======================================================

                  TR's State NewsWire

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

======================================================

*Table of Contents*
December 26, 2001 

STATES
MICHIGAN -- Ameritech to pay $443K in penalties
OKLAHOMA -- Gov. Keating proposes new telecom tax
VIRGINIA -- SCC says, bring 'recip-comp' dispute to FCC
TEXAS -- SW Bell calls new DSL PMs 'extreme,' 'punitive'
VIRGINIA -- Broadstreet customers must find a new carrier
WISCONSIN -- Gov. McCallum appoints commerce secretary
ALASKA -- USLD to lower calling card rate
CALIFORNIA -- Superior Court judge appointed
CALIFORNIA -- Gov. Davis nominates appeals court judges

**TR's Survey of Cellphone Legislation**

______________________________________________________

MICHIGAN -- Ameritech to pay $443K in penalties

Ameritech-Michigan must pay $443,000 in penalties for failing to 
meet wholesale service-quality standards during October, 
according to a report issued by the incumbent. The company must 
pay $173,000 to the Public Service Commission and $205,000 to its 
wholesale customers.

Ameritech's October penalties mark an increase in service-quality 
payments compared to penalties assessed in September.  For 
example, Ameritech paid $96,000 to its wholesale customers, and 
it wasn't required to pay any fines to the commission for 
September. 

Meanwhile, Ameritech-Illinois must pay more than $480,600 in 
penalties for failing to meet wholesale service-quality standards 
during October, according to a report it issued.  The company 
must pay $275,000 to the Illinois Commerce Commission and 
$205,000 to its wholesale customers.  (12/20/01)

In Ohio, Ameritech must pay more than $68,300 in penalties to the 
Ohio Public Utilities Commission for failing to meet service-
quality standards during October.  The company must also pay 
$6,700 to its wholesale service competitors.

Ameritech's service-quality payments in Ohio have dropped since 
its September fines.  The company paid fines totaled $265,000 in 
September, compared to $75,000 in October.  (12/27/01)

In Indiana, Ameritech must pay $3,200 in penalties for failing to 
meet wholesale service-quality standards during October.  
(12/21/01)

Meanwhile, Ameritech-Wisconsin was granted a stay by the District 
1 Circuit Court, which will allow it to defer payment of more 
than $2.5 million in penalties for failing to meet wholesale and 
retail service-quality standards for October.  (12/21/01) The 
company paid $575 for wholesale service-quality penalties in 
September.  

In total, Ameritech Corp., will pay more than $1 million in 
penalties in October for failing to meet wholesale service-
quality standards in established by the public utility 
commissions in its incumbent territory.  The company may also pay 
an additional $2.5 million in penalties assessed by the Wisconsin 
Public Service Commission for October.  

In September, Ameritech paid $863,000 in penalties for failing to 
meet wholesale service-quality standards in its operating region.  
(12/27/01)

______________________________________________________

OKLAHOMA -- Gov. Keating proposes new telecom tax 

Gov. Frank Keating (R.) has recommended assessing a 5.9% tax on 
telecom services as part of a plan that would replace the state 
income tax with a tax on several services.

Rep. Clay Pope (D.), chairman of the House Revenue and Taxation 
Committee, said he didn't have all the data necessary to make an 
"informed judgment" about Mr. Keating's proposal.  "Extending a 
5.9% state tax to telephone and utility bills, barber shops and 
beauty salons, apartment rentals and hotel rooms, bank fees, and 
services would increase expenses for most Oklahomans," Mr. Pope 
said.  "The governor claims that under his proposal everyone 
would get an immediate raise," Mr. Pope added.  "But if his plan 
is indeed 'revenue neutral', then somebody will have to pay for 
someone else's tax exemptions.  At this point, it is impossible 
for us to know who would be the winners and who would be the 
losers."

"The current Republican tax plan appears to be counter-productive 
to helping create an environment in Oklahoma that encourages 
growth and opportunity," House Majority Leader Danny Hilliard 
(D.) said.

