20090526_2574.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KEMPTON
COMMISSIONER SMITH
CO MMISSI 0 NER RED FO RD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CAROLEE HALL
DATE:MAY 19, 2009
RE:APPLICATION FOR APPROVAL OF AN INTERCONNECTION
AGREEMENT BETWEEN QWEST CORPORATION (QWEST)
AND RURAL NETWORK SERVICES, INC. ("RURAL"
CASE NO. QWE-09-
BACKGROUND
Under the provision ofthe federal Telecommunications Act of 1996, interconnection
agreements must be submitted to the Commission for approval. 47 US.C. 9252(e)(l). The
Commission may reject an agreement adopted by negotiations only if it finds that the agreement:
(1) discriminates against a telecommunications carrier not a party to the agreement; or (2)
implementation of the agreement is not consistent with the public interest, convenience and
necessity. 47 US.C. 9252(e)(2)(A). As the Commission noted in Order No. 28427, companies
voluntarily entering into interconnection agreements "may negotiate terms, prices and conditions
that do not comply with either the FCC rules or with the provision of Section 251 (b) or ( c).
Order No. 28427 at 11 (emphasis in original). This comports with the FCC's statement that "
state commission shall have authority to approve an interconnection agreement adopted by
negotiation even ifthe terms ofthe agreement do not comply with the requirements of (Part 51)."
47 C.R. 9 51.3.
CURRENT APPLICATION
On April 1 , 2009, this Commission received a new Interconnection Agreement between
Qwest Corporation and Rural Network Services, Inc. ("Rural") in Case No. QWE-09-
DECISION MEMORANDUM - 1 -MAY 19 2009
During its review Staff noticed that the Performance Assurance Plan (PAP) (Exhibit K)
was not included as part of the agreement The PAP is a two-tiered, self-executing remedy plan
that was implemented to ensure that once Qwest was granted approval to offer in-region long
distance service under Section 271 ofthe Telecommunications Act of 1996, that it also would
provide quality service to competitive local exchange carriers (CLECs) to whom it provided
interconnection and other products and services. The PAP provides for penalty payments should
the Company miss certain measurements set out for the Performance Indicator Definitions
(PIDs).
The PIDs are contained in Exhibit B of the Interconnection Agreements between Qwest
and the CLECs and set out specific measurements and benchmarks that Qwest must meet when
interconnecting with competitors. If Qwest should miss a PID measurement, then there is a
subsequent PAP payment assessed for each violation.
Originally each of the exhibits B and K were a part of Qwest' s Statement of Generally
Available Terms and Conditions (SGA T). The PIDs and PAP played a critical factor in the
Section 9271 requirement for Qwest's FCC approval to offer in-region long distance services.
On March 17 2009 , this Commission issued Order No. 30750 in Case No. QWE-08-
granting Qwest's petition to withdraw its SGA T, but directed:
Withdrawal of the SGA does not affect any of the exhibits to
the SGAT including Exhibit A (price list), Exhibit B (PIDs) and
Exhibit K (PAP). We direct Qwest, consistent with its stated
commitment, to continue to abide by the terms of the SGA T
exhibits until such time as the Commission approves their removal
substitution or amendment ! (Emphasis added).
Staff initially was informed that Rural had "opted out of Exhibit K." Qwest offered to
contact Rural and have them sign an "opt-out" addendum to attach to the filing. Qwest
subsequently contacted Rural and asked permission to add an "Intentionally Left Blank" Exhibit
K page. Rural agreed and Qwest submitted that addendum.
On April 1 0, 2009, Staff contacted Rural Network Services to confirm that the
company s intent was to opt-out out of the PAP and explained what the PAP was and how it
worked in conjunction with the PIDs (Exhibit B). On April 20, 2009, Rural contacted Qwest and
requested that Exhibit K be put into the Agreement between the parties.
I Idaho Public Utilities Commission Order No. 30750, March 17 2009.
DECISION MEMORANDUM - 2 -MAY 19 2009
On May 6, 2009, Qwest filed to amend the Application between the companies. In its
cover letter, Qwest states that Rural Network Services, Inc. "has requested to opt into the
Performance Assurance Plan (Exhibit K) to this Agreement"
ST AFF ANALYSIS
Staff has reviewed the Application, the added Performance Assurance Plan and all
remaining exhibits to the agreement between the parties. Staff finds that the interconnection
agreement set forth by Qwest, and accepted voluntarily by Rural, does not appear to contain any
terms or conditions that may be considered discriminatory or contrary to the public interest
Staff believes that with the inclusion of both Exhibits Band K the public interest requirement is
satisfied between Qwest's wholesale products it offers to Rural and those products it provides to
itself.
Staff further believes that the interconnection agreement along with all Exhibits are
consistent with the pro-competitive policies of this Commission, the Idaho Statutes, and the
federal Telecommunications Act of 1996. Accordingly, Staff believes that the Agreement merits
the Commission s approval.
COMMISSION DECISION
Does the Commission wish to accept and approve the Interconnection Agreement?
i:udmemosl interconnection agreements/QWE-O9-05 Qwest and Rural Network Services, Inc.
DECISION MEMORANDUM - 3 -MAY 19 2009