Service Measure

Description

Standard

1. Held Primary Service Orders

2. Installation-Line Energizing Commitments

3. Customer Trouble Reports

4. Toll Operator Answering Time (OA)

5.Directory Assistance Operator Answering

Time (DA)

6. Trouble Report Service Answering Time (TRSAT)

7. Business Office Answering Time (BOAT)

Requests for primary telephone service delayed over 30 days due to lack of telephone utility plant Requests for establishment or changes in non-key telephone individual and party-line service that normally involve plant activity Initial reports from customers and users of telephone service relating to dissatisfaction with telephone company-provided equipment and/or service The percentage of toll and assistance calls answered within 10 seconds The percentage of directory assistance calls answered within 12 seconds The percentage of trouble report calls answered within 20 seconds The percentage of business office calls answered within 20 seconds

No standard established

95% commitments met

6 reports per 100 lines for units with 3,000 or more lines

8 reports per 100 lines for units with 1,001-2,999 lines

10 reports per 100 lines for units with 1,000 or fewer lines

85%

85%

80%

80%

Pacific reported that customer trouble reports occurred about 1.0 to 1.8 times per 100 lines from 1990 to 2001.

Verizon reported that "[its] network trouble reports per 100 access lines have not exceeded the GO 133-B standards since at least 1986. In that year, the trouble report rate was 3.4 reports per 100 lines. The rate declined to 1.3 by 1993 and averaged approximately 1 report per 100 lines between 1996 and 2001."30 The following chart shows the performance of Pacific and Verizon for the period from 1990 to 2001.31

