| STATE REPORT
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| The following is a summary of State regulatory documents filed, and
State regulatory action performed, on behalf of the Telecommunications Resellers Association (TRA) between mid-December 1998 and mid-January 1999. TRA state filings may be viewed at TRA's Internet web site. California - Consumer Affairs Assessment of California's Progress on Achieving Policy Goals in Telecommunications (Undocketed) January 11, 1999 A joint TRA and CompTel letter was filed with the California Public Service Commission in response to a Department of Consumer Affairs report to the Commission assessing Commission progress toward achieving local competition. The Department's report recommended that the Commission encourage facilities-based competition as a means to achieve the Commission's pro-competitive goals. While supporting development of facilities-based competition generally, TRA and CompTel urged the Commission not to undermine other forms of equally effective local competition, both as a matter of competitive choice and as a matter of law, e.g. not to pick winners and losers among service providers. Colorado -- In The Matter Of The Application Of U S West Communications, Inc. For Specific Forms Of Price Regulation, Docket No. 97A-540T December 11, 1998 A Joinder supporting the joint position of MCI Worldcom, ICG Telecom Group, Inc., NEXTLINK Colorado, L.L.C., and McLeod USA was filed with the Colorado Public Utilities Commission in the Commission's investigation into whether US WEST should be granted pricing flexibility. TRA supported the parties' opposition to a Stipulation and Settlement Agreement between U S WEST Communications, Inc., Commission Staff, and the Office of Consumer Counsel under which US WEST would receive pricing flexibility for competitive services. TRA stressed that the Stipulation will frustrate rather than promote competition in light of US WEST's local market dominance. Delaware - In The Matter Of The Sale, Resale And Other Provisions Of Intrastate Telecommunications Services (Docket No.10); In The Matter Of The Development Of Regulations For The Facilitation Of Competitive Entry Into The Telecommunications Local Exchange Service Market (Docket No. 45) January 6, 1999 Comments were filed with the Delaware Public Service Commission regarding the Commission's proposed amendments to interim local and interexchange rules. In its comments, TRA generally supported the proposed streamlined amendments to the Commission's rules. TRA, however, opposed a proposed bonding requirement for resellers possessing less than $200,000 in assets. TRA urged that Commission bonding requirements applicable to end user prepayments be subject to waiver if a history of responsible service and financial viability can be demonstrated. TRA further opposed new rules that would allow only written authorization for changes in primary carriers. TRA argued that, because written confirmations may be often more difficult to obtain and tend to inconvenience certain subscribers, the elimination of electronic and third party verification certification would create a disincentive for some subscribers to change local carriers. Florida - In Re: Petition of Competitive Carriers for Commission Action to Support Local Competition in BellSouth's Service Territory (Undocketed) December 10, 1998 TRA joined the Florida Competitive Carriers Association (FCCA) in filing a Petition seeking establishment of a Florida Public Service Commission collaborative process between BellSouth, the competitive industry, and the Commission to resolve outstanding competitive issues. The FCCA specifically asked the Commission to initiate a UNE pricing proceeding, establish a competitive forum to address operational issues, establish third-party OSS testing, and establish an expedited dispute resolution process similar to those established in Texas, New York, and Pennsylvania. Florida -- BELL ATLANTIC CORPORATION and GTE CORPORATION Joint Application for approval of the merger of Pennsylvania Bell Telephone Company d/b/a Bell Atlantic, and GTE Corporation (Case No. 98-1252-TP) January 8, 1999 Comments were filed with the Florida Public Service Commission regarding the proposed merger of GTE and Bell Atlantic. TRA reiterated Comments originally filed in this proceeding on November 8, 1998. In those comments, TRA advocated the institution of pre-merger conditions such as those adopted by the New York Public Service Commission in the NYNEX/Bell Atlantic merger. TRA urged the Commission to incorporate TRA's concerns and recommendations in comments to the FCC regarding the merger, which the Commission is considering to file. Kansas - In the Matter of a General Investigation Into Competition Within the Telecommunications Industry in the State of Kansas, Docket No. 94-GIMT-478-GIT. December 17, 1998 Comments were filed with the Kansas State Corporation Commission regarding a variety of local competition issues raised by the Commission staff. In its comments, TRA arguedthat ILECs should be allowed to compete in each other's service areas as long as dominant incumbents remain subject to rate of return regulation until their local markets are irreversibly open to competition. TRA also argued that no limitation on competitive local exchange carriers (CLEC) access charges should be implemented, as proposed by staff, based on speculative potential CLEC abuses. TRA agreed with staff that new CLEC certification applicants should not be subject to financial review. Finally, TRA urged the Commission to adopt a fresh look policy for all LEC long-term contract subscribers to encourage the development of competition. Massachusetts -- Complaint of Tel-Save, Inc., pursuant to G.L. . 