DIRECT TESTIMONY

OF

CHRISTOPHER L. GRAVES

TELECOMMUNICATIONS DIVISION

ILLINOIS COMMERCE COMMISSION

DOCKET NO. 00-0592

Re-Hearing

April 26, 2001 Docket 00-0592 ICC Staff Ex. 1 .OO (Graves) Page 1 of 10

1 Q. Please state your name, occupation and business address.

2 A. My name is Christopher L. Graves. I am employed by the Illinois Commerce

3 Commission as a Policy Analyst in the Division. My

4 business addrass is 527 East Capl.",..."‘tnl AmapotoI"", Snrinnfinlri-r#.'.J'-'-, IIIi-pis~E;2794,. .

5

6 Q. Please state your educational background.

7 A. I received a Bachelor of Arts degree in Economics from Illinois State University in

8 1990. Also, I hold a Master of Arts Degree in Economics from Southern Illinois

9 University at Edwardsville, which I received in November of 1997.

10

11 Q. Please state your professional experience.

12 A. While studying for my masters degree, I interned with the economics group of

13 the Revenue and Public Affairs Division of

14 Company in St. Louis. As an intern, I researched topics relating to

15 telecommunications economics and pricing for the staff economists. During the

16 summer of 1996, I worked briefly for INDETEC International as a litigation

17 support analyst. INDETEC is a consulting firm specializing in

16 telecommunications and utilities economics and costing practices.

19

20 Q. When did you join the Illinois Commerce Commission?

1 Docket 00-0592 ICC Staff Ex. 1 .OO (Graves) Pagezoflo

21 A. I joined the Commission in October of 1996.

22

23 Q. Please briefly describe your work duties with the Commission.

24 A. My responsibilities include reviewing tariff documents and cost studies submitted

25 ~&I the Com~misslon~~b\llte!ecommunlca!ions czrrierf 2nd making

26 recommendations to the Commission regarding those filings; providing economic

27 analysis on pricing and cost issues in dockets before the Commission; and

26 answering inquiries regarding wholesale pricing policies of the Commission. I

29 have provided testimony in the following docketed proceedings: Docket No. 99-

30 0593, Special Construction; Docket No. 00-0027, Focal Communications

31 Corporation Arbitration; Docket No. 99-0525, McLeodUSA Telecommunications

32 Service, Inc. (McLeod) complaint against Telephone Company

33 ( Illinois); Docket No. 980866, Bell Atlantic Corporation’s proposed

34 merger with GTE Corporation (GTE); Docket No. 98-0555, SBC Communications

35 Corp. proposed merger with Ameritech Corp.; Docket No. 96-0503, the

36 investigation into GTE’s wholesale prices ; Docket No. 96-0404, Ameritech

37 Illinois’ Section 271 compliance Docket; Docket No. 96-0486, the investigation

30 into Ameritech Illinois’ unbundled network element (UNE) offering; Docket No.

39 97-0344, the Cable Companies’ complaint against Ameritech’s use of

40 “Americhecks”; Docket Nos. 97-0552 and 97-0553, the investigation of

41 Ameritech Illinois’ wholesale tariff; Docket No. 98-0860 regarding the

42 reclassification of Ameritech services as competitive; Docket 99-0593 the

2 Docket 00-0592 ICC Staff Ex. 1 .OO (Graves) Page30flo

43 investigation of Ameritech’s special construction charges; and Docket 00-0592

44 the arbitration of Ameritech’s Operation Support Systems (OSS).

45

46 Q. What new evidence has Ameritech provided in the pre-filed testimony

47 _“.actmhmi+tor’ ,111. I.. inmm. “.srnnnnc+ir\n I,,, ““.,“a, uri+h..*.a, +hic.,,,- ,“..“....r-h-2ripn .a that. ..-. rnmmla4-...... ” Inad.--- to- 2 chznge in

48 the Commission’s order?

49 A. Ameritech has described its new loop qualification interfaces implemented on

50 March 24, 2001, and the loop qualification enhancement made to Southwestern

51 Bell’s software as of April 3, 2001. Ameritech also indicated in their testimony

52 (Mileham, page 8, line 15) that a modification similar to that made to

53 Southwestern Bell’s loop qualification system is being considered for Illinois.

54

55 Q. Please summarize the issues the Commission addressed in the Original’

56 OSS arbitration proceeding, Docket No. 00-0592, that related to Issues

57 29131 - DSL Loop Qualification?

