ORDER NO. 97-349

ENTERED SEP 10 1997

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

CP 320

DISPOSITION: APPLICATION GRANTED

Note: By issuing this certificate, the Commission makes no endorsement or certification regarding the certificate holder’s rates or service.

The Application

On April 25, 1997, Rural Network Services, Inc. (applicant), filed with the Commission an application for certification to provide telecommunications service in Oregon as a competitive provider. Applicant seeks statewide authority to provide toll services through the resale of the services of other Oregon interexchange carriers.

Applicant will contract with other certified providers rather than directly provide operator services. A statement of compliance with Order No. 90-096 and ORS 759.690 was included in the application.

Applicant is an affiliate of Midvale Telephone Exchange, Inc. (Midvale Telephone). Midvale Telephone is a telecommunications utility, certified by the Commission as a local exchange services provider in the Harper and Juntura telephone exchanges pursuant to ORS 759.025. See Order No. 86-1238, docket UM 109.

The Commission served notice of the application on the Commission’s telecommunications mailing list on May 12, 1997. The Commission did not receive any protests.

On July 18, 1997, an Administrative Law Judge (ALJ) with the Commission issued a ruling that adopted procedures for the processing of this docket. The ALJ set forth a procedural schedule.

On August 8, 1997, the Commission Staff (Staff) distributed a proposed order for review by the parties. No party filed exceptions to the proposed order.

The Commission has reviewed the proposed order and the record in this matter. Based on a preponderance of the evidence, the Commission makes the following:

FINDINGS AND CONCLUSIONS

Applicable Law

Applications to provide telecommunications service and for classification as a competitive telecommunications services provider are filed pursuant to ORS 759.020. ORS 759.020 provides that:

(1) No person [or] 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 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.

ORS 759.690 and OAR 860-32-005 establish certain requirements providers of operator services must meet. Included are the following conditions:

The certificate holder involved in the provision of operator services shall:

1. Notify all callers at the beginning of the call of the telecommunications provider's name and allow a sufficient delay period to permit a caller to terminate the call or advise the operator to transfer the call to the customer's preferred carrier.

2. Disclose rate and service information to the caller when requested.

3. Not transfer a call to another operator service provider without the caller's notification and consent.

4. Not screen calls and prevent or "block" the completion of calls which would allow the caller to reach an operator service company different from the certificate holder. In addition, the certificate holder shall, through contract provisions with its reseller clients, prohibit the reseller from blocking a caller's access to his or her operator service company of choice.

5. When entering into operator service contracts or arrangements with clients who in turn resell or provide telephone service to the general public include in that contract provisions for public notification . A sticker or name plate identifying the name of the certificate holder shall be attached to, or in close proximity to, each telephone that has public access.

OAR 860-032-0015(1) authorizes the Commission to suspend or cancel the certificate if the Commission finds that (a) the holder made misrepresentations when it filed the application, or (b) the applicant fails to comply with the terms and conditions of the certificate.

Designation as a Competitive Provider

Applicant has met the requirements for classification as a competitive telecommunications services provider. Applicant’s customers or those proposed to become customers have reasonably available alternatives. Applicant will face competition from a variety of carriers including AT&T, MCI, Sprint, USWC, and GTE. Subscribers to applicant’s services can buy comparable services at comparable rates from other vendors. Economic and regulatory barriers to entry are relatively low.

Conditions of the Certificate

In recognition of applicant’s affiliation with Midvale Telephone and the potential for Midvale Telephone to favor applicant over other competitive toll providers, applicant shall comply with the following conditions. Applicant shall not enter into arrangements with its affiliate, Midvale Telephone, that discriminate between, or provide preferential treatment for, applicant over other competitive interexchange carriers in regards to rates, terms or conditions for:

The provision of access to Midvale Telephone’s local exchange network;

The provision of customer billing, collection, verification and credit card information, and related services; and

The provision of other products and services such as shared or joint use of facilities and equipment; customer dialing codes; maintenance, testing and repair services; market promotions and advertised services; network information; and customer and market information.

ORDER

IT IS ORDERED that the application of Rural Network Services, Inc., to provide interexchange telecommunications services described in the application is granted with conditions described in this order.

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.