Non-Basic Port Discounts

Port Type

Interim Discount

Interim Rate

Coin Port

69.4%

$1.17

Centrex Port

69.4

1.34

DID Port

69.4

1.28

DID Number Block

69.4

.31

ISDN Port

69.4

4.31

    Trunk Port Termination: End Office

Tandem

69.4

79.3

6.42

29.56

DS-1 Port

69.4

6.42

These interim rates shall be subject to adjustment, either up or down, once final rates for basic and non-basic port types are adopted in the next phase of this proceeding. Therefore, we require Pacific to establish a balancing account to track the revenues received from these interim port rates. The balancing account should begin tracking revenues on the same date the interim rates become effective, which is the effective date of this order.

Comments on Draft Decision

The draft decision of the ALJ in this matter was mailed to the parties in accordance with Section 311(g)(1) of the Public Utilities Code and Rule 77.7 of the Rules of Practice and Procedure. Comments were filed by ____. Reply comments were filed by _____.

Findings of Fact

1. The non-basic ports listed in Table 1 have some equipment and facilities in common with the basic port even though each port has some unique equipment requirements.

2. Centrex and basic ports share most of the same equipment, even though they do not share all of the same equipment.

3. The Common Block feature used by the Centrex port resides in the same memory chips that are used for basic call processing.

4. Coin and Centrex Ports share a MDF termination, line card, and a portion of the line peripheral with basic ports.

5. The DID Number Block uses the same memory components as a Centrex Common Block.

6. ISDN Ports use a MDF termination and line peripheral in common with the basic port.

7. The equipment from which switching usage costs are derived is also used to derive costs for trunk ports.

Conclusions of Law

1. Because the non-basic port types listed in Table 1 use some of the same equipment as the basic port, including line cards, memory chips, and MDF terminations, there is a correlation between the basic port and other port types and the discount adopted for the basic port should extend to the other port types listed in Table 1.

2. By discounting the basic port, and not the other port types, we have skewed the pricing structure that was established in D.99-11-050.

3. For policy reasons, the Commission should retain the general pricing differentials that existed among the port types when rates were adopted in
D.99-11-050.

4. Once final port rates are adopted in a further phase of this proceeding, the interim port rates adopted in this order should be adjusted, either up or down, from the effective date of this order.

INTERIM ORDER

IT IS ORDERED that:

1. The monthly recurring prices for the ports offered by Pacific Bell Telephone Company (Pacific) that are set forth in Table 2 of this order satisfy the requirements of Sections 251(c)(2), 251(c)(3), and 252(d)(1) of the Telecommunications Act of 1996 and are hereby adopted on an interim basis.

2. The interim unbundled network element (UNE) prices for ports adopted in this order shall be effective on the date this order is effective.

3. Pacific shall prepare amendments to all interconnection agreements between itself and other carriers substituting the interim monthly recurring prices for UNE ports set forth in Table 2 of this order for the UNE prices set forth in such interconnection agreements. Such amendments shall be filed with the Commission's Telecommunications Division, pursuant to the advice letter process set forth in Rules 6.2 and 6.2 of Resolution ALJ-181, within 30 days after the effective date of this order. The amendments do not require a signature of the carriers involved as long as the amendments are limited to substituting the port rates adopted in today's order. Unless protested, such amendments will become effective 30 days after filing.

4. Pacific shall have 60 days from the date of this order to complete all billing program changes necessary to ensure that an effective date of today is accurately reflected in bills applicable to these UNEs. Upon completion of said billing program changes, Pacific shall notify the Director of the Telecommunications Division in writing that all of the necessary billing program changes have been completed.

5. Within 10 days of the effective date of this order, Pacific shall file an advice letter to establish a balancing account to track the revenues received from these interim UNE port rates, beginning on the same date the interim rates become effective. The balancing account should accrue interest at the three-month commercial paper rate. Unless protested, the advice letter shall become effective five days after filing.

This order is effective today.

Dated , at San Francisco, California.

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