58 A. The CLECs requested three modifications of Ameritech’s OSS. The CLECs

59 requested the OSS allow them to: 1) view the loop characte’ristics of all loops

60 serving an address; 2) reserve a particular loop from those serving an address

61 and order that loop during the ordering process; and 3) avoid disclosing to

62 Ameritech the service that the CLEC plans to provide for their end customer.

63 64 Q. Please summarize the Commission’s order in the Original OSS arbitration

3 .

Docket 00-0592 ICC Staff Ex. 1 .OO (Graves) Page40flo

65 proceeding.

66 67 A. The Commission required that Ameritech should (i) provide information on a

68 maximum of ten (10) loops during the pre-ordering stage, (ii) implement a

69 method of identification for each of the up to ten loops returned to the CLECs

70 during the pre-ordering stage, and (iii) modify the ordering application so that the

71 CLECs can order a specific loop identified during the pre-ordering stage

72 understanding that this loop may not still be available (in other words, no

73 reservation policy was mandated).

74

75 Q. Do Ameritech’s new loop qualification systems implemented on March 24,

76 2001 comply with the Commission’s order?

77 A. No. While the “new” systems provide loop characteristics information for one

78 loop, they do not disclose characteristics for multiple loops serving a particular

79 address. In addition, the CLECs are not able to order a particular loop identified

80 in pre-qualification stage.

81

82 Q. Have other ILECs been able to address the issue of providing DSL’Loop

83 qualification information for multiple loops at an address?

84 A. As was noted in the Order for Docket No. 00-0592, Verizon, BellSouth and

85 all seem to have addressed this issue to some degree. As was noted in

86 the Order for Docket No. 00-0592 on page 88:

4 Docket 00-0592 ICC Staff Ex. 1 .OO (Graves) Page 5 of 10

87 . Bell Atlantic - allows CLECs to see details for a maximum of 10 available 88 loops. 89 . Bell South - allows up to 4 available loops to be viewed

90 l Qwest - has built a new tool for customer viewing of raw loop data. 91

92 It is my understanding that Ameritech has not taken issue with these findings.

93

94 95 Q. Has Ameritech provided any evidence why the aforementioned companies

96 could address the DSL Loop Qualification issues while Ameritech could

97 not?

98 A. No. In fact, Ameritech witness Zills explains that Loop Facility Assignment and

99 Control System (“LFACS”) used by Ameritech is not an Ameritech maintained

100 database system, rather, the software is owned by Telcordia. Telcordia is a

101 research firm that use to provide its services exclusively to the regional bell

102 operating companies, and now it provides services to the entire

103 telecommunications industry. It is probable Verizon, Bell South and Qwest have

104 the same LFACS database software that Ameritech claims can’t be modified to

105 accomplish qualification of multiple loops. In Ameritech’s testimony the only

106 assertion to support that Ameritech can’t implement the loop pre-qualification

107 and loop ordering functionality as ordered in Docket No. 00-0592 is the complaint

108 that Ameritech cannot accomplish it in the time frame ordered.

109

110 Q. Does Ameritech witness Zills’ testimony regarding BellSouth’s cost to

5 Docket 00-0592 ICC Staff Ex. 1 .OO (Graves) Page 6 of 10

111 modify LFACS (Zills at 8) imply that BellSouth’s systems are similar to

112 Ameritech Illinois’ system?

113 A. Yes. Zills implies that the two systems are similar if the costs are similar. But

114 there is no evidence to support Ameritech’s equation of the implementation costs

Ii5 for the txo separate sys?ems. Before !he Comm,,sic innI”,. ..YYy.a.”3rmntc Mr1.11. ‘.-.a.”7illc’ cost

116 estimate it should require Ameritech to provide more proof of the asserted costs

117 than just a number from an unidentified source at BellSouth. Ameritech would

118 also have to establish that its costs of implementation would be similar. It

119 appears that Ameritech has done no planning in regards to implementing the

120 Commission’s order in Docket 00-0592 regarding DSL loop qualification and loop

121 characteristics. This was confirmed by Ameritech’s response to Covad’s data

122 request 21 attached hereto It is unclear how any reliable cost estimate can be

123 made without some research and planning.

124

125 Q. Has there been any other change in facts since the entry of the

126 Commission’s Order?

127 A. Yes. The Original Order in Docket No. 00-0592 quoted Covad’s testimony that

128 stated that the costs for loop conditioning would be: $905.82 for removal of a load

129 coil; $528.97 for removal of a bridge tap; and $326.86 for removal of repeaters.

130 The loop conditioning charges were reduced by the Commission’s Order in Docket

6 Docket 00-0592 ICC Staff Ex. 1 .OO (Graves) Page70flo

131 No. 00-0393; the respective rates are now, $14~.08, $14.00, and $21.49’. While

132 Ameritech has asked that these rates be reevaluated in its petition for rehearing of

133 Docket No. 00-0393. This reduction in conditioning prices substantially reduces

134 the economic impact of conditioning activities. This does not however affect the

135 time impact that conditioning could have.

