Rebuttal Testimony
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DBL 4 If u\\\\\\\\\\\\\\\\\\\\\\ !\\0\\\0\\\0\\\0\ W MW n\\ \ 1 BEFORE THE ARIZONA COMMISSION 2U!8 GCT 2`l 13 IP 2 MI COMMISSIONERS 3 ~. Q r' usu. lo ~~.-I Arizona Corporation Commission KRISTIN K. MAYES, Chairman DOCKET CUNTRUL DOCKETED 4 GARY PIERCE PAUL NEWMAN act 2 7 2010 5 SANDRA D. KENNEDY BOB STUMP 6 DOCKET El) Lw 7 V 8 JOINT NOTICE AND APPLICATION OF DOCKET no. T-0105lB-10-0194 QWEST CORPORATION, QWEST DOCKET NO.T-0281 IB-10-0194 9 COMMUNICATIONS COMPANY, LLC, DOCKET NO.T-04190A-10-0194 QWEST LD CORP., EMBARQ DOCKET no. T-20443A-10-0194 10 COMMUNICATIONS, INC. D/B/A/ DOCKET NO.T-03555A-10-0194 CENTURY LINK COMMUNICATIONS, DOCKET no:T-03902A-10-0194 : .. 11 EMBARQ PAYPHONE SERVICES, INC. LE m ~ D/B/A/ CENTURYLINK, AND §o JOINT APPLICANTS' NOTICE OF E >8 12 CENTURYTEL SOLUTIONS, LLC FOR mmm° 688 FILING REBUTTAL 4) I u_owno APPROVAL OF THE PROPOSED MERGER &m'2~ OF THEIR PARENT CORPORATIONS TESTIMONIES J 529 13 t QWEST COMMUNICATIONS °zs-°<5<° _a 2'z£ 8 14 INTERNATIONAL INC. AND cm ° u et CENTURYTEL, INC. = < 4 cm 15 o 16 The joint applicants listed in the above caption ("Joint Applicants') hereby tile 17 their rebuttal testimony on behalf of the following witnesses : 18 Qwest: 19 • Robert Brigham, Staff Director, Qwest Corporation 20 • Jim Campbell, State President for Arizona, Qwest Corporation 21 Karen Anne Stewart, Director-Legal Issues & Regulatory Compliance, 22 Qwest Corporation 23 • Michael G. Williams, Director-Public Policy, Qwest Corporation 24 CenturvLink: 25 • Jeffrey S. Glover, Vice President, Regulatory Operations and Policy, 26 CenturyLink 1 Michael R. Hunsucker, Director, CLEC Management, CenturyLink 2 Kristin McMillan, Vice President, State External Relations-Western 3 Region, CenturyLink 4 • Todd Schafer, President, Mid-Atlantic Region, CenturyLink. 5 Confidential Exhibit MGW-1 to the Rebuttal Testimony of Michael G. Williams is 6 Confidential Information pursuant to the Protective Order entered in these consolidated 7 dockets. Accordingly, Confidential Exhibit MGW-1 has been redacted in this filing. 8 However, a copy of Confidential Exhibit MGW-l is being provided to parties in these 9 consolidated dockets who have signed a copy of Exhibit A to the protective order. 10 RESPECTFULLY SUBMITTED this 27th day of October, 2010. 11 SNELL & WILMER L.L.P. 12 13 B _ ~\ - JeffT y y Cr kett, Esq. 14 Br die S Ca 011, Esq. One Arizona Center 15 400 E. Van Buren Phoenix, As 85004-2202 16 Attorneys for CenturyLink 17 and 18 Kevin K. Zarling, Senior Counsel (admittedpro hoe vice) 19 Senior Counsel, CenturyLink 400 W. 15'*' Street, Suite 315 20 Austin, Texas 78701 21 Attorneys for CenturyLink 22 23 24 25 26 2 1 QWEST CORPORATION 2 N ~~» 3 J . 