20041220_1031.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:DECEMBER 15, 2004
RE:VERIZON TARIFF ADVICE ELIMINATING HOSPITAL EXEMPTION
FROM DIRECTORY ASSISTANCE CHARGES. ADVICE NO. 04-02.
On November 24, 2004, Verizon filed a tariff advice that deleted the hospital exemption
for Local Directory Assistance charges from its Tariff. The Company requested an effective date
of December 28, 2004.
STAFF ANALYSIS
The hospital exemption from directory assistance charges is an old industry practice
based upon the assumption that it was unreasonable to expect companies to maintain up-to date
phone books in hospital rooms. In addition, the user was not the billed party, the hospital was
and the hospital could not control usage. That situation has now changed. The technology used
by most hospitals today does allow the hospital to block calls to directory assistance that would
be billed to the hospital, and the industry has developed alternative products that allow the
individual users to be billed for such calls. Therefore, Staff agrees that the exemption is no
longer necessary.
Staff asked the Company for an estimate of the revenue impact of the proposed change
and while the Company could not identify actual amounts, it did provide an analysis based upon
the total revenue for local directory assistance calls that indicated the proposed revenue impact
would be minimal. Staff believes any offsetting adjustment to revenues that may be appropriate
due to this proposed change may be accommodated in future discussions with the Company.
DECISION MEMORANDUM - 1 -DECEMBER 15 , 2004
STAFF RECOMMENDATION
Staff recommends that the Commission approve Verizon Tariff Advice No. 04-09.
COMMISSION DECISION
Does the Commission wish to approve the Tariff Advice as submitted?
i:udmemos:Verizon hospital da tariff advice dml
DECISION MEMORANDUM - 2-DECEMBER 15 , 2004