20080725Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DON HOWELL
DEPUTY ATTORNEY GENERAL
DATE:JULY 24, 2008
SUBJECT:PETITION FROM VERIZON CUSTOMERS REQUESTING A LOCAL
CALLING PLAN FROM W ALLACE/OSBURNIMULLAN TO THE
COEUR D'ALENEIHARRISON AREAS, CASE NO. VZN-01-
In December 2000 the Commission received a Petition signed by about 190 Verizon
telephone customers located in the Wallace/Osburn/Mullan service areas. These customers
requested that the Commission authorize a "local calling plan" CLCP) similar to customers in the
neighboring telephone exchange of Kellogg. A LCP is an optional service that allows customers
to make long-distance calls to nearby exchanges toll-free.Verizon s predecessor GTE
Northwest, implemented LCPs for most of its northern Idaho telephone exchanges in 1993-96.
Order No. 26330.
Under the LCP mechanism, local telephone customers were given four LCP options:
Basic, Community, Community Plus, and Premium. Under the Basic service plan, customers
pay a low, flat monthly rate and pay for usage based upon distance and duration of the call. With
the remaining LCPs, the flat monthly rate increases based upon the geographic size of the toll-
free calling area. Order No. 26330 at 1. The larger the calling area, the higher the monthly rate.
Currently, as well as when the Petition was filed, Kellogg customers had the option of
subscribing to Community Plus. Under the Community Plus calling plan, customers in Kellogg
were provided toll-free calling to Pinehurst Coeur d' Alene Harrison, Mullan and Wallace. At
the time, the residence of Wallace and Mullan could not call Coeur d' Alene and Harrison under
their Community Plus calling plan.
DECISION MEMORANDUM
BACKGROUND
After the Petition was filed, Staff began an informal investigation into the facts
surrounding the request. Staff initially proposed that the Company offer customers in the
Wallace, Osburn, and Mullan exchanges a "Premium" calling plan. However, Verizon opposed
the Staff proposal. It asserted that the costs of offering such a plan would be prohibitive because
it estimated that not enough customers would sign up for the Premium plan to pay for the
necessary facilities. The informal complaint was subsequently lodged as a formal case. Staff
issued discovery requests and performed plant audits.
On March 24, 2008, Verizon requested that this case be closed. The Company
indicated that it has offered since January 2007 two regional calling plans to its customers in
northern Idaho: "Regional Value" and "Regional Essentials." Regional Value includes a flat-
rate charge and unlimited toll-free calling within Verizon s entire northern Idaho service
territory. The Regional Essentials calling plan also provides unlimited toll-free calling within
northern Idaho and includes up to three custom calling features (such as Caller ID, call waiting,
and home voice-mail). Both of these calling plans allow customers in the Wallace and Mullan
exchanges to call Coeur d' Alene and Harrison without charge. The Company also stated that
these intrastate calling plans can also be packaged with interstate long-distance calling plans that
would allow customers unlimited calling to anywhere in the United States and Canada. "None of
these packages were available to customers back in 2003. . . .
Staff also contacted the customer who headed up the Petition drive. The customer
indicated that the calling plans and expanded cell phone coverage now provide a sufficient
alternative. He agreed that the case could be closed.
ST AFF RECOMMENDATION
Given the availability of regional calling plans and the fact that the initial petitioner
wishes to withdraw the Petition, Staff believes that this case may be closed. It appears Verizon
customers now have at least two options for toll-free regional calling in northern Idaho in
addition to cell phone calling plans. Rule 68 allows a party to withdraw a pleading on 14-days
notice.
DECISION MEMORANDUM
COMMISSION DECISION
Does the Commission find that this case may be closed because toll-free regional
calling plans are available to all Verizon customers in northern Idaho?
Don Howell
Deputy Attorney General
bls/M:VZN-Ol-O4 dh
DECISION MEMORANDUM