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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 29, 2001 

STATES
ALASKA -- RCA sets interim UNE rates
OHIO -- Bill would strip 'alt reg' from noncompliant carriers
TENNESSEE -- BellSouth, Sprint object to proposed billing rule
MINNESOTA -- Lawmakers to discuss broadband availability
CALIFORNIA -- PUC modifies Citizens sale conditions
VIRGINIA -- SCC says FCC should decide 'recip comp' dispute
MICHIGAN -- Senate proposes wiretapping bill
MASSACHUSETTS -- DTE to look at interstate special access 
services
NEW YORK -- PSC releases Verizon service-quality report
NEW JERSEY -- Utilities working on disaster protocols
ARKANSAS -- Sage requests waiver from inside-wire rule
MAINE -- PUC investigates Maine-New Hampshire conduit
ALASKA -- State should inventory IT assets, experts say
MISSOURI -- PSC revises 'pooling' schedule for '314,' '816' NPAs
TENNESSEE -- Sprint to launch 'talking call waiting'
CALIFORNIA -- Gov. Davis makes judicial appointments
DISTRICT OF COLUMBIA -- PSC collocation hearing rescheduled
NEW YORK -- PSC orders three companies to return 'NXX' codes
IOWA -- Gov. Vilslack to swear in new appeals court judge
ARIZONA -- Industry wants to identify key issues
ALASKA -- ACS to offer 'military service appreciation plan'
FLORIDA -- AOL, EarthLink roll out cable modem service
PENNSYLVANIA -- Robots to install fiber-optics in Pittsburgh 
sewers
DELAWARE -- Children learn to make '911' calls

______________________________________________________

ALASKA -- RCA sets interim UNE rates

The Regulatory Commission has set ACS of Anchorage, Inc.'s (ACS-
AN's) interim and refundable unbundled network element (UNE) rate 
at $14.92.  The existing UNE rate was set in 1996 and at that 
time the commission said the prices were temporary and would 
require a full study.  

The commission determined that it would use the FCC's forward-
looking cost model to calculate ACS-AN's interim UNE rate.  ACS-
AN ran the FCC model and its own version 7.2 model to compute its 
forward-looking costs.  The FCC model produced a $25 rate, and 
the version 7.2 model yielded a $25.49 rate.  ACS-AN therefore 
asked the RCA to set the rate for Anchorage at $24 per local 
loop.  The commission hasn't approved the version 7.2 model.

General Communication, Inc. (GCI) opposed the interim rate, 
stating that ACS-AN failed to show that the rate was consistent 
with applicable FCC pricing rules.  GCI added that the FCC model 
ACS-AN used wasn't the model used by ACS-AN's affiliates in 
Fairbanks or Juneau.  GCI asserted that unless ACS-AN could 
demonstrate that its proposed $24 rate was consistent with FCC 
rules it should be rejected.

GCI said it ran the FCC model using Anchorage customer and wire 
center information with the inputs from the Juneau-Fairbanks 
arbitration and produced a $14.92 loop rate.  Using FCC default 
values, GCI produced a $12.94 rate.

Although ACS-AN said the record supports a $24 interim and 
refundable rate, it was unable to tie that request to any data 
filed with the National Exchange Carriers Association, the 
commission said.  The RCA added that the request was "premised on 
an untested and unapproved methodology."

The commission said it wouldn't "order interim UNE rates based on 
a UNE pricing model which hasn't been adopted by us or on cost 
support date and inputs which have not been subject to scrutiny."  
The commission pointed out that incorrectly set UNE prices could 
"undermine" the intent of the federal Telecommunications Act of 
1996 in a manner that couldn't be remedied by refundable rates.  
(Docket U-96-89)

______________________________________________________

OHIO -- Bill would strip 'alt reg' from noncompliant carriers

Rep. Kirk Schuring (R., District 55) has introduced HB 418, which 
would require telecom companies to comply with the minimum 
standards of telephone service (MSTS) in order to be regulated 
under alternative forms of regulation.  

