[Note: Items in Boldface type
are amendments to the rules issued in D.95-07-054, Appendix A.]
1. PUBLIC POLICY PRINCIPLES
AND OBJECTIVES
A. It is the policy of the California
Public Utilities Commission (Commission) that competition in the
provision of local exchange telecommunications services is in
the public interest.
B. It is the policy of the Commission
that, in an environment of competition for local exchange telecommunications
services, telecommunications users shall receive ongoing disclosure
of the rates, terms and conditions of service from telecommunications
providers and shall benefit from a clear and comprehensive set
of consumer protection rules.
C. It is the policy of the Commission
that interconnection of the networks of Competitive Local Carriers
(CLCs) and Local Exchange Carriers (LECs) should be accomplished
in a technically and economically efficient manner.
D. It is the policy of the Commission
that all telecommunications providers shall be subject to appropriate
regulation designed to safeguard against anticompetitive conduct.
E. It is the policy of the Commission
that service provider local number portability should be accomplished.
F. It is the policy of the Commission
that networks of dominant providers of local exchange telecommunications
services should be unbundled in such a manner that a carrier is
provided access to essential facilities on a nondiscriminatory
standalone basis.
G. It is the policy of the Commission
that customer privacy rights and concerns be protected in an environment
of local exchange competition.
H. It is the policy of the Commission
to ensure that local exchange competition does not degrade the
reliability of the telecommunications network.
I. It is the policy of the Commission
to encourage intercarrier coordination and cooperation.
J. It is the policy of the Commission
to monitor, on a periodic basis, the market conditions of the
local exchange telecommunications market and reevaluate its policies
on local exchange competition accordingly.
K. It is the policy of this Commission
that Commission-approved tariffs for call termination should reflect
costs.
2. SCOPE OF RULES
These interim rules apply to the provision of local exchange telecommunications services by CLCs, and where applicable, LECs.
LEC as used in these rules refers to
only Pacific Bell and GTE California, until further action by
the Commission.
3. DEFINITIONS
A. CLC means a common carrier that is
issued a Certificate of Public Convenience and Necessity effective
on or after January 1, 1996, to provide local exchange
telecommunications service for a geographic area specified by
such carrier.
B. LEC means any incumbent carrier listed
in Appendix C attached hereto.
C. Minor rate increases are those which
are both less than 1% of the CLC's total California intrastate
revenues and less than 5% of the affected service's rates. Increases
shall be cumulative, such that if the sum of the proposed rate
increase and rate increases that took effect during the preceding
12-month period for any service exceeds either parameter above,
then the filing shall be treated as a major increase.
D. Major rate increases are increases
which are greater than the increases described above.
E. Network component means a functional
capability of a network, disaggregated from other network capabilities
and made available to other carriers and end users separately
from all other network capabilities.
F. Nondominant interexchange carrier
(NDIEC) means an interexchange carrier that is considered nondominant
under the Commission's decisions.
G. NXX Rating Point means the end office/wire
center location designated in the Local Exchange Routing Guide
as the assignment point for an NPANXX code.
H. NXX Service Area means the geographicallybounded
area designated as the area within which a LEC or CLC may provide
local exchange telecommunication services bearing a particular
NPANXX designation.
I. Local telephone number portability
means the ability of end users to retain their existing telephone
numbers when remaining at a location, or changing their location
within the geographic area served by the initial carrier's serving
central office, regardless of the LEC or CLC selected.
J. Local exchange loop facility (also
known as a basic level network access channel) means a transmission
path capable of delivering analog voice grade signals or digital
signals at less than 1.544 Mbps between the network interface
at a customer's premises and the main distribution frame or any
other point of interconnection to the LEC network.
K. A port (also known as a basic level
network access channel connection) is the interface between the
loop and the appropriate LEC Central Office switching equipment.
L. Nonfacilities-based CLCs are those
which do not directly own, control, operate, or manage conduits,
ducts, poles, wires, cables, instruments, switches, appurtenances,
or appliances in connection with or to facilitate communications
within the local exchange portion of the public switched network.
M. Facilities-based CLCs are those which
directly own, control, operate, or manage conduits, ducts, poles,
wires, cables, instruments, switches, appurtenances, or appliances
in connection with or to facilitate communications within the
local exchange portion of the public switched network.
N. Service territory means the area in
which a CLC is authorized to provide service.
O. An intercompany interconnection
service order is a request for interconnection of trunks and/or
facilities between CLCs and/or LECs.
P. Warm-line refers to residential
customer access to E911 service after disconnection for
nonpayment and for newly installed lines.
