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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*
November 27, 2001 

STATES
HAWAII -- Gov. Cayetano nominates new commissioner
FLORIDA -- Staff proposes default LCA definition
MASSACHUSETTS -- E911 bill passes Senate
FLORIDA -- Staff rules against ILECs in POI dispute
NEW YORK -- Reporting requirements reinstated
CONNECTICUT -- AT&T Broadband investigation to continue
WISCONSIN -- PSC approves use of '211' for health, human services
DISTRICT OF COLUMBIA -- Committee mulls electronic signature bill
ALASKA -- ACS-F must defend termination penalty
CALIFORNIA -- Verizon, CWA reach tentative agreement
WISCONSIN -- PSC extends Viroqua's 'alt reg' plan
MINNESOTA -- PUC approves Qwest's wholesale discount settlement
OHIO -- Carriers must file TRS outreach plans
PENNSYLVANIA -- AG appoints head of Bureau of Consumer Protection
WASHINGTON -- Gov. Locke, AG propose antiterrorism legislation
DISTRICT OF COLUMBIA -- Verizon deploys DSL to area apartments
CALIFORNIA -- Leap offer service in Modesto, Merced
IDAHO -- Verizon Wireless completes network upgrade
ILLINOIS -- Verizon expands Central Illinois service
IOWA -- Mandatory'563' dialing to begin

REGIONAL
Ameritech to pay $863,000 in penalties
Forsee to head new BellSouth domestic unit

______________________________________________________

HAWAII -- Gov. Cayetano nominates new commissioner

Gov. Benjamin Cayetano (D.) has nominated State Comptroller Wayne 
Kimura to the Public Utilities Commission.  Before becoming state 
comptroller, Mr. Kimura was the deputy director of finance in the 
Department of Budget and Finance for two-and-a-half years.  

Gov. Cayetano said, "Wayne Kimura has been extremely effective as 
state comptroller, implementing changes to increase efficiency 
within the department.  He spent 23 years in public service at 
all levels of state government.  Over than time, he has amassed a 
great amount of knowledge and experience that will serve as a 
good foundation for his term at the Public Utilities Commission."

His nomination requires Senate confirmation, and he will go 
before the Senate during the next legislative session.  In the 
meantime, he will take up his new post Dec. 1.  Mr. Kimura will 
succeed former Commissioner David Morihara, who left to work for 
the University of Hawaii.  

______________________________________________________

FLORIDA -- Staff proposes default LCA definition

The Public Service Commission staff has proposed a default LCA 
(local calling area) definition in interconnection agreements to 
determine reciprocal compensation.  Incumbents and competitors 
should be permitted to negotiate the LCA definition in their 
interconnection agreements but, if negotiations fail, the LCA 
should be defined as "all calls that originate and terminate in 
the same LATA [local access and transport area]," the staff said.

The staff rejected Verizon Florida, Inc.'s request to base the 
LCA definition on incumbents' LCAs.  "A broader definition of 
local calling area for the purposes of reciprocal compensation 
should be established, if for no other reason than administrative 
ease," the staff said.  The commission is scheduled to vote on 
the recommendation Dec. 5.  (Docket 000075-TP)

______________________________________________________

MASSACHUSETTS -- E911 bill passes Senate

A bill that would establish a statewide E911 (emergency "911") 
service has passed the Senate and is now being considered in the 
House.  SB 1920, introduced by the Committee on Government 
Regulations, would establish a board to "coordinate and effect 
the implementation of wireline enhanced 911 service."  The board 
would be charged with establishing E911 standards, administering 
E911 services, and working with cities and towns to make 
emergency service available to persons with disabilities.

The bill would also establish monthly 30-cent surcharge per 
wireless telephone number.  The surcharge could be raised to a 
maximum 75-cents per month at the board's discretion.  A wireless 
E911 fund would be set up with the monies from the surcharge.