159 §§16 and 17, and Sections 201(b) and Docket No. 202 of the Communications Act of 1934 as amended, for relief by the Department of Telecommunications and Energy requiring New England Telephone and Telegraph Company d/b/a Bell Atlantic - Massachusetts to accept subscriber-originated electronically mailed requests to life primary interexchange carrier freezes, Docket No. D.T.E. 98-59. December 22, 1998 An Initial Brief was filed in support of TRA member Tel-Save, Inc.'s ("TSI") complaint against Bell Atlantic. TSI argued that Bell Atlantic's current practice of requiring direct end-user contact to request carrier changes is anti-competitive, makes PIC freezes more difficult to remove, and discourages end users from changing primary carriers. TRA supported TSI's proposal that CLECs be able to initiate primary carrier change requests electronically, noting that the TSI proposal does not compromise end user security, encourages competition, and is in the public interest. Massachusetts - Investigation by the Department on its own Motion as to the Propriety of the Rates and Charges Set Forth in Bell Atlantic - Massachusetts Tariffs M.D.T.E. 14 and 17. December 23, 1998 A Petition to Intervene was filed with the Massachusetts Department of Telecommunications and Energy in the Commission's investigation of Bell Atlantic - Massachusetts' resale and unbundled network element tariff amendments. Michigan - In the Matter of AT&T Communications of Michigan, Inc., v. Ameritech Michigan, d/b/a Michigan Bell, Cause No. U-11660 December 14, 1998 A Bill of Costs and Reasonable Attorneys Fees was submitted to the Michigan Public Service Commission for reimbursement by Ameritech, pursuant to the Commission's Opinion and Order which allowed intervenors to be reimbursed for legal fees associated with the Ameritech intrastate primary interexchange carrier charge proceeding. Not surprisingly, Ameritech has appealed all claims. Missouri - In the Matter of the Application of Southwestern Bell Telephone Company to Provide Notice of Intent to File an Application for Authorization to Provide In-region InterLATA Services originating in Missouri pursuant to Section 271 of the Telecommunications Act of 1996 (Case No. TO-99-227) December 18, 1998 An Application to intervene was filed with the Missouri Public Service Commission to enable TRA's intervention the Commission's in-region interLATA market entry (271) proceeding. North Carolina -- In the Matter of Revised Petition BellSouth Telecommunications, Inc. for Approval of an IntraLATA Toll Dialing Parity Implementation Plan, Docket No. P-100, Sub 72 December 10, 1998 Supplemental Comments were filed with the North Carolina Utilities Commission in response to the Commission's Order Seeking Comments regarding Public Staff's proposed January 15, 2000 implementation date for intraLATA toll dialing parity ("ILP") in return for BellSouth intraLATA toll rate reductions. In its comments, TRA argued that Staff's proposal would allow Bell South to control when ILP is implemented in the State of North Carolina and would give the Company more than a year of unfettered dominance over the intraLATA market. TRA urged the Commission to reject Staff's proposal and institute ILP implementation on February 8, 1999. Pennsylvania - Global Settlement Process (Docket No. M-00981185, et al.) January 7, 1999 An analysis of the Pennsylvania Public Utility Commission's Resolution of Certain Global Telecommunications Settlement Issues was performed in conjunction with the Telecommunications Choice for Pennsylvania industry coalition, of which TRA is a member, in anticipation of the Commission's global settlement hearing. TRA addressed concerns over proposed access charge flow throughs, resale, unbundled network element platform, Bell Atlantic competitive service designation, xDSL resale, reciprocal compensation, and interLATA market entry provisions. Texas -- Petition of AT&T Communications of the Southwest, Inc. To Require Southwestern Bell Telephone Company to Implement IntraLATA Presubscription No Later Than Februrary 8, 1999 (Docket No. 19919) December 30, 1998 An Initial Brief was filed with the Texas Public Utilities Commission in the Commission's intraLATA toll dialing parity ("ILP") proceeding. TRA responded to a September 30, 1998 AT&T Petition which asked the Commission to order Southwestern Bell Telephone Company ("SWBT") to implement ILP on February 8, 1999. In its Brief, TRA supported AT&T's assertion that the Commission retains full statutory authority to implement intraLATA presubscription ("ILP") on February 8, 1999. Virginia -- In the Matter of the Joint Application of Bell Atlantic Corporation and GTE Corporation for consent and approval of a change of control, Docket No. PUA980031. December 14, 1998 Initial comments were filed with the Virginia Corporation Commission regarding the proposed merger between GTE Corporation and Bell Atlantic Corporation. In its comments, TRA urged the Commission adopt a public interest standard for approval of the merger similar to that adopted by the New York Public Service