In addition, the Public Utilities Commission would be authorized 
to place a company being regulated by an alternative form of 
regulation under rate-of-return regulation if that company failed 
to meet the MSTS.  HB 418 awaits consideration by the House 
Committee on Rules and Reference.  

______________________________________________________

TENNESSEE -- BellSouth, Sprint object to proposed billing rule

BellSouth Telecommunications, Inc., and United Telephone 
Southeast, Inc., d/b/a Sprint, have objected to a proposed 
Regulatory Authority rule that would prohibit telecom companies 
from disconnecting local service for nonpayment of long distance 
charges.

Sprint said it experienced "increased bad debt expenses" in other 
states that had implemented the requirement.  BellSouth said the 
requirement was "unfair."  The additional costs associated with 
billing and collecting payments would ultimately be shifted to 
customers who pay their bills, BellSouth said.  (Docket 00-00873)

______________________________________________________

MINNESOTA -- Lawmakers to discuss broadband availability

Legislators on the Committee on Regulated Industries, headed by 
Rep. Ken Wolf (R., District 41), plan to meet with local 
officials in Lakefield and Blue Earth tomorrow to discuss the 
availability of broadband Internet access in rural Minnesota.  

A committee spokesperson told TR that the hearings in Lakefield 
and Blue Earth would give proponents and opponents of broadband 
legislation the opportunity to demonstrate why House action may 
or may not be necessary.  The spokesperson described the hearings 
in Lakefield and Blue Earth as a "fact finding" investigation 
where local citizens and local telecom providers can discuss 
broadband issues with committee members. 

Representatives have proposed no broadband legislation at this 
time.   

The spokesperson added that Lakefield residents and city 
officials were likely to express their support for legislation 
that would make it easier for area residents to receive broadband 
services.  In contrast, the spokesperson added that there are a 
number of opponents to state-funded support for any kind of 
broadband legislation in Blue Earth because service is already 
available there.  Any taxes or regulations imposed on telecom 
providers or citizens could have a negative effect on other 
state-funded programs. 

The spokesperson said the committee intended to bring these 
broadband hearings to local communities to receive comments from 
local telecom providers and community members, rather than 
lobbyists representing the large carriers.  "We are trying to 
steer testimony to local opponents and proponents," he said.

Sprint Corp., and Frontier Corp., two local telecom providers in 
Lakefield and Blue Earth, would likely present testimony at the 
hearing, the spokesperson said.

According to the spokesperson, the 20-member committee should 
only miss about five to 10 of its members for this short series 
of "on the road" meetings.  

The committee also plans to tour a central office (CO) from a 
selected local telecom provider in Madelia before the Lakefield 
and Blue Earth hearings.  Members will also tour local businesses 
using broadband services such as digital subscriber line (DSL) 
service.  

______________________________________________________

CALIFORNIA -- PUC modifies Citizens sale conditions

The Public Utilities Commission has modified the conditions it 
placed on Citizens Telecommunications Co. of California to 
purchase 32 exchanges from Verizon California, Inc.  Citizens 
requested the changes and said it wouldn't acquire the exchanges 
if its requests weren't granted.

Citizens was opposed to a condition (condition four) prohibiting 
it from paying a dividend to its parent company Citizens 
Communications Co. if doing so would jeopardize the utility's 
ability to provide safe and reliable service at reasonable rates.  
Citizens asserted that condition four would impede its access to 
capital markets.  Without capital, it can't invest in 
infrastructure to improve and expand service, Citizens said.  

The commission modified the condition to require the boards of 
directors of all the operating companies and the parent company 
to give first priority to the capital needs of the utility.  The 
condition also would direct the parent company to provide 
"sufficient resources" to the operating companies to provide safe 
and reliable service.  

The decision also decreases the number of years Citizens must 
maintain capital expenditures at historical levels from five 
years to three years (conditions 12 and 13).  The commission 
concluded that approving this request doesn't "eviscerate" its 
objective of ensuring that Citizens provides adequate services to 
all of its customers.  The commission was concerned about the 
company's spending levels because it determined that the 
operating companies would be adversely affected by the exchange 
purchase.