______________________________________________________

VIRGINIA -- SCC says, bring 'recip-comp' dispute to FCC

The Corporation Commission has told KMC Telecom of Virginia, 
Inc., to bring its interconnection dispute related to Verizon 
Virginia, Inc.'s nonpayment of reciprocal compensation charges to 
the FCC.  KMC asked the SCC to enforce its agreement with 
Verizon, which it said requires reciprocal compensation for 
payment of Internet service provider (ISP) traffic.  

The agreement requires the companies to pay reciprocal 
compensation for local calls.  KMC pointed out that the SCC 
determined in an earlier case that ISP traffic should be 
considered local.  The company said the FCC's recent decision on 
compensation for ISP traffic shouldn't affect the SCC's decision.  

KMC noted that the FCC said its decision doesn't "alter existing 
contractual obligations" and "does not preempt any state 
commission decision regarding compensation for ISP-bound traffic 
for the period prior to the effective date of the interim regime 
we adopt here."  The FCC's order excluded ISP traffic from 
reciprocal compensation and ordered a 36-month transitional 
scheme governing compensation for Internet traffic. 

The SCC said it "remains steadfast in its concern regarding the 
possibility of conflicting results by the [Virginia] commission 
and the FCC."  The SCC added, "the most practical action is for 
this commission to decline jurisdiction and allow the parties to 
present their case to the FCC."  (Case PUC010239)

______________________________________________________

TEXAS -- SW Bell calls new DSL PMs 'extreme,' 'punitive'

Southwestern Bell Telephone Co. has asked the Public Utility 
Commission to reconsider or stay its decision revising the 
incumbent's DSL (digital subscriber line service) performance 
measures.  SW Bell said the new measures were "extreme" and 
"punitive."  SW Bell asked the commission to consider the 
financial and operational costs of implementing the performance 
changes compared to the benefits "if any" to CLECs (competitive 
local exchange carriers).

In October, the commission changed SW Bell's penalty structure 
for missing DSL performance measures from a "per occurrence" to a 
"per measure" method.  The commission also required SW Bell to 
(1) improve the accuracy level of its LFACS (loop facilities 
assignment and control system) database, which competitors use to 
qualify loops, and (2) test the accuracy of its loop 
qualification information.  

SW Bell said the revised penalty structure increased its 
potential DSL-related penalty payments to more than $35 million a 
year.  The "per measure" payments require SW Bell to pay huge 
penalties regardless of volumes inviting competitors "to 
arbitrage the remedy plan as an additional revenue source," SW 
Bell said.  The "per measure" penalty structure could require SW 
Bell to pay hundreds of thousands of dollars per month to a 
competitor that has only one missed order, SW Bell added.

The new accuracy requirements would require SW Bell to manually 
inventory every plant record in the state, the incumbent said.  
The potential cost associated with this effort could exceed $1 
billion, SW Bell said.  Testing a sample of its loop 
qualification information would cost more than $1 million, SW 
Bell added.  (Project 20400)

______________________________________________________

VIRGINIA -- Broadstreet customers must find a new carrier

About 450 Broadstreet Communications business customers in 
Tidewater and Richmond have until Jan. 2, 2002, to find a new 
telephone carrier, the Corporation Commission has reported.  
Service to those customers was cut off Dec. 18 following a 
payment dispute between Broadstreet and its underlying carrier, 
Dominion Telecom.  

Service was restored Dec. 19 at the commission's request, but 
Dominion only agreed to provide dial tone until Jan. 2, 2002.  An 
SCC spokesman told TR that most of the customers have already 
begun to migrate to other carriers.  The company was in the 
process of informing customers that it would be terminating 
service in about 30 days.  

Dominion told Broadstreet its connection would be terminated for 
non-payment 10 days before the service was cut off, the 
commission said.  

Verizon Virginia, Inc., and Verizon South, Inc., are the 
incumbent carriers in the region.

______________________________________________________

WISCONSIN -- Gov. McCallum appoints commerce secretary

Gov. Scott McCallum (R.) has appointed Phil Albert as secretary 
of the Department of Commerce.  Mr. Albert has been the agency's 
acting secretary since August.  (9/04/01)

Mr. Albert was the agency's deputy secretary before being 
appointed acting secretary.  

