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July 2005
volume ix, number 7

Top Story    |   Customer Spotlight    |  Product Spotlight   
   NPA-NXX Updates    |   
News & Stuff  


Top Story

Supreme Court Rules Cable Companies Don't have to Share Broadband

The Supreme Court upheld an FCC decision in late June that classifies internet access via cable lines as an "information service" and exempts cable companies from sharing those lines with rival internet service provider.

The ruling seems to create a discrepancy between broadband service provided by cable companies and that offered by phone companies. Phone companies are required to share their broadband lines with competitors, since they are classified as telecommunications services.  The regional telephone companies are now calling on the FCC and Congress to fix that disparity by lessening regulations for phone companies as well. The FCC is likely to take up that issue at sometime in the near future. But the task of setting a regulatory framework that works in today's environment may be more challenging in light of the Court's decision.

FCC Commissioner Michael Copps said in a statement, "In the wake of the decision, the FCC confronts the challenge of protecting consumers, maintaining universal service and ensuring public safety in uncertain legal terrain. Today's decision makes the climb much steeper."

Other FCC Commissioners, however, offered a more positive outlook on the decision. Chairman Kevin J. Martin stated that the "decision provides much-needed regulatory clarity and a framework for broadband that can be applied to all providers."

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News & Stuff
 

Expanded Local Calling in Michigan Denied
Chippewa County Telephone Company, Hiawatha Telephone Company, Midway Telephone Company and Ontonagon County Telephone Company jointly filed an application for expanded local calling in the Upper Peninsula of Michigan in mid-March.

However, in mid-June the Michigan PSC denied the request saying that many customers as well as others "questioned whether the extra costs involved justified the ability to make local calls far removed from their communities of interest."

 

Kentucky PSC Questions "Unlimited" Calling Plans
After receiving several complaints the Kentucky PSC launched an inquiry into "unlimited" calling plans.  Consumers were being billed additional charges for exceeding plan limits. 

The Commission is concerned with the way the plans are being promoted, how customers are informed of the plans' limits and how they are notified when the limits are exceeded.  The PSC said, "it preliminarily finds that the practice of offering a calling plan that is labeled, described or marketed as ‘unlimited,' when, in fact, limits exist on those plans is potentially deceptive and, therefore, unreasonable." 

Companies offering restricted "unlimited" calling plans will have until July 22nd to justify the practice.

 

Missouri PSC Suspends AT&T Tariff
The Missouri PSC suspended a tariff filed by AT&T Communication of the Southwest in which the company seeks to terminate the monthly recurring prorated charges which are applied when a month-to-month business customer cancels service prior to the end of a billing cycle. 

Currently, when a business customer cancels, the final charge is based on the number of days service was active.  Under the proposed tariff AT&T would be allowed to bill for the full month regardless of when the cancellation is requested. 

Until the Commission can determine whether or not the proposed change is lawful and reasonable, it will remain suspended. 

 

New Regulatory Plan for Qwest Approved
The Colorado Public Utilities Commission orally approved, with minor modifications, an agreement that will allow Qwest to have pricing freedom for some telecommunications services where competitive choices exist. 

As part of the decision, the PUC retains control over the first line at a residence and basic service to businesses with five lines or less across the state, capping the cost at $15.00/month for a residential line and $35.00/month for each business line.  However, in the Denver Metro area and most of Colorado Springs, Qwest will be permitted to set prices on nearly every other service it offers, including voice mail, call waiting and caller ID. 

In addition, Qwest will no longer have to credit $6.00/year per line to residential customers and $12.00/year per line to business customers.  The credit was related to a legal settlement in the mid-90s reached between the PUC and US West.

A written decision from the Commission is expected at the end of June.  Implementation of the plan is expected within 90 days of the final decision being issued.