The commission pointed out that considerable public benefit would 
be realized if the sale was consummated.  Those benefits include 
bringing telephone service to the unserved territory occupied by 
the Hoopa Valley Tribe and the Yurok Tribe, modernizing the 
infrastructure and service for the remote Bar-O Boys juvenile 
detention facility, and provisioning digital subscriber line 
service in Crescent City.

The commission said, "We conclude that rather than allow the 
public to lose these significant benefits of phone service and 
because of the health and safety consequences of not having phone 
services, we should grant Citizens' petition."  (Application 99-
09-027 and 99-09-031)

______________________________________________________

VIRGINIA -- SCC says FCC should decide 'recip comp' dispute

The State Corporation Commission has declined jurisdiction in a 
dispute between US LEC of Virginia LLC and Verizon Virginia, 
Inc., that involves contractual obligations to pay reciprocal 
compensation for Internet service provider (ISP)-bound traffic.

US LEC asked the SCC to enforce the companies' interconnection 
agreement that requires Verizon to pay reciprocal compensation 
for the transport and termination of ISP-bound traffic.  US LEC 
pointed out that SCC found that calls to ISPs were "local 
traffic" and subject to reciprocal compensation payments in a 
case between Cox Virginia Telecom, Inc., and Bell Atlantic-
Virginia, Inc.

In this case, the SCC concluded that the FCC's decisions to treat 
ISP-bound traffic as interstate in nature supercedes its 
jurisdiction in this case.  The SCC said it was "steadfast in its 
concern regarding the possibility of conflicting results by this 
commission and the FCC," and therefore "encourages the parties to 
request interpretation of this [interconnection] agreement from 
the FCC."

The order may be found at 
http://www.state.va.us/scc/caseinfo/puc/case/c010194.pdf.  (Case 
PUC010194)

______________________________________________________

MICHIGAN -- Senate proposes wiretapping bill

Sen. William Van Regenmorter (R., District 22) has sponsored SB 
803, which would give law enforcement officials the authority to 
intercept communications and use interception devices for drug 
trafficking offenses.  The bill is identical to HB 5240, which 
has been proposed in the House.  (10/25/01 a.m.)

A spokesperson for Sen. Van Regenmorter told TR that the 
"wiretapping" bill is part of a package of about 12 bills that 
are going to be proposed by lawmakers in response to the recent 
terrorist events.  The spokesperson said that the executive, 
legislative, and judicial branches of government are all involved 
in putting together these security measures.  

The spokesperson added that while SB 803 is very specific about 
the types of crimes that can be used for wiretapping such as drug 
trafficking offenses, he said it was likely the bill's authority 
to intercept communications would be amended through the mark-up 
process.

A House Criminal Justice Committee spokesperson told TR that 
Michigan laws currently don't authorize state and local law 
enforcement officials to engage in wiretapping activities to 
fight crime.  He said that Michigan has no statutes on the 
subject. 

SB 803 has been referred to the Senate Committee on Judiciary.  

______________________________________________________

MASSACHUSETTS -- DTE to look at interstate special access 
services

The Department of Telecommunications and Energy has decided to 
use Verizon Massachusetts, Inc.'s interstate special access 
service data in its proceeding to review the telco's intrastate 
special access services.

The DTE found that the total number of intrastate circuits that 
Verizon submitted was "so small that performance results on those 
circuits. . . may not give a very useful or detailed picture of 
Verizon's provisioning process."  

The DTE has decided that, although the FCC has exclusive 
jurisdiction over the "quality of service of federally tariffed 
special access services," it does not preclude the DTE from using 
interstate data to inform the department about the provisioning 
of interstate services.  Verizon has said that the provisioning 
of its federal circuits is the same as the provisioning of its 
instate circuits.