2 I C 4 LM NoA oclate General Counsel, Qwest 20 East Thomas Road, 16th Floor 5 Phoenix, Arizona 85012 6 Attorney for Qwest Corporation 7 ORIGINAL and 13 copies filed 8 this 27th day of October, 2010, with: 9 Docket Control Arizona Corporation Commission 10 1200 West Washington Street 11 Phoenix, Arizona 85007 12 COPY of the foregoing hand-delivered 13 this 27th day of October, 2010, to: 14 Belinda Martin, Administrative Law Judge Janice Alward, Chief Counsel Hearing Division Legal Division 15 Arizona Corporation Commission Arizona Corporation Commission 1200 W. Washington 1200 W. Washington 16 Phoenix, Arizona 85007 Phoenix, Arizona 85007 17 Steve Olea, Director Daniel Pozefsky, Chief Counsel 18 Utilities Division Residential Utility Consumer Office Arizona Corporation Commission 1 l10 West Washington, Suite 220 19 1200 W. Washington St. Phoenix, Arizona 85007 Phoenix, Arizona 85007 [email protected] 20 21 Michael Patten Joan Burke Roshka DeWulf & Patten, PLC Law Office of Joan S. Burke 22 One Arizona Center 1650 N. First Avenue 400 E. Van Buren St. - 800 Phoenix, Arizona 85003 23 Phoenix, Arizona 85004 [email protected] 24 [email protected] 25 26 3 1 COPY of the foregoing sent via First Class Mail this 27th day of October, 2010, to: 2 Lyndell Cripps John Ilgen, Vice President 3 Vice President, Regulatory Affairs Sales and Marketing 4 twtelecom of Oregon, lac WESTEL INC. 9665 Granite Ridge Drive, Ste. 500 99606 North Mop ac Expressway, Ste 700 5 San Diego, California 97123 Austin, TX 78759 [email protected] iohn.i1,[email protected] 6 Mark DiNunzio 7 Katherine Mudge Director, State Affairs & ILEC Relations Cox Arizona Telkom, LLC 8 Coved Communications, Inc. 1550 W. Deer Valley Rd. 7000 N. Mop ac Expressway, 2nd Floor MSzDV3-16, Bldg. C 9 Austin, Texas 7873 1 Phoenix, Arizona 85027 [email protected] [email protected] 10 = Gregory L. Rogers Rex Knowles I- 11 : XO Communications, Inc. Wmso Level 3 Communications, LLC -2 1025 Eldorado Boulevard 7050 Union Park Ave., Ste. 400 4fn>4 o 12 E mM°3 Broomfield, Colorado 8002 l Midvale, Utah 84047 du."9823 ~.:. 3 Ju. »I 8m 13 [email protected] .JOE 2 l"\ Greg.ro gers@level3 .com 3 u<n 08 <0 .3 ..| l *v ='E 14 James C. Falvey William A. Haas '3 .8 g :1 m 15 Senior Regulatory Counsel Vice President of Public Policy & Regulatory Pac-West Telecomm, Inc. PAETEC Holding Corp. 16 420 Chinquapin Round Rd., Ste. 2-1 One Mallha's Way Annapolis, Maryland 21401 Hiawatha, Iowa 52233 17 [email protected] [email protected] 18 Rogelio Pena Stephen S. Melnikoff Regulatory Law Office 19 Pena & Associates 4845 Pearl East Circle, - 101 U.S. Army Litigation Center 20 Boulder, Colorado 80301 901 N. Stuart St., Suite 700 Arlington, Virginia 22203-1837 21 [email protected] 22 Harry Gildea Karen L. Clauson 23 Snavely King Majoros O'Connor & Befell, Vice President, Law & Policy Inc. Integra Telecom 24 1111 14th St., N.W., Suite 300 6160 Golden Hills Dr. Washington, District of Columbia 20005 Golden Valley, Minnesota 55416- 1020 25 [email protected] [email protected] 26 4 1 Gregory Merz Gray Plant Mooty 2 500 IDS Center 80 s. Eighth St. 3 Minneapolis, Minnesota 55402 4 [email protected] 5 6 7 8 12123623.1 9 10 c : 2 11 3 N 88 =2 g ; ~ 12 8"°8-8 u33° Alma*- 1 ¢'n`\ o J o . ' : m _:Os"'o .."~ 13 <36 3 :':N 50.3° < '33 2-8' 14 Sr. i s u: <=. 