20040517_839.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CAROLEE HALL
DATE:MAY 14, 2004
RE:VERIZON NORTHWEST, INC. REQUESTING AUTHORIZATION TO
INTRODUCE VERIZON REGIONAL PACKAGE AND VERIZON
REGIONAL PACKAGE EXTRA TO ITS LOCAL SERVICE TARIFF.
BACKGROUND
On May 3 , 2004, Verizon Northwest, Inc. filed Tariff Advice 04-03 requesting
Commission authorization to introduce two new calling plans to its LP.C. No.8 Tariff
currently on file with the Commission.
DISCUSSION
The two new packages that Verizon is introducing are Verizon Regional Package and
Verizon Regional Package Extra. These are package bundle services and are "designed as a part
of V erizon' s overall strategy to attract new customers and retain existing customers by
continuing to offer innovative plans
The V erizon Regional Package will be marketed to flat-rated residential customers
subscribing to Community Plus. This bundled package will be priced at $44.95 per month and
will include the local line plus a choice of three (3) of the following services:
Anonymous Call Block Call ForwardingBusy Redial Distinctive Ring*69 Do Not DisturbCall Back Select Call ForwardingCaller ID Speed Dialing 8
Call Waiting/Cancel Call Waiting Speed Dialing 30
Three Way Calling
Priority Call
DECISION MEMORANDUM - 1 -MAY 14, 2004
The Verizon Local Package Extra will also be marketed to flat-rated residential customers
subscribing to Community Plus and will include a flat-rated network access line and any of the
above-mentioned services. This package will be marketed at $49.95 per month.
Both new packages will provide unlimited inter and intrastate toll. The intrastate toll will
be carried by Verizon Northwest, Inc., while the interstate toll will be carried by the affiliate.
Customers will also receive unlimited local directory assistance and home voice mail (Basic
Standard, Deluxe and Deluxe with Pager Notification). All non-recurring charges associated
with these bundled packages will be included in the packaged rate.
The Company opines that these packages will benefit customers who prefer paying one
price for their flat monthly rate, unlimited toll, unlimited local directory assistance and several of
their favorite custom calling features.
STAFF ANALYSIS
Staff has reviewed the Company s five-year forcasted sales and believes that the
projections along with the pricing/costing methodology will afford the Company a reasonable
return on its investment while giving customers a competitively priced bundled product.
STAFF RECOMMENDATION
Staff supports this filing and recommends approval.
COMMISSION DECISION
Does the Commission wish to approve Verizon s Tariff Advice No. 04-03 with an
effective date of June 19, 2004?
...
i:udmemos/verizon 04-03 Add Regional Calling Plans
DECISION MEMORANDUM - 2 -MAY 14, 2004