PROPOSED RULES
COMMISSION
Original Notice.
Preproposal statement of inquiry was filed as WSR 01-12-102.
Title of Rule: WAC 480-120-083 Cessation of telecommunications services.
The proposed rule governs cessation of any telecommunications service, addresses situations where, due to business failure, or other reasons, firms stop providing service, and requires notice to customers and other affected persons.
The purpose of this proposed rule is to eliminate or reduce sever personal, economic, and social disruptions resulting from unannounced cessation of telecommunications services.
Statutory Authority for Adoption: RCW 80.01.040(4) and 80.04.160.
Summary: This proposed rule would require advance notice of cessation of any telecommunications service. Companies ceasing to provide service would be required to give notice to customers, underling carriers, the number administrator, the E911 program, and the commission. The proposed rule sets out required content of notices to each of these specific persons, including contact and technical information. In the case of voice services, automatic or announcements are required. The proposal also cites other applicable rules.
Proposal: Due to an increase in telecommunication company business failures, cessations, and reductions of service, this rule is needed to protect public health, safety, welfare and economic vitality. Consumers and businesses rely upon telecommunications services for access to emergency and E911 services, doctors, clergy, schools, businesses, customers, vendors, and community resources.
Name of Agency Personnel Responsible for Drafting: Tom Wilson, Senior Policy Strategist, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, (360) 664-1293; Implementation and Enforcement: Carole J. Washburn, Secretary, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, (360) 664-1174.
Name of Proponent: Washington Utilities and Transportation Commission, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: The proposed rule requires advance notice to customers, underlying carriers, the number administrator, the E911 program, and the commission before cessation of any telecommunications service. This will enable transition to alternative arrangements, management of scarce number resources, emergency services planning and coordination, and effective commission oversight because (a) companies will provide notice, and (b) consumers will be able to arrange alternate service.
Proposal does not change existing rules.
A small business economic impact statement has been prepared under chapter 19.85 RCW.
Summary of the Proposed Changes: The proposed changes to the emergency rule have been broadened to include cessation of all telecommunications services. In addition, the rule now addresses requirements regarding notices, who receives the notice of cessation of service, and what should be included in the notice.
Purpose and Process: RCW 19.85.040 requires that the economic impacts of proposed rules on small businesses be compared with the economic impacts on the largest businesses, those which comprise the top 10% of the affected industry. RCW 19.85.020 defines small businesses as those that have fifty or fewer employees.
On July 27, 2001, commission staff sent out a small business economic impact statement questionnaire (Attachment A) and a notice to file written comments to all telecommunications companies registered in the state.
| Place illustration here. |
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The SBEIS questionnaire and notice to file written comments was sent to all telecommunications companies. The commission received thirty three responses (Attachment B), twelve of the responses came from small businesses.
&sqbul; Five businesses would experience no impact.
&sqbul; Six businesses were not able to identify any impact.
&sqbul; Eleven businesses would experience an impact.
• Seven of which are large businesses.
• Four of which are small businesses, two of these are not currently providing service in Washington.
&sqbul; Three businesses indicated the SBEIS was not applicable.
| ATTACHMENT B | ||||
| No Impact | Unable to Identify Impact | Impacted | N/A | |
| (Large Businesses) | ||||
| 1 Toledo* | 1 ATG | 1 ELI | 1 National Accounts* | |
| 2 Coleman* | 2 Shared | 2 Evercom | 2 Network Operator** | |
| 3 Phone Solution* | 3 Looking Glass - NDB | 3 Broadwing Tele. | 3 Convergent (CDB)* | |
| 4 American Cyber* | 4 One Star - CDB? | 4 Broadwing Comm | ||
| 5 Snip Link* | 5 CRG - CDB? | 5 Logix Comm | ||
| 6 Williams Local | 6 U.S. Telepacific - NDB | 6 Univance | ||
| 7 Affordable Voice Comm.** | 7 ARBROS - NDB | 7 Int'l Telecom | ||
| 8 Norstan | 8 Network Billing | |||
| 9 Vectren | 9 P.D.S.* | |||
| 10 PaeTec Communications | ||||
| (Small Businesses) | ||||
| 1 Talking Nets - NDB* | ||||
| 2 Ernest* | ||||
| 3 NetOne* | ||||
| 4 IG2, Inc. - NDB* | ||||
| * | Small Businesses | |||
| ** | Unknown | |||
Cost of Compliance: The driving cost elements associated with the proposed rule are identical for both large and small businesses, notification to customers, making billing changes, filing a tariff or price list, miscellaneous expenses, and legal fees.
