In a landmark decision, the FCC ruled in November that VoIP services are interstate in nature, and are therefore not subject regulation by the state Public Utility Commissions

In the unanimous vote, the FCC reserved for itself the responsibility and obligation to regulate (or not regulate) VoIP. Citing that Internet telephony cannot practically be separated into intrastate and interstate components, the Commission preempted state Commissions’ attempts to regulatory VoIP. 

Providers of Internet-based phone service praised the ruling, stating that they had held back expanding into additional states until they knew whether they’d be subject to a different set of regulations in each state. State Commissions, however, argue that they should have authority to regulate VoIP for consumer protection and safety issues, if not on rates or earnings. The FCC will address these issues, and other controversial subjects like intercarrier compensation, Universal Service Fund Contributions, and access for the disabled in its IP-Enabled Services Proceedings, which started earlier this year.

Split of Area Code 310 Declined Again The California Public Utilities Commission (PUC) declined for the second time in a year to split the 310 area code, stating that adequate telephone numbers are still available in the 310 area code to meet both customer and telephone carrier needs.

As a result of number conservation, the 310 area code has 132,000 more telephone numbers available for assignment than it did when the Commission last considered a split in October 2003. Several successful number conservation measures in the 310 area code over the last two years have helped to avoid the split. Among these are number pooling, tightened restrictions on how telephone carriers use the blocks of numbers assigned to them, and wireless number portability.

NPA 438 to Overlay NPA 514 (Montréal Urban Area) The Canadian Radio-television and Telecommunications Commission (CRTC) approved a new overlay area code,NPA 438, for the area served by existing NPA 514. In earlier CRTC decisions the overlay was to take effect on September 24, 2005. However, the CRTC has now approved the deferral of the overlay until October 28, 2006.

Permissive ten-digit dialing is scheduled to begin June 17, 2006, with mandatory ten-digit dialing starting October 28, 2006. The dialing plan for the 514/438 overlay area will require 10-digit or 1+10-digit dialing for all calls.

NPA 226 to Overlay NPA 519 (Southwestern Ontario, Canada) The Canadian Radio-television and Telecommunications Commission (CRTC) approved the introduction of a new area code, NPA 226, in southwestern Ontario. The new area code will be implemented as an overlay, covering the same geographic area as the current 519 area code.

Permissive ten-digit dialing is scheduled to begin June 17, 2006, with mandatory ten-digit dialing starting October 14, 2006. The dialing plan for the 519/226 overlay area will require 10-digit or 1+10-digit dialing for all calls.

News & Stuff

Oregon Residents Gain Access to Verizon’s VoiceWing  Oregon residents in area codes 503 and 971 are among the first to receive access to Verizon’s new national Internet-based phone service, VoiceWing.  The VolP service offers unlimited local and domestic long distance calling over both DSL and cable modem connections for $29.95 a month. 

Customer who subscribe to VoiceWing may choose a phone number from a list of over 167 area codes in 37 states and the District of Columbia.

Verizon Adds New Features to VoiceWing Service  In late November Verizon announced that it would begin offering several new digital features to its VoiceWing subscribers, all of which are controlled directly from the customer’s online Personal Account Manager with the click of a mouse.

 Among the new features are:

• Do Not Disturb – Which sends all calls except the ones you designate directly to voice mail.

• Simultaneous Ring – Which allows customer to designate up to three phone numbers where they would like calls to ring at in addition to their VoiceWing number.

• Permanent Caller ID Block - Gives subscribers control over who sees their Caller ID information when they make an outbound call, and

• Forward Voice Mail – Allows customers who listen to their voicemail online to forward it to as many recipients as they would like via e-mail.

Current Verizon DSL subscribers who sign up for VoiceWing by Dec. 31^st will receive the first year of service for $29.95 a month.  Likewise, qualified VoiceWing customers will receive DSL service for $29.95 a month.  Subscribers to broadband service offered by other companies will pay $34.95 a month for the VoiceWing service.

Idaho PUC approves toll-free calling for Shoup  The Public Utilities Commission in Idaho approved toll free calling for residents in the Shoup area to the Salmon and North Fork exchanges.  Shoup’s Rural Telephone Company rates will increase as a result of the toll free calling.  Residential customers will now pay $24.10 a month, while business customers will pay $42.00 a month. 

Customers of Century Tel in both Salmon and North Fork will also see increases related to the expanded toll free calling.  Residential customers will pay $21.84 per month and businesses in these areas will now pay $39.86 a month.

The toll-free calling is expected to begin after the 1^st of the year.

Arizona Corporation Commission responds to Qwest’s Bid to Change its Price Cap Plan  Members of the Arizona Corporation Commission filed testimony in mid-November regarding Qwest Corporation’s bid to revise its Price Cap Plan; the original plan was approved by the Commission in March 2001. 

The Commission is proposing additional safeguards and detailed criteria Qwest would have to meet before obtaining increased pricing flexibility.   Particularly, the Commission is focusing on the following:

• Qwest’s testimony indicated that a significant revenue deficiency exists and rates should be adjusted to recover part of this deficiency;

• Qwest’s proposal to initiate new competitive zones within which it would have additional pricing flexibility;

• Qwest’s proposal to eliminate the one free directory assistance call that customers currently are allowed;

• Qwest’s proposal to increase the amount of money Arizona telephone customers pay into the Arizona Universal Service Fund to allow Qwest or other telecommunications providers to draw $64 million from this fund on an annual basis;

• Adjustments to access charges contained in Basket 2 (wholesale services) and the Basket 3 (competitive services) revenue cap;

• Deregulation of certain services.