7 One of the measures required by GO 133-B, dial service, was discontinued in 2000 and will not be addressed here. Similarly, we have no information on dial tone speed. 8 R.02-12-004, filed Dec. 5, 2002, available at http://www.cpuc.ca.gov/published/final_decision/21982.htm (Service Quality OIR). 9 23 RT 2973:11-17 (Resnick for Pacific). In this decision, RT refers to the hearing transcripts. Thus, 23 RT 2973:11-17 refers to Volume 23 of the transcript, at page 2973, lines 11-17. 10 23 RT 2974:17-23 (Resnick for Pacific; not aware that Pacific can measure how long customers wait in the ARU queue). 11 Exh. 2B:139 at 8 n.12 (Piiru Opening Testimony, citing Pacific response to TD data request 02-01-01-1-I (iii). Verizon responded in discovery that it does not track this information "on a regular basis." Id. at 7, n.11. 12 Id. at 7 & n.12. 13 Although Pacific asserts it has used ARUs since 1990, it provided no evidence that the Commission was aware of its practice or considered the use of ARUs at the time BOAT and TRSAT measures were adopted in 1992. 14 R.02-12-004, filed Dec. 5, 2002, available at http://www.cpuc.ca.gov/published/final_decision/21982.htm (Service Quality OIR). 15 Exh. 2B:354 at 14:15-16 (Hauser Direct Testimony). 16 Id., Attachment 10. 17 ORA Reply/Service Quality at 8, citing Pacific's Tariff, Schedule Cal. P.U.C. No. A2. Network and Exchange Services: A2. General Regulations 2.1.1 Rule No. 1 - DEFINITION OF TERMS. 18 Exh. 2B:214 at 30:7-12 (Thoms Direct Testimony). 19 TURN Opening/Service Quality at 16. 20 GO 133-B, Section 3.1 - Held Primary Service Orders. 21 22 RT 2793:24-2794:22 (Resnick). 22 Parties who believe Pacific has violated GO 133-B may file a complaint based on such a claim and seek relief for any alleged violation. 23 To determine whether there is a significant time trend in Pacific's performance, we derived the coefficients that estimate how Pacific's performance varies over time. In particular, we estimated a regression of Pacific's performance on a linear time trend, y=_ + _x, where y is the performance in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For the held orders measure, the value of _ is -34.51 with t-statistic -4.17, significant at 1% level (R-square: 0.64, no. of observations: 12). The negative value of _ indicates that Pacific has improved its performance. 24 To determine whether there is a significant time trend in Verizon's performance, we derived the coefficients that estimate how Verizon's performance varies over time. In particular, we estimated a regression of Verizon's performance on a linear time trend, y=_ + _x, where y is the performance in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For the held orders measure, the value of _ is -8.57 with t-statistic -1.1. The negative value of _ indicates that Verizon has improved its performance, but the t-statistic implies that this record of improvement is not statistically different than a record of noimprovement at either the 1% or 5% level (R-square: 0.11, no. of observations: 12). 25 Pacific Opening/Service Quality at 11. 26 Exh. 2B:214 at 30:6-7 (Thoms Direct Testimony). 27 Exh. 2B:354/Attachment 5 (Hauser Direct Testimony). 28 As is our practice, to determine whether there is a significant time trend in Pacific's performance, we derived the coefficients that estimate how Pacific's performance varies over time. In particular, we estimated a regression of Pacific's performance on a linear time trend, y=_ + _x, where y is the performance in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this measure, the value of _ is -0.03, which shows almost no change in the yearly average of installation commitments met over the period investigated. Moreover, the t-statistic -1.52 is not significant at 1% or 5% level (R-square: 0.19, no. of observations: 12). Thus, we find no statistically significant trend. 29 As is our practice, to determine whether there is a significant time trend in Verizon's performance, we derived the coefficients that estimate how Verizon's performance varies over time. In particular, we estimated a regression of Verizon's performance on a linear time trend, y=_ + _x, where y is the performance in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this measure, the value of coefficient _ is -0.06. Moreover, the t-statistic -1.95 is not significant at 1% or 5% level (R-square: 0.27, no. of observations: 12). Thus, we find no statistically significant trend. 30 Exh. 2B:214 at 29: 23 and 30:1-3 (Thoms Direct Testimony). 31 Exh. 2B:354/Attachment 11 (Hauser Direct Testimony). 32 To determine whether there is a significant time trend in Pacific's performance, we derived the coefficients that estimate how Pacific's performance varies over time. In particular, we estimated a regression of Pacific's performance on a linear time trend, y=_ + _x, where y is the performance in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this measure, the value of _ is approximately zero, which shows almost no change in customer trouble reports, yearly average, over the years studied. Moreover, the t-statistic is 0.06, not significant at 1% or 5% level (R-square: 0.00, no. of observations: 12). 33 To determine whether there is a significant time trend in Verizon's performance, we derived the coefficients that estimate how Verizon's performance varies over time. In particular, we estimated a regression of Verizon's performance on a linear time trend, y=_ + _x, where y is the performance in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this measure, the value of _ is -0.08, indicating a slight improvement over this time period. More importantly, the t-statistic is -7.64, significant at 1% level (R-square: 0.85, no. of observations: 12). Thus, there is only one chance in a 100 that Verizon's customer trouble reports did not decrease over time. 34 Exh. 2B:354 at 17:20-21 (Hauser Direct Testimony). 35 Exh: 2B:214 at 30:13-16 (Thoms Direct Testimony). 36 Exh: 2B:354/Attachment 7 (Hauser Direct Testimony). 37 As discussed in previous footnotes, we apply the standard statistical methodology: we derive the coefficients that estimate how Pacific's performance varies over time. In particular, we estimate a regression of Pacific's performance on a linear time trend, y=_ + _x, where y is the performance in a given year, and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this specification, the value of _ is -0.38, which shows a modest decrease in the percentage of phone calls answered within 10 seconds. This trend, however, is not statistically significant - the t-statistic is -2.04 , not significant at 1% or 5% level (R-square: 0.37, no. of observations: 9). 38 To determine whether there is a significant time trend in Verizon's performance, we derived the coefficients that estimate how Verizon's performance varies over time. In particular, we estimated a regression of Verizon's performance on a linear time trend, y=_ + _x, where y is the performance in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this specification, the value of _ is 0.03, which is very close to zero. Moreover, the t-statistic is 0.14, not significant at 1% or 5% level (R-square: 0.00, no. of observations: 12). Thus, there is no statistically significant time trend. 39 Exh. 2B:354 at 17:20-21 (Hauser Direct Testimony). 40 Id., Attachment 8. 41 Following the usual procedure, to determine whether there is a significant time trend in Pacific's performance, we derived the coefficients that estimate how Pacific's performance varies over time. In particular, we estimated a regression of Pacific's performance on a linear time trend, y=_ + _x, where y is the percentage of calls answered within 12 seconds in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this specification, the value of _ is 0.07, indicating little systematic change over the years studied. Moreover, the t-statistic is 0.41, not significant at 1% or 5% level (R-square: 0.02, no. of observations: 9). Thus, the trend is not significantly different from zero. 42 Following the usual procedure, to determine whether there is a significant time trend in Verizon's performance, we derived the coefficients that estimate how Verizon's performance varies over time. In particular, we estimated a regression of Verizon's performance on a linear time trend, y=_ + _x, where y is the percentage of calls answered within 12 seconds in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this specification, the value of _ is 0.33, indicating a modest improvement over the years studied. However, the t-statistic is 2.26, not significant at 1% or 5% level (R-square: 0.42, no. of observations: 9). Thus, this trend of improvement, although encouraging, is not statistically significant. 43 Exh. 2B:354 at 18: 3-7 (Hauser Direct Testimony). 44 Exh. 2B:354/Attachment 6 (Hauser Direct Testimony). 45 Following the usual procedure, to determine whether there is a significant time trend in Pacific's performance, we derived the coefficients that estimate how Pacific's performance varies over time. In particular, we estimated a regression of Pacific's performance on a linear time trend, y=_ + _x, where y is the percentage of trouble service calls answered within 20 seconds in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this measure, the value of _ is 0.75, indicating an improving trend over the years studied. However, the t-statistic is 1.77, not significant at 1% or 5% level (R-square: 0.26, no. of observations: 11). Thus, we do not find that the trend of improvement is statistically significant. 46 19 RT 2318:28-2319:20. 47 Exh. 2B:138 at 6 (Piiru Direct Testimony). 48 Following the usual procedure, to determine whether there is a significant time trend in Verizon's performance, we derived the coefficients that estimate how Verizon's performance varies over time. In particular, we estimated a regression of Verizon's performance on a linear time trend, y=_ + _x, where y is the percentage of trouble service calls answered within 20 seconds in a given year and x is the year. With this specification, the value of _ and its t-statistic determine whether there is a statistically significant time trend. For this measure, the value of _ is 1.65, indicating an improving trend over the years studied. Moreover, the t-statistic is 3.36, significant at 5% level (R-square: 0.62, no. of observations: 9). Thus, Verizon's trend of improvement is statistically significant. 49 Exh. 2B:354 at 18:3-5 (Hauser Direct Testimony). 50 Exh. 2B:214 at 30:17-20 (Thoms Direct Testimony). 51 TURN Opening Brief at 15. 52 Exh. 2B:354/Attachment 9 (Hauser Direct Testimony). 53 D.92-05-056. 54 Exh. 2B:521, Table 1.

