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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 19, 2001 

STATES
MISSOURI -- PSC suspends SW Bell's long distance tariffs
ILLINOIS -- ICC lowers UNE charge, promotes UNE offerings
VIRGINIA -- AG sues Tungsten for telemarketing fraud
MISSOURI -- Staff wants to deny SW Bell LD service 'competitive' 
status
NEVADA -- Clark County mulls cellphone ban
NORTH DAKOTA -- PSC to hold hearing on Qwest's PAP
VIRGINIA -- Staff proposes new pay phone rules
TENNESSEE -- TRA mulls expedited review of intercompany 
complaints
CALIFORNIA -- PUC to mull raising relay reimbursement rate
WASHINGTON -- Fairpoint wants customers transferred to ATG
MASSACHUSETTS -- Town meeting to decide fate of cell towers
TEXAS -- Staff revises schedule for '903' 'overlay'
INDIANA -- URC approves '219' permissive dialing date
WISCONSIN -- Committee votes to sponsor privacy bill
WISCONSIN -- Assembly, Senate abolish caucus staff
WEST VIRGINIA -- Derelict tower to be donated to Citizens
PENNSYLVANIA -- Gov. Schweiker launches 'e-security' initiative
CALIFORNIA -- Commission confirms Supreme Court nominee
MONTANA -- Gov. Martz warns of telemarketing scam
PENNSYLVANIA -- North Pittsburgh Telephone receives billing 
waiver
NORTH CAROLINA -- Mandatory 10-digit dialing in '919' NPA delayed
TEXAS -- WorldCom shifts liability for collection charges to 
customers
CONNECTICUT -- DPUC reschedules POTS oral arguments
ILLINOIS -- ICC to cosponsor '911' conference
WISCONSIN -- Global eScience to provide broadband service
PENNSYLVANIA -- Verizon previews 'express network'

REGIONAL
WideOpen, Gemini to deploy broadband services

______________________________________________________

MISSOURI -- PSC suspends SW Bell's long distance tariffs

The Public Service Commission has suspended Southwestern Bell 
Communications Services, Inc.'s long distance subsidiaries' 
tariffs until Feb. 17, 2002.  The commission will review the 
tariffs, which were part of the subsidiaries' applications for 
certificates to offer telecom service, at a prehearing conference 
today.  Southwestern Bell Long Distance and SBC Long Distance 
applied for certificates.

The commission's tariff suspension could delay SW Bell's entry 
into the long distance market.  The FCC has until Nov. 18 to 
approve or reject SW Bell's application to provide in-region 
interLATA (local access and transport area) service under section 
271 of the federal Telecommunications Act of 1996.  

AT&T Communications of the Southwest, Inc., said the rates in the 
subsidiaries' proposed tariffs were predatory.  If the 
subsidiaries were required to pay SW Bell's switched access 
charges, their rates would be priced below cost, AT&T said.  SW 
Bell characterized AT&T's predatory pricing claims as further 
attempts to delay SW Bell's entry in the long distance market and 
dispute the incumbent's access charges.  (Case TA-2001-475; TA-
99-47)

______________________________________________________

ILLINOIS -- ICC lowers UNE charge, promotes UNE offerings

The Commerce Commission has ordered Ameritech-Illinois to lower 
its one-time nonrecurring unbundled network element platform 
(UNE-P) charge from $11.79 to $1.02.  The commission also ordered 
Ameritech to make combinations of UNEs available to competitive 
local exchange carriers.

Earlier this year, Ameritech-Illinois lowered its UNE-P charge 
from $29.54 to $13.17.

The ICC's decision follows other state utility commissions in the 
Ameritech region.  The Ohio Public Utilities Commission ordered 
Ameritech-Ohio to lower its UNE-P charge from $111 to 74 cents 
earlier this month.  (Docket 98-0396)

______________________________________________________

VIRGINIA -- AG sues Tungsten for telemarketing fraud

Attorney General Randolph Beales yesterday said that he filed an 
injunction with the U.S. District Court for the Eastern District 
of Virginia (Norfolk) against the Tungsten Group, Inc., for 
fraudulent telemarketing practices in an "advance fee loan" 
scheme.  