The bill text is available at 
http://www.state.ma.us/legis/bills/st01920.htm.

______________________________________________________

FLORIDA -- Staff rules against ILECs in POI dispute

The Public Service Commission staff has recommended requiring 
incumbent local exchange carriers to absorb the costs of routing 
traffic originating on their network to a competitive local 
exchange carrier's POI (point of interconnection). 

The staff concluded that an originating local exchange carrier is 
financially responsible for bringing its traffic to the POI in a 
LATA (local access and transport area).  FCC rules preclude 
originating carriers "from charging a terminating carrier for the 
cost of transport, or for the facilities used to transport the 
originating carrier's traffic, from its source to the POI in a 
LATA," the staff said.

The staff also rejected BellSouth Telecommunications, Inc., and 
Verizon Florida, Inc.'s proposal to permit incumbents to 
designate competitors' POIs.  Competitors have the right to 
establish one POI per LATA at any "technically feasible location" 
in an incumbent's service area, the staff said.  The commission 
is scheduled to vote on the recommendation Dec. 5.  (Docket 
000075-TP)

______________________________________________________

NEW YORK -- Reporting requirements reinstated

The Public Service Commission has reinstated reporting 
requirements in its "special" service-quality proceeding after it 
suspend the deadlines in October to allow Verizon New York, Inc., 
and other carriers to "devote full resources to restoring 
telephone service in New York City in the wake of the attacks on 
the World Trade Center."  (9/24/01)  Carriers weren't required to 
file service results under the revised special services 
guidelines and didn't have to adhere to performance standards 
under the PSC's "extraordinary events" exception.

Noting that the "bulk of the service quality impacts from the 
disaster" is now localized around the World Trade Center area, 
the PSC said that all incentive plans and reporting requirements 
will be reinstated in all areas except for the Varick Street, 
West Street/World Trade Center, and Broad Street maintenance 
centers.

All performance regulatory plans and performance assurance plans 
are reinstated as of Dec. 1.  In addition, the commission has 
asked all telecommunications utilities to propose new 
methodologies for calculating performance for the year, because 
of the interruption in reporting requirements.  Proposals are due 
60 days after the Nov. 26 order.

The order is available at 
http://www.dps.state.ny.us/fileroom/doc10823.pdf.  (Cases 01-M-
1263, 00-C-2051, and 92-C-0665)

______________________________________________________

CONNECTICUT -- AT&T Broadband investigation to continue

The Department of Public Utility Control has denied AT&T 
Broadband's motion to end an investigation into the company's 
rates and installation policies or to stay the proceeding until 
the FCC makes a determination on the subject matter.  The DPUC 
has statutory authority to conduct the investigation and would be 
"disregarding its legislative mandate if it failed to exercise 
its authority," the DPUC said in its draft decision.

The investigation began last July after the DPUC received 
evidence contradicting AT&T's claim that it had completely wired 
two subject franchise areas in a franchise renewal case.  
(9/17/01)  The DPUC directed AT&T to modify its installation 
policies by June 25.  AT&T "declined to make modifications 
directed by the docket," including a DPUC mandate to exclude 
charges to customers for a plant installed on the public rights-
of-way.  AT&T's action initiated the proceeding.  (Docket 01-07-
03 -- DPUC Investigation of AT&T Broadband's Installation 
Practices and Policies)

______________________________________________________

WISCONSIN -- PSC approves use of '211' for health, human services

The Public Service Commission has approved requests by the 
Metropolitan Milwaukee "211" Stakeholders Council, the United Way 
of Dane County, the Mental Health Association in Waukesha County, 
and the Waukesha County 211 Stakeholder's Group to use the 211 
dialing code in their respective areas for 30 months.  

At the end of the 30-month period, the commission will review the 
groups' petitions and the progress of the 211 systems in place.  
The PSC may also make further decisions about the 211 structure 
and service requirements after the 30-month period.

