Tele-Tech Updates Newsletter

Federal Communications Commission Votes to Cap Fund

The FCC voted on May 1, 2008, to impose a cap on payments to competitive eligible telecommunications carriers (CETCs) under the Universal Service Fund (USF).

"This action is essential to preserve and advance the benefits of the universal service program while we consider comprehensive reform (of the subsidy system)," Chairman Kevin Martin said in a statement.

The Commission voted by a 3-2 margin to cap the fund at March 2008 levels, or about $1.3 billion a year. The measure exempts phone carriers that serve tribal lands or Alaska Native regions.

Currently, consumers pay more than 11% in USF fees on their interstate phone bills. Growth in contributions to the fund is largely attributable to CETCs, who receive USF support based on the costs of the incumbent provider, even if the CETC's costs of providing service are lower.

The fund subsidizes phone service in rural areas, service to low-income households, communications services and internet access for schools, hospitals and libraries.

The subsidies are increasing at a rate of roughly $150 million per year and could reach as high as $1.4 billion by 2009 if left unchecked.

The FCC is also studying several other reforms to the subsidy program, including rescinding rules that critics say lead to excessive payments to some carriers.

The two Democratic commissioners dissented from the vote, feeling the action did not go far enough.

The Universal Service Fund was created in 1996 by Congress, which stated that all Americans should have access to telecommunications at comparable rates.

The Next Generation Prepares to Take the Helm

On July 1, 2008, Steve Kromer will step down as President of KFR Services, Tele-Tech's parent company, making way for new Co-Presidents Kim Russo and Stephanie Fetchen. Steve and his wife Janice were the original founders of KFR and Steve has been its President since the company's inception in 1975.

When it came time to decide who would take over the title, Kromer was stymied. After all, there are two daughters intimately involved in the business.

"Ultimately, Steve found he didn't want to choose between our daughters, so we decided to have them work with a facilitator to work it out on their own," Janice said. "What's funny is they didn't have an easy time of it either."

Russo agreed.

"But what we found is we didn't have to decide. According to our facilitator, companies having co-CEOs are becoming more and more of a trend. Of course, we want to do what's best for the company, but happily, given that we're a family that very much respects one another, it looks like we can achieve that by being a sibling team that runs the company together," she said.

The new Co-Presidents have been actively involved in KFR for many years.

Fetchen graduated magna cum laude from Ohio State University. She received her Bachelor of Science degree in business administration.

She began working for the company in 1991 as a programmer. After serving as the Director of both MIS and Operations she eventually became the Vice-President of Information Systems and Operations, the position she holds today.

Fetchen is looking forward to joining with her sibling to take KFR into the future, "I am very excited to be working in partnership with Kim to ensure the continuation of KFR Services to the next generation, and to bring the organization to the next level of success."

A wife and mother of two daughters, Fetchen is active in the Newington Elementary School PTA as the 2^nd Vice President and has served as the Vice President of the Junior Service League of Summerville. She was recently appointed to the Board of Directors of Dorchester Habitat for Humanity.

Russo began her KFR career after graduating magna cum laude from Montclair University. She has held various positions in the company including Director of Operations, Customer Service, and Human Resources. A writer and speaker on telecom regulatory issues, Russo has been a contributing editor to Phones Plus Magazine, a regular columnist for Telecommunications Magazine, and a contributor to The Network Manager's Handbook. She has also presented on telecom regulatory issues at conferences organized by the Institute for International Research.

Russo and her husband Nick are the parents of two sons and a daughter. She gives back to the community through the Eagle Nest Elementary PTA where she is Vice President and the Junior Service League of Summerville where she formerly served as Membership Chairperson. In 2005, she received the Charleston Regional Business Journal's "Forty Under 40" award.

Planning for this transition has been a long and sometimes arduous process. As with any major change, there were concerns about continuity from the employee's perspective as well as customer service concerns.

Russo addressed this, saying, "We've worked hard to make this transition seamless for our employees and our clients. While the 'official' transition is a milestone for us, for our customers it means only that they'll continue to receive highly accurate data with stellar customer support."

This milestone, however, was not achieved overnight, as Steve pointed out, "It was the culmination of a five-year plan that took 12 years to complete!".

NPA Updates

Public Service Commission (PSC) seeks comment on 315 area code relief plan.

