20030421_445.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:BIRDELLE BROWN
DATE:APRIL 17, 2003
RE:CITIZENS TELECOMMUNICATIONS COMPANY OF IDAHO TARIFF
ADVICE ID-03-01 TO INTRODUCE FRONTIER CHOICES BUNDLED
SERVICES EFFECTIVE MAY 6, 2003
Citizens filed this tariff advice to introduce Frontier Choices Bundled Services, a new
residential package of bundled services that provide a combination oflocal services and features
where available. Frontier Choice Bundled Services will replace Citizens Select and Citizens
Select Plus services and these latter services will be grandfathered. Citizens will also offer a
promotion that waives nonrecurring charges and gives a $10.00 credit to existing residential
customers who order Frontier Choices Bundled Service from May 18 through August 15 2003.
The Frontier Choices Bundled Services package consists of the customer s choice of one
or two lines, 20 features and 10 free local Directory Assistance calls. The proposed rates are
$35.00 for one line and $70.00 for two lines. Frontier Choices is intended to replace Citizens
Select Service which includes 7 calling features and sells for $29.95 and Citizens Select Plus
Services which includes all of the features sells for $34.95. Both of these replaced services will
be grandfathered for existing customers.
Citizens' Cost Support data indicates that they anticipate a growth in the first year of
about 500 lines and an associated net revenue of about $50 000, allowing for a 4% churn.
DECISION MEMORANDUM - 1 -APRIL 17, 2003
STAFF RECOMMENDATION
Staff recommends approval. Does the Commission agree?
~~ ~ ~-
Birdelle Brown
Corresp/dmemos/2003/advO301.ctz
DECISION MEMORANDUM - 2 -APRIL 17, 2003