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OCA Activity - Telecommunications

Case Update: Modified: 11/20/08

This update contains information about selected dockets with activity since the last Board meeting.

1. DT 07-011 Verizon NH Transfer of Assets to FairPoint Communications, Inc.
2. DT 07-027 TDS Telecommunications Alternative Regulation Requests
3. DT 08-013, Comcast Certification as a Competitive Local Exchange Carrier (CLEC) in Territories of Kearsarge, Wilton & Merrimack Telephone (TDS rural companies)
4. Undocketed case of Metrocast being certified as a Competitive Local Exchange Carrier (CLEC) in the service territory of Union Telephone (a rural carrier)

1. DT 07-011 Verizon NH Transfer of Assets to FairPoint Communications, Inc.

For detail about the procedural history of this case, please see the OCA Case Update prepared for the Board’s meeting in May 2008. The OCA continues to monitor FairPoint’s compliance with the Commission’s Order approving the acquisition of Verizon NH’s assets and franchise through FairPoint’s compliance filings. On June 17, 2008 FairPoint announced that it would delay “cutover” from Verizon’s system to its newly developed systems from the end of September to the end of November. This will result in additional costs of more than $30 million for FairPoint. In August FairPoint released its financial results for its second quarter ended June 30, 2008. On August 15, Liberty Consulting Group issued its FairPoint Cutover Readiness Verification Plan. A three-state technical conference planned for September 19 to discuss cutover readiness was cancelled, as was a September 26 evidentiary hearing, due to the Company announcing on September 15, 2008 that it was not ready for cutover in November. The OCA received a Maine PUC procedural order indicating that a 3-state technical session is planned in Kittery, Maine on November 17 and that a hearing will be held on November 24 in each state to review whether the Company is ready for cutover in January 2008, but these dates have not yet been announced by the NH Commission.

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2. DT 07-027 TDS Telecommunications Alternative Regulation Requests

On March 1, 2007 the four subsidiaries of TDS Telecommunications (Kearsarge, Wilton, Hollis, and Merrimack County) filed petitions seeking an alternative form of regulation. After briefing legal issues last summer, the Commission decided that a full factual record was necessary to resolve the issues, largely related to whether competitive alternatives exist for customers in TDS’ service territories. The OCA retained Dr. Robert Loube to assist us with the case, and we filed testimony indicating that insufficient competition exists to warrant granting TDS’ request. The PUC staff and NH Legal Assistance filed similar testimony. A settlement was later reached among the TDS Companies, PUC Staff, SegTEL and the OCA, and was presented at the hearings in December 2007. New Hampshire Legal Assistance on behalf of its client, a TDS customer, opposed the settlement. The Commission issued Order No. 24, 852 on April 23, 2008 approving the TDS settlement with respect to Wilton and Hollis, and denying the settlement with respect to Merrimack County and Kearsarge. The Commission left the docket open for TDS to provide additional filings with respect to whether competition exists in the Merrimack and Kearsarge territories. On May 23, 2008, TDS filed a partial motion for reconsideration, which challenged the Commission’s findings and rulings related to Merrimack and Kearsarge. NHLA filed an objection and Comcast filed a response. On August 8, 2008, the Commission issued Order 24,885 denying TDS’s partial motion for reconsideration. The OCA is not aware of any activity in this docket since the Commission issued this order.

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3. DT 08-013, Comcast Certification as a Competitive Local Exchange Carrier (CLEC) in Territories of Kearsarge, Wilton & Merrimack Telephone (TDS rural companies)

Comcast Phone is currently certified as a CLEC in FairPoint’s territory. In January 2008 Comcast applied for certification as a CLEC in three service territories of rural Independent Local Exchange Carrier (ILEC) TDS Telecom. This docket represents the first time that the Commission has considered whether to certify a competitor within the service territory of a rural ILEC. The rural ILECs oppose the application, arguing that Comcast has failed to meet its burden of proving that it meets the legal standards necessary for approval. There are numerous aspects of telecommunications law and policy being discussed in this case: telecommunication vs. information services; federal vs. state jurisdiction; and details of the PUC’s application and certification process. The OCA has stated its general support for the certification of competitors in the service territories of rural ILECs. This case is related to DT 07-027 in that the TDS companies seek approval for price deregulation in part, they claim, in order to respond to competition. Following the filing of initial and reply briefs, the Commission issued Order 24,887 granting the request of the participating TDS affiliates and the NH Telephone Association (NHTA)) for a hearing. The hearing was scheduled to occur on September 22, 2008. A technical session was held on September 12, at which the parties agreed to submit the pre-filed testimony of certain witnesses on behalf of Comcast and the NHTA and the TDS Companies as exhibits in this docket, and to forego cross examination and a hearing. The parties asked the Commission to cancel the September 22 hearing and for permission to submit briefs and reply briefs for the Commission’s consideration. Briefs have been filed according to the agreed-upon schedule and the Commission’s decision in this docket is pending.

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4. Undocketed case of Metrocast being certified as a Competitive Local Exchange Carrier (CLEC) in the service territory of Union Telephone (a rural carrier)

On the PUC Telecom Staff approved Metrocast’s application to provide telecommunications services in the territory of Union Telephone. Union Telephone filed a request for a hearing claiming that a hearing was required prior to approval pursuant to RSA 374:22, which was amended in the last legislative session to address competition issues. The OCA is monitoring this case in the event that it becomes a docket.

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