CTIA Joins "USF by the Numbers Coalition"
CTIA announced that it has joined AT&T, BellSouth, IDT Corporation, GCI, the National Cable & Telecommunications Association (NCTA), USTelecom and Verizon to form the "USF by the Numbers Coalition".  The coalition supports a numbers-based plan as a more fair and equitable contribution methodology than the current revenue-based universal service contribution system, and believes the existing system is no longer sustainable in light of changes occurring in the marketplace.

CTIA has advocated for a consumer focused numbers-based proposal, under which all switched connections would be assessed based on working telephone numbers and all non-switched connections would be assessed based on the capacity of the connection. The proposal includes safe harbors for low average revenue per unit customers and an exemption for low-income Lifeline customers. In particular, wireless family plan, prepaid, and month-to-month customer numbers would be assessed 1/2 the rate of other numbers. Lifeline customer numbers would be exempted from contribution obligations.

"A numbers-based approach to the Universal Service Fund is more efficient than the outdated revenue-based system, and the assessments are more stable, predictable and easier for consumers to understand," said Steve Largent, CTIA-The Wireless Association® president and CEO. "The wireless industry is committed to the goals of universal service and believes it plays an important role in making sure all Americans have access to high-quality and affordable telecommunications and information services. However, the current revenues-based system needs major reform and this coalition urges policymakers to do what's in the best interest of consumers by acting quickly to adopt a numbers-based approach."

 

FCC Approves Cable License Transfer
The FCC has approved the sale of substantially all of the cable systems and assets of Adelphia Communications Corporation to Time Warner Inc. and Comcast Corporation.

The Commission determined that subscribers would benefit from the resolution of the Adelphia bankruptcy proceeding in the form of new investment and upgrades to the network. Additionally, the transactions would accelerate deployment of VoIP and other advanced video services, such as local VOD programming, to subscribers.

The Commission imposed the same remedial conditions imposed in the News Corp.-Hughes order to address its concerns over any potential public interest harms the transactions may cause in Regional Sports Networks (RSNs).

The Commission adopted further conditions to ensure that the transactions will not harm the supply of programming to MVPDs. The Commission adopted conditions allowing unaffiliated RSNs unable to reach a carriage agreement and unaffiliated programmers unable to reach a leased access agreement with Time Warner or Comcast to seek commercial arbitration.

For additional information on this Memorandum Opinion and Order (FCC 06-105) please visit: www.fcc.gov

 

Oregon PUC Rules on Qwest's Deregulation Proposal
The Oregon Public Utility Commission largely turned down a request by Qwest Communications Inc. to deregulate all telecommunications services it offers to businesses throughout Oregon.

Qwest requested these services be exempt from regulation because it is losing market share. However, an investigation by Commission staff found that Qwest still dominates the telecommunications market for business services outside of the Portland and Clackamas rate centers. In addition, market concentration measures suggest that the telecommunications market in Qwest's service territory is not competitive.

The Commission did remove regulation for a handful of business services available from federal tariffs and, in the Portland and Clackamas rate centers, grants the company pricing flexibility for basic business service customers with four or more lines.  The Commission will continue to regulate services sold to small business using fewer than four lines in the aforementioned rate centers.

Qwest claimed all business services should be deregulated because it has competition in every wire center. The Commission concluded that Qwest failed to meet its legal burden for customer, service and geographic markets out of the Portland/Clackamas area.

A major customer group, Telecommunications Association for Cost-Based and Equitable Rates, opposed Qwest's proposal arguing that prices would rise because there is insufficient competition.

 

Louisiana Governor Vetoes State Franchising Bill
Louisiana Governor Kathleen Blanco vetoed House Bill 699, which would have enabled state franchising for new cable competitors, citing fears that state-franchising reform might interfere with contract rights of local governments and incumbent cable operators.

Primarily concerned with the financial impact on local governments, her letter to the secretary of the state Senate on July 12^th addressed this issue. "If the bill became effective and the result was significant revenue loss to local government, as many have reported, traditional vital services for our citizens would have to be cut or those citizens may be asked to pay increased taxes," she wrote.

