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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*
October 24, 2001 

STATES
ILLINOIS -- ICC initiates Ameritech long distance investigation
KANSAS -- WorldCom seeks special access performance measures
NEW JERSEY -- Peretz calls for BPU to dismiss Verizon long 
distance bid
OREGON -- PUC approves certificate-transfer rules
OREGON -- PUC streamlines interconnection procedures
TEXAS -- SW Bell, CLECs spar over special access
INDIANA -- Ameritech tells URC no cuts for now
GEORGIA -- Call waiting feature penetrates 41% of BellSouth's 
access lines
VIRGINIA -- Gov. Gilmore to speak on telecom security
KENTUCKY -- PSC nixes plan to eliminate measured service
OREGON -- PUC raises RSPF surcharge
SOUTH CAROLINA -- PSC modifies 'win-back' restrictions
HAWAII -- StarBand launches satellite Internet service
ILLINOIS -- Verizon offering EAS to more than 50 exchanges
WISCONSIN -- Video voyeur bill awaits governor's signature
IDAHO -- PUC sets UNE pricing workshop
UTAH -- Area code 'split' delayed for one year
TEXAS -- AG accuses telemarketers of deceptive trade
NEW YORK -- Gov. Pataki mulls electronic harassment bill
MAINE -- E911 implementation affects directory listings
ILLINOIS -- Verizon proposes EAS in 23 exchanges
ALABAMA -- T-NETIX to provide long distance to state prisons

REGIONAL
Companies team up to transmit IP storage records

______________________________________________________

ILLINOIS -- ICC initiates Ameritech long distance investigation

The Commerce Commission today initiated an investigation into 
matters relating to Ameritech-Illinois' compliance with section 
271 of the federal Telecommunications Act of 1996.  (09/17/01)

The commission said that it would appoint an administrative law 
judge to conduct the investigation in two phases.  The first 
phase will examine items on the 14-point "competitive checklist" 
in section 271 that don't require Ameritech's operation support 
system (OSS) test results.  The second phase will cover all the 
remaining OSS issues and any other relevant issues that weren't 
addressed during the first phase.

After the passage of the Act in 1996, Ameritech expressed 
interest in offering in-region interLATA service.  The company 
later said it would defer its plans to apply for a 271 
application from the FCC until the second quarter of 2002.

Ameritech must comply with section 271 of the Act before it can 
be authorized to provide in-region interLATA (local access and 
transport area) services. 

"Our goal in conducting this proceeding is to determine whether 
we believe Ameritech-Illinois has satisfied the requirements of 
section 271 for purposes of our consultation with the FCC," said 
the commission.  (Docket 01-0662)

______________________________________________________

KANSAS -- WorldCom seeks special access performance measures

WorldCom, Inc., has asked the Corporation Commission to establish 
performance measures for Southwestern Bell Telephone Co.'s 
switched and special access orders.  

In June, the Texas Public Utility Commission required SW Bell to 
implement performance measures for special access service, but 
subsequently decided to reconsider its decision and arbitrate the 
issue.  (9/20/01)  The Texas performance measure under 
consideration doesn't apply to SW Bell's switched orders.

SW Bell said the KCC lacked authority to implement performance 
measures for special access, which is provided according to terms 
and conditions set in SW Bell's state and federal tariffs.  
Sprint Communications Co. L.P. agrees with SW Bell.  "Special 
access is not an element of interconnection, UNEs [unbundled 
network elements], or resold service," Sprint said.  (Docket 01-
SWBT-999-MIS)

______________________________________________________

NEW JERSEY -- Peretz calls for BPU to dismiss Verizon long 
distance bid

Ratepayer Advocate Blossom A. Peretz has asked the Board of 
Public Utilities to dismiss Verizon New Jersey, Inc.'s bid to 
offer in-region interLATA (local access and transport area) 
services under section 271 of the federal Telecommunications Act 
of 1996.  Ms. Peretz said that competition doesn't exist in the 
state's local telephone market and, if given market-entry, 
Verizon would become an "unregulated monopoly."

