Telecommunications Reports presents . . . . . TR's State NewsWire
January 26, 2001 2 P.M. Edition


STATES
PENNSYLVANIA -- ALJ recommends splitting Verizon into wholesale, retail
affiliates
TEXAS -- PUC to take up 'slamming' rulemaking this summer
CALIFORNIA -- Resolution would give PUC staff authority to suspend
advice letters
GEORGIA -- Bill would give legal effect to electronic signatures and
records
FLORIDA -- NeuStar begins number pooling trial in '954' area code
CALIFORNIA -- ALJ addresses OSS workshops
NEW MEXICO -- Bill would adopt UETA
MINNESOTA -- Rep. Sertich takes aim at drivers using mobile telephones
MICHIGAN -- Ameritech study says consumers overpay long distance
companies
ALASKA -- GCI to offer cable modem access in Valdez


SECTION 251/252
PENNSYLVANIA
ALJ recommends splitting Verizon into wholesale, retail affiliates

Public Utility Commission Administrative Law Judge Wayne L. Weismandel
has recommended that the commission give Verizon Pennsylvania, Inc., one
year to create a separate retail affiliate.  The retail affiliate would
have to operate independently from Verizon's wholesale operations in the
state.

In April 2000 the PUC initiated a proceeding to determine the details of
the split, which it had required in its 1999 "global order" on telecom
competition in the state.  The PUC's global order determined that such a
structural separation "is the most efficient tool to ensure local
telephone competition."  Under protest, and after lengthy litigation and
settlement negotiations failed to head off the PUC proceeding, Verizon
filed its separation plan June 27.

ALJ Weismandel found that Verizon's plan doesn't propose a full
separation.  In October 2000, after Verizon suggested that the spilt
could cost the company more than $1 billion, the PUC ruled that Verizon
could present testimony "regarding the economic costs and benefits of a
full structural separation" but couldn't present testimony "directly
advocating" that "there is no need for structural separation."  (10/2/00
p.m.)

The ALJ found that Verizon couldn't support sufficiently its claim that
full separation would cost $1 billion and concluded that Verizon's own
separation plan "simply did not comply with the commission's orders."
Verizon proposed the creation of a separate advanced services affiliate,
adherence to a PUC-approved code of conduct, and the provision of
wholesale service subject to PUC performance standards and remedies.
But it "never produced a detailed plan of structural separation,"
according to the ALJ.

The ALJ also recommended rejecting plans proposed by AT&T Corp.,
WorldCom, Inc., the Office of the Consumer Advocate, and other carriers
and consumer groups.  The plans included the possibility of forcing
migration of some Verizon's current retail customers to competitive
local exchange carriers (CLECs) and requiring the newly created Verizon
retail unit to have "significant" minority shareholder interests.

The recommended decision concluded that the commission "is left with no
choice but to direct structural separation of specific elements as the
commission deems appropriate, as it said it would do in the Global
Order."  Wiesmandel proposed giving Verizon 30 days to begin a one-year
transition period to split into separate affiliates and to file a
detailed plan "allocating and identifying sufficient personnel,
equipment, and facilities" in each of its operations units to use to
create the retail affiliate.

Weismandel also recommended ordering the retail affiliate to (1)
maintain separate books and records; (2) have separate officers,
directors, and employees; (3) be prohibited from obtaining credit under
any arrangement that would give a creditor recourse to the wholesale
affiliate upon default; and (4) conduct all transactions with the
wholesale affiliate "at arms length," in writing, and subject to public
inspection.

Verizon Pennsylvania President Daniel J. Whelan said the recommended
decision was "totally unwarranted" and would "stop a quick-moving
industry in its tracks."  Whelan said that if the PUC adopts order, the
cost of operating as separate companies would range from $60 to $80 per
year for each phone line and ultimately would be passed on to businesses
and consumers.  Verizon also said the split could threaten about 7,700
positions.

A PUC spokesman told TR the commission may take up the recommended
decision "as early as March or April."  (Docket no. M-00001353)



CUSTOMER-AFFECTING
TEXAS
PUC to take up 'slamming' rulemaking this summer

The Public Utility Commission yesterday decided to initiate a rulemaking
in June to amend part of its "slamming" rules.  The rules to be examined
address the responsibilities of utilities initiating unauthorized
carrier changes and the responsibilities of the original utilities.
(Substantive rule section 26.130(f))

The commission decided to take the issue up after the Texas Statewide
Telephone Cooperative, Inc. (TSTCI) said the state's rules weren't
consistent with federal law.  According to TSTCI, the Texas rules depart
from federal rules in two ways: (1) under the federal rules, the
authorized carrier is required to make refunds to customers, while under
the state rules the unauthorized carrier has this responsibility; and
(2) the federal and state rules calculate refunds differently.

The PUC decided to wait until the summer to begin the rulemaking so that
any changes made by the Legislature related to slamming could be
included.  (Project no. 23375)



FUTURE OF REGULATION
CALIFORNIA
Resolution would give PUC staff authority to suspend advice letters

The Public Utilities Commission is scheduled to consider a resolution
during its Feb. 8 meeting that would authorize its staff to suspend
advice letters on behalf of the commission.  Regulated companies usually
file advice letters to make routine changes to their tariffs.