136

137 Q. Does the FCC’s UNE Remand Order require loop qualification for all loops at

138 a particular address?

139 A. Yes. An address is one method by which the FCC suggests an ILEC provide loop

140 qualification method. The FCC requires an ILEC to provide loop qualification

141 information in the same method that it provides it to itself. The paragraph 440 of

142 the UNE Remand Order in part states:

143 Consistent with our nondiscriminatory access obligations, the incumbent 144 LEC must provide loop qualification information based, for example, on 145 individual address or zip code of the end users in a particular wire center, 146 NXX code, or any other basis that the incumbent provides such information 147 to itself.

148 Paragraph 428 of the UNE Remand Order then sets forth the systems and

149 information to which an ILEC should provide a CLEC access; specifically, stating

150 that the information is not to be filtered.

’ Ameritech Tariff, ILL. C. C. No. 20, Part 19, Section 2, 2” Revised sheet No. 34.

7 Docket 00-0592 ICC Staff Ex. 1 .OO (Graves) Page8ofiO

151 428. In addition, we agree with Covad that an incumbent LEC should not 152 be permitted to deny a requesting carrier access to loop qualification 153 information for particular customers simply because the incumbent is not 154 providing xDSL or other services from a particular end office.[footnote 155 omitted] We also agree with commenters that an incumbent must provide 156 access to the underlying loop information and may not filter or digest such 157 information to provide only that information that is useful in the provision 158 of a particular type of xDSL that the incumbent chooses to offer. [footnote 159 omitted] For example, SBC provides ADSL service tomits customers which 160 has a general limitation of use for loops less than 18,000 feet. In order to 161 determine whether a particular loop is less than 18,000 feet, SBC has 162 developed a database used by its retail representatives that indicates only 163 whether the loop falls into a “green, yellow, or red” category. [footnote 164 omitted] Under our nondiscrimination requirement, an incumbent LEC can 165 not limit access to loop qualification information to such a “green, yellow, 166 or red” indicator. Instead, the incumbent LEC must provide access to the 167 underlvinq loop qualification information contained in its enqineering 168 records, plant records, and other back office systems so that requestinq 169 carriers can make their own iudqments about whether those loops are 170 suitable for the services the requestinq carriers seek to offer. Otherwise, 171 incumbent LECs would be able to discriminate against other xDSL 172 technologies in favor of their own xDSL technology. (emphasis added) 173 174 Although I am not an attorney, based on the aforementioned language,

175 Ameritech should be providing access to all underlying loop qualification

176 information so that requesting carriers can make their own decisions regarding

177 the suitability of the loops for the services they seek to offer. It should be up to

178 the wholesale customer ordering the loop to determine what loop they would like

179 provisioned.

180 181 Q. Ameritech does not believe that it is required to provide the OSS systems

182 ordered by the Commission. Do you agree with Ameritech’s position?

8 . .

Docket 00-0592 ICC Staff Ex. 1 .OO (Graves) Page90fio

183 A. No, Ameritech raised similar objections in its Reply Brief on Exceptions in the

184 Original Docket. The Commission rejected those arguments in its Order (at page

185 91) and should again reject them here.

186

487 Q. undoes If appear that .Ameritech has comp!Ied with the order in Docket ELM-

188 0592?

189 A. No. The Commission ordered that the Ameritech implement loop qualification

190 improvements to its pre-ordering and ordering systems by March 2001 and meet

191 with CLECs to “jointly determine the specific fields that will be returned in the

192 pre-order inquiry.“’ I have seen no evidence that Ameritech has made progress

193 in accomplishing or planning to accomplish either obligation. Instead, as stated

194 in Mileham’s testimony, Ameritech Illinois is presently writing requirements for

195 implementing the SWBIT DSL loop qualification enhancement implemented on

196 April 3,200l.

197 Q. Does this conclude your testimony?

198 A. Yes

199 200

’ Order, Docket 00-0592. at p. 90.

9 Docket 00-0592 Staff Ex. 1.OO (Graves) Attachment 1

Illinois Commerce Commission Docket 00-0592 Covad Data Request 21

Request:

Please provide all documents related or referring to the implementation or efforts necessary to implement the Illinois Commerce Commission’s January 24,200l order in Docket 00-0592 regarding DSL loop qualification and loop makeup information.

Response:

Ameritech Illinois objects to this request as being irrelevant to the issue on rehearing and unlikely to lead to the discovery of relevant information. Without waiving this objection, Ameritech Illinois states that no such documentation exists.