4. ENTRY, CERTIFICATION,
AND REGULATION OF CLCs
A. The Commission shall grant a Certificate
of Public Convenience and Necessity (CPCN) to any applicant that
possesses the requisite managerial qualifications, financial resources,
and technical competence to provide local exchange telecommunications
services.
B. The Commission shall apply the following
financial standards to the certification of CLCs:
(1) All new applicants seeking CPCNs
for authority to become facilities-based CLCs, as defined in this
decision, shall demonstrate in their applications that they possess
a minimum of $100,000 of cash or cash equivalent as defined below,
reasonably liquid and readily available to meet the firm's startup
expenses. Such applicants shall also document any deposits required
by local exchange companies or interexchange carriers (IECs) and
demonstrate that they have additional resources to cover all such
deposits.
(2) All new applicants seeking CPCNs
for authority to become nonfacilities-based CLCs, as defined in
these rules, shall demonstrate in their applications that they
possess a minimum of $25,000 of cash or cash equivalent as defined
below, reasonably liquid and readily available to meet the new
firm's expenses. Such applicants shall also document any deposits
required by LECs or IECs and demonstrate that they have additional
resources to cover all such deposits.
(3) Applicants for CPCNs as CLCs who
have profitable interstate operations may meet the minimum financial
requirement by submitting an audited balance sheet and income
statement demonstrating sufficient cash flow, as authorized in
Decision (D.) 91-10-041 for NDIECs.
(4) New applicants for CPCNs as CLCs
shall be permitted to use any of the following financial instruments
to satisfy the applicable unencumbered cash requirements established
by this order.
(a) Cash or cash equivalent, including
cashier's check, sight draft, performance bond proceeds, or traveler's
checks;
(b) Certificate of deposit or other liquid
deposit, with a reputable bank or other financial institution;
(c) Preferred stock proceeds or other
corporate shareholder equity, provided that use is restricted
to maintenance of working capital for a period of at least twelve
(12) months beyond certification of the applicant by the Commission;
(d) Letter of credit, issued by a reputable
bank or other financial institution, irrevocable for a period
of at least twelve (12) months beyond certification of the
applicant by the Commission;
(e) Line of credit or other loan, issued
by a reputable bank or other financial institution, irrevocable
for a period of at least twelve (12) months beyond certification
of the applicant by the Commission, and payable on an interestonly
basis for the same period;
(f) Loan, issued by a qualified subsidiary,
affiliate of applicant, or a qualified corporation holding controlling
interest in the applicant, irrevocable for a period of at least
twelve (12) months beyond certification of the applicant by the
Commission, and payable on an interestonly basis for the
same period;
(g) Guarantee, issued by a corporation, copartnership, or other person or association, irrevocable for a period of at least twelve (12) months beyond certification of the applicant by the Commission;
(h) Guarantee, issued by a qualified
subsidiary, affiliate of applicant, or a qualified corporation
holding controlling interest in the applicant, irrevocable for
a period of at least twelve (12) months beyond the certification
of the applicant by the Commission.
(5) The definitions of certain of the
financial instruments listed in 4.B (4) and our intent on nondiscriminatory
application of these definitions are clarified as follows:
(a) All unencumbered instruments listed
in 4.a. through 4.h. above will be subject to verification and
review by the Commission prior to and for a period of twelve (12)
months beyond certification of the applicant by the Commission.
Failure to comply with this requirement will void applicant's
certification or result in such other action as the Commission
deems in the public interest, including assessment of reasonable
penalties. (See PU Code '' 581
and 2112.)
(b) Applicants for CPCNs as nonfacilities-based
CLCs shall assure that every issuer of a letter of credit, line
of credit, or guarantee to applicant will remain prepared to furnish
such reports to applicant for tendering to the Commission at such
time and in such form as the Commission may reasonably require
to verify or confirm the financial responsibility of applicant
for a period of at least twelve (12) months after certification
of the applicant by the Commission.
(c) All information furnished to the
Commission for purposes of compliance with this requirement will
be available for public inspection or made public, except in cases
where a showing is made of a compelling need to protect it as
private or proprietary information.
C. The Commission shall apply the following
other standards to its regulation of CLCs:
(1) Applicants which currently hold CPCNs
as telecommunications providers should apply as prescribed herein
to have their current authority expanded to include operating
as a CLC.
