ORDER NO. 99-255

ENTERED APR 9 1999

This is an electronic copy. Appendices and footnotes may not appear.

OF OREGON

CP 582

DISPOSITION: APPLICATION GRANTED

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

INTRODUCTION

On December 23, 1998, CenturyTel Long Distance, Inc. (CTLD or applicant), filed an application for certification to provide telecommunications service in Oregon as a competitive provider. Applicant requests authority to provide interexchange switched telecommunications service (toll) and interexchange nonswitched, private line service (dedicated transmission service) statewide in Oregon. Applicant will operate as a reseller of telecommunications service.

Operator services are part of toll telecommunications service. Applicant will not directly provide operator services. A statement of compliance with ORS 759.690 and OAR 860-032-0005 was included in the application.

CTLD is affiliated with CenturyTel Telecommunications, Inc., which has authority to provide toll service statewide under the name Century Telecommunications, Inc. See Order No. 95-1186, docket CP 94. Applicant, CTLD, is also affiliated with CenturyTel of Oregon, Inc., and CenturyTel of Eastern Oregon, Inc., which have authority as telecommunications utilities to provide local exchange service to approximately 73,000 lines in fifty-six exchanges in Oregon. See Order Nos. 86-1181 and 87-106, docket UM 95. Both CenturyTel utilities formerly were part of PTI Communications.

The Commission served notice of the application on the Commission's telecommunications mailing list on January 12, 1999. The Commission did not receive any protests. On February 9, 1999, 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 March 2, 1999, the Commission Staff (Staff) distributed a proposed order for review by the parties. No exceptions to the proposed order were filed.

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

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 Public Utility 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 determin- ing whether telecommunications services are subject to compe- tition 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.

ORS 759.690 and OAR 860-032-0005 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:

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.

Disclose rate and service information to the caller when requested.

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

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.

When entering into operator service contracts or arrangements with call aggregators, include in each contract provisions for public notification. A sticker or nameplate identifying the name of the certificate holder shall be attached 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.

Existence of Alternatives. AT&T, MCI Worldcom, Sprint Communications Company, U S WEST Communications, Inc., and others provide toll and operator services in the service area requested by the applicant.

Suitability of Alternatives. Applicant's customers or those proposed to become customers have reasonably suitable alternatives to applicant's services. Subscribers to applicant's services can buy comparable services at comparable rates from other vendors.

Barriers to Entry. The level of competition in the market shows that both economic and regulatory barriers to entry into the market are relatively low.

Conditions of the Certificate

1. Applicant shall not take any action that impairs the ability of other certified telecommunications services providers to meet service standards specified by the Commission.

2. Applicant shall comply with all conditions listed in the application.

3. Applicant shall comply with laws, Commission rules, and Commission orders related to provision of telecommunications service in Oregon, and applicant shall comply with all applicable regulations, rules and orders of the Federal Communications Commission.

Applicant, CTLD, is an affiliate of two incumbent telecommunications utilities in Oregon. In order to ensure that arrangements between applicant and its affiliates are not discriminatory, further conditions of this certificate of authority are listed below.

4. Applicant’s two affiliates, CenturyTel of Oregon, Inc., and CenturyTel of Eastern Oregon, Inc., shall not enter into any arrangements that discriminate between other competitive interexchange carriers, or provide preferential treatment for CTLD, in regard to rates, terms and conditions for:

a. Provision of access to their local exchange networks.

b. Provision of customer billing, collection, verification and credit card information and related services.

c. Provision of other products and services such as shared or joint use of facilities and equipment; maintenance, testing and repair services; market promotions and advertising services; network information; and customer and market information.

5. Notwithstanding the above, applicant’s two affiliates, CenturyTel of Oregon, Inc., and CenturyTel of Eastern Oregon, Inc., shall provide to U S WEST Communications, or other designated primary intraLATA toll carriers approved by the Commission, default intraLATA 1+ and 0+ access. This is pursuant to Order No. 88-666, docket UT 52, except as superceded by Order Nos. 97-107 and 97-238, docket UT 132.

6. Local exchange customers of applicant’s two affiliates, CenturyTel of Oregon, Inc., and CenturyTel of Eastern Oregon, Inc., may select their preferred intraLATA and interLATA, interexchange toll carriers. This is done pursuant to Commission Order Nos. 97-107 and 97-238, and pursuant to the affiliates’ intraLATA Dialing Parity Plan and access tariff approved by the Commission at its November 3, 1998, public meeting.

7. Applicant and its two affiliates, CenturyTel of Oregon, Inc., and CenturyTel of Eastern Oregon, Inc., shall provide the Commission access to all books of account as well as all documents, data, and records necessary to verify compliance with the above conditions.

8. Applicant and its two affiliates, CenturyTel of Oregon, Inc., and CenturyTel of Eastern Oregon, Inc., may petition for modification of this order.

CONCLUSIONS

Applicant has met the requirements for a certificate to provide telecom- munications services as a competitive provider. The application should be granted.

ORDER

IT IS ORDERED that:

1. The application of CenturyTel Long Distance, Inc., for authority to provide interexchange, switched telecommunications service (toll), and interexchange dedicated transmission service, is granted.

2. Applicant is designated as a competitive telecommunications provider.

3. Applicant may provide authorized services statewide in Oregon.

4. Applicant shall comply with conditions of the certificate.

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 pursuant to ORS 756.580.