55 To determine whether there is a significant time trend in Pacific's performance, we derived the coefficients that estimate how Pacific's performance varies over time. In particular, we estimated a regression of Pacific's performance on a linear time trend, y=_ + _x, where y is the performance in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For this specification, the value of _ is 1.48, indicating improvement over this time period. More importantly, with a t-statistic 4.01, this trend is statistically different from zero at 1% level (R-square: 0.67, no. of observations: 10). Thus, there is only one chance in a 100 that percentage of the calls answered did not increase over time. However, because of the change to exclude billing-related calls beginning in 1999, the trend in Pacific's data is of no consequence.

56 To determine whether there is a significant time trend in Pacific's performance using the adjusted data, we derived the coefficients that estimate how Pacific's performance varies over time. In particular, we estimated a regression of Pacific's performance on a linear time trend, y=_ + _x, where y is the performance in a given year and x is the year. With this specification, the value of coefficient _ and its t-statistic determine whether there is a statistically significant time trend. For the business office answer time measure including billing calls, the value of _ is -.84 with t-statistic -.86. The negative value of _ indicates a declining trend, but the t-statistic indicates that this decline is not significantly different from no change, at either the 1% or 5% level (R-square: 0.10, no. of observations: 9). 57 We derived coefficients by estimating a regression of Verizon's performance on a linear time trend. For this measure the coefficient was 2.025 with a t-statistic 3.78, significant at 1% level (R-square: 0.67, no. of observations: 9). 58 Id., Section 1.3(b). 59 22 RT 2786:10-17 (statement by Verizon's counsel).

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