Verizon asked the BPU to support its New Jersey interLATA bid 
last September following KPMG Consulting, Inc.'s favorable third-
party review of its operation support system (OSS).  (9/6/01)  
Verizon said it plans to file an application for final approval 
with the FCC in December.

Ms. Peretz asserted that Verizon has failed to comply with the 
14-point "competitive checklist," which is necessary for market-
entry.  She cited a 1997 U.S. District Court in Newark ruling 
that struck down Verizon's unbundled network element (UNE) 
pricing regime adopted by the BPU in 1997.  The court's June 2000 
decision found the $16 UNE rate to be "arbitrary and capricious."  
(Case 97-5762, AT&T v. Bell Atlantic-New Jersey)  The matter is 
currently pending at the BPU.

The Ratepayer Advocate also said the filing's OSSs testing is 
incomplete, lacking real-world evidence that a competitor could 
"seamlessly interconnect" with the Verizon network.  In addition, 
Ms. Peretz said, the bid shouldn't be approved until there is a 
state universal service fund to satisfy the public interest 
requirement of section 271 of the Act.

Dennis Bone, president of Verizon New Jersey, said that the 
state's market was "irrevocably open" to competition and 
expressed confidence that the BPU would comment favorably to the 
FCC on Verizon's application.  He said that a review of Verizon's 
record, its test results, and competitors' experience using the 
telco's computer systems would show that Verizon is ready to 
enter the New Jersey interLATA market.

______________________________________________________

OREGON -- PUC approves certificate-transfer rules

The Public Utility Commission has approved rules allowing telecom 
carriers to transfer certificates of authority to provide telecom 
service in the state.  Previously, there were no rules governing 
the process.  (5/21/01)

The new rules require both parties to the transaction to file a 
joint application.  According to the commission staff, having 
both the transferor and the transferee complete a joint 
application ensures that both parties concur with the specifics 
of the transfer.

The rules direct the PUC to provide interested parties with 20 
days to file a protest.  If there are no protests, the commission 
will review the application and either approve or deny it.  The 
staff said it plans to process the applications on an expedited 
basis if there aren't any protests.  (AR 415, In the Matter of a 
Rulemaking proceeding for the transfer of Certificates of 
Authority to provide telecommunications service as a Competitive 
Provider)

______________________________________________________

OREGON -- PUC streamlines interconnection procedures

The Public Utility Commission has adopted rules that seek to 
streamline its procedures for examining interconnection 
agreements.  Although the rules in place have worked well, it has 
become "clear" that they should be amended to streamline the 
commission's review, the staff said.  Additionally, the existing 
rules don't address current issues like the review of already 
approved agreements that carriers may opt into or adopt.  
(3/21/01)

The new rules eliminate the commission's notice requirement.  The 
staff said that although the notice list includes more than 100 
people, the commission hasn't received any comments from any 
interested party other than the staff.  Instead, the commission 
will provide notice of the agreement on its Web site.

Under the new rules, if a carrier decides to adopt an agreement 
that has already been approved by the commission and the adoption 
notice was filed unilaterally by the requesting carrier, the 
requesting carrier must file an adoption notice with the affected 
carrier.  The affected carrier will then have 21 days to file an 
objection with the commission.  If no objections are filed, then 
the agreement will take effect on the 22nd day.  

The rules authorize the affected carrier to object to the 
adoption if the costs of providing the particular 
interconnection, service, or element to the requesting carrier 
are greater than the costs of providing it to the carrier that 
originally negotiated the agreement.  The affected carrier also 
may object if the interconnection, service, or element isn't 
technically feasible.  In addition, if the proposed agreement has 
expired or been cancelled, the affected carrier can object to its 
adoption.  (Docket AR 414)

______________________________________________________

TEXAS -- SW Bell, CLECs spar over special access

Southwestern Bell Telephone Co. has disputed the Public Utility 
Commission's authority to establish performance measures for the 
company's special access, or dedicated transport, services sold 
to CLEC (competitive local exchange carriers). 