The department said that it wasn't "second-guessing any 
conclusion reached by the FCC" and would not apply any findings 
to interstate services.  (DTE 01-34 -- Investigation by the 
Department of Telecommunications and Energy into Verizon New 
England, Inc., d/b/a Verizon Massachusetts' provision of special 
access services)

______________________________________________________

NEW YORK -- PSC releases Verizon service-quality report

The Public Service Commission has released a service-quality 
report for Verizon New York, Inc., that details service-quality 
trends for second quarter 2001 and measures the company's 
adherence to its performance plans.

The PSC said that Verizon's service-quality trends for second 
quarter 2001 and the requirements set forth in its Performance 
Regulatory Plan (PRP) showed its service quality is about the 
same as it was during the same time last year.

The PSC staff will continue to meet with Verizon monthly to 
monitor its performance, it said.

The report is available at 
http://www.dps.state.ny.us/fileroom/doc10684.pdf.  (Cases 01-C-
0491 and 92-C-0665)

______________________________________________________

NEW JERSEY -- Utilities working on disaster protocols

Last week Board of Public Utilities President Connie Hughes 
outlined the steps utilities and the BPU have taken to respond to 
the Sept. 11 terrorist attacks and create disaster protocols in 
testimony to the Senate Law and Public Safety Committee.

The BPU, she said, is coordinating a compilation of security 
information from all utilities, including the expansion of the 
infrastructure targeting identification program that is mapping 
all the utility sites in the state.

On Oct. 11, the BPU, the office of Attorney General John Farmer, 
and the Office of Emergency Management held meetings with 
officials from all utilities.  Four groups to assess security, 
identify what needs to be done, and provide the basis for utility 
security protocols were created, Ms. Hughes said.

One of the working groups will be headed by Dennis Bone, 
president-Verizon New Jersey, and will review telecom security 
issues, review the disaster efforts on Sept. 11, and work on 
establishing security protocols based on what worked well and 
could be improved or modified, a spokesperson for Mr. Bone told 
TR.  This will help telecom carriers to work with each other, 
with other utilities, and with state government to respond to 
such situations, the spokesperson said.

Ms. Hughes finished by saying she wanted to "reach out" to her 
regulatory counterparts in other states, calling for them to 
assume active roles in utility security.

______________________________________________________

ARKANSAS -- Sage requests waiver from inside-wire rule

Sage Telecom, Inc., has requested a waiver from a rule that 
requires local telecom companies to diagnose and repair inside 
wiring problems that occur on the customer's side of the point of 
demarcation.  

Southwestern Bell Telephone Co. won't permit Sage to resell the 
incumbent's customer premises wiring maintenance agreements, Sage 
said.  As a result, Sage must hire additional employees or make 
contractual arrangements to provide the diagnostic and repair 
services required by the rule, Sage said.  Customer premises 
wiring, like customer premises equipment, falls outside the 
commission's jurisdiction because it's "ancillary to" but not a 
part of telecom service, Sage added.  (Docket 01-244-U)

______________________________________________________

MAINE -- PUC investigates Maine-New Hampshire conduit

The Public Utilities Commission is investigating Revolution 
Networks LLC's claims that Verizon Maine, Inc., denied it access 
to place its fiber-optic cable in a pair of two-inch conduits 
attached to a bridge that passes over the Piscataqua River 
between Kittery, Maine and Portsmouth, N.H.

Because the conduit runs between two states, the PUC has asked 
Verizon and Revolution to file information to determine if the 
Maine PUC has jurisdiction over all or portions of the conduit.  
Verizon has already provided information that supports the PUC's 
jurisdiction over the matter--Verizon's Kittery exchange is 
served directly from its Portsmouth central office.  Verizon's 
fiber-optic cable inside the conduit also carries some intrastate 
Maine traffic and interstate traffic.

The PUC noted that the nature of the dispute is largely factual 
because the question is whether Revolution's cable will fit 
inside the conduits alongside Verizon's cable without damaging 
Verizon's line.

The hearing officer must submit a procedural schedule by Oct. 31.  
The text of the order is available at 
http://www.state.me.us/mpuc/orders/2001/2001-628%20NOI%20.htm.  
(Case 2001-628)

______________________________________________________

ALASKA -- State should inventory IT assets, experts say

State information technology (IT) experts have told the House 
Finance Committee's subcommittee on IT that an inventory of the 
state's IT assets is an "essential" first step in making sure 
current and future investments are used most efficiently.  The 
subcommittee is charged with reviewing the state's technology 
investments and providing a means for evaluating how well 
departments are spending their resources.

