ORDER NO. 96-040

ENTERED FEB 14 1996

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

CP 98

DISPOSITION: STIPULATION ADOPTED

On October 6, 1995, Citizens Telecommunications Company, dba Citizens Telecom (Citizens), filed an application with the Commission to be certified as a competitive telecommunications provider.

Both U S WEST Communications, Inc., (USWC) and the Commission Staff (Staff) filed protests to the application pursuant to ORS 759.020. In its protest, USWC argued that Citizens' application was ambiguous with regard to the type of services it intends to offer. Staff raised concerns in its protest about the potential favoritism between Citizens and its affiliate CTC-Oregon, a partially regulated telephone utility located in southwest Oregon.

In response to USWC's protest, Citizens filed a reply clarifying its application. Based on that reply, USWC subsequently withdrew its protest. Citizens also entered into a stipulation resolving the outstanding issues with Staff.

Based on the application, the stipulation, and the Commission's records, the Commission makes the following:

FINDINGS OF FACT

The Proposed Operation

Citizens will provide resold long distance services, including calling cards, 1+ and 10XXX long distance, prepaid calling cards and inbound 800 services on a statewide basis. Citizens will provide these services over transmission facilities leased from other certified long distance carriers. In conducting its operation, Citizens shall comply with the conditions set forth in the stipulation, attached as Appendix A and incorporated by reference.

Existence of Alternative Providers and Other Factors

Numerous entities are certified as competitive telecommunications providers in Oregon and provide resold long distance and related services throughout the state. Because of the abundance of these other providers, customers will have reasonably available alternatives and will be able to buy comparable services at comparable rates from other vendors. Moreover, the level of competition in the market shows that both economic and regulatory barriers to entry in the market are relatively low.

OPINION

Applicable Law

ORS 759.020 provides that:

(1) No * * * corporation * * * shall provide intrastate telecommunications service on a for-hire basis without a certificate of authority issued by the commission under this section.

* * * * *

(5) The commission may classify a successful applicant for a certificate as a * * * competitive telecommunications services provider. If the commission finds that a successful applicant for a certificate has demonstrated that its customers or those proposed to become customers have reasonably available alternatives, the commission shall classify the applicant as a competitive telecommunications services provider[.] For purposes of this section, in determining whether there are reasonably available alternatives, the commission shall consider:

(a) The extent to which services are available from alternative providers in the relevant market.

(b) The extent to which the services of alternative providers are functionally equivalent or substitutable at comparable rates, terms and conditions.

(c) Existing economic or regulatory barriers to entry.

(d) Any other factors deemed relevant by the commission.

Resolution

Citizens has met the requirements for a certificate to provide telecommunications services as a competitive provider. The services it intends to offer are available from alternative providers at comparable rates, terms and conditions. Moreover, there are relatively low economic or regulatory barriers to entry.

Furthermore, to ensure that arrangements between Citizens and CTC-Oregon are not discriminatory, Citizens will offer the proposed services in compliance with terms set forth in the submitted stipulation. The Commission finds those terms and others contained in the stipulation to be reasonable and adopts them.

ORDER

IT IS ORDERED that:

1. The stipulation attached as Appendix A is adopted in its entirety.
   
2. The application of Citizens Telecommunications Company, dba Citizens Telecom, for authority to provide telecommunications services as a competitive provider, is granted.
   

Made, entered, and effective______________________________.

A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A request for rehearing or reconsideration must be filed with the Commission within 60 days of the date of service of this order. The request must comply with OAR 860-14-095. A copy of any such request must also be served on each party to the proceeding as provided by OAR 860-13-070. A party may appeal this order to a court pursuant to ORS 756.580.