ORDER NO. 96-301

ENTERED NOV 20 1996

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

CP 185

DISPOSITION: STIPULATION ADOPTED; CERTIFICATE APPROVED

On June 10, 1996, GTE Card Services Incorporated, dba GTE Long Distance (GTE-LD), filed an application with the Commission to be certified as a competitive telecommunications provider. GTE-LD is an affiliate of GTE Northwest Incorporated (GTE-NW), a local exchange carrier in the state of Oregon.

AT&T Communications of the Pacific Northwest, Inc. (AT&T) and MCI Telecommunications Corporation (MCI), jointly, and the Commission Staff (Staff) filed protests to the application pursuant to ORS 759.020. In their protest, AT&T and MCI stated that they did not object to GTE-LD's request for authority to provide telecommunications services in Oregon, but were concerned about the potential for anticompetitive and discriminatory practices arising from GTE-LD's affiliation with GTE-NW and requested that the Commission impose appropriate conditions on GTE-LD's certificate. The Staff also expressed concerns about potential favoritism between GTE-LD and GTE-NW.

In response, GTE-LD entered into a Stipulation with Staff dated September 10, 1996 (Stipulation) under which it agreed, among other things, not to enter into certain arrangements with GTE-NW that discriminate in favor of GTE-LD or provide GTE-LD preferential treatment over other competitive interexchange carriers. In an exchange of correspondence dated October 25, 1996, GTE-LD agreed with AT&T and MCI that their issues regarding potential discrimination through joint marketing or billing, discounts for aggregated minutes of use, and the text of scripts which offer GTE-LD services to GTE-NW customers are covered by paragraph C.4 of the Stipulation, but expressly did not agree that these activities would constitute prohibited discrimination or preferential treatment. The parties reserved their rights to argue these issues at a later time. Based on this understanding, AT&T and MCI agreed not to oppose GTE-LD's request for certification.

Based on the application, the Stipulation, the October 25, 1996, correspondence between GTE-LD and AT&T and MCI, and the Commission's records, the Commission makes the following:

FINDINGS OF FACT

The Proposed Operation

GTE-LD will provide toll services, including services such as MTS, toll-free (800/888) and calling card services, and intends to expand its toll service offerings as new options are developed and become available. GTE-LD will resell services of facilities-based carriers, initially those of LDDS WorldCom. In conducting its operation, GTE-LD 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 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 services it offers are subject to competition or 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 telecommunications services are subject to competition or 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

GTE-LD 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 GTE-LD and GTE-NW are not discriminatory, GTE-LD will offer the proposed services in compliance with the terms set forth in the 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 GTE Card Services Incorporated, dba GTE Long Distance,

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 the requirements in OAR 860-014-0095. A copy of any such request must also be served on each party to the proceeding as provided by OAR 860-013-0070(2). A party may appeal this order to a court pursuant to ORS 756.580.