TRs State NewsWire - 06/06/01 ,
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TR's State NewsWire

. . .daily intelligence on communications
industry news and policy from the editors
of Telecommunications Reports. . .

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*Table of Contents*
June 6, 2001

STATES
PENNSYLVANIA -- PUC conditionally supports Verizon interLATA bid
CONNECTICUT -- SNET challenges city's telecom certification
TENNESSEE -- BellSouth to ask TRA to support market-entry bid
soon
MICHIGAN -- PSC adopts '616' area code 'split'
NEW YORK -- Nassau County restricts use of wireless phones
WEST VIRGINIA -- Verizon to appeal $18M access-rate reduction
CALIFORNIA -- Wood proposes 'anticramming' rules
MISSOURI -- House passes rights-of-way bill
GEORGIA -- WorldCom says FX calls subject to 'recip comp'
CALIFORNIA -- ALJ suggests requiring Pacific Bell to permit
intraLATA toll presubscription
CALIFORNIA -- PUC extends deadline for Pacific Bell interLATA
filing
IOWA -- Board mulls revoking LTDS's certificate
NEBRASKA -- PSC to discuss implementing '511'
NEBRASKA -- PSC seeks copies of MDU contracts
CONNECTICUT -- DPUC expands Lifeline assistance in tribal areas
MICHIGAN -- Customers can bring complaints without counsel
OREGON -- Group criticizes AT&T price hike
MINNESOTA -- MP Telecom upgrades network
MASSACHUSETTS -- CTC activates Springfield fiber network
GEORGIA -- AGL networks to install fiber in Atlanta

______________________________________________________

PENNSYLVANIA -- PUC conditionally supports Verizon interLATA bid

The Public Utility Commission today lent its support to Verizon
Pennsylvania, Inc.'s application to provide in-region interLATA
(local access and transport area) services, subject to several
conditions to ensure market competition.  Today's decision
concludes a formal investigation that began when Verizon
requested the commission's support in January.  (1/9/01)

In a 3-2 vote, the PUC told Verizon that it must agree to a
permanent assurance plan with "self-executing" remedies based on
the New York model already accepted by the FCC and to increased
penalties for failure to meet performance standards.  Verizon
said that it will accept these conditions and that it plans to
file its interLATA bid with the FCC "shortly."

Commissioners Nora Mead Brownell and Terrance J. Fitzpatrick
dissented.  Commissioner Brownell said, "I cannot, in good
conscience, affirm that these markets are open as envisioned
under the [federal Telecommunications Act of 1996]."  Both
dissenting commissioners listed several areas in which Verizon
had failed to meet the FCC requirements to determine that local
markets are open to competition.

A WorldCom, Inc., spokesman told TR, "We agree with the
dissenters and hope the FCC will recognize that problems still
exist and force Verizon to fix them prior to allowing them to
offer long distance."

Once Verizon files its market-entry bid with the FCC, the PUC
will present its recommendation.  Section 271 of the Act requires
the FCC to consult with the U.S. Department of Justice and
relevant state regulators before ruling on such applications.
(Docket no. M-00001435, Consultative Report on Application of
Verizon Pennsylvania Inc., for FCC Authorization to Provide In-
Region, InterLATA Service in Pennsylvania)

______________________________________________________

CONNECTICUT -- SNET challenges city's telecom certification

Southern New England Telecommunications (SNET) has filed an
appeal in Superior Court (New Britain) challenging the Department
of Public Utility Control's decision to grant the city of Groton
a certificate to provide telecom access services.  (Docket no.
00-03-12)

SNET argues that Groton "is not legally empowered to offer
telecommunications services to those who are not inhabitants of
its electric service area" under Connecticut General Statutes =0F5
7-233i.  Groton's customers as defined in its application would
all be noninhabitants, SNET said.

In its April 11 decision, the DPUC agreed with Groton's argument
that "[the statute] has no language prohibiting a municipality
from offering wholesale telecommunications service."

______________________________________________________

TENNESSEE -- BellSouth to ask TRA to support market-entry bid
soon

BellSouth Telecommunications, Inc., has notified the Regulatory
Authority that it plans to request support for its bid to enter
the Tennessee interLATA (local access and transport area) market
"by the end of July."  Compliance with the 14-point "competitive
checklist" of section 271 of the federal Telecommunications Act
is a prerequisite for FCC authorization to provide in-region
interLATA service.  The FCC must consult with the U.S. Department
of Justice and relevant state regulators before ruling on the
applications.

BellSouth asked the TRA to schedule hearings on its application
for the first week of November.  BellSouth asked the TRA to
support its section 271 bid in 1997, but the company withdrew the
request before the TRA could decide whether to endorse it, a TRA
staff member told TR.