 

Time Warner Telecom Extends Long Term Service Agreement
Time Warner Telecom has extended its long-term service agreement with SBC and AT&T under which those companies provide special access and other "last-mile" network services. The extension, which is contingent on the completion of the SBC-AT&T merger,  moves the agreement's expiration to 2010.

 

Chairman Martin Announces Deregulatory Agenda
In early June FCC Chairman Kevin Martin announced an agenda that will extend the deregulatory program of his predecessor, Michael Powell.

Specifically, Martin plans to foster a regulatory environment in which broadband deployment is a top priority.  "Broadband technology has a real impact on almost every aspect of consumers' lives," Martin said.  "It has a significant impact on the economy as a whole."

Martin continued by stating that the FCC's job is to "level the playing field" for telecom providers. As such, he will continue to promote a light touch when it comes to implementing regulations.  In the same manner, the FCC will likely move toward less regulation for wireless as well.

He also addressed the need for policymakers to "re-examine the traditional mode of regulating communications based on the type of network (e.g., cable, wireline, wireless) used to deliver services."  Under Martin, the FCC is working to devise a framework to govern new IP-based services.  The rules should be issued late this year or early next year. 

 

Verizon-MCI Declare Merger is in the Public Interest
In a joint filing, Verizon and MCI told the FCC that the combination of the two companies will benefit the public "by creating a strong new competitor for enterprise customers nationwide, enhancing investment in the nation's critical infrastructure, and establishing the nation's most advanced broadband platform, capable of delivering next-generation multimedia services in markets across the country." The filing was in response to comments filed against the impending merger by industry competitors and others with the FCC in early May.

The companies continued supporting their claim by saying, "There is no credible risk that this transaction will foster a duopoly for large enterprise customers, or that the combined company will stop competing with its major rivals, including AT&T. "To the contrary, the main purpose of the transaction is to promote even greater competition for these customers and to allow the combined company to compete more effectively nationwide."

To read the filing in its entirety please visit Verzion's website at http://newscenter.verizon.com/proactive/newsroom/release.vtml?id=91438 or MCI's at http://global.mci.com/about/news/news2.xml?newsid=14851&mode=long&lang=en&width=530&root=/about/

 

Report on Status of Telecommunications Competition in Michigan Released
The Michigan Public Service Commission released its fifth annual report on the status of telecommunications competition in Michigan.  The results show the "Michigan continues to be a leader in the nation in offering telecommunications choice to customers," said MPSC Chairman J. Peter Lark.  The report examines the state of competition in the toll and local exchange markets. 

Highlights of the report include:

  • The actual number of competitive providers and lines in Michigan has grown over the last six years from a 4 percent share to a 27.5 percent share at the end of 2004, with the total number of lines decreasing.

  • Competitive providers' market share is approximately 32.6 percent of SBC lines.

  • The number of licensed competitive telecommunications providers in Michigan has grown from 120 in 1999 to 202 in 2004, a slight increase from 2003.

  • The total number of phone lines in Michigan has fallen from 6,726,971 in 1999 to 6,103,250 in 2004, reflecting a loss to wireless and Internet telephony.

  • While the MPSC does not regulate wireless providers, information gathered by the Federal Communications Commission (FCC) indicates that the number of wireless subscribers in Michigan increased 11 percent from 2003 through June 2004 to 5,430,637. The FCC's report notes that Michigan has 13 wireless carriers with over 10,000 subscribers each.

To view the entire report please visit the MPSC website at www.michigan.gov/mpsc

 

Qwest Agrees to pay $1.05 million penalty
The Oregon PUC is asking the Marion Circuit Court to fine Qwest Communications Inc. $1.05 million dollars for failing to file 29 contracts, between Qwest and other telecommunications companies, with the Commission.  Qwest agreed to the fine without admitting to any unlawful behavior.

The Commission Staff testified that "the contracts were used to settle past billing disputes and provide favorable billing arrangements with companies that lease space on its network.  Staff believes the contracts were used in order to gain favor for the company's merger with US WEST and to avoid opposition to filing with the Federal Communication Commission to enter the intra-state long-distance business."  Qwest said it agreed to the fine in order to avoid additional litigation but disavows the findings by Commission Staff.