(2) Applicants will be required to comply
with CEQA as specified in Rule 17.1 of the Commission=s
Rules of Practice and Procedure
(3) If a CLC is 90 or more days late
in filing the annual report required by General Order (GO) 104-A
or in remitting any current or future Commission-mandated surcharge,
including but not limited to Universal Lifeline Telephone Service
Fund (Public Utilities (PU) Code '
879), DEAF Trust Fund (PU Code '
2881(d), the California High Cost Fund (PU Code '
739.3), or the user fees on intrastate revenues (PU Code ''
431-435), the Commission Advisory and Compliance Division (CACD)
shall prepare a resolution for the Commission's consideration
revoking the CLC's CPCN, unless the CLC has received written permission
from the CACD to file or remit late.
D. The CACD shall on or before January
1, 1997, and at least one time each year thereafter, prepare a
list of all current CLCs in good standing operating in California,
including addresses, phone numbers, and the name of the responsible
contact person at each such utility, and then disseminate that
list to all other telecommunications utilities including the local
exchange companies and IECs and will provide the list at the Commission's
standard per page charge to any other interested party having
requested such list.
E. CLCs shall be subject to the following
tariff and contract filing, revision and service pricing standards:
(1) Uniform rate reductions for existing
tariff services shall become effective on five (5) working days'
notice to the Commission. Customer notification is not required
for rate decreases.
(2) Uniform major rate increases for
existing tariff services shall become effective on thirty (30)
days*
notice to the Commission, and shall require bill inserts, or a
message on the bill itself, or first class mail notice to customers
at least 30 days in advance of the pending rate increase.
(3) Uniform minor rate increases shall
become effective on not less than five (5) working days' notice
to the Commission. Customer notification is not required for such
minor rate increases.
(4) Advice letter filings for new services
and for all other types of tariff revisions, except changes in
text not affecting rates or relocations of text in the tariff
schedules, shall become effective on forty (40) days' notice to
the Commission.
(5) Advice letter filings revising the
text or location of text material which do not result in an increase
in any rate or charge shall become effective on not less than
five (5) days' notice to the Commission.
(6) Contracts shall be subject to GO
96-A rules for NDIECs, except interconnection contracts.
(7) CLCs shall file tariffs in accordance
with PU Code Section 876.
F. The following regulations shall apply
to CLCs:
(1) CLCs shall be required to serve customers
requesting service within their designated service territory on
a nondiscriminatory basis, but shall not be required to have the
same service territory as LEC service territories;
(2) Facilities-based CLCs shall at a
minimum serve all customers who request service and whose premises
are within 300 feet of the CLC's transmission facilities used
to provide service so long as the CLC can reasonably obtain access
to the point of demarcation on the customer's premises, but the
CLC shall not be required to build out facilities beyond such
300 feet.
(3) CLCs shall file service territory
maps with the Commission that detail the area in which the CLC
is authorized to provide service.
(4) CLCs shall file quarterly a written
description or a map that describes its existing physical facilities.
(5) For any interexchange carrier which
subscribes to a CLC's switched access services, the CLC is required
to provide 1+ presubscription or 10XXX equal access consistent
with the equal access rules of this Commission and of the Federal
Communications Commission.
(6) Facilities-based CLCs are required
to make all telecommunications service offerings available for
resale, only within the same class of service, on a nondiscriminatory
basis.
(7) CLCs shall be subject to the obligations
of public utilities under the PU Code including but not limited
to, ''
451 and 453, dealing with the provision of just and reasonable
rates and charges;
(8) CLCs must obtain Commission approval
before discontinuing service in any part of their service area.
(9) CLCs shall provide E-911 service.
(10) To ensure that qualified
customers are provided with telecommunication devices for the
deaf (TDDs) or other telecommunication equipment under the Deaf
and Disabled Telecommunications Program (DDTP) program:
(a) CLCs should contract with
Pacific Bell, GTE of California, the California Telephone Association
or Thomson Consulting to offer equipment and services to eligible
deaf and disabled customers. These contracts should be interim
pending the outcome of continued workshops to determine how CLCs
should participate in the DDTP over the long term.
(b) CLCs shall specify in their
tariffs how they will offer DDTP services.
(11) CLCs shall respond promptly
to their customer's 611 repair calls by either using their own
service technicians or through contractual arrangements. The CLC
shall disclose the procedure for ordering repair service at the
time the customer initiates service as well as on the monthly
customer bill.
(a) LECs shall institute a
referral system to direct CLC customers who dial "611"
to the appropriate CLC for service or to the Commission's Consumer
Affairs Branch if the CLC's identity is unknown.
(b) CLCs shall institute a
similar referral system to direct calls of other competitor's
customers seeking repair service.
(12) CLCs shall be subject to the consumer
protection rules contained in Appendix B of D.95-07-054.
