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304 340 0325 Exchange and Long Distance Business in West Virginia

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304 340 0325 Exchange and Long Distance Business in West Virginia 2OB9-I 1 :I6 4’-:51 703 - 696 - 2960 >* 304 340 0325 DEPARTMENT OF THE ARMY UNITED STATES ARMY LEGAL SERVICES AGENCY $01 NORTH STUART STREET ARLINGTON, VIRGINIA 222034837 November 16,2009 REPLY To An‘ltNTION OR Regulatory Law Office U 4192 VnJ&1 on-03 3 Sandra Squire TZaJ a U Executive Secretary 2s Public Service Commission of West Virginia 201 Brooks Street, P.O.Box 812 Charleston, West Virginia 25323-0812 Subject: DoD/FEA’s Direct Testirnonv of Charles W. King In Re: Case No. 09-0871-T-PC- Frontier Communimtions Corporation, Citizens Telecommunications Company of West Virginin, dba Frontier Communications of West Virginia, Verizbn West Virginia hc., et al. Joint Petition for consent and approval of the transfer of Verizon’s local, exchange and long distance business in West Virginia to companies to be owned and controlled by Frontier Coimunioations. Dear Ms. Squire: Enolosed for filing in the above-captioned proceeding are the hard copy original and Twelve (12) copies of the Direct Testimony of Charles W. King 011 behalf ofthe United States Department of Defense and All Other Federal. Executive Agencies (collectively referred to herein as “DoDFEA”). A Certificate of Service is appended to this filing. Copies of this document are being sent in accord with the Certificate of Service. Inquiries to this office regarding this proceeding should be directed to the undersigned at (703) 696-1643, . Thank you for your cooperation and assistance in this matter. General Attorney Regulatory Law Office (JALS-RL) US. Army Litigation Center 901 N. Stuart Street, Suite 700 Arlington, Virginia 22203-1 837 Telephone: (703) 696-1643 stmhenmelniko ffmhada. armv .mil Enclosure: TweIve (1 2) Copies CF: See Certificate ofService 20Q9-11-u1616:51 703-696-2960 >> 304 340 0325 P 3 PUBLIC SERVICE COmSSI[ON OF WEST VIRGINIA CHARLESTON Case No. 09-0871-T-PC Frontier Communications Corporation, Citizens Telecommunications Company of West Virginia, dbn Frontier Commieations of West Virginia, Verizon West Virginia hc.,et al, Joint Petition for consent and approval. ofthe transfer of Verizon's local exchange and long distance business in West Virginia to companies to 'be owned and controllEd by Prontier Communications. CERTIFICATE OF SERVICE 1 certify that I have caused two (2) copies of the foregoing document, together with this Certificate of Service, in Case No. 09-0871-T-PC to be sent this day by electronic service (FAX) to the Public Service Commission of West Virginia and one (1) copy each postage prepaid, properly addressed, first class US.Mail (OX private courier) to the counsel and parties nmed below, as indicated: Sandra Squire (UPS; original: and 12 copies) Lisa Wansley, Esq. Executive Secretary Public Smice Commission Public Service Commission of West Virginia Staff Attorney 201 Brooks S~eet,P.O. BOX812 (25323-0812) p ..0 812 Charleston, West Virginia 25301 Charleston, WV 25323 Joseph J. Starsick, Jr., Esq. Patrick W. Pearlman Goodwin & Goodwin, LLP Deputy Consumer Advocate P. 0.Box 2107 Advocate Division Charleston, WV 25328-2107 Consumer 700 Union Building 723 Kanawha Blvd., East Charleston, West Virginia 25301 1 2009-11 -.I6 16:52 703-696-2960 >> 304 340 0325 P 4 Vincent Trhelli, Esq. Jams V,Kelsh, Esq. The Law Office of Vincent Trivelli Rodecker Law Office 178 Chancery Row P. 0.Box 3713 Morgmtown, WV 26505 Charleston, WV 25337-3723 Steven Hanula, Esq. Jeffkey A, Ray, Esq. Director of Regulatory Affairs Citynet West Virginia LLC FiberNet, LLC I, 13 Platinum Drive, Suite 1200 Greenbrier $keet B Bridgeport, WV 263 3 0 Chadeston, WV 253 11 Trevor R. RoycroR Robert R. Rodecker, Esq. Roycroft Consulting P.Q. Box 3713 51 Sea Meadow Lane Charleston, WV 25337 Brewster, MA 0263 1 Scott J. Rubin Stephen G.Bill 333 oak Lane Hill Associates Bloomsburg, PA 178 15 P.O. Box 587 Hurricane, WV 25526 Amanda M. Ream, Esq. Lewis, Glasser, Casey & Rollins, PLLC PO Box 1746 Charlestdn WV 25326 Kevin Saville, Esq. Lydia Pulley Frontier Communications Corporation 2378 Geilmal Consel- VA, wv, NC & SC Wilshire Blvd. Vwizon Corporate Services Cop- Mound,MN 55364 703 713 E. Grace Street Richmond, VA 232 19 Dated this 16 th day of November 2009, at Arlington County, Virginia. General Attorney Regulatory Law Office (JALS-RL) US. Army Legal Servioes Agency Department of the Army 901 N. Stuart Street, Suite Arlington, VA 22203-1837 (703) 696 - 1643 2 CUUY - 'I 'I - 'I & 'I & :3L DoDlFEA Exhibit 1 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON