Public Utilities Commission of the State of California s4

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Telecommunications Division RESOLUTION T-16443 Carrier Branch September 7, 2000

R E S O L U T I O N

RESOLUTION T-16443. VERIZON CALIFORNIA INC. (VERIZON) (FORMERLY KNOWN AS GTE CALIFORNIA, INCORPORATED) (1002-C). REQUEST TO RENAME ITS PRODUCT FROM TELEPHONE DIRECTORY REPRODUCTION RIGHTS TO SUBSCRIBER LISTING INFORMATION (SLI) IN TARIFF SCHEDULE CAL P.U.C. NO. D-4. FURTHER, VERIZON REQUESTS AUTHORITY TO INCLUDE TERMS AND CONDITIONS AS WELL AS ADOPT FEDERAL COMMUNICATIONS COMMISSION ORDERED RATES ON SLI AND UPDATED SLI.

BY ADVICE LETTER (AL) NO. 9430, FILED ON APRIL 10, 2000, AS SUPPLEMENTED BY AL NOS. 9430-A AND 9430-B, FILED ON JUNE 5, 2000 AND JUNE 30, 2000, RESPECTIVELY. ______

SUMMARY

This Resolution approves Verizon’s AL No. 9430, as supplemented by AL Nos. 9430-A and 9430-B, to revise its Tariff Schedule Cal P.U.C. D-4 Telephone Directory Reproduction Rights to (a) rename the product from “Telephone Directory Reproduction Rights” to “Subscriber Listing Information” (SLI); (b) decrease the rates for SLI1 and Updated SLI2 to $0.04 and $0.06 per listing, respectively; and (c) revise the terms and conditions for these services. Verizon requested these changes in order to be consistent with Federal Communications

1 Pursuant to Verizon’s Cal. P.U.C. No. D-4, Subscriber Listing Information is any information, which, (a) identifies the listed names of subscribers of a carrier and such subscribers’ telephone numbers, addresses, or primary advertising classifications (as such classifications are assigned at the time of the establishment of such service), or any combination of such listed names, numbers, addresses, or classifications; and (b) that the carrier or an affiliate has published, caused to be published, or accepted for publication in any directory format.

2 Pursuant to Verizon’s Cal. P.U.C. No. D-4, Updated Subscriber Listing Information includes any additions of new telephone service subscribers and any changes or deletions to existing subscriber data in the Utility’s SLI records. Resolution T-16443 September 7, 2000 TD/FNL

Commission Order 99-227 3 (FCC Order). The rates we approve for SLI and Updated SLI have been adopted by the FCC and are presumptively reasonable based on the FCC’s review of the cost data submitted by interested parties.

Even though the California Public Utilities Commission (Commission) Decision 94-09-065 requires a New Regulatory Framework local exchange carrier (NRF-LEC) to submit a cost study and establish a price floor with the Commission before it can exercise pricing flexibility, we believe that requesting Verizon to file a cost study would be duplicative in nature. Therefore, it is reasonable to approve Verizon’s proposal in AL No. 9430 and accompanying supplements without a further request for a cost study.

BACKGROUND

Verizon’s current Tariff Schedule Cal. P.U.C. No. D-4 allows the company to charge directory publishers a reproduction right charge of $117 for each directory issued and an additional $117 for each 1,000 listings or fraction thereof. However, consistent with the FCC Order, Verizon proposes, in AL No. 9430, to (1) rename its product from Directory Reproduction Rights to SLI; (2) reduce its current directory reproduction right charges to $0.04 per SLI listing and $0.06 per listing for updates; and (3) revise and add terms and conditions for these products.

Subsequently, AL Nos. 9430-A and 9430-B, filed on June 5, 2000 and June 30, 2000, respectively, supplemented AL No. 9430, to include definitions for SLI and Updated SLI in its Tariff Schedule Cal. P.U.C. No. D-4.

Verizon claims that the reduction in the SLI and Updated SLI rates would benefit all of its directory publisher customers, as well as promote competition among telecommunications carriers.

NOTICE/PROTESTS

Verizon states that copies of AL No. 9430, its subsequent supplements, AL Nos. 9430-A and 9430-B, and related tariff sheets were mailed to competing and adjacent utilities/and or other utilities, and interested parties, as requested. Notices of AL Nos. 9430, 9430-A, and 9430-B were published in the Commission Daily Calendar of April 12, 2000, June 7, 2000, and July 7, 2000, respectively. No protests to these ALs were received. However, comments were received on May 3, 2000 from the Association of Directory Publishers (ADP). Specifically, ADP supports Verizon’s advice letter filing and does not believe that Verizon needs to submit a cost study at the state level in support of the proposed rates in light of the FCC Order.

3 Federal Communications Commission Third Report and Order in CC Docket No. 96-115, Second Order on Reconsideration of the Second Report and Order in CC Docket No. 96-98, and Notice of Proposed Rulemaking in CC Docket No. 99-273.