Qwest is scheduled to file rebuttal on December 20, 2004.  There will also be opportunities for a final round of testimony prior to the hearing which is set for February 10, 2005.

Transferring Cellular Numbers Just Got Cheaper  Verizon and Sprint Wireless have decided to cut back on the $0.40 monthly charge imposed on customers to transfer cellular numbers to new carriers.  Verizon will altogether eliminate the charge while Sprint is reducing it to $0.25 per month.  The fee has provided the companies with tens of millions of dollars in extra revenue and they are now saying that they don’t need as much to continue with the number portability service. 

Other wireless carriers continue to charge the service fee.  The fee ranges from $.55 per month to $1.75 a month depending on the carrier. 

Hot Springs Telephone Proposal for EAS Approved  The Montana Public Service Commission approved the proposal of Hot Springs Telephone Company for extended area telephone service between Hot Springs’ telephone exchange and Qwest’s Missoula local calling region, including the newly approved expansion to the Blackfoot Telephone exchanges and the Ronan Telephone Company exchanges.

The EAS will raise the cost of unlimited local calling in the Hot Springs area for residential customers by $10.50 a month and for business customers by $15.50 per month.  However, Hot Springs will offer measured local service at a lower monthly rate.  Qwest customers will see a statewide monthly EAS surcharge of $.01, while Blackfoot will increase its residential monthly EAS charge by $.40 and by $.70 for business customers.

SBC Claims Competitive Market Exists in Michigan  In late October, SBC Michigan filed notices with the Michigan Public Service Commission stating that it believes a competitive market exists for both business and residential local exchange services in all area except for northern Michigan and the Upper Peninsula.  The Commission is now seeking public comment on the filing.  Comments were due by the end of November with replies set for December 10, 2004.  Upon review the Commission will determine if a hearing is necessary.

Deregulation for All  The Colorado Public Utilities Commission says that deregulating Qwest’s retail services may affect all telephone companies within Qwest’s service area.  According to Colorado law, the PUC is allowed to deregulate telecommunications services, not providers.  This means that if a customer uses a provider other than Qwest within Qwest’s territory that company’s services would also be deregulated if the PUC approves Qwest’s proposal.

Qwest is seeking deregulation of virtually all retail services.  The proposal would eliminate all PUC pricing, and service quality regulation of all of Qwest’s retail services.  The PUC would, however, still regulate the telecommunications services for 911, N11, and switched access services; as well as long-distance service within the state.

Written comments may be filed up until the hearing is scheduled. The hearing is expected to be held sometime next spring. 

SBC Ohio Receives New Wholesale Rate  The Public Utilities Commission of Ohio approved a new rate for SBC Ohio to charge its competitors for use of its residential two-wire analog unbundled loops.  In early November, the Commission adopted the statewide average for the two-wire analog loop of $12.80.  SBC had requested a weighted average rate of $23.36. 

SBC must now conduct a compliance run, which involves entering the rate adjustments into its wholesale formula to verify the rate.  The results are due to the Commission within 75 days from the adopted order. 

Internet Users Win – No Tax on IP Services  Congress recently passed a bill blocking all state and local governments, for the next three years, from imposing taxes on all types of Internet connections.  However, any state that taxed Internet access prior to the first ban in 1998 is still entitled to collect the fees, except for Wisconsin, which must drop its taxes in 2006.  The original ban didn’t account for DSL service and the law will require any state that taxes that type of connection to phase out those fees.

In addition to the tax ban on Internet connections, Congress also blocked multiple state and local taxes on items purchased via the Internet.

SBC Communications Enters VolP Market  In mid-November SBC joined the ranks of many traditional phone companies by announcing the launch of its new residential Voice over Internet Protocol (VolP) service.  By offering the VolP service SBC greatly enhances its IP portfolio.  Randall Stephenson, SBC chief operating officer, says, “With a portfolio that includes wireless, broadband, video, Wi-Fi, VolP, and traditional local and long distance services, customers can get the complete range of integrated communications and entertainment services for SBC Companies.”

The VolP service will include popular features like caller ID, voice mail and call forwarding but will also consist of an array of new service like “find me” and “do not disturb”, as well as a click to call capability which will enable customers to place calls with the click of a mouse.

SBC has set aside $4 billion over the next three years to build advanced high-speed fiber networks.  Bundled services of voice, data and video services will be offered.  The VolP service will be offered throughout SBC’s 13-state Western territory, which includes approximately 40 million households.

Full-scale rollout of the new residential VolP service is expected in early 2005.  Currently a trial is underway in Los Angeles, Dallas, Chicago and San Antonio.

MCI Announces Trio of DSL Services Offered Nationwide  MCI now offers a trio of DSL services to businesses nationwide.  The new offerings - Internet DSL Solo 768 Kbps, Internet DSL Solo 1.5 M and Internet DSL Solo Resale – are aimed at retailers, service companies and organizations with multiple locations where cost effective “always on” Internet access is necessary. 

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