The commission said it was considering the resolution because, on
occasion, it's unable to complete its review and disposition of the
proposed tariff changes within the prescribed notice period.  In the
draft resolution, the PUC characterized the volume of advice letter
filings as "substantial" and said it would be "impractical for the
commission itself to issue a decision suspending each advice letter on
an individual basis."

The resolution would allow the directors of the energy, telecom, and
water divisions, or their designated representatives; and the executive
director, or his designee, to suspend an advice letter.  The staff
initially could suspend an advice letter for a maximum of 120 days
beyond the time it otherwise would take effect.  The resolution would
authorize the staff to suspend an advice letter for one further period
of no more than 180 days.  (Resolution no. M-4801)



INTERNET
GEORGIA
Bill would give legal effect to electronic signatures and records

Several senators have introduced an amendment to an existing electronic
records and signatures law that would specify that electronic
transactions are legal unless directly prohibited by the current law.
Sen. Robert Lamutt (R., District 21) is sponsoring the proposed bill,
which would amend chapter 12 of title 10 of the Official Code of Georgia
Annotated.

SB 24 would specify that the General Assembly doesn't intend for chapter
12 to be preempted by the federal Electronic Signatures in Global and
National Commerce Act, which allows for an exemption to preemption.

In addition, SB 24 would add a new provision to allow the use of
electronic signatures and records in accordance with chapter 12, even
when another law specifically calls for the use of a different type of
signature or record.  SB 24 also would repeal all laws and sections of
laws that conflict with the proposed bill.

SB 24 has been referred to the Senate Committee on Defense, Science, and
Technology.  Its text is available at
http://www.legis.state.ga.us/Legis/2001_02/fulltext/sb24.htm.



NETWORK MANAGEMENT
FLORIDA
NeuStar begins number pooling trial in '954' area code

North American Numbering Plan administrator NeuStar, Inc., this week
implemented a mandatory 1,000 number block pooling trial in Florida's
"954" area code.  Later this year NeuStar will administer number pooling
trials in Florida's "561" and "904" area codes.



SECTION 251/252
CALIFORNIA
ALJ addresses OSS workshops

Public Utilities Commission Administrative Law Judge Jacqueline Reed has
announced how she will proceed with the workshops addressing the results
of Pacific Bell's operation support system (OSS) tests.  The tests give
the commission information about whether the company has met the
interLATA (local access and transport area) service market entry
requirements of section 271 of the federal Telecommunications Act of
1996.

Reed said she would convene the Jan 29-30 workshops from 8:15 a.m. until
5 p.m. each day  For the first 15 minutes each day, Reed plans to
discuss preliminary matters and confirm issues to be covered that day.

Reed also approved a request by WorldCom, Inc., asking that reply
comments be due 30 days after the conclusion of the workshops.  Reed
pushed the comment deadline back from Feb. 20 to March 2.  The deadline
for replies also was postponed from March 2 until March 9.  (Rulemaking
nos. 93-04-003 and 95-04-043 and Investigation nos. 93-04-002 and
95-04-044)



INTERNET
NEW MEXICO
Bill would adopt UETA

Rep. Al Park (D., District 26) has introduced HB 232, which would create
a Uniform Electronic Transactions Act to provide a legal structure for
transacting business over electronic media.  The measure has been
referred to the House Business and Industry Committee.



WIRELESS
MINNESOTA
Rep. Sertich takes aim at drivers using mobile telephones

Rep. Anthony Sertich (D., District 5B) has introduced HF 364 to prohibit
drivers from using handheld mobile telephones while driving.  A law
enforcement officer wouldn't be able to issue a citation for a violation
of the proposed legislation unless the officer had stopped the driver
for another moving violation--other than a violation involving motor
vehicle equipment.

The law would exempt drivers who use wireless phones to contact a "911"
or other emergency telephone number; a hospital, clinic, or doctor's
office; an ambulance service provider; a fire department or law
enforcement agency; or a first aid squad.

HF 364 has been referred to the House Crime Prevention Committee.



LONG DISTANCE
MICHIGAN
Ameritech study says consumers overpay long distance companies

Laying the groundwork for hoped-for FCC approval of its market entry
later this year, Ameritech-Michigan released the results of a
consultant's study estimating that the state's consumers overpay by
about $1 billion annually for long distance service.  Stephen Pociask,
president of TeleNomic Research, conducted the study.

Authorizing Ameritech to enter the Michigan interLATA (local access and
transport area) services market could save consumers up to $1.03 billion
on long distance and toll charges, including $710 million on interstate
long distance calls, the study says.

Ameritech-Michigan President Gail Torreano said she's "optimistic that
Ameritech's application to the FCC bringing the benefits of full
competition to Michigan consumers will be approved this year.'



ADVANCED SERVICES
ALASKA
GCI to offer cable modem access in Valdez

General Communication, Inc., d/b/a GCI, has started offering high-speed
Internet access through cable modems in Valdez.  Tom Zulz, GCI
Valdez-area manager, said the service upgrade followed six months of
plant and equipment upgrades, which included activating fiber optic
cable servicing the Airport and River Robe areas.  Valdez is the first
community to receive GCI's high-speed cable modem service outside the
major urban communities of Anchorage, Fairbanks, and Juneau.


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