HomeMy WebLinkAbout20031020_656.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:BIRDELLE BROWN
DATE:OCTOBER 17,2003
RE:VERIZON NORTHWEST, INC. TARIFF ADVICE 03-15 TO ELIMINATE
SOME CENTRANET AND CUSTOP AK NONRECURRING CHARGES,
EFFECTIVE OCTOBER 22, 2003
Verizon Northwest, Inc. filed this tariff advice to eliminate some nonrecurring charges in
order to provide a more competitive business service offering with an incentive for customers to
commit to a term plan.
Verizon s proposal will eliminate nonrecurring charges for the initial installation of
CentraNet Service or CentraNet CustoP AK service. More specifically, the charges will be
waived for the initial installation of Central Office Located Trunk, Initial Order and Subsequent
Order. Nonrecurring Charges for Station Lines and Feature Packages 1000, 2000, or 3000
associated with the initial installation of CentraNet Service will be eliminated when these
services are installed at tariffed rates under a term commitment. The nonrecurring charges for
Access Line Connection and Feature Change Charge will not apply for the initial installation of
CentraNet CustoP AK service under a term commitment.
Verizon submitted considerable data to show that when it amortized its current revenue
from these waived charges and spread it over the monthly costs of their products, the total
revenue would continue to cover costs. By inference we can assume that the Company s current
revenue will continue to recover the costs of the product. The Company has also shown that
even with the growth in sales anticipated from this customer stimulation, the Company s chum
in CentraNet products will result in reduced sales.
DECISION MEMORANDUM - 1 -OCTOBER 17 2003
STAFF RECOMMENDATION
Staff recommends approval of this tariff advice effective October 22 2003. Staff will
continue to work with Verizon on ways to improve its cost support data. Does the Commission
agree?
ColTesp/dmemos/2003/advO315.ver
DECISION MEMORANDUM - 2 -OCTOBER 17 2003