The PUC's performance measures were established to monitor SW 
Bell's compliance with the 14-point "competitive checklist" in 
section 271 of the federal Telecommunications Act of 1996.  In 
June, the PUC required SW Bell's provision of special access 
services to be measured "as another level of disaggregation in 
all UNE [(unbundled network element)] measures" when a CLEC 
orders special access instead of UNEs.  In September, the PUC 
voted to reconsider its decision and arbitrate the issue.  
(9/20/01) 

Special-access performance measures aren't within the 
commission's jurisdiction, SW Bell said.  If the commission has 
jurisdiction to establish performance measures for special 
access, it's limited to intrastate service, SW Bell added.  About 
94% of SW Bell's special access service is ordered from the 
company's interstate FCC tariff, SW Bell said.

Time Warner Telecommunications of Texas L.P. supports special-
access performance measures.  Time Warner said the PUC's 
authority to establish special-access performance measures is 
provided in section 253(b) of the Act, which authorizes states to 
"ensure the continued quality of telecommunications."  A state 
law authorizing the PUC to implement competitive safeguards also 
authorizes the PUC to implement special-access performance 
measures, Time Warner added.

Receiving timely and quality service, whether a CLEC orders 
service out of a tariff or an interconnection agreement, is 
essential to the development of competition, Time Warner said.  
Special access provisioning delays affect competitors' ability to 
serve their customers, WorldCom, Inc., said.  In August, SW Bell 
met only 75% of its committed due dates for WorldCom DS-1s, 
WorldCom said.  (Docket 24515)

______________________________________________________

INDIANA -- Ameritech tells URC no cuts for now

Ameritech-Indiana has told the Utility Regulatory Commission that 
it doesn't plan to make significant cuts to its Indiana workforce 
at this time.  A commissioner asked an Ameritech official during 
Monday's regular meeting whether the company plans to make 
significant cuts to its workforce in the state, a URC spokesman 
told TR.

Under the terms of the Opportunity Indiana alternative regulation 
plan, which Ameritech agreed to this year, the company must 
commit $1 billion in infrastructure improvements throughout the 
state over the next three years.  The company also promised not 
to reduce its workforce below 3,683--Ameritech's staffing level 
before it merged with SBC Communications, Inc.  (03/20/01)

SBC said on Monday it plans to eliminate several thousand jobs 
and cut capital spending by up to 20% next year.  The company 
posted year-over-year revenue growth of just 0.8% in the third 
quarter excluding one-time items.

______________________________________________________

GEORGIA -- Call waiting feature penetrates 41% of BellSouth's 
access lines

BellSouth Telecommunications, Inc., has disclosed its penetration 
rates for certain features in response to AT&T Communications of 
the Southern States, Inc.'s request for information about the 
incumbent's UNE (unbundled network element) and interconnection 
costs.  Based on September data, 41% of BellSouth's access lines 
have the company's call waiting feature.  Caller ID has a 36% 
penetration rate, and three-way calling and call return have a 
27% penetration rate.  (Docket 14361-U) 

______________________________________________________

VIRGINIA -- Gov. Gilmore to speak on telecom security

Gov. Jim Gilmore (R.) will give the opening remarks at today's 
Virginia Security and Preparedness Panel meeting.  The panel will 
focus on security issues for telecom networks, computer systems, 
and other "critical technologies," a spokesman for Gov. Gilmore 
said.

Gov. Gilmore created the panel Sept. 25 in the wake of the Sept. 
11 terrorist attacks in the area.  The purpose of the panel is " 
to ensure safety mechanisms are implemented to protect Virginians 
and their property from future terrorist attack," Gov. Gilmore 
said.

The panel's assessment of telecom and computer issues is part of 
an analysis of security threats within the state that Gov. 
Gilmore charged the group with completing as its first order of 
business.  The panel will then examine the state's ability to 
respond to risks.  Gov. Gilmore asked the panel to submit its 
findings by November.