______________________________________________________

MICHIGAN -- PSC adopts '616' area code 'split'

The Public Service Commission yesterday approved a geographic
"split" to relieve number exhaustion in the "616" area code.

A north/south geographic split will be implemented with a
dividing line that follows the northern boundaries of Saugatuck,
Hamilton, Hopkins, Wayland, Middleville, Hastings, and Woodland
rate centers.  Customers in and to the south of these rate
centers will receive a new area code.  Customers to the north of
the rate centers will retain 616.

Permissive dialing will begin by July 13, 2002, and mandatory
dialing will begin Feb. 15, 2003.  Wireless carriers will have an
extended permissive dialing period through Feb. 15, 2004.  (Case
no. U-12850)

______________________________________________________

NEW YORK -- Nassau County restricts use of wireless phones

Nassau County today enacted an ordinance requiring the use of
hands-free devices when operating wireless phones while driving.
"Although mobile phones provide convenience for our busy lives,
their use must conform with the need for public safety," Nassau
County Executive Thomas Gulotta said.

Emergency calls to police, fire, ambulance, or health care
providers are exempt from the requirement.  The ordinance
authorizes the police department to fine up to $100 per
violation, a Nassau County spokesperson told TR.  The ordinance
takes effect July 1.

______________________________________________________

WEST VIRGINIA -- Verizon to appeal $18M access-rate reduction

Verizon West Virginia, Inc., yesterday said it plans to ask the
Public Service Commission to reconsider an order requiring
Verizon to reduce its access rates by $18 million over three
years.  The PSC's order addressed an AT&T Corp. complaint.  While
the reduction is smaller than the $27.6 million suggested by
AT&T, it's larger than the $6 million cut Verizon proposed.

Verizon said that, if given the chance, it would demonstrate that
the PSC was "misguided in seeking to mirror in-state and
interstate access rates."  The telco said the order gives AT&T
and other long distance companies a free ride on its network at
the expense of consumers.

The PSC ordered the access charge reductions to be passed through
to West Virginia toll customers.  Verizon responded, "People
shouldn't hold their breath waiting for AT&T to pass along any
savings."  (Case no. 00-0318-T-C, AT&T Communications of West
Virginia, Inc. v. Bell Atlantic-West Virginia, Inc.)

______________________________________________________

CALIFORNIA -- Wood proposes 'anticramming' rules

Public Utilities Commissioner Charles Wood has proposed rules to
regulate the inclusion of noncommunications charges on phone
bills.  Existing law, which authorizes only communications-
related charges on phone bills, is scheduled to expire July 1.
(1/5/01)  The proposed rules are designed to prevent "cramming,"
which is the placement of unauthorized charges on phone bills.

The proposed rules require telecom companies to obtain a
customer's written consent before including noncommunications
charges on phone bills.  Customers may revoke their consent at
any time without charge and may identify a dollar maximum per
charge and per billing cycle on noncommunications charges.
Telecom companies may not disconnect or threaten to disconnect
basic local phone service for nonpayment of noncommunications
charges.

Under the proposed rules, telecom companies must take
"reasonable" precautions to screen vendors and billing agents
before agreeing to provide noncommunications billing services for
them.  Noncommunications charges must be identified in a separate
section of phone bills.  Comments are due June 20.  (Rulemaking
00-02-004)

______________________________________________________

MISSOURI -- House passes rights-of-way bill

The House has passed a bill restricting local governments'
authority to regulate public rights-of-way.  The measure now goes
to Gov. Bob Holden (D.).  Southwestern Bell Telephone Co. and
competitive local exchange carriers support the bill, but the
Missouri Municipal League "fought the bill tooth and nail," a
league spokesperson told TR.

SB 369 would prohibit local governments from requiring telecom
companies to obtain a franchise to use rights-of-way but would
grandfather franchise agreements in effect May 1.  The bill would
prohibit rights-of-way rental fees but would authorize local
governments to impose rights-of-way permit fees, which would be
limited to "actual, substantiated costs reasonably incurred" in
managing the public rights-of-way.

Local governments would have to process rights-of-way permit
applications within 31 days after receiving a complete
application.  Telecom and cable TV companies would be authorized
to identify rights-of-way permit fees on customer bills.

______________________________________________________

GEORGIA -- WorldCom says FX calls subject to 'recip comp'

WorldCom, Inc., has asked the Public Service Commission to
determine that calls originated by BellSouth Telecommunications,
Inc.'s customers to competitive local exchange carriers' foreign-
exchange (FX) customers should be considered local and therefore
subject to reciprocal compensation.  Proper treatment of FX
traffic is required to meet item 13 (reciprocal compensation) of
section 271 of the federal Telecommunications Act of 1996's 14-
point "competitive checklist," MCI said.