The 211 dialing code will be used in those counties for 
nonemergency information and referral phone calls for health and 
human services.  The commission noted that these organization 
already provide information and referral services to their 
respective communities.  The basic services the groups offer 
won't change with this decision, only the means of customer 
access will change, the PSC said.

The commission further determined that 211 access won't be 
mandatory for wireless providers or pay phone providers.  

The PSC that that although the 211 service would benefit the 
general public, it didn't want telecom providers' costs for 211 
to be borne by the ratepayers.  The commission directed the 
entities requesting the 211 designation for their areas to pay 
for the necessary networking costs.  Customers placing the calls 
will pay any charges that would be applicable to such calls.  
(Docket 05-TI-233)

______________________________________________________

DISTRICT OF COLUMBIA -- Committee mulls electronic signature bill

The Committee on Consumer and Regulatory Affairs has scheduled a 
Nov. 23 public hearing to discuss a bill to provide "consumer 
protection for signatures obtained by electronic means."  Bill 
14-252, introduced by Councilmember Sharon Ambrose (D., Ward 6) 
would allow electronic signatures to be used in lieu of writing, 
provided that certain disclosures were provided to the consumer 
apprising them of their rights.  Ms. Ambrose is the chairwoman of 
the Committee on Consumer and Regulatory Affairs.

The bill text is available at 
http://dccouncil.dc.gov/images/00001/20010608123250.pdf.

______________________________________________________

ALASKA -- ACS-F must defend termination penalty

The Regulatory Commission of Alaska has suspended until May 26, 
2002, ACS of Fairbank, Inc.'s request to offer transparent local 
area network (LAN) high speed service and directed the company to 
defend its termination penalties.  The service is a high-speed 
shared fiber-optic transport service for interconnecting LANs and 
wide area networks.

Under the terms of the proposed tariff, a customer who terminates 
service before the end of the term must pay the difference 
between what the customer has paid and what the customer would 
have paid for the remainder of the term, plus a 10% 
administrative fee.  

The commission staff noted that the practice of requiring 
customers terminating a contract early to reimburse the utility 
the difference between the rates actually charged and the rates 
that would have been charged is "standard."  The staff pointed 
out that the 10% fee isn't standard and "doesn't appear to be 
tied directly to cost."  

The commission agreed with the staff and directed ACS-F to 
justify its termination penalties by Jan. 1, 2002.  (Docket U-01-
140)

______________________________________________________

CALIFORNIA -- Verizon, CWA reach tentative agreement

Verizon Communications, Inc., has reached a tentative agreement 
on a new three-year contract with the Communications Workers of 
America (CWA) in California.  The tentative agreement includes a 
12% wage increase over the term of the contract, with 4% 
increases each year.  The contract covers 7,900 employees, 
principally technicians and customer service representatives, 
throughout the state.  

The CWA plans to submit the tentative agreement to the employees 
it represents soon.  The agreement needs a simple majority to be 
ratified.  Once ratified, the new contract will take effect when 
the current contract expires, at midnight March 16, 2002.

______________________________________________________

WISCONSIN -- PSC extends Viroqua's 'alt reg' plan

The Public Service Commission has extended Frontier 
Communications of Viroqua, Inc.'s alternative regulation plan 
until March 30, 2002, or until a new plan is adopted.  The 
existing plan is set to expire Nov. 30.  

On April 23 the company filed an application for a new plan that 
included many changes from the existing plan.  Because the staff 
is still analyzing the new plan, it is unlikely that the matter 
will come before the commission before Nov. 30.  

Viroqua said it wouldn't increase rates on regulated services 
during the extension.  (Docket 6150-TI-102)

______________________________________________________

MINNESOTA -- PUC approves Qwest's wholesale discount settlement

The Public Utilities Commission has approved an agreement between 
Qwest Corp. and a group of competitive local exchange carriers 
resolving a dispute about the wholesale discount rate Qwest 
applies to resold services.  The commission orally approved the 
agreement in January 2000, but didn't issue a written order 
approving the agreement until last week.

