CCC PPPPP U U CCC N N EEEEE W W W SSS C C P p U U C C NN N E W W W S S C P P U U C N N N E W W W S C PPPPP U U C N N N EEE W W W W SSS C P U U C N N N E WW WW S C C P U U C C N NN E W W S S COC P UUUU CCC N N EEEEE W W SSS California Public Utilities Commission 505 Van Ness Avenue, Room 5301 San Francisco, CA 94102 CONTACT: Armando Rendon August 5, 1996 CPUC-067 415-703-1366 (R95-01-020) CPUC ISSUES PROPOSED UNIVERSAL PHONE SERVICE RULES The California Public Utilities Commission (CPUC), moving closer to fulfilling its goal of making phone service available and affordable to every Californian desiring it, today issued new rules for "universal service." The purpose of this year and a half long proceeding has been to establish a program for ensuring universal service that is sustainable in a competitive market place. The rules were issued by CPUC Administrative Law Judge John S. Wong in an interim proposal that must still be reviewed and approved by the five Commissioners. The proposed decision is scheduled for a vote on September 5, at which time a majority is needed to implement new rules. The Commission will hold oral argument on this proposed decision Thursday, August 29, in the State Office Building, 505 Van Ness Avenue, San Francisco. The public will have an opportunity to comment at that time. Jessie J. Knight, Jr., CPUC Commissioner who managed the year and a half proceeding on universal service, said, "The judge has prepared a very thoughtful proposal for the Commission to review. I hope to work with my colleagues on the Commission and the Administrative Law Judge to craft a final policy that is consistent with the Commission's longstanding commitment to Universal Service, as we move into a growing and intensely competitive market for telecommunications. "California's telecommunications markets are undergoing tremendous technological, economic and regulatory changes. As we enter open competition, now required by both Federal and State law, the current regulatory structures affecting universal -more- service will need to reflect today's, and more importantly tomorrow's, competitive market," Knight stated. Providing basic telephone service varies considerably from place to place, according to the proposed decision. In some areas of the state, particularly rural areas, the cost of providing service exceeds the rates charged for that service. In order to ensure that service to these high-cost areas continues, the proposed decision establishes a California High-Cost Fund that will subsidize the rates for basic residential telephone service in these areas. It is estimated that the program will cost about $268 million and will be paid for by a 1.24 percent surcharge on customers' telephone bills. Also, the judge is proposing that the Commission's Lifeline program for low-income customers be modified to allow any company providing phone connections, including new comCetitors, to competitively offer Universal Lifeline Telephone Service to qualifying low-income customers. The proposal intends that all local telephone companies in California strive to help the Commission maintain fidelity to achieving a 95 percent subscription rate in California. Qualifying schools, libraries and community-based organizations would be eligible for discounts on certain services. Specifically, the decision would fund discounts to schools and libraries of between 20 and 25 percent off the regular price of the service. In addition, community-based organizations that provide health care, job training, job placement or educational instruction will also qualify for discounted digital access to the network to stimulate the ability of all Californians to access the new telecommunications age. A Universal Service Working Group would be set up to find ways that advanced technology can be made available to all customers, not just those who are financially able. In particular, the group would look at how education, health care, community and government agencies can take advantage of new technologies. -more- The package of basic services proposed by today's interim decision includes: 1. access to single party local exchange service; 2. access to at least one interexchange (long distance) carrier; 3. ability to place calls; 4. ability to receive free unlimited incoming calls; 5. free touch tone dialing; 6. free and unlimited access to 911/E911; 7. access to local directory assistance, the first five of which shall be provided at no additional charge; 8. Lifeline rates and charges for eligible customers; 9. customer choice of flat or measured rate service; 10. free provision of one directory listing per year in the directory published by the carrier providing the customer with local exchange service; 11. free white pages telephone directory, and free yellow pages telephone directory; 12. access to operator services; 13. voice grade connection to the telephone network; 14. free access to all information services and 800 or 800- like toll free services; 15. one-time free blocking for information services and one time billing adjustments for charges incurred inadvertently, mistakenly, or that were unauthorized; 16. access to telephone relay service (deaf and disabled services) as provided for in Public Utilities Code Section 2881; 17. free access to customer service for information about ULTS, service activation, service termination, service repair and bill inquiries. ###