Treating CLECs' FX traffic as long distance provides "significant
competitive advantages" to BellSouth because it permits BellSouth
to assess access charges on local calls and "shields BellSouth's
local FX service from competition," WorldCom said.  (Docket no.
6863-U)

______________________________________________________

CALIFORNIA -- ALJ suggests requiring Pacific Bell to permit
intraLATA toll presubscription

Administrative Law Judge Karen Jones has recommended that the
Public Utilities Commission require Pacific Bell to permit
MCImetro Access Transmission Services LLC's customers to
presubscribe to Pacific Bell's intraLATA (local access and
transport area) long distance service.  The recommendation was
made in a draft arbitrator's report about the companies'
interconnection agreement.

Pacific Bell said the requirement would be confusing to customers
and would require the company to identify a separate billing
channel or generate a bill solely for intraLATA long distance
service.

"It is blatantly discriminatory for Pacific to refuse to provide
intraLATA toll service to MCI's local service customers," Ms.
Jones said.  She said, "Pacific's arguments of 'customer
confusion' and 'billing' concerns do not have merit."  "Customers
could receive three different bills for the three different
services, and other carriers cope with billing for only one of
those three services.  There is no reason that Pacific should not
be able to provide a bill which includes only intraLATA
services."  Comments on the draft arbitrator's report are due
June 20.  (Application 01-01-010)

______________________________________________________

CALIFORNIA -- PUC extends deadline for Pacific Bell interLATA
filing

Public Utilities Commissioner Geoffrey Brown has extended Pacific
Bell's deadline for filing information demonstrating its
compliance with the interLATA (local access and transport area)
market-entry requirements of section 709.2 of California code.
The section requires the PUC to find that permitting Pacific Bell
to enter the California interLATA market doesn't harm the long
distance market substantially.  The commission also must find
that Pacific Bell's entry is based on fully open local exchange
access and that the company isn't engaging in anticompetitive
behavior or improper cross-subsidization.  (5/7/01)

Pacific Bell asked the PUC to extend the deadline from June 4
until "mid-June," when the company plans to file its section 271
application with the PUC.  Mr. Brown granted the company's
request and said he would establish a comment filing schedule
after Pacific has filed its section 709.2 assessment and section
271 application.  (Rulemaking nos. 93-04-003 and 95-04-043 and
Investigation nos. 93-04-002 and 95-04-044)

______________________________________________________

IOWA -- Board mulls revoking LTDS's certificate

The Utilities Board has ordered LTDS Corp. to demonstrate why its
operating certificate shouldn't be revoked.  The board is
concerned that "actions on the part of LTDS do not appear to be
the actions of a bona fide competitive local exchange carrier."

The board said there appears to be no voice traffic from or to an
LTDS customer in any exchange other than Fairfield.  The company
ordered and then cancelled orders for voice trunks in the Pella,
Chariton, and Centerville exchanges.  It ordered trunks in the
Grinnell and Sigourney exchanges, although it has no assigned
"NXX" codes there.  The company's tariff also fails to include a
residential rate.  It was deleted in a Jan. 19 tariff revision,
the board said.

It said state law obligates each local exchange utility to serve
all eligible customers within the utility's service territory,
unless explicitly excepted from the requirement by the board.
(Iowa Code section 476.29(5))

LTDS must file direct testimony by June 22.  Petitions to
intervene are due July 3.  Additional comments from the consumer
advocate and intervenors are due July 17.  Prepared rebuttal
testimony from LTDS will be due Aug. 3.  A hearing is scheduled
for Aug. 14.  (Docket no. TCU-01-13 - In Re: LTDS Corporation)

______________________________________________________

NEBRASKA -- PSC to discuss implementing '511'

The Public Service Commission has scheduled an Aug. 15 workshop
to address implementation of the "511" dialing code as an
Advanced Traveler Weather Information System (ATWIS).  It will
provide route-specific weather forecasts and road condition
reports to callers based on specific location information they
provide.

The PSC approved implementation of 511 for the ATWIS May 23.  The
commission directed the Department of Roads and the Nebraska
State Patrol to begin deploying the ATWIS.  (Application no. C-
2506/PI-48 - In the Matter of the Application of the Commission,
on its own motion, to seek comment on the establishment and
implementation of '511' as a statewide three-digit calling number
reserved for access to ATWIS)

______________________________________________________

NEBRASKA -- PSC seeks copies of MDU contracts

The Public Service Commission has requested by June 15 copies of
all contracts that all certified telecom carriers have entered
into with multiple dwelling units (MDUs).