______________________________________________________

KENTUCKY -- PSC nixes plan to eliminate measured service

The Public Service Commission has rejected BellSouth 
Telecommunications, Inc.'s proposal to eliminate the "low-use" 
and "standard" local measured service packages it offers 
residential customers.  The service meets a "legitimate public 
need," and it's not in the public interest to eliminate these 
services at this time, the PSC said.  (Case 1999-434)

______________________________________________________

OREGON -- PUC raises RSPF surcharge

The Public Utility Commission has increased the monthly 
residential service protection fund (RSPF) surcharge from 10 
cents per subscriber line to 13 cents per subscriber line, 
effective Jan. 1, 2002.  The surcharge provides revenue for three 
programs--the Telecommunications Devices Access Program (TDAP), 
the Oregon Telephone Assistance Program (OTAP), and the Oregon 
Telecommunications Relay Service (OTRS).  

Oregon state law requires the commission to review the RSPF 
surcharge amount each year to ensure that the fund is adequate 
and the balance doesn't exceed six months of projected expenses.  
The monthly surcharge can't exceed 35 cents per line.

The surcharge has been 10 cents per line since 1997.  The 
surcharge has been below the cost of delivering the services, the 
commission staff reported.  In the last several years, however, 
the number of wireless instruments and subscriber lines increased 
faster than the 2.5% growth projected.  

There were more funds available than anticipated and the last 
biennium the staff supplemented the surcharge by spending down 
the ending balance, the staff said.  In addition, costs have 
increased for the OTAP and OTRS.  

The surcharge needs to be increased because of the increase in 
cost and the lack of excess funds, the staff said.  

______________________________________________________

SOUTH CAROLINA -- PSC modifies 'win-back' restrictions

The Public Service Commission yesterday voted to modify its 
restrictions on BellSouth Telecommunications, Inc.'s "win-back" 
activities.  The PSC prohibited the incumbent from engaging in 
"win-back" activities for 10 calendar days after customers switch 
their local service to a competitor, the PSC staff told TR.  The 
original waiting period was 10 business days.  (10/17/01)

The Georgia and Louisiana commissions recently imposed a seven-
day waiting period on BellSouth's win-back programs, which 
attempt to persuade customers who have switched their local 
service to a CLEC (competitive local exchange carrier) to return 
to BellSouth.  (7/24/01, 9/20/01)  (Docket 2000-378-C)

______________________________________________________

HAWAII -- StarBand launches satellite Internet service

StarBand Communications, Inc., has said it is now able to provide 
high-speed Internet service to all the Hawaiian Islands.  The 
company says that it is the first always-on, two-way, high-speed 
satellite-delivered Internet service in the state.  This 
deployment marks the 50th state where the company is now offering 
service.

Other than the island of Oahu, local phone service does not reach 
all Hawaiian residents, so traditional dial-up Internet access is 
not widely available to the state, the company said.  The company 
went on to say that StarBand's high-speed network is satellite-
based, enabling it to reach even the most isolated areas of the 
islands.

StarBand launched the third-generation product last June.  The 
company's satellite modem can be used with an Ethernet connection 
or a USB port, and is compatible with most Windows operating 
systems.

______________________________________________________

ILLINOIS -- Verizon offering EAS to more than 50 exchanges

Verizon Communications, Inc., yesterday began offering extended 
area dialing services to customers in more than 50 exchanges.  
The Commerce Commission approved the extended area service (EAS) 
plan.

The plan would allow residential and business customers to call 
all communities within the same market service area and a 15-mile 
radius of their own exchange without paying local toll charges.

Under the plan, local calls to nearby communities would be priced 
at local usage-sensitive service rates.  The service has a $17.02 
monthly fee plus a call-connection charge of 3 cents per call and 
a 1.8 cents-per-minute calling charge.  Costs for calls within 
the home exchange would remain the same; residential customers 
currently pay 3.4 cents per call with no per-minute calling 
charges.  Business customers currently pay a 1.88-cent call-
connection charge and a 0.93 cent-per-minute call charge.  These 
charges will be discounted 50% on weekends, holidays, and from 9 
p.m.-8 a.m. weekdays.