Qwest agreed to apply a 21.5% wholesale discount to services 
resold to Integra Telecom of Minnesota, Inc., US Link, Inc., 
Otter Tail Telecom LLC, and Tekstar Communications, Inc., before 
Feb. 8, 2000.  A 17.66% discount applies to resold service 
provided after Feb. 8, 2000.

In December 1996, the commission established a 21.5% wholesale 
discount rate for Qwest, but the incumbent appealed the decision 
to the U.S. District Court for the district of Minnesota.  In 
March 1999, the court ordered the commission to revise Qwest's 
rate.  In June 1999, the competitors asked the commission to 
allow them to adopt the 21.5% discount in Qwest's interconnection 
agreement with MFS.  The settlement agreement resolves the 
dispute.  (Docket P-999/CI-99-776)

______________________________________________________

OHIO -- Carriers must file TRS outreach plans

The Public Utilities Commission has ordered all local telecom 
service providers to file by Dec. 11 a detailed description of 
their TRS (telecommunications relay service) outreach plans.  TRS 
services enable people using TTYs (text telephones) to 
communicate with people who use voice telephones. 

The commission's rules require local telecom providers to publish 
TRS instructions in phone directories and "periodic" bill 
inserts.  (Case 01-2945-TP-COI)

______________________________________________________

PENNSYLVANIA -- AG appoints head of Bureau of Consumer Protection

Attorney General Mike Fisher (R.) has named Seth Mendelsohn to 
head the Harrisburg regional office as attorney-in-charge of the 
Bureau of Consumer Protection.  Mr. Mendelsohn will be 
responsible for overseeing consumer cases and filing legal 
actions "on behalf of the Commonwealth when deceptive or 
fraudulent patterns occur."

Mr. Mendelsohn has been a deputy attorney general with the AG's 
litigation office since 1997.

______________________________________________________

WASHINGTON -- Gov. Locke, AG propose antiterrorism legislation

Gov. Gary Locke (D.), Attorney General Christine Gregoire (D.), 
and representatives of state law enforcement and prosecutors' 
organizations have proposed joint legislation that would provide 
the state with new tools to fight terrorism.  The AG said the 
legislation would fill "gaps" in state law that became apparent 
after the Sept. 11 terrorist attacks.

The measure would create a new felony crime of terrorism in 
Washington's criminal code.  The proposal would also expand wire 
tapping admissibility in state courts.

______________________________________________________

DISTRICT OF COLUMBIA -- Verizon deploys DSL to area apartments

Verizon Washington, D.C., has said that 18,000 residential units 
in 45 apartment buildings in the District are now able to use the 
telco's high-speed Internet service using digital subscriber line 
(DSL) technology.

The Internet service is provided over regular copper phone lines 
at each building.  Verizon Avenue, an indirect, wholly owned 
subsidiary of Verizon Communications, Inc., installs Internet-
access DSL equipment on site to connect residents to the 
Internet.  The company said this placement of access equipment at 
apartment complexes "eliminates distance limitations so high-
speed Internet service can be delivered to every resident with a 
copper wire connection."

Service packages include high-speed access, e-mail, and personal 
Web space.

______________________________________________________

CALIFORNIA -- Leap to offer service in Modesto, Merced

Leap Wireless International, Inc., has launched its unlimited 
local wireless service in Modesto and Merced in California's 
central valley.  This marks Leap's first entry into its home 
state of California.  The company offers its unlimited service in 
32 markets in 18 states.

Harvey White, Leap's chairman and chief executive officer, said, 
"With this launch, as well as others planned for the remainder of 
2001 and beyond, we are well positioned to deliver on our 40-
market buildout plan by early 2002."

