Order Granting Waiver Subject to Conditions
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STATE OF NEW YORK PUBLIC SERVICE COMMISSION At a session of the Public Service Commission held in the City of New York on July 14, 2016 COMMISIONERS PRESENT: Audrey Zibelman, Chair Patricia L. Acampora Gregg C. Sayre Diane X. Burman CASE 16-C-0186 – Petition of Verizon New York Inc. for Additional Waiver of New York Code of Rules and Regulations, Title 16, Section 602.10(b) Pertaining to the Distribution of Telephone Directories. CASE 16-C-0190 - Petition of Dex Media, Inc., for Additional Waiver of New York Code of Rules Pertaining to the Distribution of Telephone Directories. ORDER GRANTING WAIVER SUBJECT TO CONDITIONS (Issued and Effective July 15, 2016) BY THE COMMISSION: INTRODUCTION By petition filed March 23, 2016, Verizon New York Inc. (Verizon or the Company) requests an additional waiver of 16 NYCRR §602.10(b), to permit the Company’s directory publisher, Dex Media, Inc. (Dex Media), to discontinue the automatic distribution of all paper directories to its customers. By petition filed March 29, 2016, and amended on April 12, 2016, Dex Media supports Verizon’s additional waiver request and further requests that the Commission also allow a full transition from paper to an environmentally-sound digital directory option. CASES 16-C-0186 and 16-C-0190 The Commission finds that the justifications provided by Verizon and Dex Media to discontinue distribution of all paper directories, including business and government listings, subject to a customer ability to opt-into paper delivery, are reasonable and are, therefore, granted subject to the conditions discussed below. BACKGROUND In 2010, the Commission granted Verizon’s request for a limited waiver of 16 NYCRR §602.10(b).1 The waiver request pertained only to the distribution of white page directories in Verizon’s local exchange areas.2 The waiver specifically allowed Verizon to stop blanket distribution of residential white page directories on behalf of itself and the affected wireline Competitive Local Exchange Companies (CLECs) and to provide copies of such directories to customers only upon request. Distribution of the business and government listing directories, however, remained unaffected. The Commission’s rules, at 16 NYCRR §602.10(b), require all service providers (including Verizon) to distribute 1 See, Case 10-C-0215, Petition of Verizon New York Inc. for Waiver of New York Code of Rules and Regulations, Title 16, §602.10(b) Pertaining to the Distribution of Telephone Directories, Order Granting Waiver with Conditions (issued October 15, 2010) (2010 Waiver Order). 2 Verizon had previously provided directories containing residential white pages to all of its customers statewide. In addition, Verizon also provided copies to most, and perhaps all, wireline competitive local exchange carrier (CLEC) customers operating in Verizon’s local exchange areas pursuant to its various interconnection agreements (ICAs) or commercial agreements. -2- CASES 16-C-0186 and 16-C-0190 a directory3 that contains both residential and business listings: Each service provider shall distribute at no charge to its customers within a local exchange area, a copy of the local exchange directory for that area, and one additional copy shall be provided for each working telephone number upon request. A copy shall be filed with the Commission.4 In our 2010 Order, the Commission found that: Customers today have many options in terms of locating telephone numbers. Statistics suggest that telephone directories are not nearly as valuable as they were even a decade ago. In addition, telephone books, by nature, are large and cumbersome and utilize a significant amount of natural resources to produce and distribute. Verizon’s proposal to discontinue distribution of the residential white page listings is a reasonable one that will have a positive impact on the environment. VERIZON’S PETITION Verizon’s request would extend the 2010 Waiver Order pertaining to the distribution of residential white page directories to include yellow business page and government white page directories distributed in New York State. Verizon proposes to adopt a more customer-focused and environmentally conscious approach to the distribution of telephone directories. If the requested waiver is granted, Verizon proposes to distribute directories “on-demand” to customers who request one. Pursuant to the petition, customers can request a printed directory from Dex Media by calling a toll-free number, 1-800- 3 Pursuant to 16 NYCRR §602.10(a)(1): A directory shall be in such form and list such information, as will permit the numbers of local exchange customers in the area covered by the directory to be obtained, except for public telephones and numbers unlisted at a customer's request. 