Verizon has expanded the calling plan to its customers in the 
following exchanges: Alexander, Argenta, Barry, Baylis, Bethany, 
Camp Point, Carrollton, Cerro Gordo, Chapin, Cisco, Clayton, 
Dalton City, Deland, Eldred, Elwin, Franklin, Girard, Greenfield, 
Griggsville, Hammond, Hillview, Hull, Illiopolis, Jacksonville, 
La Place, Literberry, Macon, Manchester, Maroa, Milton, Mt. 
Sterling, Mt. Zion, Murrayville, New Canton, Niantic, Oreana, 
Palmyra, Patterson, Pearl, Perry, Pittsfield, Pleasant Hill, 
Rockport, Roodhouse, Sullivan, Virden, Warrensburg, Waverly, 
White Hall and Woodson. 

______________________________________________________

WISCONSIN -- Video voyeur bill awaits governor's signature

The Assembly yesterday unanimously approved AB 60, sponsored by 
Sen. Kimberly Plache (D. District 21) and Rep. Mark Gundrum (R. 
District 84), which would amend a "video voyeur" law signed by 
Gov. Scott McCallum (R.) in the state's 2001 budget, Wisconsin 
Act 16.  The bill now awaits Gov. McCallum's approval.  
(10/09/01) 

Rep. Gundrum said that he was "optimistic" that Gov. McCallum 
would sign the bill.  The language included in AB 60 is more 
precise than the language included in the budget bill. 

______________________________________________________

IDAHO -- PUC sets UNE pricing workshop

The Public Utilities Commission has scheduled a Dec. 4 workshop 
for interested parties to work on reaching a consensus on prices 
for Qwest Corp.'s unbundled network elements.  This is the second 
workshop in a proceeding the commission established to determine 
the forward-looking costs that should be used in setting prices 
for the elements and services contained in Qwest's statement of 
generally available terms.  A third workshop will be held at a 
later date.

The commission originally planned for all three workshops to be 
completed by Aug. 31.  (Case QWE-T-01-11)

______________________________________________________

UTAH -- Area code 'split' delayed for one year

The Public Service Commission has postponed for one year 
implementing permissive and mandatory dialing for a geographic 
"split" it approved for the "801" area code.  The commission said 
that 1,000-number-block "pooling" and other area code 
conservation measures have "substantially increased" the 
estimated time to "exhaust."  

Permissive dialing is now slated to begin March 30, 2003, and 
mandatory dialing is scheduled to start Sept. 30, 2003.  The 
commission said it would continue to monitor the number resources 
in the 801 area code to determine the efficacy of the 
conservation measures being taken.  If the life of the area code 
is further extended through conservation measures, the PUC may 
delay commencement of mandatory dialing, the commission said.  

______________________________________________________

TEXAS -- AG accuses telemarketers of deceptive trade

Attorney General John Cornyn (R) and the Harris County Attorney's 
office have accused telemarketers hired by the Harris County 
sheriffs' union of deceptive trade practices, according to a 
lawsuit filed in the state district court for Harris County.  

A telemarketing campaign conducted last year by Houston Marketing 
Consultants and Publishing and RKI illegally misappropriated the 
name "Toys for Tots," the lawsuit said.  The sheriffs' union 
raised more than $100,000 using the name Toys for Tots, a U.S. 
Marine Corps trademarked charity.  The Marine Corps didn't 
receive most of the funds raised during the campaign, the lawsuit 
said.  The telemarketers also identified themselves falsely as 
law enforcement officers, the lawsuit said.

The AG asked the court to assess penalties for violations of the 
Deceptive Trade Practices and Consumer Protection Act, the 
Business and Commerce Code, the Texas Occupations Code and the 
Telephone Solicitation Act. 

______________________________________________________

NEW YORK -- Gov. Pataki mulls electronic harassment bill

Gov. George Pataki (R.) is considering a bill that would add 
"mechanical or electronic communications" to a law that makes it 
a crime to send a telephone, telegraph, mail or any other form of 
written communication in a manner "likely to cause annoyance or 
alarm."  SB 4233, authored by Sen. Stephen Saland (R., District 
41), also states that a person found violating the law would be 
guilty of "aggravated harassment."