Comparison of Costs: A per employee cost comparison between small and large businesses does indicate a disproportionate cost impact on small businesses, the per employee cost for small businesses ranges from $5 to $270, compared to $.29 to $155 per employee for large businesses. However, the simple average cost is less for small businesses than it is for large businesses, $1,644 versus $5,309, respectively.
A cost-versus-revenue analysis was also done. Of the four small businesses that indicated a cost impact, only one reported intrastate revenue for the year ending December 31, 2000, whereas the remaining three indicated either no revenue or that they have not yet begun providing service in Washington. Estimated weighted average cost per dollar of revenue was approximately three cents for large businesses and less than a cent for small businesses.
Lost Sales or Revenue: Only two large businesses indicated that they may lose sales and revenue, but they were unable to attribute a cost, the remark on the questionnaire was, "not clear."
Impact of Proposed Changes: A common cost impact on small businesses is the cost to notify customers of their impending cessation of service. However, it is in the public interest that customers be given ample notice of the cessation of their telecommunications service in order to change providers and avoid any break in service, whether or not the service is used to maintain access to emergency services, or is relied upon for the customer's livelihood. The public will be better served by this proposed rule.
Conclusion: The study also concludes that the imposed costs are not unreasonably expensive, and mitigation is not appropriate. Staff is of the opinion that the rule is in the public interest, and the commission should consider moving toward adoption of the proposed rule.
A copy of the statement may be obtained by writing to Carole J. Washburn, Secretary, P.O. Box 47250, Olympia, WA 98504-7250, phone (360) 664-1174, fax (360) 586-1150.
RCW 34.05.328 does not apply to this rule adoption. The commission is not an agency to which RCW 34.05.328 applies. The proposed rules are not significant legislative rules as referenced in RCW 34.05.328(5).
Hearing Location: Commission Hearing Room, Second Floor, Chandler Plaza, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, on November 16, 2001, at 9:30 a.m.
Assistance for Persons with Disabilities: Contact Mary DeYoung by November 14, 2001, TDD (360) 586-8203, or (360) 664-1133.
Submit Written Comments to: Secretary, Docket No. UT-010558, Washington Utilities and Transportation Commission, P.O. Box 47250, Olympia, WA 98504-7250, fax (360) 586-1150, by October 5, 2001.
Date of Intended Adoption: November 16, 2001.
September 5, 2001
Carole J. Washburn
Secretary
a. Services offered by tariff that are subject to the statutory notice requirements of RCW 80.36.110 (Tariff Changes - Statutory Notice - Exception);
b. Discontinuance of service to an individual customer in compliance with WAC 480-120-081 (Discontinuance of Service); and
c. Cessation of a service when the provider replaces the terminated service with comparable service and without interruption. For example, the notice requirements of this rule do not apply when a LEC providing Centrex with one group of features replaces that service, without interruption, with a version of Centrex that has a different group of features.
Changes in customers' service providers for local exchange and intrastate toll services when there is a cessation of service are also subject to WAC 480-120-139 (changes in local exchange and intrastate toll services).
