BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Pricing Proceeding for Interconnection, Unbundled Elements, Transport and Termination, and Resale In the Matter of the Pricing Proceeding for Interconnection, Unbundled Elements, Transport and Termination, and Resale for U S WEST COMMUNICATIONS, INC., In the Matter of the Pricing Proceeding for Interconnection, Unbundled Elements, Transport and Termination, and Resale for GTE NORTHWEST INCORPORATED ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) DOCKET NO. UT-960369 DOCKET NO. UT-960370 DOCKET NO. UT-960371 SHARED COMMUNICATIONS SERVICES' POST-HEARING BRIEF Introduction Shared Communications Services ("SCS") submits this brief pursuant to Judge Stapleton's Notice in this matter dated August 4, 1997. SCS will not attempt to repeat here the extensive arguments it anticipates that other parties will make. Instead, SCS will identify its positions on issues of key importance to SCS. As set forth in its petition to intervene, SCS is a registered telecommunications company that resells services purchased from US West Communications, Inc. and GTE Northwest, Inc. SCS is directly affected by cost methodology and pricing for interconnection, unbundled network elements, transport and termination, and wholesale and resale discounts. SCS is also affected by number portability costing and pricing. SCS may wish to provide local exchange service exclusively through resale or through a combination of resale and its own facilities. Argument I. LEGAL PARAMETERS AND ISSUES SCS takes no position on these issues. II. COST METHODOLOGY: PRINCIPLES A. What should be the goal(s) of the proceeding? The goal of the proceeding should be to promote fair and open competition among facilities-based and other carriers consistent with federal and state law. SCS takes no position on the other issues raised in Section II. III. COST MODELS SCS takes no position on these issues. IV. OTHER MODEL AND INPUT ISSUES G. Model Validation No model should be adopted without validation. H. Switch Models SCS' preference is that switch models be based on public data and an open process, so that any interested person can determine what data is used and how it is used. SCS also recognizes the importance of using data that is current and is company-specific. If the Commission determines that fully public data cannot be used consistent with these principles, SCS would support use of "proprietary" data if that data were made available to interested persons who agreed to be bound by the terms of a protective order. The Commission should be highly skeptical of any process that would allow an incumbent LEC to control the selection and input of data, without any meaningful opportunity for oversight by interested persons. See generally TR vol. 18, page 310 L.9 - 311 L.13 Citations to the transcript in this brief refer to the volume, page and line numbers contained in the electronic version of the transcript that was provided by the Commission. (Ms. Dodds). SCS takes no position on the other issues raised in Section IV. V. AVOIDED COSTS SCS takes no position on these issues. VI. NON-RECURRING CHARGES In order to protect the emergent competitive environment in the telecommunications industry, it is crucial that non-recurring charges be limited to actual cost. Non-recurring charges imposed by a carrier such as U S West are a significant barrier to entry for new entrants because they discourage customers from moving their business to a new provider. See TR vol. 18, page 29 L.5 - 30 L.7 (Dr. Zepp). SCS takes no position on the other issues raised in Section VI. VII. DEAVERAGING COSTS SCS takes no position on these issues. VIII. COLLOCATION SCS takes no position on these issues. IX. LOCAL NUMBER PORTABILITY SCS has a strong interest in local number portability. This is essential to the ability of a reseller to do business. In evaluating the availability and cost of portability, it is important that costs generally associated with forward-looking technology not be inappropriately allocated to portability. See TR. vol. 10, pages 61-62 (Dr. Cornell). Number portability should not be treated as a profit center; neither profit (beyond the cost of invested capital) nor common costs should be recovered through permanent number portability. TR vol. 15, pages 56-57 (Dr. Blackmon). Number portability is a "very low cost service." TR vol. 17, pages 62-63 (Mr. Dunkel). X. SIGNALLING, INTERCONNECTION/TRANSPORT AND TERMINATION SCS takes no position on these issues. XI. OTHER ISSUES SCS takes no position on these issues. DATED this 12th day of September, 1997. Respectfully submitted, Preston Gates & Ellis LLP By__________________________________ Elizabeth Thomas, WSBA # 11544 Beth Karan Kaye Attorneys for Shared Communications Services Certificate of Service I hereby certify that I have this day served the foregoing document upon all parties of record in this proceeding by mailing a copy properly addressed with postage prepaid to each person on the service list. Dated at Seattle, Washington this 12th day of September, 1997. _____________________________