(13) CLCs shall provide the following
reports to the Commission:
(a) On a quarterly basis, a copy of all
written notices provided to customers, in accordance with Rules
1, 2 and 6 of the consumer protection rules set forth in Appendix
B;
(b) By April 1 of each year a copy of
the CLC's annual report;
(c) On a monthly basis, reports regarding
major service outages;
(d) Reports required in GO 133-B and
GO 152-A; and
(e) Such other reports required by the
Commission.
(14) CLCs shall submit all mandated bill
insert notices, including notices of basic universal service rate
increases, to the Commission's Public Advisor's Office for review
and approval, and shall allow the Public Advisor's Office at least
five working days to review and approve the proposed bill inserts
prior to their issuance to customers.
(15) CLCs shall deposit customer
deposits in a protected, segregated, interest-bearing escrow account
subject to Commission oversight.
(16) CLCs shall inform each
new customer, in writing and in the language in which the sale
was made, of the availability, terms, and statewide rates of Universal
Lifeline Telephone Service and basic service. CLCs shall also
provide bills, notices, and access to bilingual customer service
representatives in the languages in which prior sales were made.
(17) Redlining is prohibited
and the Commission shall take strong action against any carrier
engaging in redlining.
5. REGULATION OF LECs
A. Incumbent LECs shall have provider
of last resort responsibilities in their service areas until the
Commission makes a decision on the issue in its Universal Service
docket.
6. INTERIM NUMBER PORTABILITY
(The rules on Interim Number Portability
(INP) will be issued concurrently with the Commission=s
decision adopting INP rates.)
7.
INTERCONNECTION OF LEC AND CLC NETWORKSFOR TERMINATION OF
LOCAL TRAFFIC
A. The interconnection
of LEC and CLC networks for the termination of local traffic involves
not only the construction and maintenance of the interconnecting
facilities, but also the throughput of local terminating traffic
across those interconnecting facilities. Local exchange networks
shall be interconnected so that customers of any local exchange
carrier can seamlessly receive calls that originate on another
local exchange carrier's network and place calls that terminate
on another local exchange carrier's network without dialing extra
digits.
B. In the interim, local traffic shall
be terminated by the LEC for the CLC and by the CLC for the LEC
over the interconnecting facilities described in this Section
on the basis of mutual traffic exchange. Mutual traffic exchange,
also known as "bill and keep," means the exchange
of terminating local traffic between or among CLCs and LECs, whereby
LECs and CLCs terminate local exchange traffic originating from
end users served by the networks of other LECs or CLCs without
explicit charging among or between said carriers for such traffic
exchange.
C.
Bill and keep rules apply to all local calls (including calls
within a 12 mile radius and EAS and ZUM Zone 3) between a CLC
network and a LEC end office, even if the call is routed through
an access tandem. Toll free, directory assistance, busy line verification,
and emergency interrupt calls are not subject to bill and keep
provisions.
D. For intraLATA toll calls,
CLCs shall pay terminating access charges based on the LECs=
existing switched access tariffs.
E. If a CLC uses a LEC tandem
to route a call to another CLC, the LEC may impose a charge for
the service.
F. Before December 31, 1996,
the Commission will review the appropriateness of a bill and keep
system, and modify if necessary.
G.
CLCs and LECs shall negotiate interconnection arrangements
which shall contain mutually agreeable points of interconnection.
Upon reaching agreement on the terms of interconnection, parties
to the agreement shall file the agreement via advice letter with
the Commission for expedited review and approval. Parties shall
develop compensation provisions that appropriately reflect the
usage of facilities. In the event parties are unable to reach
agreement, parties may designate their own separate points of
interconnection for terminating local traffic on each other=s
networks, if mutually agreeable, until the dispute is resolved
by the Commission.
H. Virtual or physical collocation interconnection
arrangements are not precluded, and may be implemented by mutual
agreement, but shall not be a mandatory form of LEC-CLC interconnection.
I. Two-way trunking will be
more conducive to efficient network utilization in a competitive
environment. If two way trunks are used, CLCs shall submit percentages
on a quarterly basis to LECs that represent the amount of local
traffic a CLC is terminating on the LEC=s
network. Each CLC and LEC shall separately measure its total volumes
and percentage of local usage sent to each carrier with which
it interconnects and then exchange its measurements with that
carrier as well as with CACD for monitoring purposes. Any independent
verification of the traffic reported to CACD shall be funded jointly
by all certificated local exchange competitors.
J. In every LATA where a carrier
originates traffic and interconnects with another carrier, it
must interconnect with all of the other carriers=
access tandams.
