CONTACT: Armando Rendón November 5, 1997 CPUC-117
415-703-1366 (R95-04-043)

CPUC SAYS PHONE COMPANIES MUST COMPLETE CALLS

REGARDLESS OF DISPUTES OVER COMPENSATION

The California Public Utilities Commission (CPUC) today told the state's phone companies they must put calls through regardless of whether the carrier completing the call thinks it's not getting properly paid for the service. To do otherwise, the Commission said, would threaten the state's phone system and undermine the drive toward full-blown phone competition.

The issue arose last year when Evans and Volcano Telephone Companies refused to route certain calls of Pac-West Telecomm, Inc., (Pac-West). The two firms asserted that because of rating and routing inconsistencies between them and Pac-West, they wouldn't get properly paid for completing the calls. Pac-West, headquartered in Stockton, brought a complaint against the two firms before the Commission. Today's order deals with the policy question of whether utilities can choose not to complete calls.

Pac-West argued that allowing phone companies to choose what calls they would complete based on whether they were pleased with the compensation arrangements could create chaos in the state's telecommunications system. The two firms maintained they couldn't complete the calls without violating the stated rates or tariffs filed with the CPUC.

Citing Public Utilities Code Section 558 and the Telecommunications Act of 1996, the Commission concluded that every carrier is obligated to complete calls where it is technically feasible whether or not the agreement for compensation is in dispute. Moreover, to resolve a dispute, a company can negotiate new contract terms, or bring a complaint before the CPUC.

The underlying dispute between Pac-West and Evans and Volcano with regard to call rating and routing restrictions will be considered by the CPUC as part of the complaint case.

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