A spokesman for the AG's office explained that the company called 
consumers and told them they would receive a loan or other 
extension of credit in exchange for (1) an advance fee of $100, 
(2) an enrollment fee of $40, and (3) a first and last months' 
payment of $30.  The company operated this scheme under the name 
of American Savings Discount Club (ASDC).

Materials mailed to consumers who agreed to the plan informed 
them that they were qualified for "rebates" on various purchases 
and "might" qualify for a loan if they remain in good standing 
with ASDC after 90 days.  The $30 then became, in reality, a 
monthly membership fee for ASDC's "buying club," the AG's office 
said.  The AG's office has received 215 complaints against the 
company since May 1999.

A meeting on the motion for injunction will be held Oct. 26 at 
the U.S. District Court for the Eastern District of Virginia in 
Norfolk.

______________________________________________________

MISSOURI -- Staff wants to deny SW Bell LD service 'competitive' 
status

The Public Service Commission staff has recommended denying 
Southwestern Bell Long Distance's and SBC Long Distance's long 
distance service "competitive" status. 

SW Bell's long distance subsidiaries aren't "similarly situated" 
as other long distance companies because they have "opportunities 
to potentially subsidize" their long distance service, the staff 
said.

The "shackling" of the subsidiaries with noncompetitive status 
would thwart the companies' ability to compete in the long 
distance market, SW Bell said.  A "noncompetitive" classification 
would subject the companies' tariffs to a 30-day notice 
requirement and "file and suspend" procedures for tariff changes, 
which could delay approval of tariff changes for up to 11 months, 
SW Bell said.  

Noncompetitive status would also require the subsidiaries to file 
cost-of-service studies with proposed rate changes.  Competitive 
long distance companies can increase their rates on 10 days' 
notice and decrease their rates on seven days' notice without 
filing cost-of-service studies.

The staff recommendation, if approved, could delay Southwestern 
Bell Telephone Co.'s entry into the long distance market.  The 
FCC has until Nov. 18 to approve or reject SW Bell's application 
to provide in-region interLATA (local access and transport area) 
service under section 271 of the federal Telecommunications Act 
of 1996.

There is "absolutely no basis for singling out" the subsidiaries 
for "disparate regulatory treatment," SW Bell said.  (Case TA-
2001-475; TA-99-47)

______________________________________________________

NEVADA -- Clark County mulls cellphone ban

Clark County Commissioner Erin Kenny has introduced an ordinance 
that would prohibit anyone in the county from using a hand-held 
wireless phone while driving.  Drivers would be able to use a 
hand-held device in case of an emergency.  

The ordinance would apply to all the unincorporated areas of 
Clark County, which includes all of southern Nevada, Ms. Kenny 
told TR.  She added that the strip of large hotels and casinos 
most tourists visit in Las Vegas isn't actually within the Las 
Vegas city limits.  The city has no jurisdiction over that area, 
and the proposed prohibition, therefore, would apply there.  

Ms. Kenny said she was prompted to introduce the ordinance 
following a fatal accident near her home several months ago.  A 
driver was distracted while using a wireless phone, ran a red 
light, and killed two women, she said.  The case will be going to 
trial in a couple of months.  

Opposition to the ordinance is "fierce," Ms. Kenny said.  She 
added that the phone companies, conservative talk radio stations, 
and police department oppose the measure.  The ordinance was 
introduced last Tuesday and Ms. Kenny said she felt confident 
that she had the necessary support before the "onslaught of 
opposition" began.  A public hearing on the ordinance is 
scheduled for Nov. 6.  

______________________________________________________

NORTH DAKOTA -- PSC to hold hearing on Qwest's PAP

The Public Service Commission has scheduled a Nov. 8 hearing to 
discuss remaining issues in dispute related to Qwest Corp.'s 
performance assurance plan (PAP).  North Dakota is part of a 
multistate collaborative examining the plan.  

The issues the commission plans to discuss include collocation, 
digital subscriber line intervals, unbundled network element 
prices, and structural separation.