K. If a CLC wishes to interconnect
to an end office that is not SS7 capable, the LECs must accommodate
the request via MF signaling.
L. Symmetrical rights and obligations
shall apply to LECs as well as CLCs in the exchange of confidential
information. Each party shall be responsible for designating which
information it claims to be confidential.
M. CLCs=
liability shall be no greater than the LECs=
liability for any action or inaction resulting in a claim against
a LEC. Parties may establish the actual limits which must be symmetrical.
N. No competitor shall have
the ability to terminate another carrier=s
service without prior notice or opportunity for proper recourse.
O. LECs may require CLCs with
no established credit record who order interconnection service
to pay a deposit equal to an estimated two months of recurring
flat-rated or usage-based interconnection charges based on the
number and type of interconnection facilities ordered from the
LEC. Bonds may not be required in addition to deposits.
P. Interconnection standards
set forth in subsection 6 of GO 133-B shall apply to both LECs
and CLCs.
(1) An Intercompany Interconnection
Held Service Order (IIHSO) shall be reported when service is not
provided within 15 days of the mutually agreed-upon due date.
Local carriers shall file their IIHSOs on the last day of the
following month.
(2) An IIHSO report, broken down by individual CLC, shall contain the following information:
a. the service order number
b. the due date
c. the company requesting interconnection
d. whether the IIHSO is overdue to 15-20, 21-25, 2630, 31-35, 36-40, 40-45, and over 45 days.
e. the reporting unit (wire center or plant installation center)
f. whether the IIHSO is pending or complete
g. an explanation for the IIHSO
(3) All local carriers shall
refund nonrecurring interconnection charges for service orders
held 45 days beyond the mutually agreed upon service date. Refunds
do not apply if service order completion was delayed due to natural
disasters, severe weather, labor disputes, or civil disturbances.
8. ADDITIONAL INTERCOMPANY
ARRANGEMENTS
A. LECs shall provide certain
essential services under reasonable and nondiscriminatory terms
and conditions, either under tariff or by contract on an interim
basis pending further determination in Phase II. These essential
services include busy line verify/emergency interrupt, and inclusion
of CLC customer listings in LECs' directory assistance databases.
B. CLCs shall have access to
E-911 provided by the LEC under the same terms and conditions
enjoyed by the LEC. LECs shall allow CLCs to connect to the LEC
911 tandems, routers, and other switching points serving the areas
in which CLCs provide local exchange telecommunications services,
for the provision of E-911 services and for access to all sustaining
Public Safety Answering Points (PSAPs). CLCs shall compensate
the LECs at a rate that covers the cost of providing access to
E-911 and for any other related maintenance costs of E-911 databases.
(1) Both facilities-based and
resale CLCs shall provide residential customers access to E-911
service following disconnection due to nonpayment (i.e., "warm-line
service"). Facilities-based CLCs and LECs must offer warm
line service to resale CLCs. Resale CLCs shall offer warm line
service to a customer as long as the CLC maintains an arrangement
for resale service to the end user's premises. Following termination
of the resale arrangement, the obligation to provide warm line
service shall revert to the underlying facilities-based CLC or
LEC.
(2) LECs shall provision E-911
trunks within 30 business days from when ordered.
(3) LECs shall charge CLC the
LECs cost for provisioning maps of 911 tandem locations.
(4) To ensure the timely update
of 911 databases, CLCs shall provide information on new customers
to the LEC within 24 hours of order completion. LECs shall update
their databases within 48 hours of receiving data from the CLC.
If the LEC detects an error in the CLC data, the data should be
returned to the CLC within 48 hours from when it was first provided
to the LEC.
(5) LEC=s
shall ship Master Street Address Guide (MSAG) data to the CLC
within 72 business hours from the time requested, either on paper,
diskette, magnetic tape, or in a format suitable for use with
desktop computers.
(6) CLCs shall provide the
911 database administrator with any necessary information when
interim number portability is discontinued to ensure proper and
timely response to a 911 call.
(7) CLCs are required to obtain
a toll free number to serve as a contact point where PSAPs can
obtain subscriber information from competent and trained personnel
24 hours a day, seven days a week. An industry-led task force
shall monitor and enforce this requirement and distribute the
toll free numbers to PSAPs.
9. UNIVERSAL LIFELINE
SERVICE PROVISIONING
Universal Lifeline Telephone
Service shall be provided by both LECs and CLCs at the statewide
rates established in D.94-09-065. Rules for Universal Lifeline
service will be finalized in the Universal Service Rulemaking,
R.95-01-020.
(END OF APPENDIX C)