______________________________________________________

IDAHO -- Verizon Wireless completes network upgrade

Verizon Wireless has upgraded its network to handle more calls 
and to offer enhanced services and new features to customers in 
the Idaho Falls, Pocatello, and Twin Falls areas.  Verizon 
Wireless said the upgrade preserves the benefits of digital 
service and positions the company for more rapid expansion to 
meet projected growth.  The project is part of Verizon Wireless's 
2001 $5 million network investment in Idaho.

______________________________________________________

ILLINOIS -- Verizon expands Central Illinois service

Verizon Wireless has expanded service in the state by adding two 
new cell sites to enhance coverage in central Illinois.  The new 
digital cell sites are located in Gifford and Lexington.  The 
expansion is part of a $22.5 million investment in network 
improvements in central Illinois.  

______________________________________________________

IOWA -- Mandatory'563' dialing to begin

The Iowa Utilities Board has announced that mandatory dialing for 
the "563" area code serving the eastern region of Iowa will begin 
Dec. 2.  The IUB split the "319" area code in October 2000 to 
relieve "exhaustion" of "NXX" codes in the number planning area 
(NPA).  The communities around Decorah, Elkader, Clinton, 
Davenport, Bettendorf, and Muscatine will be served by the new 
563 NPA.

______________________________________________________

ILLINOIS, INDIANA, MICHIGAN, OHIO, WISCONSIN -- Ameritech to pay 
$863,000 in penalties

Ameritech Corp. must pay more than $863,000 in penalties for 
failing to meet wholesale service-quality standards in five 
states during September, according to a report issued by the 
incumbent.  The penalties will be submitted to the company's 
wholesale customers and to the public commissions in Illinois, 
Indiana, Michigan, Ohio, and Wisconsin.

Ameritech's September wholesale service-quality report marks the 
first increase in penalties among states in its operating region 
in several months.  The company paid out $636,000 in fines in 
August, $1.7 million in July, and $3.3 million in June.

Ameritech-Illinois leads the telco's operating region in 
penalties.  The company must pay $378,000 to the Illinois 
Commerce Commission and $123,000 to its wholesale customers.

Ameritech-Ohio's wholesale penalties increased dramatically when 
compared to the penalties it paid in July and August.  The telco 
must pay the Ohio Public Utilities Commission almost $223,000 and 
its wholesale customers $42,000.  Ameritech-Ohio paid only 
$38,000 in fines to its wholesale customers in August and 
$115,000 in July.  

The Indiana Utility Regulatory Commission assessed the lowest 
penalties; the company will pay only $567 to its wholesale 
customers.  

______________________________________________________

ALABAMA, FLORIDA, GEORGIA, KENTUCKY, LOUISIANA, MISSISSIPPI, 
NORTH CAROLINA, SOUTH CAROLINA, TENNESSEE -- Forsee to head new 
BellSouth domestic unit

BellSouth Corp. has decided to consolidate its domestic 
operations under vice chairman Gary Forsee.  The new domestic 
operation will include customer markets, network services, 
regulatory and external affairs, and BellSouth's advertising and 
publishing group.  Margaret Greene, president-regulatory and 
external affairs, Rod Odom, president-network operations, Dick 
Anderson, president-customer markets, and Elmer Smith, president-
advertising and publishing, will report to Mr. Forsee.  The new 
structure takes effect Jan. 1, 2002.

"These changes are designed to strengthen our growth strategies 
in domestic voice and data," said BellSouth chairman and chief 
executive officer Duane Ackerman.  "Bringing together our 
domestic operations will further sharpen our focus and enable us 
to be the leader in providing the next generation of 
telecommunications products and services to our customers."

Jere Drummond, vice chairman, and Charlie Coe, president-network 
services, announced that they will retire from BellSouth, 
effective Dec. 31.  Mr. Drummond, who has been vice chairman 
since Jan. 1, 2000, directs the company's public relations, 
advertising, external affairs and regulatory activities.  Mr. Coe 
has headed BellSouth's network services operations since Jan. 1, 
2000. 



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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

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