Agenda Date:    March 10, 2000
Item Number: 

Docket:  UT-000222
Company Name:   U S WEST Communications, Inc. 

Staff:     Tani Thurston, Consumer Program Specialist 
   Vicki Elliott, Assistant Director, Consumer Affairs
   Glenn Blackmon, Assistant Director, Telecommunications


Recommendation: 

Approve the petition request for a waiver of WAC 480-120-139(5) as it pertains 
to local exchange services for a 12-month period. 

Discussion:

On February 17, 2000, U S WEST Communications, Inc., (U S WEST) filed a 
petition requesting a waiver of WAC 480-120-139 (5)  pertaining to local 
exchange services. Specifically, the Company is requesting a waiver of the 
implementation of the preferred carrier freeze for local exchange customers for 
a specific time period.  A preferred carrier freeze prevents a change in a 
customer’s preferred carrier selection without the customer’s authorization.  
This petition does not request a waiver of the requirement to offer a preferred 
carrier freeze for intralata and interlata services. 

On November 30, 1999, the Commission adopted an amendment to WAC 480-120-139, 
Changes in Local Exchange and Intrastate Toll Services, which will become 
effective March 1, 2000. WAC 480-120-139 (5) requires the local exchange 
companies to offer a preferred carrier freeze to all customers for local 
exchange, intralata and interlata services.  U S WEST contends that it is 
unable to provide this service to its local exchange customers because it does 
not have the guidelines and technology in place to implement local carrier 
freezes in a consistent and cost-effective manner.  In order to implement this 
rule, U S WEST is requesting a delay in implementing this portion of the rule 
to become effective no longer than 18 months, in order to develop and implement 
the new methodology needed to provide this service.   

In reviewing the Company’s request, staff considered a number of factors, 
including the current amount of competitive local exchange offerings in U S 
WEST service territory, the level of complaints filed with the Consumer Affairs 
section for local exchange slamming, and the Company’s argument that they need 
time to develop the technology necessary to meet this requirement.  While there 
are a number of providers within U S WEST territory who are authorized to 
provide local exchange service, competition is, in reality, fairly limited to 
businesses within densely populated areas.  There is very little opportunity 
for residential customers in particular to choose another local exchange 
carrier.  Additionally, Consumer Affairs has received no complaints from any 
customer within U S WEST’s service area regarding an unauthorized change to the 
customer’s local exchange carrier.  Staff fully expects both of these to change 
in the future.  Staff believes local exchange competition will become available 
to more and more consumers, including small residential users; and with that 
competition, Staff expects to receive complaints about local exchange 
slamming.  This market, however, does not exist today.

We also find U S WEST’s need to develop and implement processes and technology 
in order to have the ability to "freeze" a customer’s local exchange carrier 
persuasive.  For example,  U S WEST plans to establish an electronic system to 
automatically reject order transfers for those accounts that have "freezes", 
similar to that in place now for interexchange PIC freezes.   USWC is the 
largest local exchange provider in our state, and any changes to the systems it 
uses to provide service to all customers is a daunting undertaking.  However, 
in discussions with Company about those changes, Staff believes that 18 months 
is not reasonable.  U S WEST and Staff, in recent discussions, have agreed that 
a more reasonable period for this waiver is 12 months.

Conclusion:
Therefore, Staff recommends approval of this petition on the condition that 
USWC provide the preferred carrier freeze to its local exchange customer no 
later than March 10, 2001.