HomeMy WebLinkAbout200304253rd Response of the Commission.pdfWELDON B. STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-0318
ISB NO. 3283
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff,
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
QWEST CORPORATION FOR DEREGULATION OF BASIC LOCAL
EXCHANGE RATES IN ITS BOISE, NAMPA,
CALDWELL, MERIDIAN, TWIN FALLS, IDAHO FALLS, AND POCATELLO EXCHANGES.
CASE NO. QWE-O2-
COMMISSION STAFF
RESPONSE TO QWEST'
THIRD INTERROGATORIES
AND REQUESTS FOR
PRODUCTION OF
DOCUMENTS
The Staff of the Idaho Public Utilities Commission by and through its attorney of record
Weldon B. Stutzman, Deputy Attorney General, hereby responds to Qwest Corporation s Third
Interrogatories and Requests for Production of Documents to Staff filed April 18, 2003.
INTERROGATORY NO.: Following up on Staffs response to Qwest'
Interrogatory 2-, does Dr. Johnson contend that Dr. Lincoln s value proposition theory - as
defined in Dr. Lincoln s testimony starting at page 7, line 1 is incorrect? Please fully explain
your answer and identify all facts and documents upon which you rely in formulating your
answer.
STAFF'S RESPONSE TO QWEST'S THIRD
INTERROGATORIES AND REQUESTS FOR
PRODUCTION OF DOCUMENTS APRIL 25, 2003
RESPONSE TO INTERROGATORY NO.: Dr. Johnson does not contend that Dr.
Lincoln s "value proposition theory , as set forth on page 7, line 6 through page 8, line 8 of Dr.
Lincoln s direct testimony, is incorrect. He does, however, disagree with Dr. Lincoln
application of that theory to the present context, and/or Dr. Lincoln s assumptions concerning
how that theory is relevant to the issues in this proceeding.
REQUEST FOR PRODUCTION NO.: Please produce all documents identified in
response to Interrogatory No.
RESPONSE TO REQUEST FOR PRODUCTION NO.: No documents
identified.
INTERROGATORY NO. 3-: Following up on Staffs response to Qwest
Interrogatory 2-, does Staff contend that a wireless customer subscribing to an unlimited usage
plan will, or is more likely to, experience poorer service quality than a wireless customer ofthe
same carrier who subscribes to a limited usage plan?
RESPONSE TO INTERROGATORY NO. 3-: No. While it may be technically
possible for a carrier to provide a different quality of service to subgroups of its customers, Staff
does not have any reason to believe any carriers do so.
INTERROGATORY NO. 3-: In response to Qwest Interrogatory 2-, Staff states
(b Jased upon Staff s understanding of the propogation of wireless signals, the basic theory of
the design of cell systems and the locating of towers, as well as reports from other states of
pockets within residential neighborhoods, where signals are not available, Staff has reason to
believe additional such locations exist in these seven exchanges." Specifically identify each
location in the seven exchanges Staff has reason to believe is a pocket wherein wireless service is
not available.
STAFF'S RESPONSE TO QWEST'S THIRD
INTERROGATORIES AND REQUESTS FOR
PRODUCTION OF DOCUMENTS APRIL 25 , 2003
RESPONSE TO INTERROGATORY NO. 3-Staff has not attempted to identify
specific pockets where wireless service is not available. This would entail a very complex and
sophisticated study. Such a study would also require information on the location and operating
parameters of each of the cell towers of each of the carriers, information that each carrier regards
as proprietary. Staff simply notes that the references previously provided indicate that such
pockets do typically exist, and Staff does not believe service in Idaho is unique enough to not
also contain such pockets.
REQUEST FOR PRODUCTION NO. 3-Produce all studies, surveys, data, maps
facts or documents supporting Staff s opinion that wireless service is not available in the pockets
identified in Interrogatory No. 3-
RESPONSE TO REQUEST FOR PRODUCTION NO. 3-No additional documents
identified.