Of the 29 contracts in question, 13 were classified as major violations (favoring one telecommunications company over another) and 16 were classified as minor (non-discriminatory).   Major violations received a $50,000 fine with minor violations receiving a $25,000 penalty.

 

FCC Launches Inquiry into the Universal Service Fund
In Mid June the FCC launched an inquiry into the management, administration and oversight of the Universal Service Fund.  The Commission hopes to improve the operation of the program.  The proceedings will assist the Commission in finding new ways to meet the needs of those who depend on the USF and protect the integrity of the program. 

Specifically the Commission is seeking comment on the following:

Managing the Program: The Commission is exploring ways to simplify and streamline the management of the program.

Improving Oversight: The commission seeks comment on the effectiveness of the existing efforts to protect the fund against potential misuse.

Administrative Structure: The Commission is examining the effectiveness of the existing administrative structure and seeks comment on whether any rule changes are needed to ensure the USF is administered in an effective, competitively neutral way.

Performance Measures: The Commission is seeking comment on establishing performance measures to assess the effectiveness of the program. 

For additional information on the Universal Service Fund and the inquiry please visit the Federal Communications Commission website at www.fcc.gov

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NPA-NXX Updates

 

Georgia PSC Determines Fate of NPA 706
The Commission met in mid-June to discuss the issuance of a new area code for the area currently served by NPA 706.  Georgia's new telephone area code will be NPA 762 and will overlay the area currently served by NPA 706.  Ten-digit dialing of all calls in the area will be mandatory. Permissive ten-digit dialing is scheduled to begin September 1, 2005, with mandatory ten-digit dialing starting April 3, 2006.

 

Calls to El Salvador Require 8 digit dialing
Telephone numbers in El Salvador have been changed from 7 to 8 digits.  Callers must now add a "2" before the city code for calls going to fixed networks and a "7" before the city code for all calls placed to mobile networks.  The new digit is inserted after the 503 country code for all from the U.S. to El Salvador. 

Thank you to one of our longtime subscribers, Carlos Daniel Rivas, for sharing this news with our entire audience. 

 

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Customer Spotlight

Congratulations to Tele-Tech's clients that were recognized at the Billing & OSS World 2005 Excellence Awards:

  • Convergys was honored as a finalist for "Best Overall Company"

  • VeraSign was selected as a finalist in the "Best Integration Project" category

  • BCGI Inc. was a finalist in the "Best New Product" category 

  • BCGI Inc. was the winner for the "Achievement in Innovation category" for its Mobile Guardian product. Mobile Guardian enables service providers to package and sell existing network assets in new and ionnovative ways. It allows dynamic filtering and parental or employer controls to give end users greater self-management for next-generation data services on the horizon.

We proud to support the best and the brightest in the telecom industry! Congratulations to all the finalists and winner!

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Product Spotlight

Product Spotlight: Calling all ISPs!
Tele-Tech is continuing the process of phasing out our Tele-POP database for ISPs. Most of our ISP customers have already upgraded to our Localizer database. But for smaller ISPs, both Tele-POP and Localizer may not be cost effective options.

We're currently considering a low-cost solution geared toward smaller ISPs that would enable you to write a script to access our local calling area data via the web to recommend a local POP to subscribers. The service would be priced based on the number of times the data is accessed, rather than one rate for a nationwide or statewide database, which is more information than most ISPs need.

But we need your help...We're looking for ISPs to assist us with market research for this project. If you'd be willing to answer a few questions regarding your interest in this type of service and how you'd use it, please contact Kimberly Russo at krusso@telecomdb.com or 800-433-6181 x7103.

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Copyright 2005 Tele-Tech Services™, Inc.
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email: krusso@telecomdb.com