The examination of Qwest's plan is part of its bid to enter the 
in-region interLATA (local access and transport area) services 
market under section 271 of the federal Telecommunications Act of 
1996.  The plan seeks to ensure that the local market remains 
open.  (Case PU-314-97-193) 

______________________________________________________

VIRGINIA -- Staff proposes new pay phone rules

The Corporation Commission staff has proposed new rules to govern 
pay phones operating in the state, stating that pay phones use 
has "diminished over the last few years."  The new rules, the 
staff said, would modernize regulations to address changes in 
technology and usage.

The new rules would apply to pay phone service providers, local 
exchange carriers serving pay phones, and operator service 
providers (OSPs).  The staff suggested eliminating rate caps on 
operator assistance made from pay phones and, instead, require 
all OSPs to quote their rate for the service selected before the 
calls were completed.  The staff said that this would change the 
rules from "price regulation to disclosure regulation."

Comment on the proposed rules or hearing requests must be 
submitted by Nov. 14.  The full text of the order and proposed 
regulation is available at 
http://www.state.va.us/scc/caseinfo/puc/case/c010186.pdf.  (Case 
PUC010186 -- In the Matter of Revising Rules Governing Payphone 
Service and Instruments)

______________________________________________________

TENNESSEE -- TRA mulls expedited review of intercompany 
complaints

The Regulatory Authority is considering implementing rules 
establishing procedures for reviewing complaints between telecom 
companies.  The revised procedures would govern disputes about 
reciprocal compensation payments as well as other complaints, the 
TRA staff told TR.

The TRA is slated to decide Oct. 23 whether to develop special 
procedures for intercompany complaints.

______________________________________________________

CALIFORNIA -- PUC to mull raising relay reimbursement rate

The Public Utilities Commission has proposed raising the 
California Relay Service (CRS) reimbursement rate for Sprint 
Corp. through Oct. 11, 2002.  Under the proposed resolution, 
Sprint's reimbursement rate would increase from $1.09 per 
conversation minute to $1.34, retroactively from Jan. 1 through 
June 18.  From June 19 through Oct. 11, 2002, the reimbursement 
rate would rise to $1.35.

The proposed resolution would be a second amendment to the 
company's amended master agreement.  Effective Oct. 11, 2001, 
through Oct. 11, 2002, Sprint would be the state's secondary CRS 
provider.  WorldCom, Inc., is the primary provider.  

The proposed resolution would require Sprint to have at least one 
CRS project manager based in California.  The company would be 
required to provide a minimum annual expenditure of $250,000 in 
outreach and education through the state.  Sprint also would need 
to spend an additional $25,000, which would be used as directed 
by the Deaf and Disabled Telecommunications Program for outreach 
and education.

The PUC is scheduled to consider the resolution at its Oct. 25 
meeting.  (Resolution T-16595)

______________________________________________________

WASHINGTON -- FairPoint wants customers transferred to ATG

FairPoint Communications Solutions Corp. has asked the Utilities 
and Transportation Commission for authority to transfer its 
entire Washington customer base to Advanced Telcom Group (ATG).  
FairPoint told the UTC that it is exiting the market because of 
"financial market conditions, " a UTC staff member told TR.  The 
staff member also said that FairPoint served between 10,000 and 
20,000 customers in the state.  

Because FairPoint wants to transfer its customer base, the 
commission's emergency rule governing service terminations 
wouldn't apply to this situation, the staff member said.  He 
explained that the emergency rule sought to guard against 
customers unexpectedly loosing service.  

In this case, FairPoint must either receive permission from the 
commission or from its customers.  The company asked for 
expedited action on the petition.  The staff member said the 
commission would likely act on the petition Oct. 24.

The staff member said the commission wants the customers to be 
informed before the transfer takes place.  In addition, ATG would 
be required to offer FairPoint's customers the same rates they 
receive from FairPoint for 90 days.  (Docket UT-011404)

______________________________________________________

MASSACHUSETTS -- Town meeting to decide fate of cell towers

The town of Hudson will be holding a Nov. 19 town meeting to 
decide whether the town should allow cell towers to be 
constructed in residential and industrial zones.  Currently, cell 
towers can only be built in four isolated, municipally owned 
areas, a spokesperson for the town of Hudson told TR.

