20080623_2267.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER RED FO RD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CAROLEE HALL
DATE:JUNE 10,2008
RE:CENTURYTEL OF THE GEM STATE, INc. ("CENTURYTEL") TARIFF
ADVICE 08-04 REQUESTING AUTHORITY TO INTRODUCE A NEW
CALLING SERVICE CALLED "PREP AID LOCAL TELEPHONE SERVICE
(PLTS)". REQUESTING AN EFFECTIVE DATE OF JULY 3,2008.
BACKGROUND AND DISCUSSION
On June 3, 2008, CenturyTel of the Gem State, Inc. ("CenturyTel") filed Tariff Advice 08-
requesting Commission approval to introduce a new service called Prepaid Local Telephone Service
(PL TS).
This new service offers residential customers to pay for their phone service one month in
advance. Once the PL TS plan is established, the Company will require the customer to pay one
month's service on a monthly basis. Once payment for service is received, one month's service will
be provisioned and is non-refundable if the customer cancels service prior to the end of the month.
The prepaid local service includes a voice grade flat rate line, or local measured service line
if available. The calling area will include extended area service, or expanded local calling area. The
customer will also be able to call 911 , receive access to directory assistance, call waiting, caller ID
and call forwarding.
Customers who are unable to pay the required charges to maintain their present service may
activate a PL TS plan, but may be required to agree to a repayment plan for their current charges.
Subscribers to PL TS are required to have mandatory toll blocking and usage sensitive blocking
placed on their telephone line
1 Toll blocking prohibits the customer from making long-distance calls.
DECISION MEMORANDUM - 1 -JUNE 10 2008
If the PL TS customer is disconnected due to failure to comply with any terms of the service
they will no longer be eligible for PL TS. The customer can return to basic local telephone service if
they meet the requirements for service, including payment of outstanding essential charges if
applicable and payment of a deposit if their credit history is such that a deposit would normally be
required. The proposed rate for the PL TS service is $39.95 per month.
STAFF RECOMMENDATION AND COMMISSION DECISION
Staff has reviewed the proposed new service offering and finds that it gives the consumer an
option to basic local service and is reasonably priced so that the Company is recovering its costs.
Staff recommends approval of the Company s Tariff Advice 08-04 with an effective date of
July 3 , 2008. Does the Commission agree?
u/chall/decision memo/CenturyTel ofthe Gem State 08-
DECISION MEMORANDUM - 2 -JUNE 10 2008