20030723_551.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:BIRDELLE BROWN
DATE:JULY 16, 2003
RE:VERIZON NORTHWEST INC. FILED THIS TARIFF ADVICE NO. 03-
PROVIDE BACKUP USER NETWORK INTERFACE (UNI) SERVICE
TO CUSTOMERS OF FRAME RELAY SERVICE, EFFECTIVE
AUGUST 1, 2003
Verizon filed this Tariff Advice to introduce Backup User Network Interface (UNI)
Service to customers of Frame Relay Service. The predominate users of Frame Relay Service
are in the corporate, education, government and service provider market segments.
The Frame Relay Service Backup User Network Interface (UNI) is designed to provide a
disaster recovery solution for a host location when a disastrous event renders such location
unusable or when an extended service interruption occurs. A customer desiring this backup
service must order a second UNI (Port Only or Port and Access Line) that is basically the same
service as the primary port, from the same existing tariff at the same pricing. Upon request
Verizon will establish a database of the customer s PVCs to the primary port that will be
remapped to the secondary port upon customer request. If a failure occurs at the primary site
Verizon can activate the backup service which will initiate re-mapping of the primary port to the
secondary port.
Additionally, Verizon proposes a PVC Software Change Charge for customers requesting
a PVC parameter change. This charge is a new nomecurring charge.
Verizon s CostlRevenue Analysis forecasts that by the third year, Verizon will provide
about one Backup Interface a year, and will provide about 20 PVC Software Changes per year.
At the proposed rates of $200 nomecurring charge to activate the Backup UN! (not including the
DECISION MEMORANDUM - 1 -JULY 16, 2003
purchase of a second UN! Port or Line) and a nomecurring charge of $30 per PVC Software
Changes per year, Verizon will recover its costs for these services.
STAFF RECOMMENDATION
The significant portion of the customer s cost for a backup system is the purchase of a
second Frame Relay System. The services this tariff proposes are support services and a
relatively small part of the total expense. Verizon s revenue gain will not be extreme. Staff
proposes approval of Advice 03-08 effective August 1 2003. Does the Commission agree?
corresp/dmemos/2003/ Adv03-08. ver
DECISION MEMORANDUM - 2 -JULY 16, 2003