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 CCC P UUUU CCC N N EEEEE W W SSS California Public Utilities Commission 505 Van Ness Avenue, Room 5301 San Francisco, CA 94102 Contact: Kiley Russell March 7, 1997 CPUC - 12 (415)-703-1366 (A.95-12-043) CPUC LIMITS PACIFIC BELL'S ISDN RETAIL RATE INCREASE The California Public Utilities Commission (CPUC) today limited Pacific Bell's request to increase rates for its Integrated Services Digital Network (ISDN) services. The Commission also directed the company to improve ISDN customer service, and to submit customer survey results for CPUC review over the next two years. Pacific filed an application for an $8 ISDN rate hike. The Commission's decision increases Pacific Bell's residential ISDN monthly rate $5 from its current $24.50 to $29.50. The business rate will increase $7.50 from its current $25.75 to $33.25. The Commission approved the increase because a product priced below market cost will discourage the deployment of this infromation technology. The Commission's policy is to promote the development of the state's telecommunications infrastructure. WHAT IS ISDN SERVICE? ISDN technology is used to increase existing telephone line transmission capabilities. ISDN makes possible simultaneous voice and data transfers over a single phone line. Up to eight separate pieces of customer equipment can be connected to a single copper phone line through an ISDN service. Also, data transfers using ISDN is four times faster than using regular -more- service with a fast modem. This allows customers to use their phones while connected to the Internet, sending electronic mail, or telecommuting. Although customers mainly use ISDN to increase the speed of data transfers between computers, it can also be used for a faster connection to the Internet and to improve telephone connection quality through digital technology. FREE RESIDENTIAL ISDN HOURS The Commission also directed Pacific Bell to offer residential customers 200 free hours of off-peak (evening) ISDN service per month - six hours per day. After 200 hours, customers will be charged the normal hourly usage fee. This charge will discourage unlimited use of ISDN service, and thus help prevent system congestion as more and more customers subscribe. This measure is largely preventative - ISDN customers are currently a small fraction of all customers routed through Pacific Bell's central switching facilities, and are thus not likely to be a source of system congestion. Pacific Bell had asked the Commission to limit the number of free residential hours to 20 per month. CUSTOMER SERVICE IMPROVEMENTS ORDERED The Commission found Pacific Bell's residential ISDN customer service to be inadequate - representatives are hard to reach and poorly trained, and customers requesting ISDN service are subjected to unreasonable delays. In light of these findings, the Commission ordered Pacific Bell to implement the following changes: For each ISDN service or installation appointment Pacific Bell misses, the company will credit $25 to the customers account. The credit will not apply to appointments missed because of customer actions. Pacific Bell will discount its installation charge 10 percent for each day it fails to install ISDN service after 10 -more- business days. In cases where Pacific Bell must determine whether a customer's line is capable of being equipped with ISDN, the discount will apply after 15 business days. Pacific Bell will credit $5 to customers for each day repairs are not made on the company's system beginning 24 hours after a problem is reported. The credit does not apply to repairs that are required because of customer actions. To ensure high quality ISDN customer service, the Commission ordered Pacific Bell to submit several customer surveys to the CPUC Telecommunications Division. The surveys are to identify residential and business customers separately and should ask for customer's perceptions about the quality of installation and repair services, how well customer service representatives are trained, and how easily customers gain access to employees who are able to help them. The first survey results are to be submitted no later than September 1, 1997. Subsequent survey results are to be submitted every six months until September 1, 1999. The surveys will be made available to the public. WHOLESALE ISDN PRICES With an eye towards stimulating resale competition, the Commission ordered Pacific Bell to set wholesale rates for its ISDN service 17 percent below retail cost. ###