4 2010 Waiver Order, p. 10. -3- CASES 16-C-0186 and 16-C-0190 888-8448, and printed directories are generally distributed within two weeks of the request. In accordance with the current rule and the previous waiver of the rule, Verizon provides all customers with printed business white page directories that include an alphabetical listing of all business customers with published numbers. These directories also include government white pages, yellow pages and consumer guide pages. Directories are published and delivered to all customers annually by Dex Media. Verizon states that the revolutionary changes to the telecommunications industry have rendered print directories essentially obsolete. The books distributed today by Verizon’s publisher are reduced in size as they do not include individuals and businesses who have “cut the cord” in favor of a wireless device, or the many cable and Voice over Internet Protocol (VoIP) subscribers whose providers no longer submit their customers’ telephone numbers to Verizon for inclusion in the listings database. Also, according to the Company, customers are now using ubiquitous electronic search tools that provide instantaneous results rather than printed directories. Based on the number of requests for residential directories for a recent one-year period, Verizon estimates that less than one percent of New York households desired a printed directory. Verizon expects that low usage of printed directories will continue to decline. Furthermore, the petition notes that granting the requested waiver will materially and positively affect the environment and customers that have no need for printed directories. According to the Company, since the Commission’s printed residential directory publishing waiver in 2010, approximately 13,600 tons of paper per year have been eliminated from the waste stream in the Verizon East states. -4- CASES 16-C-0186 and 16-C-0190 Expansion of this “on-demand” program to business and government listings will continue this trend. If the additional waiver is granted, the Company states it will make residential, business, and government white page directory listings, including the Consumer Guide, available to customers online or in printed form, upon request, at no charge. To publicize this change, Verizon will issue a customer bill message, a webpage notice, and an industry notice to CLECs. Online, Dex Media’s website will indicate that a directory can be ordered by calling (877) 2 Get Dex; also an online search for “Verizon white pages” will return a link informing users that a new white pages directory can be ordered by calling 1.800.888.8448 or by visiting the Verizon White Pages Online Directory Search. DEX MEDIA’S PETITION Dex Media5 requests that the Commission go beyond Verizon’s request so as to permit a full transition from paper to digital directories.6 Section 602.10(b) requires Verizon to distribute a copy of each directory published to each subscriber. However, Section 602.10 in its entirety, comprising Sections 602.10 (a) and (b), also contains certain content requirements in addition to requiring basic number listings. Dex Media requests that the Commission clarify that digital directory distribution be deemed to satisfy the “front of book” 5 On April 30, 2013, Dex One Corporation and SuperMedia Inc. announced the completion of their merger, creating Dex Media, Inc., one of the largest national providers of social, local and mobile marketing solutions through direct relationships with local businesses. 6 Dex Media filed an amended petition on April 12, 2016. The amended petition eliminated a request that paper directories would no longer have to be provided after a 36-month transition period under certain conditions. -5- CASES 16-C-0186 and 16-C-0190 content requirements of these and any other statutes and regulations that touch on or refer to directories. Dex Media seeks to clarify that digital publication of other information (front of book information) required by statutes and regulations is expressly permitted. Dex Media further seeks to discontinue saturation delivery of business white and yellow pages, with such saturation delivery to be implemented only on a market-by-market basis as Dex Media determines the needs in a particular market. There would be no “flash cut” throughout the Verizon territories in the State. Over time, for a given market, Dex Media states it would make a market-specific determination to curtail the extent of distribution of paper directories. Dex Media proposes to continue to make paper directories available at no charge to Verizon customers on an “upon request” basis. Thus, all subscribers will have access to the digital directory and those who request a print directory will receive one at no charge. Dex Media publishes its print directories in a digital format at www.DexPages.com, using the traditional layout of its printed white and yellow pages. According to the petition, all the content and information required by the Commission’s Rules are also contained in the digital directory for each and every community Dex Media serves in New York. Dex Media states that it will continue to publish the front of book information and content required by the Commission’s Rules in the digital versions of the directories; it will also continue to include that information in the paper versions of the directories provided to customers requesting them.