INTERROGATORY NO. 3-As a matter of public policy, identify all reasons, aside
from the possibility/likelihood that Qwest will increase basic local exchange service rates
support Staff s position that approving Qwest's application in this case is not in the public
interest. To be clear, Qwest is not asking for Staff to recite the reasons why Qwest does not
satisfy the requirements of Section 62-622(3)(b) that functionally equivalent, competitively
priced alternatives be reasonably available nor is Qwest seeking legal analysis. Qwest isfocusing
in this request solely on the public interest analysis.
RESPONSE TO INTERROGATORY NO. 3-The public interest is not served if Qwest is
deregulated prematurely - before it faces sufficient, actual competition to replace regulation that
has long been in place to protect the public interest. The public needs to be protected from
monopoly power until such time as that power has greatly diminished due to sufficiently intense
robust and lasting competition. Staff has presented testimony that refutes the Company
contention that wireless competition is sufficient to replace regulation in protecting the public
interest. The lack of effective competition to Qwest's local services , and the subsequent ability
STAFF'S RESPONSE TO QWEST'S THIRD
INTERROGATORIES AND REQUESTS FOR
PRODUCTION OF DOCUMENTS APRIL 25 , 2003
of Qwest to raise rates is, in and of itself, sufficiently contrary to the public interest to deny its
petition.
In addition, price regulation provides the Commission with another tool, which is
probably more effective than fines enforced through the courts, for ensuring Qwest maintains
service quality, does not place added pressure on customers to purchase bundled services, and
also does not engage in discriminatory or anticompetitive practices. Until competition has
developed to ensure the market will effectively provide that role, it is in the public interest for the
Commission to maintain price regulation.
DATED at Boise, Idaho, this "'day of April 2003.
L.------~
Weldon B. Stutzman
Deputy Attorney General
Technical Staff: Wayne Hart
Ben Johnson
WS:WH::umisc/prdreg/response/qwetO2,25response to QWE 3ws
STAFF'S RESPONSE TO QWEST'S THIRD
INTERROGATORIES AND REQUESTS FOR
PRODUCTION OF DOCUMENTS APRIL 25 , 2003
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 25TH DAY OF APRIL 2003
SERVED THE FOREGOING COMMISSION STAFF RESPONSE TO QWEST'S THIRD
INTERROGATORIES AND REQUESTS FOR PRODUCTION OF DOCUMENTS, IN
CASE NO. QWE-02-, BY MAILING A COpy THEREOF, POSTAGE PREPAID
TO THE FOLLOWING:
MARY S HOBSON
STOEL RIVES LLP
SUITE 1900
101 S CAPITOL BLVD
BOISE, ID 83702
ADAM L SHERR
QWEST
1600 7TH AVE, ROOM 3206
SEATTLE, WA 98191
CONLEY WARD
GIVENS PURSLEY LLP
277 N 6TH ST, SUITE 200
PO BOX 2720
BOISE, ID 83701-2720
CLAY R STURGIS
MOSS ADAMS LLP
601 W RIVERSIDE, SUITE 1800
SPOKANE, W A 99201-0663
DEAN J MILLER
McDEVITT & MILLER LLP
PO BOX 2564
BOISE, ID 83701
BRIAN THOMAS
TIME WARNER TELECOM
223 TAYLOR AVE NORTH
SEATTLE, WA 98109
SUSAN TRAVIS
WORLDCOM INe.
707 17TH STREET, SUITE 4200
DENVER, CO 80202
MARY JANE RASHER
AT&T COMMUNICATIONS OF THE
MOUNTAIN STATES INC.
10005 S GWENDEL YN LANE
HIGHLANDS RANCH, CO 80129-6217
MARLIN D ARD
WILLARD L FORSYTH
HERSHNER, HUNTER, ET AL
180 E 11TH AVE PO BOX 1475
EUGENE, OR 97440-1475
DEAN RANDALL
VERIZON NORTHWEST INe.
17933 NW EVERGREEN PKWY
BEA VERTON, OR 97006-7438
JOHN GANNON
ATTORNEY AT LAW
1101 W RIVER, SUITE 110
BOISE, ID 83702
BEN JOHNSON
BEN JOHNSON ASSOCIATES INC.
2252 KILLEARN CENTER BLVD
TALLAHASSEE, FL 32308
Jo
CERTIFICATE OF SERVICE