(2) No telecommunications company may cease, or reduce any telecommunications services unless it first provides written notice to the following persons at least 30 days in advance of cessation of service:
a. to the commission;
b. to the state 911 program, in the instance of local exchange service, private branch exchange service (PBX), centrex, or private line service used in the provision of emergency services related to the state 911 program;
c. to each of its customers, including customers that are telecommunications companies;
d. to incumbent local exchange carriers (ILECs) providing the exiting telecommunications company with unbundled network elements (UNEs) pursuant to the Telecommunications Act of 1996, 47 U.S.C. Section 151 et seq., if UNEs or combinations of UNEs are part of a telecommunications service provided to some or all of the exiting telecommunications company's customers;
e. to each telecommunications company providing the exiting telecommunications company with resold telecommunications service, if resold service is part of a telecommunications service provided to some or all of the exiting telecommunications company's customers;
f. to the national number administrator, when applicable, authorizing the release of all assigned telephone numbers to other telecommunications companies and releasing all unassigned telephone numbers to the number administrator.
(3) The notice to the commission and the state 911 program required in subsections (2)(a) and (b) must, at a minimum, include the name of the exiting telecommunications company, and for each category of service, provide the date each telecommunications service will cease, and the number of customers for each telecommunications service and their location, described by exchange or by city and county for each telecommunications service being ceased.
(4) The notice to customers required in subsection (2)(c) must, at a minimum, include the date telecommunications service will cease and information on how to contact the exiting telecommunications company by telephone in order to obtain service information needed to establish service with another provider, and to explain how customers may receive a refund on any unused service. In addition:
a. beginning at least fifteen days before cessation of voice service, the exiting telecommunications company must provide oral notice of cessation of service at the beginning of each call originated in Washington, including the date of cessation of service and a number to call for more information; and
b. the exiting company must provide information to consumers via its customer service number outlining the procedure for obtaining refunds and continue to provide this information for sixty days after the date of cessation of service.
(5) The notice to ILECs required in subsection (2)(d) must, at a minimum, include the date telecommunications service will cease, and identify the UNE components in relationship to the service information provided to the customer when such information differs from the ILEC's identification information of such services as billed to the exiting telecommunications company. For example, if the ILEC identifies a UNE loop with a circuit identification number, the exiting telecommunications company must provide the ILEC with the customer telephone number assigned to the ILEC's UNE loop circuit identification number. The notice must also include telephone contact information to enable the ILEC or new provider to obtain UNE service and circuit identification information needed to establish service for a customer who will no longer receive service from the exiting telecommunications company.
a. ILECs shall provide the information in the notice(s) required in this subsection to the subsequent provider upon a request authorized by the customer,
b. ILECs may not use the information in the notice(s) required in this subsection to initiate marketing efforts.
(6) The notice to suppliers required in subsection (2)(e) must, at a minimum, include:
a. the date telecommunications service will cease, and identification of the resold service element components in relationship to the service information provided to the customer when such information differs from the supplier's identification information regarding such services as billed to the exiting telecommunications company;
b. telephone contact information to enable the regulated supplier or new provider to obtain underlying service and circuit identification information needed to establish comparable replacement service for a customer who will no longer receive service from the exiting telecommunications company.
Telecommunications companies that are suppliers, pursuant to this subsection, shall provide the information in the required notice(s) to the subsequent provider upon a request authorized by the customer.
(7) The notice required in subsection (2)(f) to the national number administrator authorizing the release of all assigned telephone numbers to the succeeding providers shall include identification of all working telephone numbers assigned to customers, identification of all unassigned or administrative numbers available for reassignment to other providers and the date such unassigned telephone numbers will be available for reassignment. The exiting telecommunications company shall authorize the release of each individual assigned customer telephone number(s) to subsequent providers selected by the customer.
(8) A telecommunications company ceasing a local exchange service, a PBX service, a centrex service, or a private line service used in the provision of emergency services related to the state 911 program must inform the commission and the state 911 program within twenty-four hours of the cessation of telecommunications service of the number of customers and their location, listed by exchange or by city and county, that remained as customers for the telecommunications service when service ceased.
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