20030509_455.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:BIRDELLE BROWN
DATE:MAY 5, 2003
RE:VERIZON NORTHWEST, INc. TARIFF ADVICE 03-02 TO INTRODUCE
A STANDARDIZED FRAME RELAY SERVICE TO ITS INTRASTATE
ACCESS TARIFF, EFFECTIVE MAY 13, 2003
Verizon Northwest, Inc. filed this Tariff Advice to introduce a standardized Frame Relay
Service (FRS) to provide customers with a simpler, more flexible offering. The proposed tariff
offers several new services to "complete a portfolio of bundled Frame Relay Services that will
allow Verizon to offer customers a technically and economically viable solution to the demand
for speeds greater than DSI but less than DS3." Concurrent with this offering, Verizon will
grandfather existing Frame Relay services until their current plans expire or their service is
disconnected.
Framed Relay Service is a form of "fast Packet" switching service for high speed
networks that requires flexible bandwidth, high-performance transport and switching for
connectivity between and among widely distributed customer locations. FRS provides User-to-
Network Interface and Access Line Ports. At the present time, the only intrastate FRS zone
encompasses Coeur D' Alene/Moscow. The tariff indicates that interstate zones exist and are
under federal jurisdiction.
Where Verizon currently offers 56 Kbps, 128 Kbps, 256 Kbps, 384 Kbps and DSI (1 544
Kbps) for one, three or five year terms, it proposes to expand the offerings to include 4 Mbps, 6
Mbps, 10 Mbps and 22 Mbps speeds. Private ports will also be offered at 384 Kbps, DSI (1,536
Mbps) and DS3 (44.736 Mbps) speeds. Current monthly rates and nonrecurring charges are
DECISION MEMORANDUM - 1 -
generally higher than Verizon s proposed rates for the comparable services. See attached chart.
In addition, Verizon has expanded the PVC services and rate tables.
Verizon will recover its costs for this product at the proposed rates.
STAFF RECOMMENDATION
Staff recommends that the proposed Advice 03-02 be approved effective May 13 , 2003.
Does the Commission agree?
DECISION MEMORANDUM - 2 -
Verizon Northwest, Inc. Frame Relay Systems - Tariff Advice 03-
Current Rates Proposed Rates
Frame Relay Service
Port and Access Line UNI Port and Access Line
Nonrecurring Monthly Nonrecurring Monthly
56 Kbps
Month-to-Month 195.$110.495.150.
One Year 195.$105.150.
Three Years 195.$ 95.130.
Five Years 195.$ 85.120.
128 Kbps
Month-to-Month 395.$200.495.210.
One Year 395.$190.205.
Three Years 395.$175.185.
Five Years 395.$165.170.
256 Kbps
Month-to-Month 395.$285.595.340.
One Year 395.$270.340.
Three Years 395.$255.~1-O.OQ
Five Years 395.$240.280.
384 Kbps
Month-to-Month 395.$365.595.350.
One Year 395.$345.350.
Three Years 395.$335.335.
Five Years 395.$ 320.315.
544 Mbps (OS1)
Month-to-Month 595.$530.595.530.
One Year 595.$510.510.
Three Years 595.$490.480.
Five Years 595.$470.450.
4 Mbps
Month-to-Month nfa nfa 795.650.
One Year nfa nfa 540.
Three Years nfa nfa 300.
Five Years nfa nfa 100.
6 Mbps
Month-to-Month nfa nfa 795.$3,000.
One Year nfa nfa 875.
Three Years nfa nfa 600.
Five Years nfa nfa $2,400.
10 Mbps
Month-to-Month nfa nfa 795.$ 3 325.
One Year nfa nfa 180.
Three Years nfa nfa 850.
Five Years nfa nfa 650.
22 Mbps
Month-to-Month nfa nfa 795.$ 3 500.
One Year nfa nfa $3,350.
Three Years nfa nfa 000.
Five Years nfa nfa 800.
Verizon Northwest, Inc. Frame Relay Systems - Tariff Advice 03-
Current Rates Proposed Rates
Frame Relay Service
Port only UNI Port Only
Nonrecurring Monthly Nonrecurring Monthly
56 Kbps
Month-to-Month 195.$110.95.42.
One Year 195.$105.40.
Three Years 195.$ 95.35.
Five Years 195.$ 85.32.
128 Kbps
Month-to-Month 395.$200.150.75.
One Year 395.$190.70.
Three Years 395.$175.65.
Five Years 395.$165.60.
256 Kbps
Month-to-Month 395.$285.150.115.
One Year 395.$270.110.
Three Years 395.$255.105.
Five Years 395.$240.100.
384 Kbps
Month-to-Month 395.$365.150.150.
One Year 395.$345.145.
Three Years 395.$335.140.
Five Years 395.$320.130.
544 Mbps (OS1)
Month-to-Month 595.$530.295.225.
One Year 595.$510.220.
Three Years 595.$490.210.
Five Years 595.$470.200.
4 Mbps
Month-to-Month nfa nfa 395.500.
One Year nfa nfa 450.
Three Years nfa nfa 385.
Five Years nfa nfa 380.
6 Mbps
Month-to-Month nfa nfa 395.550.
One Year nfa nfa 495.
Three Years nfa nfa 420.
Five Years nfa nfa 395.
10 Mbps
Month-to-Month nfa nfa 395.600.
One Year nfa nfa 540.
Three Years nfa nfa 460.
Five Years nfa nfa 432.
22 Mbps
Month-to-Month nfa nfa 395.750.
One Year nfa nfa 675.
Three Years nfa nfa 575.
Five Years nfa nfa 540.
44.736 Mbps
Month-to-Month nfa nfa 394.900.
One Year nfa nfa 810.
Three Years nfa nfa 690.
Five Years nfa nfa 650.