Allowing cell towers in other areas would require the town to 
rewrite its zoning bylaws to reclassify several commercial and 
industrial areas as wireless communication facility overlay 
districts.  That classification means the town would allow 
telecommunications equipment to be built in the area.

Town Finance Committee Chairman Duane Searles said his committee 
would report unfavorably on the measure, stating that current 
needs are satisfied by the four sites already housing cell 
towers.  Those sites are at the highest points in the town.

To pass the proposed bylaws, two-thirds of those present must 
vote in favor of the measure.  The meeting must also have quorum, 
which consists of at least 100 registered Hudson voters.

______________________________________________________

TEXAS -- Staff revises schedule for '903' 'overlay'

The Public Utility Commission staff has revised its proposed 
schedule for implementing an "overlay" to relieve number 
"exhaust" in the "903" area code.  Permissive 10-digit dialing 
should begin April 20, 2002, with mandatory dialing starting Oct. 
19, 2002, the staff said.  Without a relief plan, number 
resources in the 903 area code are projected to exhaust during 
first quarter 2003.  (6/21/01)

The staff originally recommended that permissive dialing begin 
April 15, 2002, with mandatory dialing slated for Oct. 15, 2002.  
(10/9/01)  Southwestern Bell Telephone Co. asked the staff to 
revise its schedule so that carriers could make necessary network 
changes during non-peak hours on Saturday.  (Project 22749)

______________________________________________________

INDIANA -- URC approves '219' permissive dialing date

The Utility Regulatory Commission has ordered permissive dialing 
to begin in the "219" area code Jan. 15, 2002.  (07/12/01)

The order also amended the boundaries for the new area codes the 
URC established in a June 14 order.  In that order, the 
commission approved a three-way geographic split.  Rolling 
Prairie, La Porte, Westville, Union Mills, and Hanna were moved 
from the "574" area code to the 219 area code.  Ligonier and 
Cromwell were moved from the 574 area code into the "260" area 
code.

______________________________________________________

WISCONSIN -- Committee votes to sponsor privacy bill

The Assembly Committee on Personal Privacy yesterday agreed in 
principle to introduce a privacy bill (LRB-3774/3) that would 
fine telephone solicitors $100 if they used a blocking device 
that defeats caller identification when making a telephone 
solicitation. 

A committee spokesperson told TR that the committee wanted to 
make a few changes to the proposed legislation.  The spokesperson 
added that the amended measure would likely go before the 
committee later next week.  He added that the telephone solicitor 
provision is not scheduled to receive any changes.

The proposal covers several other issues such as access to public 
records containing personally identifiable information.  The 
measure would grant the Department of Agriculture, Trade, and 
Consumer Protection enforcement authority regarding the 
prohibition. 

______________________________________________________

WISCONSIN -- Assembly, Senate abolish caucus staff

The Assembly yesterday voted to abolish staff support for the 
Democratic and Republican caucuses for both the Assembly and the 
Senate by a vote of 86-8.  The move follows the Senate's 30-3 
vote on Tuesday to end the caucus staff system.  (10/12/01)

The change also requires that new rules be enforced to closely 
monitor legislative staff.  Under the new rules, caucus staff 
support for members will end Jan. 1, 2002.  At that time their 
office space will be vacated.  

Moreover, "employees of [the] Wisconsin [Legislature] are flatly 
prohibited from engaging in campaign activities on state time," 
said Roth Judd, director of the Wisconsin Ethics Board.  
Employees are also prohibited from engaging in campaign 
activities while using comp-time, Mr. Judd told TR.  The use of 
vacation time is also illegal unless special advance notice is 
given to the employee's supervisor.

Legislative staff also must fill out weekly time sheets 
certifying to the chief clerk that no campaign activities were 
conducted on state time. 

______________________________________________________

WEST VIRGINIA -- Derelict tower to be donated to Citizens

The Public Service Commission has decided to donate an unused, 
180-foot radio tower and its 1.5-acre lot to Citizens 
Telecommunications Co.  The book value of the tower and lot is 
$9,400, but Citizens said that it would account for the donation 
on its books at a value of $63,000.

