ORDER NO.  98-433

ENTERED OCT 23 1998

OF OREGON

UT 132

DISPOSITION: DIALING PARITY SCHEDULE ADOPTED

On September 22, 1998, the Commission’s Staff filed a motion to compel U S WEST Communications, Inc. (USWC) to comply with Order No. 97-107 issued by the Commission in this docket on March 18, 1997. The motion was supported by a memorandum and an exhibit. On October 2 MCI Telecommunications Corporation (MCI) filed a response in support of Staff’s motion. On October 12, USWC filed a response to the motion. The response included affidavits of USWC employees.

Background

Section 251(b)(3) of the Telecommunications Act of 1996 (Act) imposes on all local exchange carriers the duty to provide dialing parity to competing providers of telephone exchange service with no unreasonable dialing delays. Section 271(e)(2) prohibits individual states from requiring a Bell Operating Company (BOC) to provide intraLATA dialing parity prior to the time the BOC has received authorization to handle in-region interLATA toll calls, or prior to three years from the date the Act became effective. The Act became effective on February 8, 1996. USWC is a BOC, but has not received authority to provide in-region interLATA toll service.

The Federal Communications Commission (FCC) adopted rules governing dialing parity. In Order 96-333, the FCC established a schedule for implementation of dialing parity plans. The schedule adopted for BOCs was the earlier of February 8, 1999, or the date of approval of in-region interLATA toll service. The FCC's dialing parity rules were appealed, and in August 1997 were vacated by the Eighth Circuit Court of Appeals.

In Order No. 97-107, we adopted basically the same schedule for BOCs as had been established in the Act and adopted by the FCC – February 8, 1999, or the date of approval for in-region interLATA toll service, whichever occurred first. Our schedule included the requirement that carriers file their dialing parity plans at least six months prior to the scheduled implementation date of their plans. One of the issues addressed in that order was a proposal for adoption of an accelerated dialing parity schedule. We rejected that proposal, noting that "[g]enerally, LECs will be required to implement toll dialing parity when they begin providing interLATA service themselves." We directed LECs to implement dialing parity plans according to the schedule established by the FCC.

USWC has not filed its dialing parity plan with the Commission. Staff contacted USWC to inquire about why it had not filed an implementation plan. In response, USWC said it did not read Order No. 97-107 to require it to implement dialing parity prior to USWC receiving authority to handle in-region interLATA toll traffic. It stated that it intended to file its dialing parity plan when it filed an application under Section 271 of the Act for in-region interLATA authority.

Parties’ Positions

Staff argues that Order No. 97-107 requires USWC to implement intraLATA toll dialing parity no later than February 8, 1999, and requires USWC to file its plan for implementation by August 8, 1998. Staff recommends that the February 8, 1999, implementation date be maintained and that USWC be ordered to file its implementation plan by November 9, 1998.

MCI argues that Order No. 97-107 was very clear about the deadlines for dialing parity in Oregon. MCI contends that intraLATA equal access and presubscription will promote customer choice and effective competition. MCI wants the Commission to prevent USWC from delaying the advent of this pro-competitive service.

USWC points out that many of the assumptions made by people involved in the telecommunications industry at the time Order No. 97-107 was issued, including the Commission, have been undermined by subsequent events. It was generally thought that many BOCs would have received authority to provide in-region interLATA service prior to February 8, 1999. However, as of now no BOC has gained approval for in-region interLATA service, and USWC states that it does not expect to receive such approval anytime soon. USWC argues that there has not been an effective deadline since the FCC's dialing parity rules were vacated by court action in August 1997.

USWC also makes several arguments relating to the practical implementation of dialing parity. It states that after the FCC's rules were vacated, it received feedback from others in the industry, including the Commission’s Staff, that dialing parity was to be implemented when USWC received in-region interLATA authority. As a result, USWC has not prepared an Oregon dialing parity plan and cannot possibly meet the February 1999 date. It points out that in each state in which it has filed a dialing parity plan, there have been substantial proceedings after the plan of implementation was filed. It also cites the requirements involving carrier and customer notification and the filing of tariffs. USWC requests that if the Commission decides to impose a deadline prior to USWC receiving in-region interLATA authority, the Commission adopt no date sooner than November 1, 1999.

Resolution

At the time we issued Order No. 97-107, the industry and regulators were reacting to the recently passed Telecommunications Act and the FCC dialing parity rules. The Act mandates fundamental changes in the industry and how it is regulated. The development of competition has been slower than expected at that time. We continue, however, to press forward as quickly as possible to promote the orderly development of competition. We are not willing to wait for USWC to receive in-region interLATA authority before implementing dialing parity here in Oregon. We want Oregon telephone users to have the option to use a telecommunications carrier of their choice to make intraLATA toll calls without having to dial a carrier access code. We want them to have that opportunity as soon as possible.

We realize that planning for and implementing dialing parity requires substantial effort by LECs. However, in Order No. 97-107 we adopted February 8, 1999, as the date for implementation of dialing parity by USWC. USWC has developed dialing parity plans in other states, and should have worked on its Oregon dialing parity plan pursuant to Order No. 97-107. USWC should be able to file its Oregon dialing parity plan by November 9, 1998, and implement it by February 8, 1999. These dates will allow for a quick but orderly implementation of dialing parity for USWC in Oregon.

ORDER

IT IS ORDERED that:

1. Staff’s motion is granted;
2. USWC shall file its dialing parity plan for Oregon by November 9, 1998, and shall implement dialing parity in Oregon by February 8, 1999.

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 of 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. A party may appeal this order to a court pursuant to ORS 756.580.