The New York State PSC will hold public hearings concerning options for area code relief in the 315 area code region. Each hearing will be preceded by an information session explaining the options.

Currently, there are only 136 central office codes remaining available to assign to telecommunications carriers in the more-than-100 specific geographic areas or rate centers in area code 315. It is expected that all the remaining codes will be assigned by late 2010.

Information on the hearings is available on the NY State PSC website at http://www.dps.state.ny.us/.

10-Digit dialing Takes Effect in Coastal Oregon

Seven-digit dialing will no longer work for local telephone calls for customers in 14 North Oregon coastal telephone exchanges. As of Sunday, April 27, 2008, callers must dial either the 503 or new 971 area code prefix, plus the seven-digit phone number, in order for calls to be connected.

The 14 coastal exchanges to join the 503/971 area code overlay are: Qwest Corporation's Astoria, Cannon Beach, Seaside and Warrenton; United Telephone Company of the Northwest/Embarq's Bay City, Beaver, Cloverdale, Garibaldi, Pacific City, Rockaway and Tillamook; Century Tel's Jewell and Knappa; and Nehalem Telecommunications, Inc.'s Nehalem.

Kentucky PSC Postpones Start Date for Area Code 364

Measures taken to extend the lifespan of area code 270 have worked as expected, allowing another postponement in the starting date for area code 364 in far western Kentucky.

The optional use of 364 will now take effect on April 1, 2010, 15 months later than previously announced.

In delaying the transition, the PSC said it will wait to set a new deadline for mandatory use of the area code until further assessment of the effect of an FCC decision regarding the assignment of telephone numbers in the present 270 area code.

The action marks the third delay in the start date for area code 364.

California PUC Approves 747 Overlay for 818 Area Code

The California PUC recently approved an all-services overlay that will add a new 747 area code to the same geographic region as the existing 818 area code.

Customers will not be required to change their existing telephone numbers. New numbers with the 747 area code will be issued to customers requesting new telecommunications services beginning 13 months from the date of the approval, April 24, 2008.

The CPUC had previously adopted number conservation measures that extended the life of the 818 area code but, despite these measures, the North American Numbering Plan Administrator (NANPA) projects 818 will run out of numbers by the third quarter of 2009.

California PUC Approves Area Code Split for 760

The CPUC recently approved a geographic split for area code 760, creating a new 442 area code. The southern section of the region near San Diego is assigned the 442 area code, while the northern section retains the 760 area code.

The following areas in the existing 760 area code will comprise the new 442 area code: Borrego, Carlsbad, Encinitas, Escondido, Fallbrook, Julian, Oceanside, Pauma Valley, Pendleton, Ramona, San Marcos, Valley Center, Vista and Warner Springs.

In approving the area code split, the CPUC denied the request of NANPA that the CPUC approve an all-services overlay. NANPA holds overall responsibility for the administration of telephone numbers in California, and had determined the 760 area code will run out of numbers in the third quarter of 2009.

In Other News...

New Cell Tower Activated Near Florence, SD

Wireless service around Florence, SD, received a boost with the recent activation of a new cell tower by Alltel Wireless.

South Dakota Public Utilities Commission (PUC) Chairman Gary Hanson gave credit to residents of Florence for their role in making the new site a reality. "The PUC held a community meeting in Florence last summer to discuss wireless issues...Not being able to rely on their wireless phones was a real concern for farmers and ranchers in the area," he said.

Following the meeting, Florence residents spearheaded a petition effort to demonstrate their support for improved wireless service. The petition was sent to wireless companies eligible to provide service in the area, with Alltel responding.

KCC Petitions FCC for Ruling on State Procedures

The Kansas Corporation Commission (KCC ) recently filed a petition for a declaratory ruling with the FCC. The KCC asked the FCC to declare that states are not preempted from adopting reasonable procedures for certifying that CETCs have properly used funds received from the federal USF and that the KCC's procedure is a permissible interpretation of the Telecommunications Act of 1996.

USCOC of Nebraska/Kansas LLC (US Cellular) and RCC Atlantic, Inc., wireless CETC's that provide service in Kansas, challenged the KCC procedure in the US District Court for the District of Kansas. At the request of the KCC, the District Court referred the matter to the FCC, concluding the preemption issue had broad policy implications.