PUBLIC SERVICE COMMISSION of WEST VIRGINIA CHARLESTON At

PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON At a session of the PUBLIC SERVICE COMMISSION OF WEST VIRGINIA in the City of Charleston on the 7" day of January 2015. GENERAL ORDER NO. 187.44 In the matter of proposed amendments to the Rules and Regulations for the Government of Telephone Utilities, 150 C.S.R. Series 6. COMMISSION ORDER The Commission promulgates a proposed amendment to Rule 2.6 of the Rules and Regulations for the Government of Telephone Utilities, 150 C.S.R. Series 6 (Telephone m)for comment. BACKGROUND On September 11, 2013, the Commission opened a general investigation into the continuing need for local exchange carriers (LECs) to annually distribute printed telephone directories to customers as required under Teleuhone Rule 2.6.a. The Commission opened that proceeding after a request from Frontier West Virginia Inc., and Citizens Telecommunications Company of West Virginia dba Frontier Communications of West Virginia (together Frontier) seeking Commission consent for an opt-in directory distribution program. Instead of proceeding with the Frontier request, the Commission invited interested parties to submit comments and directed the Executive Secretary to publish notice of this matter statewide. The Executive Secretary also provided notice to all incumbent and competitive carriers of this proceeding. Beginning on September 23, 2013, the Commission began receiving letters from the public regarding the Frontier proposal. The letters, often from senior citizens, stated that they continue to use printed telephone directories and argued for ongoing directory printing and distribution. One customer, however, wrote in support of ending the requirement to distribute printed directories, concluding that eliminating the requirement will reduce waste and cut costs. On October 21, 2013, the Pocahontas County Commission (PCC) filed a letter in opposition to abolishing the requirement to distribute printed directories. The PCC also noted that it received a petition signed by 768 residents objecting to recent formatting I General Investigation into Directory Distribution Requirement of TeleDhone Rule 2.6.a., Case No. 13-1376-T-GI (Commission Order, July 30,2014). changes to a local printed directory. Additional residents in that area and the Pocahontas County Senior Citizens, Inc., submitted similar comments. On November 15, 2013, Staff and several telecommunications carriers filed initial comments. Staff recommended that the Commission retain the current directory distribution requirement under Teleohone Rule 2.6.a. It argued that the geography of this State coupled with the relatively low levels of computer ownership and internet access force many residents to use a printed directory. In the alternative, Staff suggested allowing telephone customers to opt-out of receiving telephone directories instead of adopting an opt-in system. Frontier filed comments urging the Commission to amend Telephone Rule 2.6.a to permit an opt-in system whereby interested telephone customers request printed directories. Frontier argued that the advent of wireless service, internet access and third party directories have reduced the need for LECs to distribute printed directories. Further, landlines currently represent only one-third of all telephone lines. Twenty-nine other states have allowed carriers to move to an opt-in system for distributing printed directories. Frontier also argued that limiting the distribution requirement to customers that request printed directories will reduce costs and waste. Therefore, Frontier recommended that the Commission modify Telephone Rule 2.6.a to provide for an opt-in method of distributing printed directories to customers on request. Three other carriers filed initial comments in the general investigation. AT&T Corp., and its affiliate Teleport Communications America, LLC (together AT&T) support eliminating the directory requirement from Telephone Rule 2.6.a or alternatively adopting an opt-in approach. AT&T asserted that printed telephone directories are progressively less useful to telephone customers and that a wide variety of alternatives exist. Citynet West Virginia, LLC (Citynet), however, argued against a change in Telephone Rule 2.6.q citing a relative lack of computer and broadband access in West Virginia. Cebridge Telecom WV, LLC, petitioned to intervene in the general investigation without making specific comments. Also on November 15, 2013, the Greenbrier County Committee on Aging, Inc., filed a letter objecting to changes to Telephone Rule 2.6.a. It attached a petition opposing the Frontier proposal signed by twenty-eight people. On December 16, 2013, Staff and Frontier filed reply comments. Staff reiterated its position, but also recommended that the Commission consider a transition period that would inform customers of the need to request printed directories in the future if it adopted the Frontier request. Separately, Frontier reiterated its intent to continue printing telephone directories for customers on request and highlighted comments from AT&T stating that only a small percentage of customers request printed directories in states where a customer must opt-in to receiving printed directories. 2 On July 30, 2014, the Commission closed its general investigation in favor of opening a focused rulemaking to amend Telephone Rule 2.6 to allow local exchange carriers to transition to an internet based directory coupled with the option for customers to request printed directories. DISCUSSION In the general investigation the Commission opened to consider the Frontier proposals regarding Telephone Rule 2.6.a, the Commission concluded that Frontier and AT&T presented persuasive arguments in favor of altering the existing requirement that each LEC annually provide a printed telephone directory to each customer. As noted in that proceeding, the justification underlying the directory distribution rule is now undercut by the migration of telecommunications customers from traditional landlines and the proliferation of broadband internet access that allows a customer to search for individuals or services. Wireless customers are not listed in current telephone directories. The Commission concluded, however, that any transition away from requiring printed directories should include substantive advance customer notice and an option for customers to request that the LEC continue to provide printed directories. The notice and option to continue to receive printed directories addresses the concerns of rural residents and senior citizens that continue to value printed directories. Case No. 13-1376-T-GI (Commission Order, July 30, 2014) at 4, 5. Therefore, the Commission will implement its conclusions from the general investigation by opening this focused rulemaking proceeding to promulgate a proposed revision to replace the existing Telephone Rule 2.6.a. The Commission will also propose related changes to Telephone Rule 1.7 and portions of Telephone Rule 2.6 as follows: 1.7s. “Basic Local Exchange Service” -- provision to a subscriber at his or her residence or business location of at least all of the following: 1. A voice-grade, two-way, single-party coinmunications channel with dual-tone multifrequency signaling capability; 2. A telephone number by which the subscriber may be signaled and an optional “White Pages” directory listing or its functional equivalent; 3. Subject to the provisions set out in Rule 2.6 hereof, a printed telephone directory or electronic telephone directory that shall be updated at least annually and that shall contain, except for %on- published and “unlisted” telephone listings, all telephone listings in the local calling area of those subscribers who are served by the local exchange carrier that publishes the directory or directories. e 0 0 e 3 2.6 Directories a. Each LEC must provide telephone directories by one of the following methods: 1. Print and distribute a paper directory to customers or arrange for printing and distribution to customers once a year. The directories must list the name, address and telephone number of all customers, except public telephones and numbers unlisted at customer request. 2. Or after January 1, 2017, provide an internet-based electronic directory containing the information required for a printed directory. If a Local Exchange Carrier uses this method, it must provide customers with the option to obtain a printed directory on request. The LEC may not transition to an internet-based directory until it has provided notice to each customer through three separate monthly bill inserts or similar customer bill message over a period of not less than three months nor more than six months. Prior to transitioning to an internet-based directory, an LEC must also issue a press release regarding the transition and place a prominent plain language notice on the cover of the final full distribution of printed directories regarding the upcoming transition. Subsequent to transition to an internet-based directory, each LEC must advise customers annually of the internet address of the online directory and of the availability of a printed directory on request. Internet-based directories must be divided into reasonable local calling areas similar to historical printed directories, or if larger directories are produced, must contain an index with links to sections covering reasonable local calling areas similar to historical printed directories. b. Telephone directories shall include listings for all local service areas for the exchanges to which this

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