In April 1999 the PSC issued an order clarifying its policy for
residential MDU access.  Qwest Corp. appealed the PSC's order to
the Nebraska Supreme Court, which affirmed a majority of it.  The
court remanded to the PSC the issue of whether the rates it set
for MDU access comply with the U.S. Court of Appeals for the
Eighth Circuit's (St. Louis) decision in Iowa Utilities Board v.
FCC (120 F. 3d 753).

After reviewing the case's testimony, the PSC said it's
"disturbed" that some telecom carriers still may be utilizing
contracts with MDUs that contain exclusive access and/or
exclusive marketing provisions "in apparent blatant disregard of
prior orders of this commission, as well as the FCC."  (Docket
no. C-2534/PI-50 - The Commission, on its own motion, to examine
the potential noncompliance with Commission orders entered in
Docket no. C-1878/PI-23)

______________________________________________________

CONNECTICUT -- DPUC expands Lifeline assistance in tribal areas

The Department of Public Utility Control has amended its Lifeline
plan to enhance assistance to individuals living on American
Indian tribal lands.  The measure adds language proposed by
Southern New England Telecommunications, which enhances
"subscribership and infrastructure deployment" within American
Indian communities by including a Lifeline credit of up to $30.25
per month and reducing Link Up service connection charges to
qualified applicants by $100.

The amendment follows an Oct. 5, 2000, FCC order to encourage
increased subscribership and infrastructure rollout in tribal
areas.  (Common Carrier docket 96-45)

______________________________________________________

MICHIGAN -- Customers can bring complaints without counsel

The Public Service Commission yesterday ruled that business and
residential telephone customers can bring "slamming" or
"cramming" complaints to the commission without the assistance of
an attorney.  The PSC's ruling involved a complaint filed by
Seaway Painting LLC against WorldCom, Inc., about a billing
dispute.

The PSC dismissed the complaint, as requested by the petitioner,
but concluded that Seaway may refile its complaint and proceed
"with the assistance of a person of its choice, who need not be a
licensed attorney."  The commission based its decision on a
provision of the Michigan Telecommunications Act, which provides,
"Hearings shall be conducted in a manner as to optimize
expediency, convenience, and the ability of end users to bring
and prosecute, without the assistance of counsel, complaints
alleging [slamming or cramming] while preserving the rights of
the parties."  (Case no. U-12863)

______________________________________________________

OREGON -- Group criticizes AT&T price hike

The Qwest Communications International, Inc.-backed Oregon
Coalition for Consumer Choice yesterday criticized AT&T Corp. for
its recent announcement of an 11% increase in consumer long
distance rates.  "This rate hike from AT&T just underscore the
importance of bringing real competition to the Oregon long
distance market," said Dan Lavey, coalition director.

The group said Qwest's entry into the Oregon interLATA (local
access and transport area) market would save a customer who made
only one 10-minute long distance call $2.80 per month, more than
$33 a year, over AT&T.

______________________________________________________

MINNESOTA -- MP Telecom upgrades network

MP Telecom, the telecom subsidiary of Minnesota Power, yesterday
announced that it has completed a major upgrade of its fiber
optic network with dense wavelength division multiplexing
technology.  The upgrade allows the company to increase greatly
data capacity serve to its customers in Minneapolis-St. Paul,
Duluth, St. Cloud, Brainerd, Grand Rapids, Hibbing, Virginia, and
Eveleth.

The company also has completed a 395-mile fiber optic network
connecting southern Minnesota to Minneapolis-St. Paul.  This
network ties in Rochester, Owatonna, Albert Lea, Austin, Winona,
and Red Wing.

______________________________________________________

MASSACHUSETTS -- CTC activates Springfield fiber network

CTC Communications has activated one of its four fiber networks
in western Massachusetts.  CTC PowerPath customers in Springfield
currently use the network, which was purchased from a variety of
dark fiber suppliers under a 20-year lease agreement and light up
by Cisco System, Inc., optronics.

The company said it will activate fiber access to its network in
over 60 locations throughout the New England and Mid Atlantic
states this year.

______________________________________________________

GEORGIA -- AGL networks to install fiber in Atlanta

AGL Networks LLC has started building a fiber network in Atlanta.
It will include 616 conduit miles in Atlanta's central business
district and the cities of Buckhead, Galleria, and Sandy Springs.
AGL Networks is a subsidiary of AGL Resources, Inc., an energy
services holding company that serves customers in Georgia,
Tennessee, and Virginia.


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Associate Editor-Online Publications

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Senior Research Analyst

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Senior Telecommunications Analyst

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Senior Research Analyst

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