2 Resolution T-16443 September 7, 2000 TD/FNL

DISCUSSION

Section 222(e) of the Communications Act of 1934 (Act), as amended by the Telecommunications Act of 1996, requires each telecommunications carrier that provides telephone exchange service to furnish SLI at reasonable rates, terms and conditions to requesting directory publishers. In passing this Act, Congress recognized that local exchange carriers (LECs) had total control over SLI, and found that some LECs have exploited this control, by among other practices, (a) refusing to sell SLI to potential competitors; (b) charging excessive and discriminatory prices for SLI; or (c) requiring independent telephone directory publishers to purchase listings only on a statewide basis. Consequently, the FCC invited comment on the determination of the reasonable rates for SLI as well as sought comment regarding the respective federal and State roles in implementing SLI provisions. However, no party challenges the FCC’s authority to implement Section 222(e) of the Act, but several interested parties, namely, Ameritech, Bell South, Bell Atlantic, SBC, and US West submitted cost data to defend which rate is reasonable for SLI.

Based on the preponderance of the evidence in the record of proceeding and review of the cost data submitted by interested parties, the rates of $0.04 per SLI and $0.06 per Updated SLI were adopted to be presumptively reasonable in the FCC Order. FCC affirms that having presumptively reasonable rates of $0.04 and $0.06 per SLI and Updated SLI, respectively, should reduce the regulatory costs to carriers and directory publishers as these companies will not have to provide detailed cost studies to challenge these rates in a complaint proceeding. However, telecommunications companies are not precluded from charging, or directory publishers from seeking, rates different from those determined by the FCC provided they furnish cost data and other relevant information justifying the higher rate in a complaint proceeding.

As a result of the FCC Order, Verizon filed AL No. 9430, as supplemented by AL Nos. 9430-A and 9430-B, to revise its Tariff Schedule Cal P.U.C. D-4 Telephone Directory Reproduction Rights to (a) rename the product from “Telephone Directory Reproduction Rights” to SLI; (b) decrease the rates for SLI and Updated SLI; and (c) revise the terms and conditions for these products. Verizon indicates that it would be more cost-efficient to comply with the FCC Order in order to avoid the regulatory and litigation costs involved in challenging the rates in a complaint proceeding. In addition, TD concurs with Verizon’s statement that the reduction in SLI and Updated SLI rates would benefit all of its directory publisher customers, as well as promote competition among telecommunications carriers.

Commission Decision 94-09-065 requires a NRF-LEC to submit a cost study and establish a price floor with the Commission before it can exercise pricing flexibility. However, since the FCC has already determined the presumptively reasonable rates for SLI and Updated SLI based on its review of the cost data submitted by interested parties, TD believes that requesting Verizon to file a cost study with the Commission would be duplicative in nature. Therefore, TD recommends that the Commission grant Verizon’s request in AL No. 9430.

In view of the above discussion, we find Verizon’s request in AL No. 9430 to be appropriate and reasonable without a further request for a cost study.

The draft resolution of the Telecommunications Division in this matter was mailed to the parties in accordance with PU Code Sections 311(g)(1). No comments were filed on this resolution.

FINDINGS

1. Verizon’s request in AL No. 9430, as supplemented by AL Nos. 9430-A and 9430-B, to revise its Tariff Schedule Cal P.U.C. D-4 Telephone Directory Reproduction rights to (a) rename the product from “Telephone Directory Reproduction Rights” to “Subscriber Listing Information” (SLI); (b) decrease the rates for SLI and Updated SLI to $0.04 and $0.06 per listing, respectively; and (c) revise the terms and conditions for these services is reasonable, and should be approved without a further request for a cost study.

2. Verizon requested the changes in its Tariff Schedule Cal P.U.C. D-4 as indicated in Finding No. 1 in order to be consistent with FCC Order 99-227.

3. The rates mentioned in Finding No. 1 are presumptively reasonable based on the FCC’s review of the cost data submitted by interested parties (Ameritech, BellSouth, Bell Atlantic, SBC, and US West).

4. Even though the Commission Decision 94-09-065 requires a NRF-LEC to submit a cost study and establish a price floor with the Commission before it can exercise pricing flexibility, TD believes that requesting Verizon to file a cost study would be duplicative in nature.

5. Verizon’s current Tariff Schedule Cal. P.U. No. D-4 allows the company to charge directory publishers a reproduction right charge of $117 for each directory issued and an additional $117 for each 1,000 listings or fraction thereof.

6. The reduction in the SLI and Updated SLI rates should benefit all of its directory publisher customers, as well as promote competition among telecommunications carriers.

7. Comments were received on May 3, 2000 from Association of Directory Publishers (ADP). Specifically, ADP does not believe that Verizon should submit a cost study at the state level in support of the proposed rates stated in Finding No. 1 in light of the FCC Order.

THEREFORE, IT IS ORDERED that:

1. Verizon’s request in AL No. 9430 and accompanying supplements to revise its Tariff Schedule Cal P.U.C. D-4 Telephone Directory Reproduction rights to (a) rename the product from “Telephone Directory Reproduction Rights” to “Subscriber Listing Information” (SLI); (b) decrease the rates for SLI and Updated SLI to $0.04 and $0.06 per listing, respectively; and (c) revise the terms and conditions for these services is approved without a further request for a cost study.

This Resolution is effective today.

I hereby certify that this Resolution was adopted by the Public Utilities Commission at its regular meeting on September 7, 2000. The following Commissioners approved it.

______WESLEY M. FRANKLIN Executive Director

LORETTA M. LYNCH President HENRY M. DUQUE JOSIAH L. NEEPER RICHARD A. BILAS CARL W. WOOD Commissioners