TO CUSTOMERS UNDER THE IDAHO TELECOMMUNICATIONS SERVICE ASSIST ANCE PROGRAM. CASE NO. VCI-O4- COMMENTS OF THE COMMISSION STAFF COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Weldon B. Stutzman, Deputy Attorney General, in response to Order No. 29652, the Notice of Application and Notice of Modified Procedure in Case No. VCI-04-1 issued on December 3 2004, and submits the following comments. On September 13 2004, VCI Company filed a Petition for designation as an eligible telecommunications carrier (ETC). VCI holds a CPCN in the State of Idaho. VCI provides wireline services primarily through the leasing of unbundled network elements (UNE) from Qwest Corporation. vcrs Application for designation as an ETC states that it will provide service throughout Qwest's territory to Idaho residents qualifying for the Idaho Telecommunications Service Assistance Program (ITSAP). STAFF COMMENTS DECEMBER 23 2004 The Federal Telecommunications Act of 1996 ("Act") significantly changed national telecommunications policy, including universal service. Under the Act, state public utility commissions have a role in implementing national telecommunications policy, one of which is to designate telecommunications companies as ETCs. Federal universal service policy coincides, to a great extent, with Idaho s preexisting telecommunications laws. Specifically, Idaho statutes provide: Idaho Code ~ 62-610D(2) The Commission shall upon it own motion or upon request designate a telecommunications carrier that meets the requirement of subsection (3) of this section as an eligible telecommunications carrier for a service area designated by the commISSIon. Idaho Code ~ 62-61 OD(3) A telecommunications carrier requesting designation as an eligible telecommunications carrier shall, throughout the service area for which the designation is made: (a) (b) (c) Offer the services which are within the definition of universal service adopted by the commission, using its own facilities or a combination of its own facilities and resale of another telecommunications carrier s services (including the services offered by another eligible telecommunications carrier); and Advertise the availability of such services and the charges therefore using media of general distribution For the purpose of being eligible to receive support from the fund, the eligible telecommunications carrier shall also offer low-income telecommunications services pursuant to chapter 9, title 56, Idaho Code. The FCC has provided a detailed list of the services that are to be supported by the federal universal service fund that an ETC is required to provide. These services include the following: (1) (2) (3) (4) (5) (6) (7) (8) (9) STAFF COMMENTS voice grade access to the public switched network local usage dual tone multi-frequency signaling or its functions equivalent single-party service or its functional equivalent access to emergency services access to operator services access to interexchange services access to directory assistance services, and toll limitation services for qualifying low-income customers. (47 C.R. 54.101(a). DECEMBER 23 , 2004 In its Application, VCI stated that it will offer items (1) through (9) of the above-identified services. However, with regard to item (9), VCI is able only to provide Toll Blocking. The National Exchange Carriers Association Guide to Telephone Regulations states in its Terms and Definitions for the Universal Services Support for Low-Income Consumers section that , " Toll Limitation denotes either Toll Blocking or Toll Control for ETC's that are incapable of providing both services . Toll Blocking allows customers to elect not to allow the completion of outgoing toll calls from their telecommunications channel. VCI offers Toll Blocking for a non-recurring activation charge as well as a recurring charge, both of which the Company will tariff once ETC status is granted. VCI does not offer Toll Control because it resells Qwest's telecommunications services and Qwest does not offer Toll Control. Toll Control allows consumers to specify a certain amount of toll usage that may be incurred on their telecommunications channel per month and this Commission granted a waiver of this service as part of a universal service obligation because Qwest is unable to provide such service. STAFF ANALYSIS Staff has discussed with VCI its universal obligation as an ETC. The Company has indicated it will provide services using its own facilities or a combination of its own facilities and resale of another carrier s service throughout its service area. VCI has also indicated that it will serve all Qwest exchanges in Idaho and will comply with all terms and conditions as set forth in the Telecommunications Act, as specified by the FCC in 47 C.R. 54.5. VCI will also advertise the availability of its services throughout its areas in Idaho as it currently does in Washington, Oregon and Wyoming. Staff followed up with other State Staff and confirmed that the Company has indeed advertised and provides service as indicated it will in its Application. VCI proposes to waive the subscriber line charge (SLC) for its customers and will use the federal match to offset the SLC, thereby reducing Idaho customers' bills. The Company is currently practicing this business plan in Oregon, Washington and Wyoming. In Washington, VCI receives $1.84 per line from the state fund. There is no state funding in Wyoming and in Oregon, according to the Company, it receives a recurring monthly fee of$3.50. The Company may qualify for monthly reimbursements from the Idaho Telecommunications Assistance Program (ITSAP). ST AFF COMMENTS DECEMBER 23 , 2004 Idaho Code ~ 56-902(1), states: Telecommunications carriers providing residential basic local exchange service shall provide assistance in the form of a monthly discount to eligible subscribers of residential basic local exchange service of three dollars and fifty cents ($3.50) or an amount authorized by the federal communication commission whichever is greater. Idaho Code ~ 56-904(3) All carriers of telecommunications services shall remit the assistance surcharge revenues to the fund administrator designated by the commission on a monthly basis unless less frequent remittances are authorized by order of the public utilities commission. The administrator shall distribute telecommunication service assistance program revenues monthly to eligible telecommunication carriers in an amount that equals their costs of administering the program and the monthly discount provided to eligible subscribers. (Emphasis added) ST AFF RECOMMENDATION Through Staffs review and discussions with the Company, it seems VCI may be a benefit to Idaho s ITSAP customers who may not be able to afford a supplemental telecommunications service, such as a cell phone. This is a niche market that can benefit from a competitive company. By granting the petition ofVCI, Idaho customers will have an opportunity to choose a competitor in certain Qwest territories. Staff supports this Application and believes it is consistent with the public interest, convenience, and necessity. Moreover, Staff believes that the Application and the Company s intentions and statements comport with applicable state and federal laws. Staff recommends approval of this application with the caveat that the Company update, if necessary, all tariff pages that pertain to its service area(s) and offerings currently on file in its Competitive Local Exchange Carrier (CLEC) price list. In addition, the Commission should make it clear that State Universal Service Funds (USF) are not currently available under Idaho Code ~ 62-610 A- Respectfully submitted this t..'3 day of December 2004. ~~~ c=- Weldon B. Stutzman Deputy Attorney General Technical Staff: Carolee Hall i:umisc/comments/vcitO4.wsch STAFF COMMENTS DECEMBER 23 2004 CERTIFICATE OF SERVICE HEREBY CERTIFY THAT I HAVE THIS 23RD DAY OF DECEMBER 2004 SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. VCI-04-, BY MAILING A COpy THEREOF POSTAGE PREPAID THE FOLLOWING: STAN EFFERD IN VCI COMPANY 3875 STEILACOOM BLVD SW LAKEWOOD W 98499 00 SECRET ARY CERTIFICATE OF SERVICE