Tele-Tech Updates Newsletter

FCC Examining Forbearance Petition Process

The Federal Communications Commission (FCC) recently kicked off a fast-tracked initiative to examine the need for new procedures governing its review of forbearance petitions.

Under the Telecommunications Act of 1996, the Commission is required to "forbear from any statutory provision or regulation if it determines that the regulation is not needed to protect consumers or to ensure just and reasonable rates and practices by carriers." The Commission must also determine whether forbearance will promote competitive markets and is in the public interest. A petition is deemed granted if it is not acted upon within one year from the date of filing - a deadline which may be extended by 90 days.

The Notice of Proposed Rulemaking (NPRM) addresses a petition filed by a group of competitive wireline carriers who have asked for adoption of certain procedural rules they claim will help the Commission evaluate forbearance petitions. These include: whether the new rules should govern the format and content of forbearance petitions, whether new notice and comment rules should be adopted, whether other rules would facilitate the participation of state commissions, as well as others, in forbearance proceedings.

The NPRM also seeks comment on whether forbearance is an effective means for the Commission to make changes to its regulations.

The Commissioners unanimously favor the NPRM and seek a quick resolution. "By all accounts, most members of Congress, most proponents of individual forbearance petitions, most opponents of forbearance petitions, and a majority of the FCC all agree that the forbearance petition is flawed and should be fixed," said Commissioner Robert McDowell upon release of the NPRM.

FCC Denies Verizon's Rate-Relief Request

In a unanimous vote, the FCC rejected a proposed rule change that would have granted Verizon Communications Inc. greater flexibility over how much it charges rival phone companies to access its network.

In a brief statement the FCC said, "the current evidence of competition" does not meet the standard for granting Verizon's request. Verizon had petitioned for a rule change in six Northeast markets including Boston and New York City. The company argued that it faces ample competition in these markets and should not be obliged to deal with stringent price regulation.

However, competitors in these markets rely on Verizon's physical network to be able to offer phone service to small and medium-sized business customers. They would have faced markedly higher costs if the FCC had approved the measure.

"This would have meant significant additional costs in the Northeast where we have a lot of customers," said Charles Hoffman, president of Covad Communications Group Inc. Covad competes with Verizon in all six markets involved.

Reacting to the decision, Tom Tauke, Verizon executive vice president for public affairs, policy and communications, said any "reasonable assessment" of the markets revealed they were "fully competitive."

No decision has been made as to whether Verizon will appeal the decision.

NPA Updates

Implementation of 364 Area Code Postponed
The Kentucky Public Service Commission (PSC) recently revised the starting date for optional use of area code 364, delaying it by six months, to Jan. 1, 2009.

The change reflects an updated estimate of the date by which the present area code 270 will run out of available numbers, from the fourth quarter of 2008 to the first quarter of 2009.

The date for mandatory use of 364 will be held open until the PSC fully assesses how an FCC decision regarding the assignment of phone numbers will further affect the lifespan of area code 270.

801 Area Code Overlay News Update
On July 11, 2007, the Utah Public Service Commission issued an order approving an overlay option for the area presently served by area code 801. The new area code, 385, will cover the same geographic area as 801.

In general, the introduction of 385 will primarily affect residents in the following counties: Davis, Morgan, Salt Lake, Weber and Utah. As early as March 29, 2009, new telephone numbers will be assigned with the new 385 area code.

Optional 10-digit dialing will begin June 1, 2008 and end March 1, 2009. Mandatory 10-digit dialing will begin March 1, 2009.

Florida Public Service Commission Conservation Efforts Show Results
A series of telephone number conservation measures implemented by the PSC continue to show positive results. Since 1999, number pooling has resulted in over 18.2 million fewer numbers issued to carriers, saving consumers from changing area codes. Number pooling allows phone numbers to be allocated in blocks of 1000 instead of 10,000 numbers.

The 850 area code, which has a projected exhaust date in late 2011, will be the next area requiring relief. The PSC will start relief plans for this area in late 2008.

The PSC has approved relief plans for 305 and 407/321 area codes projected to exhaust in 2010. Area code 786 will overlay the Florida Keys, now served by area code 305, and area code 689 will overlay the area served by 407/321.

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