Governor Blanco has spoken with those associated with the reform debate and has been assured that that they will work together to create "franchise opportunities for all companies."

For more information please visit: http://www.multichannel.com/article/CA6352197.html?display=Search+Results&text=Gov%2E+Vetoes+La%2E+Franchise+Bill

 

TelCove Sale to Level 3 Approved in PA
The Pennsylvania Public Utility Commission (PUC) approved the sale of TelCove Inc. to Level 3 Communications on July 20, 2006. Under terms of the agreement, Level 3 will acquire control of TelCove through a multi-step transaction.

TelCove is a leading facilities-based provider of metropolitan and regional communications services including transport, Internet access and voice services. TelCove serves approximately 70 markets across the United States and operates throughout Pennsylvania as TelCove of Pennsylvania, TelCove of York, TelCove of Eastern Pennsylvania, TelCove Operations and TelCove Investments. TelCove and Level 3 operational entities also serve consumers throughout Pennsylvania.

According to the companies, the transaction will be seamless to consumers and will continue to service its existing customers in Pennsylvania under the same rates, terms and conditions.

"The acquisition of TelCove increases our ability to provide end-to-end bandwidth services to our customers," said James Q. Crowe, chief executive officer of Level 3.  "In addition to the contribution to operating margins, this additional metropolitan, and regional capability will enable us to extend the network reach we offer to our customers and enable TelCove's customers to benefit from our national network and broad suite of IP-based services."

In agreeing to the merger, the Commission determined that the joint applicants met their burden of proof that the merger is in the public interest. The vote was 4-1 with Chairman Wendell F. Holland dissenting. Chairman Holland said that his dissenting vote was based on information related to jobs.  According to the joint application submitted by the companies, the acquisition should enable both TelCove and Level 3 to strengthen their competitive positions in the state, benefiting consumers and the telecommunications marketplace.

 

Western Reserve and Alltel Name Change
The Public Utilities Commission of Ohio (PUCO) granted Western Reserve Telephone Company's and Alltel Ohio, Inc.'s request to begin using the registered trade names Windstream Western Reserve, Inc. and Windstream Ohio, Inc., respectively. The changes became effective July 17, 2006.

The PUCO approved the transfer of ownership application of Alltel Ohio, Inc. and Western Reserve Telephone Company from Alltel, the former parent corporation, to Alltel Holding Corp., a newly formed subsidiary intended to facilitate the separation of Alltel's wireline and wireless subsidiaries in May. Alltel Holding Corp. subsequently merged into Valor Communications, creating a merged wireline holding company called Windstream Communications.

The PUCO will continue to enforce the companies' compliance with Ohio's Minimum Telephone Service Standards and maintain full regulatory oversight regarding the terms and conditions of the change in ownership.

 

Colorado Relay Surcharge Increase
The surcharge that funds the Colorado Telecommunications Relay Services for Disabled Telephone Users (TRS) increased from 6 cents a month to 10 cents a month on July 1, 2006.

The PUC reviews the fund balance, revenue and expenditure projections prior to each fiscal year and sets the surcharge for the following 12 months. The surcharge was lowered to 6 cents per month in 2004 to reduce a surplus balance in the fund at that time. Due to the drawing down of the fund balance and the introduction of new relay services, the PUC determined it was necessary to increase the surcharge back to 10 cents per month. The surcharge is assessed on all residential and business telephone lines in Colorado.

 

Verizon Business Named Best in Customer Satisfaction
Verizon Business earned top honors among six major providers in the large-business category of J.D. Power and Associates' annual survey of small, mid-size and large-business customers. The J.D. Power and Associates 2006 Major Provider Business Telecommunications Services Study^SM determined that Verizon Business received the "Highest Customer Satisfaction With Large Enterprise Business Data Service Providers."

The Company scored highest in six of the seven key performance factors used to measure satisfaction: performance and reliability, billing, cost of service, company image, sales representatives/account executives, offerings and promotions, and customer service. In five of the seven factors, Verizon Business scored 15 index points above the second-ranked carrier in each factor.

Verizon was also the industry leader in J.D. Power and Associates' High End Data Study in both 2004 and 2005.