Ken Bischoff, administrative services director for the Department 
of Public Safety, said the state's increasing dependence on 
computers makes a comprehensive information technology plan 
amount the state's "most pressing needs."  He added that it has 
been 25 years since the state last made an overall effort to 
modernize and streamline its computer systems.  

______________________________________________________

MISSOURI -- PSC revises 'pooling' schedule for '314,' '816' NPAs

The Public Service Commission has revised its schedule for 
implementing 1,000-number-block "pooling" trials in the "314" and 
"816" area codes.  Number pooling is now slated to begin Jan. 22, 
2002, in the 314 area code and Feb. 22, 2002, in the 816 area 
code.  

Number pooling originally was scheduled to begin Jan. 2, 2002, in 
the 314 area code and Feb. 1, 2002, in the 816 area code.  
(10/3/01 a.m.)  Southwestern Bell Telephone Co. asked the 
commission to delay the pooling trials so that they wouldn't 
coincide with a pooling trial in the Houston "713" area code, 
which is scheduled to begin Jan. 1, 2002.  (8/3/01 a.m.)  (Case 
TO-2000-374)

______________________________________________________

TENNESSEE -- Sprint to launch 'talking call waiting'

Carolina Telephone and Telegraph Co. and Central Telephone Co., 
d/b/a Sprint, will offer "talking call waiting" to residential 
and business customers for $2.95 per line, per month beginning 
Nov. 16.  The feature enables subscribers to know who is calling 
them while they are on the line with another party. 

______________________________________________________

CALIFORNIA -- Gov. Davis makes judicial appointments

Gov. Gray Davis (D.) has appointed several judges in Orange, 
Alameda, and Sacramento counties.  In Orange County, Gov. Davis 
appointed Superior Court Judge Richard Aronson to the Court of 
Appeal, Fourth Appellate District, Division Three (Orange 
County).  He also appointed Cormac Carney, James Di Cesare, and 
Kirk Nakamura as judges of the Orange County Superior Court.

Gov. Davis appointed Alameda County Superior Court Commissioner 
Kenneth Norman as a judge of the Alameda County Superior Court.  
Gov. Davis also appointed David Abbott and Emily Vasquez as 
judges of the Sacramento County Superior Court.  

______________________________________________________

DISTRICT OF COLUMBIA -- PSC collocation hearing rescheduled

The Public Service Commission has rescheduled an Oct. 25 hearing 
to address central office collocation issues, remote terminal 
collocation issues, and remote terminal collocation cost studies 
submitted July 31 by Verizon Washington, D.C., Inc.  The hearing 
will be held Feb. 25, 2002.  (Order 12215, Formal case 962, In 
the Matter of the Implementation of the District of Columbia 
Telecommunications Competition Act of 1996 and Implementation of 
the Telecommunications Act of 1996)

______________________________________________________

NEW YORK -- PSC orders three companies to return 'NXX' codes

The Public Service Commission has ordered Broadband Office 
Communication, Inc., Thousand Islands Communications Co., and 
Winstar Wireless, Inc., to return 15 "NXX" codes.  Broadband 
Office Communication must return the "203" and "280" NXX codes in 
the "845" area code; the "430," "501," and "942" NXX codes in the 
"914" area code; and the "528" NXX in the "917" area code.  
Thousand Islands must return the "275," "284," "297," "325," 
"273," "552," "917," and "992" NXX codes in the "315" area code.  
Winstar must return the "374" NXX in the 914 area code.

The PSC is acting under the authority of the FCC, which allows 
state commissions to reclaim an NXX code in a given area code 
that hasn't been assigned to a customer in six months.  (Case 98-
C-0689)

______________________________________________________

IOWA -- Gov. Vilslack to swear in new appeals court judge

Gov. Thomas J. Vilsack (D.) today will administer the oath of 
office to Judge Larry J. Eisenhauer, as the newest member of the 
Iowa Court of Appeals.  

