January 21, 1998 NOTICE OF OPPORTUNITY TO FILE COMMENTS (February 13, 1998) Re: Petition for Investigation into the Cost of Universal Service and to Reform Intrastate Carrier Access Charges Docket No. UT-970325 TO ALL INTERESTED PERSONS: On October 8, 1997, the Commission initiated a rule making in the above captioned and docketed matter. A Preproposal Statement of Inquiry (CR-101) was filed with the Code Reviser on October 22, 1997. The CR-101 set a November 21, 1997 deadline for initial comments, and scheduled a workshop for 9:30 a.m., January 13, 1998, at the Commission’s Office in Olympia. Written comments have been received by the Commission and the workshop has taken place. The Commission first expresses its appreciation for the level and quality of the panelists’ presentations at the January 13 workshop. We thank also the energy and participation both of the panelists and other attendees in the plenary and small group discussions at the workshop. While this experience was insightful, we wish to continue the dialogue we have begun and allow all interested persons the opportunity to file subsequent written comments in light of the workshop and the various materials circulated that day. Your comments are solicited on the initial comments filed November 21, 1997, the Commission Staff’s Report on Access Charge Reform Options, the presentations made at the January 13, 1998 workshop, and all materials distributed at the workshop by the presenters. The Commission would appreciate comments on four potential approaches to access charge reform, as described in brief below. All of these approaches assume that the Commission, with legislative authority as necessary, has established a competitively neutral mechanism to support universal service for customers in high-cost locations. The alternative approaches are: Interested Persons: Docket No. UT-970325 January 21, 1998 Page 1 A. Reduce terminating access charges by the amount of funding provided through the universal service mechanism. B. Reduce access charges to offset universal service funding, and shift any terminating access charges in excess of the actual cost of terminating access, to originating elements. The originating elements could be a combination of per-minute and per-line charges. C. Reduce access charges to offset universal service funding, and shift part or all of remaining access charges to local rates. If this approach is favored, please comment on how the Commission should determine the proportion of access charges to be shifted to local rates and the timing of such shifts. D. Reduce access charges to offset universal service funding, and order an additional decrease in access charges with no offsetting local rate increase. If this approach is favored, please comment on how the Commission should determine the appropriate decrease in access charges and the timing of such decrease. In evaluating and discussing these approaches, please offer comments on the likely effects on the various interest groups discussed in the Commission Staff Report at pp. 2-3. In addition, the Commission asks parties to consider and offer comments on how access charge reform would affect the following: 1. Wireless telecommunications companies, services, and customers; 2. Internet service providers (ISPs), information services, and customers; and 3. Small businesses throughout the State of Washington. If you were unable to attend the January 13, 1998 workshop, or have not received the comments of other interested persons, these documents and the handout materials may be obtained through the Commission’s Records Center by calling 360-664-1234. This information also is available in electronic format on the Commission’s new Internet site at http://www.wutc.wa.gov (see, “Telephone Matters”; then Docket No. UT-970325). NOTICE is given of the opportunity to file additional written comments in this rule making proceeding. To be timely filed the Commission must receive your written comments not later than 5:00 p.m., Friday, February 13, 1998. If you are filing on behalf of a telecommunications company or formal organization, we ask that your cover letter identify a single point of contact for this rule making at your company or organization and provide voice and fax telephone numbers and e-mail address. All other interested persons are likewise invited to supply this information at your discretion. In light of the critical importance and widespread interest in this proceeding, we ask that commenters file an original and ten written copies, and an electronic copy on a 3½-inch IBM formatted high-density disk, preferably in WordPerfect version 5.1, 6.0, or 6.1, labeled with the party’s name and type of software used, and the docket number of this proceeding. The electronic files will be posted to the Commission’s web site at: http://www.wutc.wa.gov. Once again, we thank all of you for your participation in this process. If you have any questions or comments, please contact Tim Zawislak, Telecommunications Analyst, at 360-664-1294, or by e-mail at tim@wutc.wa.gov. Sincerely, ANNE LEVINSON RICHARD HEMSTAD WILLIAM R. GILLIS Chair Commissioner Commissioner