COM/MP1/avs Date of Issuance 6/26/2012

Decision 12-06-024 June 21, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Review Policies Concerning Intrastate Carrier Access Charges.

Rulemaking 03-08-018
(Filed August 21, 2003)

DECISION MODIFYING INTRASTATE ACCESS CHARGES CONSISTENT WITH FEDERAL COMMUNICATIONS COMMISSION ACTIONS

TABLE OF CONTENTS

Title Page

DECISION MODIFYING INTRASTATE ACCESS CHARGES CONSISTENT WITH FEDERAL COMMUNICATIONS COMMISSION ACTIONS 2 2

1. Summary 2 2

2. Background 3 3

3. Proposed Modifications to D.06-04-071 and D.07-12-020 8 8

4. Advice Letters and Supporting Data 12 12

5. Exceptions to Tariff and Data Filing Interstate Rates 14 14

5.1. Carriers with Intrastate Rates Below Interstate Rates 14 14

5.2. Carriers with Intrastate Rates Equal to Interstate Rates 15 15

5.3. Reciprocal Compensation Requirements 17 17

5.3.1. Access Reciprocal Compensation 17 17

5.3.2. Non-Access Reciprocal Compensations 17 17

5.3.3. Worksheets 18 18

5.4. VoIP-PSTN Rates 19 19

6. Timelines for Rate Reductions 19 19

7. Carrier Access to Underlying Data 21 21

8. Comments on Proposed Decision 22 22

9. Assignment of Proceeding 23 23

Findings of Fact 23 23

Conclusions of Law 26 26

ORDER 28 28

APPENDIX A - CLEC Intrastate Transitional Access Service Charges
Supporting Data Worksheet

APPENDIX B - CLEC Non-Access Reciprocal Compensation
Supporting Data Worksheet

APPENDIX C - Supplemental Advice Letter Transmittal Form

APPENDIX D - 47 CFR § 51.903(h) Definitions

DECISION MODIFYING INTRASTATE ACCESS CHARGES CONSISTENT WITH FEDERAL COMMUNICATIONS COMMISSION ACTIONS

1. Summary

On our own motion, after the requisite notice and opportunity to be heard, we modify two decisions issued by the Commission in this rulemaking, namely Decision (D.) 06-04-071 "Interim Opinion Modifying Intrastate Access Charges" and D.07-12-020, the Commission's "Final Opinion Modifying Intrastate Access Charges." The modifications to these two decisions are consistent with the Federal Communications Commission's (FCC) recent Universal Service Fund and Intercarrier Compensation Transformation Order,¹ and modifications/clarifications thereto, regarding default non-access reciprocal compensation and default intrastate access rates for terminating switched access and certain transport elements. Pursuant to Pub. Util. Code § 1708, the assigned Commissioner issued a Ruling on April 24, 2012 that provided parties the opportunity to provide comments on the proposed implementation of the FCC's actions.² We ratify the assigned Commissioner's Ruling by this decision.

¹ In the Matter of Connect America Fund, WC Docket No. 10-90; A National Broadband Plan for Our Future, GN Docket No. 09-51; Establishing Just and Reasonable Rates for Local Exchange Carriers, WC Docket No. 07-135; High-Cost Universal Service Support, WC Docket No. 05-337; Developing an Unified Intercarrier Compensation Regime, CC Docket No. 01-92; Federal-State Joint Board on Universal Service, CC Docket No. 96-45; Lifeline and Link-Up, WC Docket No. 03-109; Universal Service Reform - Mobility Fund, WT Docket No. 10-208, Report and Order and Further Notice of Proposed Rulemaking, rel. Nov. 18, 2011 (Order).

² The Assigned Commissioner's Ruling (ACR) was served on the service list to this Rulemaking and on Incumbent Local Exchange Carriers and Competitive Local Exchange Carriers operating in the State of California. (ACR at 14.)