Judge Eisenhauer previously was a district court judge in the 
fifth judicial district for eight years.  He also was a juvenile 
court judge in Polk County for eight years.  

______________________________________________________

ARIZONA -- Industry wants to identify key issues

Organizations and clusters representing Arizona's technology 
community have sponsored a survey to determine the community's 
most important issues and then advocate for them.  Because of the 
"tumultuous business and political environment" there isn't 
enough money and other resources to advocate for all the issues 
that are important to the community, the Arizona Software and 
Internet Association said.

The association said the state budget crisis could "rapidly 
eliminate the progress [they] have made in funding higher 
education, technology cluster development, and workforce 
development."

The association added that this year they have been offered an 
"unprecedented" opportunity by House Commerce and Economic 
Development Committee Chairwoman Barbara Leff (R., District 24)), 
who asked the industry for input on how the state can support 
technology industries.

The survey includes questions on access to capital, workforce, 
privacy, and infrastructure.  The deadline for input is the close 
of business today, Oct. 29.  It can be accessed at 
http://portal.kineticthinking.com/azsoftsurvey/.

______________________________________________________

ALASKA -- ACS to offer 'military service appreciation plan'

ACS of the Northland, Inc., ACS of Anchorage, Inc., and ACS of 
Alaska, Inc., have proposed offering the "military service 
appreciation plan," which waives reconnection charges for 
residential military customers who disconnect their phones 
because of military deployment.  The plan will cover military 
customers that disconnect their phones after Sept. 11 and then 
reconnect before Sept. 11, 2002.  

The waived charges would be the service order charge, the central 
office line connection charge, and the premise visit charge, 
which total $75.  Comments on the filings are due Nov. 14.  (TA 
430-120)

______________________________________________________

FLORIDA -- AOL, EarthLink roll out cable modem service

AOL Time Warner, Inc., and EarthLink, Inc., have launched cable 
modem service over Time Warner's central Florida cable TV 
networks.  The cable modem service is available in Daytona Beach, 
Melbourne, Orlando, Palm Bay, and Titusville.  AOL's cable modem 
service is available for $44.95 per month.  EarthLink's service 
is available for $41.95 per month.

______________________________________________________

PENNSYLVANIA -- Robots to install fiber-optics in Pittsburgh 
sewers

CityNet Telecommunications, Inc., has said it will use robots to 
install fiber-optic cable through sewer pipes in Pittsburgh.  The 
company said it uses a small, computerized robot equipped with 
cameras to install stainless steel alloy rings to support fiber-
optic cable inside city sewer pipes.  Workers lower the robot 
down a manhole and into the sewer where it's controlled remotely 
by a nearby technician.

A company spokesman said that the installation process provides 
the least invasive manner to lay cables and allows the company to 
gain access to the basements of many downtown buildings without 
"tearing up the streets."

Pittsburgh marks the 10th city that CityNet has begun laying 
fiber in.  The company has installed fiber-optic cable through 
sewer systems in Albuquerque, N.M., Omaha, Neb., Indianapolis, 
Ind., St Paul, Minn., Scottsdale, Ariz., Ft. Worth, Texas, 
Dallas, Vienna, Austria, and Seville, Spain.  The company is 
planning to expand into 20 more cities, a spokesman told TR.

______________________________________________________

DELAWARE -- Children learn to make '911' calls

Verizon Delaware, Inc., the Delaware State Police, and the 
Telephone Pioneers of America, a community service organization 
of telephone company employees and retirees, have partnered to 
bring "911" call simulators to schools to assist teachers and 
emergency personnel instruct children on the proper way to call 
911.

The 911-call simulator has a display that lights up, reminding 
the caller that the 911 operator knows some information about the 
caller.  The device also sounds a buzzer warning when the 
emergency call is dialed incorrectly.  Three units were purchased 
with a grant from the Verizon Foundation for use in the state.




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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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