Commission in its evaluation of the Bell Atlantic and NYNEX merger. TRA's comments mirrored those previously filed on this issue in other jurisdictions. Washington -- Possible Rules Relating to Prepaid Telephone Service Chapter 480-121-040(2)(b) WAC (Docket No. UT-971469) December 30, 1998 Supplemental Comments were filed with the Washington Utilities and Transportation Commission regarding additional amendments to the Commission's proposed prepaid telephone service rules. TRA reiterated serious concern over several proposed provisions that remain unchanged in the final version of the Commission's proposed prepaid calling card rules including perpetual business office and technical assistance staffing requirements, network performance standards, consumer complaint right notification requirements, and in-state prepayment deposit requirements. TRA argued that the Commission should not require continuous staffing of business offices and technical assistance centers for prepaid services. TRA urged the Commission to recognize the limited ability of non-facilities-based resellers to comply with service quality rules, over which they exercise little control. TRA also argued that the proposed commission complaint process disclosure requirement was overly broad and unnecessary. Finally, TRA argued that prepaid calling card providers should be allowed to maintain deposit accounts in out of state banks having Washington branches, as opposed to the proposal requiring deposit accounts to be placed only in Washington banks. Washington -- Simplifying and Integrating the Process of Registration, Competitive Classification, and Filing of Price Lists for Telecommunications companies, Docket No. UT-980083 December 10, 1998 Supplemental comments were filed with the Washington Utilities and Transportation Commission to address the Commission's proposed registration and competitive company classification rules. TRA generally supported the Commission's intent to streamline the current registration process. TRA expressed concern, however, over a new provision which would require applicants to demonstrate a "positive regulatory record" in all other states in which the applicant provided telecommunications services. TRA argued that the provision was ambiguous, overly broad, potentially discriminatory, and burdensome, while contributing little to providing added protection to consumers. TRA urged the Commission to delete or amend this provision to require only a simple statement by the applicant avering that its operations are in full compliance with all applicable regulation and statutes. January 8, 1999 At the request of the Washington Utilities and Transportation Commission, TRA filed Second Supplemental Comments regarding staff proposed amendments to the Commission's registration rules. TRA supported new language which would give the Commission flexibility in determining what data would be required from applicants. TRA reiterated its suggestion that regulatory compliance be demonstrated through submission of an applicant affidavit avering to an applicant's regulatory compliance. REGULATORY ACTION Bell Atlantic Region States - December 15, 1998 A joint letter to Bell Atlantic region state Commissions was submitted by TRA, the Competitive Telecommunications Association (CompTel), and the Association for Local Telecommunications Services (ALTS) regarding Bell Atlantic's local service provider (LSP)(primary carrier freeze) service. The associations voiced concern over Bell Atlantic's potential anti-competitive abuse of the LSP service to lock in current captive customers and urged the Commissions to impose competitive safeguards. January 13, 1999 A second joint letter was sent to Bell Atlantic state Commissions regarding Bell Atlantic's response to the associations' December 15, 1998 letter. TRA, CompTel, and ALTS recommended that despite Bell Atlantic's assurance the its LSP service would not be used to undermine competition, the Commissions should nevertheless require that Bell Atlantic state how it will comply with the FCC's recently promulgated "PIC freeze" rules. National Regulatory Research Institute Survey - A response to the National Regulatory Research Institute's (NARUC Research organizations) "Best Practices" survey regarding initiatives to promote competition was submitted by TRA. TRA underscored the points made in its response to Senator Thomas Bliley regarding implementation of the Telecommunications Act of 1996. Internal Revenue Service Prepaid Telephone Card Tax Rules - A summary of the Internal Revenue Service's proposed prepaid telephone card tax rules was prepared for TRA. Massachusetts - December 7, 1998 A membership advisory was prepared and distributed to alert members of the December 10, 1998 effective date of Massachusetts' slamming legislation and to explain implications for TRA members. North Dakota - January 13, 1999 A letter was sent to North Dakota Public Service Commission Commissioners urging amendment of proposed reseller registration legislation sponsored by the Commission. Under the proposed legislation, annual registration and payment of a $250.00 annual filing fee would be required for telecommunications resellers. TRA urged the Commission to alternatively model the proposed legislation after Wisconsin Public Service Rules which require annual reporting and payment of a $50.00 annual filing fee. Separate discussions were held with staff. |