15 6 16 17 18 19 20 21 22 23 24 25 26 5 RQBERT H. BRIGHAM 1 I BEFORE THE ARIZONA CORPORATION COMMISSION KRISTIN MAYES Chairman GARY PIERCE Commissioner SANDRA KENNEDY Commissioner PAUL NEWMAN Commissioner BOB STUMP Commissioner JOINT NOTICE AND APPLICATION OF ) QWEST CORPORATION, QWEST ) COMMUNICATIONS COMPANY, LLC, ) DOCKETNO. T-01051B-10-0194 QWEST LD CORP., EMBARQ ) DOCKETNO. T-02811B-10_0194 COMMUNICATIONS, INC. D/B/A/ CENTURY ) DOCKETNO. T-04190A-10-0194 LINK COMMUNICATIONS, EMBARQ ) DOCKETNO. T-20443A-10-0194 PAYPHONE SERVICES, INC. D/B/A/ ) DOCKETNO. T-03555A-10-0194 CENTURYLINK, AND CENTURYTEL ) DOCKETNO. T-03902A-10-0194 SOLUTIONS, LLC FOR APPROVAL OF THE ) PROPOSED MERCER OF THEIR PARENT ) CORPORATIONS QWEST ) COMMUNICATIONS INTERNATIONAL INC. ) AND CENTURYTEL, INC. ) REBUTTAL TESTIMONY OF ROBERT H. BRIGHAM ON BEHALF OF QWEST CORPORATION QWEST COMMUNICATIONS COMPANY, LLC, AND QWEST LD CORP. OCTOBER 27, 2010 TABLE OF CONTENTS REBUTTAL TESTIMONY OF ROBERT BRIGHAM 1. IDENTIFICATION OF 11. Ilialoooo4o»0o0»»»ll¢lo\00l000l000000o090000litlniaoalbslooooooaaioiooollol¢ol 111. COMPETITIVE IMPACT OF THE MERGER A. INTERVENOR CLAIMS oF COMPETITIVE "HARM" ,4 B. MERGER SYNERGIES AND COMPETITION. 5 c. THE COMPETITIVE ENVIRONMENT IN ARIZONA.. 10 1. The Retail Market 11 2. The Wholesale 25 3. Summary of Competitive Impact.. , 30 D. MERGER 30 E. COMPETITIVE IMPACT oF PROPOSED REPORTING CONDITIONS,. 32 Iv. loiI 000000it i40ttllatlasooalo00000900|0000lblto!ioilootooao000|||»o|¢||oooo1o¢o0oool\1|0||o|\o|¢|o Il l l l Arizona Corporation Commission Docket No. T-01051 B- 10-0194 et al. Qwest Rebuttal Testimony of Robert Brigham October 27, 2010, Page 1 1 I. IDENTIFICATIGN OF WITNESS 2 Q- PLEASE STATE YOUR NAME, BUSINESS ADDRESS AND POSITION 3 WITH QWEST. 4 A. My name is Robert H. Brigham. My business address is 1801 California Street, 5 Denver, Colorado, and I am currently employed by Qwest Corporation ("QC") as a 6 Staff Director in the Public Policy department. I am testifying on behalf of Qwest 7 Corporation, Qwest Communications Company, LLC, and Qwest LD Corp. 8 (collectively, "Qwest"). 9 Q- HAVE YOU PREVIOUSLY SUBMITTED TESTIMONY IN THIS 10 PROCEEDING? 11 A. No. 12 Q» PLEASE DESCRIBE YOUR EDUCATIONAL BACKGROUND AND 13 EMPLOYMENT EXPERIENCE. 14 A. In 1983, I received a Master of Business Administration (MBA) degree from the 15 University of Colorado in Denver, Colorado. My area of emphasis was financial 16 analysis. I received a Bachelor of Arts degree in 1974 from Stetson University. 17 I began my employment with Qwest (formerly Mountain Bell and U S WEST) in 18 1976. Between 1976 and 1980, I held various positions in the Mountain Bell 19 Commercial (marketing) department. In 1980, I accepted the position of Analyst in 20 the Cost, Rates and Regulatory Matters department, working primarily on the 21 development of embedded cost data. In June 1987, I accepted the position of 22 Manager in the U S WEST Service Cost organization, with responsibility for 23 economic analysis and the development of incremental costing methodologies. In l l l | IwIs | | Arizona Corporation Commission Docket No. T-01051B-10-0194 et al. Qwest Rebuttal Testimony of Robert Brigham October 27, 2010, Page 2 1 September 1992, I accepted the position of Director- Product Cost Specialist, and 2 assumed responsibility for developing and supporting U S WEST cost studies in 3 fontal regulatory proceedings, and representing U S WEST in costing and pricing 4 workshops sponsored by various regulatory commissions in the U S WEST region.