______________________________________________________

MAINE -- E911 implementation affects directory listings

The Public Utilities Commission has asked all Maine telephone 
customers to check their directory listings for accuracy after 
discovering that E911 implementation had caused some 
discrepancies in customer addresses.  The PUC said an informal 
examination of an area that recently changed its street names for 
E911 implementation found that more than 50% of the listings were 
incorrect.

A PUC spokesman said that many towns changed or modified their 
street names to implement the state's E911 system and aid 
emergency personnel in locating residences.  Those changes may 
not have shown up in the most recent editions of telephone 
directories, he said.

______________________________________________________

ILLINOIS -- Verizon proposes EAS in 23 exchanges

Verizon Communications, Inc., has filed a request with the 
Commerce Commission to offer customers in 23 exchanges extended 
area dialing services.  

If the ICC approves the extended area services (EAS) plan, 
Verizon said it would offer the service Dec. 4.  The new plan 
would allow residential and business customers to call all 
communities within the same market service area and a 15-mile 
radius of their own exchange without paying local toll charges.

Under the plan, local calls to nearby communities would be priced 
at local usage-sensitive service rates.  The service has a $17.02 
monthly fee plus a call-connection charge of 3 cents per call and 
a 1.8 cents-per-minute calling charge.  Costs for calls within 
the home exchange would remain the same; residential customers 
currently pay 3.4 cents per call with no per-minute calling 
charges.  Business customers currently pay a 1.88-cent call-
connection charge and a 0.93 cent-per-minute call charge.  These 
charges will be discounted 50% on weekends, holidays, and from 9 
p.m.-8 a.m. weekdays.

Verizon wants to offer the calling plan to customers in the 
following exchanges: Alvin, Astoria, Bement, Bismarck, 
Broadlands, Buckley, Elliott, Henning, Homer, Mahomet, Mansfield, 
Melvin, Monticello, Newman, Paxton, Roberts, Rossville, Sibley, 
Sidell, Sidney, Thawville, Tuscola and Villa Grove.

______________________________________________________

ALABAMA -- T-NETIX to provide long distance to state prisons

The state of Alabama has awarded T-NETIX, Inc., a three-year 
contract to provide long distance service to pay phones in state 
prisons.  The company estimates that the contract will provide 
about $36 million in gross revenue.

______________________________________________________

CALIFORNIA, NEW JERSEY -- Companies team up to transmit IP 
storage records

Internet Protocol (IP) storage data can be transmitted at a peak 
throughput of 215 Megabytes per second and at a sustained 
throughput of more than 200 MBps between Sunnyvale, Calif. and 
Newark, N.J., several companies announced today.  Dell Computer 
Corp., Hitachi Data Systems, Nishan Systems, QLogic Corp., and 
Qwest Communications International, Inc., used the Internet Fibre 
Channel Protocol to transmit the storage data.

The companies said this launch capitalized on the successful 
deployment of the Promontory Project in September.  The first 
phase of the project demonstrated that multiple ports on a Nishan 
IP storage switch could collectively process IP storage data from 
Fibre Channel and iSCSI end systems at a rate sufficient to 
saturate the OC-48 channels on an OC-192 coast-to-coast wide area 
network link.  

This second phase of the project demonstrates the ability of a 
pair of Nishan IP storage switches, linked by a single 
transcontinental full-duplex Gigabit Ethernet connection, to 
convert between Fibre Channel and native IP storage data at wire 
speed (215MBps), simultaneously in both directions.




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Editor

Susan McGovern,  E-mail: mailto:smcgovern@tr.com
Senior Telecommunications Analyst

Victoria Curtis,  E-mail: mailto:vcurtis@tr.com
Senior Research Analyst

Michael Johnson,  E-mail: mailto:mjohnson@tr.com
Senior Telecommunications Analyst

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