The PSC agreed with Citizen's assertion that donating the tower 
would enhance Hardy County's ability to provide enhanced "911" 
services and, therefore, would improve delivery of emergency 
services and serve the public benefit.  (Case 01-1246-T-PC)

______________________________________________________

PENNSYLVANIA -- Gov. Schweiker launches 'e-security' initiative

Gov. Mark Schweiker (R.) has unveiled a new "e-security" 
initiative called "PA Secure Online," that seeks to enhance 
Internet security and privacy throughout the state's government 
Web sites.

The program will establish an ombudsman to bring all state 
agencies into compliance with state and federal privacy policies 
and will create an educational program to teach state officials 
to detect and pursue security threats.  A spokesman for the 
governor said the program would be completed by early spring.

Gov. Schweiker has also asked the General Assembly to amend the 
state's Crimes Code to address crimes committed by hackers and 
allow for law enforcement officials to reach across 
jurisdictional lines to pursue such crimes.

______________________________________________________

CALIFORNIA -- Commission confirms Supreme Court nominee

The Commission on Judicial Appointments has confirmed the 
nomination of Judge Carlos R. Moreno to be an associate justice 
of the state Supreme Court, filling the vacancy created by 
Justice Stanley Mosk's death in June.  Judge Mosk was the 
longest-serving justice on the state Supreme Court.

Judge Moreno has been a judge for the U.S. District Court, 
Central District of California, since his appointment by former 
President Clinton in February 1998.  Before being appointed to 
the district court, Judge Moreno was a judge on the Los Angeles 
County Superior Court from 1993-1998. 

Gov. Gray Davis (D.) nominated Judge Moreno in September.  
(9/27/01)  The commission consists of the chief justice, attorney 
general, and Presiding Justice Joan Dempsey Klein of the Second 
Appellate District.

______________________________________________________

MONTANA -- Gov. Martz warns of telemarketing scam

Gov. Judy Martz (R.) has warned citizens to be aware of a new 
telemarketing scam that focuses on senior citizens.  The scam 
artists claim to be selling "identity prevention" theft kits, 
antitelemarketing kits, and credit card insurance, according to 
the state Office of Consumer Protection.  The scam targets credit 
cards and bank account numbers.

Cort Jensen, attorney for the Office of Consumer Protection, said 
this new type of scam artist is "very aggressive."  "These 
criminals will not take 'no' for an answer.  They demand you give 
them your credit card number or your bank account number," he 
said.  

"They state you will be billed about $30, but in fact they plan 
to bill you $30 a month for 10 to 12 months.  The contact number 
they provide is not their own.  It is the customer service number 
for a business with no association with them," he added.  

______________________________________________________

PENNSYLVANIA -- North Pittsburgh Telephone receives billing 
waiver

The Public Utility Commission has authorized North Pittsburgh 
Telephone Co. to offer single-priced service packages to 
customers and has waived certain billing requirements for the 
company.  The PUC said its decision would allow the company to 
compete with wireless carriers' single-rate packaged plans, which 
are already being offered in the area.

North Pittsburgh had requested a waiver of rules that require (1) 
charges for toll service and usage be itemized on monthly bills, 
(2) partial bill payments be applied first to basic telephone 
service and then to nonbasic service, and (3) basic service and 
toll or nonbasic service be billed separately.  

The waiver will ensure that customers don't loose basic service 
as a result of not paying the single rate package plan charge or 
other charges in the toll portion of their bills.

The company must send a disclosure statement to its customers, 
apprising them of the portion of the bill that will contain the 
single price charge for the package plan.  The notice also must 
inform the customers that basic service will not disconnected for 
"nonpayment of package rate charges or other charges in the 
category containing the package charges."