______________________________________________________

ALASKA -- USLD to lower calling card rate

U.S. Long Distance, Inc., has filed a tariff revision with the 
Regulatory Commission lowering the rate for its prepaid calling 
rate from 66-cents per "unit" to 35-cents per "unit."  The card 
comes in preset values of $5, $10, and $25.  Comments on the 
request are due Jan. 10, 2002.  (TA8-462)

______________________________________________________

CALIFORNIA -- Superior Court judge appointed

Gov. Grey Davis (D.) has appointed San Francisco Court 
Commissioner Newton J. Lam as a judge of the San Francisco 
Superior Court.  Mr. Lam has been a commissioner in the San 
Francisco Municipal and Superior Courts since 1993.  He will fill 
the vacancy created by the retirement of Judge Ina Gyemant.

______________________________________________________

CALIFORNIA -- Gov. Davis nominates appeals court judges

Gov. Gray Davis (D.) has nominated Sacramento Superior Court 
Judge Ronald B. Robie as an associate justice of the Court of 
Appeal, Third Appellate District (Sacramento). 

His nomination is subject to confirmation by the Commission on 
Judicial Appointments, which will consist of the chief justice of 
the California Supreme Court, the attorney general, and the 
presiding justice of the third appellate district, Justice Arthur 
G. Scotland.

The governor also nominated several judges to be on the 
California Court of Appeal, First Appellate District (San 
Francisco).  He nominated Associate Justice Laurence D. Kay as 
presiding justice of division four, Associate Justice James J. 
Marchiano as presiding justice of division one, San Mateo 
Superior Court Judge Linda M. Gemello as an associate justice in 
division five, Alameda County Superior Court Judge Sandra L. 
Margulies as an associate justice in division one, San Francisco 
Superior Court Judge Stuart R. Pollak as an associate justice in 
division three, and Contra Costa Superior Court Judge Maria P. 
Rivera as an associate justice in division four.

Each of these nominations is subject to confirmation by the 
Commission on Judicial Appointments, which will consist of the 
chief justice of the California Supreme Court, the attorney 
general, and Presiding Justice Anthony J. Kline of the First 
Appellate District. 

______________________________________________________

**TR's Survey of Cellphone Legislation** -- 

The issue of whether drivers should be allowed to talk on 
wireless phones proved to be a contentious issue during the 2001 
legislative season.  Although 36 state legislatures introduced 
bills during 2001 related to the use of wireless phones while 
driving, only one state--New York--implemented a law banning the 
use of hand-held wireless phones while driving.  The Rhode Island 
General Assembly passed a similar bill, but Gov. Lincoln Almond 
(R.) vetoed it.

The issue is sure to be considered by lawmakers during the 2002 
legislative sessions. Delaware Rep. Joseph E. Miro (R., District 
22), for example, has told TR he plans to sponsor legislation 
restricting the use of wireless devices while driving.  The 
measure will be introduced when the Delaware Legislature convenes 
Jan. 8, 2002.

Click here for TR's Survey of 2002 Cellphone Legislation:    
http://www.tr.com/insight.asp <http://www.tr.com/insight.asp



======================== END =========================

To view this issue online, go to http://www.tr.com/statenews/.

Federal law prohibits duplication in any form, including 
electronic, without permission of the publisher. 

TR's State NewsWire Copyright 2000, 2001 Telecommunications 
Reports International, Inc.  (ISSN 1082-9350) is transmitted each 
business day, except holidays.

Telecommunications Reports International, Inc.
1333 H St. NW, Suite 100-E
Washington, DC 20005-4707


Gayle Kansagor, E-mail: mailto:gkansagor@tr.com
Editor

Susan McGovern,  E-mail: mailto:smcgovern@tr.com
Associate Editor

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

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

Account Services:
Christy Iredell (202) 312-6051, (202) 312-6065 (fax), E-mail: 
mailto:ciredell@tr.com