The full text of the order is available at 
http://puc.paonline.com/PcDocs/282889.doc.  (Docket P-00011899)

______________________________________________________

NORTH CAROLINA -- Mandatory 10-digit dialing in '919' NPA delayed

The Utilities Commission has decided to postpone indefinitely 
mandatory 10-digit dialing in the "919" area code.  BellSouth 
Telecommunications, Inc., Carolina Telephone and Telegraph Co., 
Central Telephone Co., Sprint Communications Co. L.P., North 
State Communications, Time Warner Telecom of North Carolina L.P., 
and Verizon South, Inc., requested the postponement.  (10/16/01)

The activation of the new "984" overlay for the 919 area code and 
the introduction of mandatory 10-digit dialing was scheduled for 
Feb. 6, 2002.  (5/23/01)  Number conservation measures, however, 
extended the projected "exhaust" date for the 919 area code until 
fourth quarter 2003.  Permissive 10-digit dialing, which began 
Aug. 1, will remain in place.  (Docket P-100, sub 137B)

______________________________________________________

TEXAS -- WorldCom shifts liability for collection charges to 
customers

WorldCom Technologies, Inc., has made its local service customers 
liable for certain expenses the company incurs to collect 
delinquent payments.  

If the company hires a collection agency to collect delinquent 
bills, customers are liable for an additional payment "equal to 
35% of the charges owed, where permitted by applicable law."  
Customers are also liable for other expenses WorldCom incurs, 
including attorney's fees, in attempts to collect delinquent 
bills.

______________________________________________________

CONNECTICUT -- DPUC reschedules POTS oral arguments

The Department of Public Utility Control has rescheduled oral 
arguments regarding an investigation of Southern New England 
Telephone Co.'s service quality.  The arguments, which had been 
scheduled for Oct. 18, will now be held Nov. 21.

The DPUC has directed SNET to conduct a feasibility study that 
"desegregates service-quality performance for a sample number of 
towns and locales" that aren't served by central offices.  The 
study examines a sample group of the 54 Connecticut towns not 
served by their own central offices.

The department decided to initiate the study after the town of 
Rocky Hill filed a complaint seeking an investigation into the 
POTS (plain old telephone service) SNET provided to the town.  
The town's filing included a petition signed by 60 residents 
complaining about the POTS service quality.

After investigation, the DPUC determined that the complaint 
raised significant questions about the telco's performance.  The 
DPUC determined that the complaints of "delayed or no dial tones, 
delayed ringing, cross talk resulting from line interference, and 
poor signal reception" merited study.  (09/04/01)  (Docket 01-01-
06)

______________________________________________________

ILLINOIS -- ICC to cosponsor '911' conference

The Commerce Commission will cosponsor the 17th annual conference 
for public safety telecommunications officials with the Illinois 
Association of Public Safety Communication Officers and the 
Illinois chapter of the National Emergency Number Administrators 
(INENA).  The conference will be held Oct. 22-24 in Springfield.

The conference will include information on a new statewide 
digital radio system, wireless implementation updates, and 
violence in the workplace.

For more information contact Mike Midiri Jr., president of the 
INENA at 217-789-2302.

______________________________________________________

WISCONSIN -- Global eScience to provide broadband service

Global eScience Corp. has launched its new digital subscriber 
line service to consumers in Baldwin.  "We are focusing on the 
data connection to the Internet-we are not trying to be your next 
telephone company," said Global eScience Chief Executive Officer 
Virgil Hentz.  

______________________________________________________

PENNSYLVANIA -- Verizon previews 'express network'

Verizon Wireless is now previewing its high-speed 1XRTT advanced 
wireless network, dubbed the "express network" in Philadelphia.  
A group of customers and application developers are testing the 
functionality and applications for the network, which is expected 
to be able to deliver between 40 and 60 kilobits per second to 
customers.  The company said that the network should be rolled 
out by the fourth quarter of this year.

______________________________________________________

ILLINOIS, MICHIGAN, OHIO -- WideOpen, Gemini to deploy broadband 
services

WideOpen West and Gemini Voice Solutions have completed 
subscriber trials and a planned expansion of Gemini's broadband 
voice service over WideOpen's high-capacity broadband network.  

Because it has met both technical and customer performance 
criteria, WideOpen said it will begin offering broadband 
telephone service.  The company also plans to offer broadband 
Internet service and digital cable TV service to customers in its 
Denver metro area.  WideOpen will launch these services in other 
regions at a later date.  


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

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