Case No. 09-O871-T-PC Frontier Communications Corporation, Citizens Telecommunicatioqs Company of West Virginia, dba Frontier Communications of West Virgfda, Verizon West Virginia Inc., et ai. Joint Petition for consent and approval. of the transfer of Verizon's local exchange and long distance business in West Virginia to companies to bc owned and controlled by Frontier Communications. DIRECT TESTIMONY OF CHARLES W. KING On Behalf of THE UNITED STATES DEPARTMENT OF DEFENSE And ALL OTHER FEDERAL EXECUTIVE AGENCIES November 16,2009 LUUY - ‘I ‘I - ‘I 6 ’I 6 :3L DoD/FEA Exhibit 1 Direct Testimony of Charles W, King CONTENTS Qualifications............................................................................... 1 Interests of DoD/FEA.. ............................. .:.................................... .2 Previous Verizon Spin-offs.,........................................................... ,,.4 Objective of this Intervention. ............................................................. 11 Financial Health of West Virginia Operations.. ...................................... .12 Service Quality Concerns.,.............................................................. .21 Further Protections,, ..................................................................... .28 Summary of Recommendations.. ....................................................... .32 Attachment A,.............................................. Resume of Charles W. King Attachment B..... .Appearances ofCharles W. King before Regulatory Agencies Attachment C.. .Statement of David Hauser, CEO of Fairpoint Communications Attachment D ..................Joint Stipulation and Agreement, N.Y.P.S.C.Case Nos. 93-CO103 and 93-C-0033 Attachment E.. .......Applicants’ response to CWA Data Request No. 19, West Virginia P.S.C. Case No. 09-0871-T-PC Attachment I;. ..........Docket No, UT-991358, Ninth Supplemental Order Approving and Adopting Settlement Agreements and Granting Application, June 29,2000, n30. i CVVY- I I' IO Io:1L N5-6Y6-LYbU >> - 504 540 U5L3 P f DoD/FEA Exhibit 1. Direct Testimony of Charles W. King 1 DIRECT TESTIMONY OF 2 CHARLES W. KING 3 OUALIFXCATXONS 4 .Q* PLEASE STATE YOUR NAME, POSITION AND BUSINESS ARDRESS. 5 A. My name is Charles W. King. I am President of the economic consulting firm of 6 Snavdy King Majoros O'Connor & Bedell, Inc. ("Snavely King"). My business 7 address is 1.11 1 14t11Street, N.W., Suite 300, Washington, D.C. 20005. 8 Q* PLEASE DESCRIBE SNAVELY KING. 9 A. Snavely King, formerly Snavely, King & Associates, Inc., was founded by the 10 late Carl M. Snavely and me in 1970 to conduct research on a consulting basis 11 into the rates, revenues, costs and economic performance of regulated firms and 12 industries. The firm has a professional staff of 12 economists, accountants, 13 engineers and cost analysts. Most of its work involves the development, 14 preparation and presentation of expert witness testimony before federal and state 15 regulatory agencies. Over the course of its 39-year history, members of the firm 16 have participated in over 1000 proceedings before almost all of the state 17 commissions and all Federal commissions that regulate telecommunications, 18 utilities or transportation industries. 19 Q. HAVE YOU PREPARED A SUMMARY OF YOUR QUALIFICATIONS 20 AND EXPERIENCE? 21 A. Yes. Attachment A is a summary of my qualifications and experience. 1 N5-6Y6-LY6U >> 5u4 54u U3L3 Y 0 DoD/FEA Exhibit 1 Direct Testimony of Charles W. King 1 Q. HAVE YOU PREVIOUSLY SUBMITTED TESTIMONY IN 2 REGULATORY PROCEEDINGS? 3 A. Yes. Attachineiit B is a tabulation of my appearances as an expert witness before 4 state and federal regulatory agencies. It shows that I have testified before tlie 5 public utility commissions of over 40 states, and 1 have appeared before all 6 federal agencies that regulate telecommunications, utilities, transportation and 7 postal services. 8 Q. FOR WHOM ARE YOU APPEARING IN THIS PROCEEDING? 9 I am appearing on belxilf of the consumer interests of the Department of Defense 10 (“DoD”) and all other Federal Executive Agencies (“FEAI’) in West Virginia. 11 12 INTERESTS OF DoD/FEA 13 14 Q. WHY HAS DoD/FEA INTERVENED IN THIS CASE? 15 16 A. The Department of Defense and all other Federal Executive Agencies maintain 17 numerous offices, both military and civilian, thoughout West Virginia in areas 18 that include the affected exchanges. These offices and installations vary in size, 19 and tlie business telecoinmunications purchased range fiom large complex 20 systems to small office services. Federal employment in West Virginia, civilian 21 and active military, is approximately 17,500 persons. 22 2 LUUY-’I‘l-’lb ’lb:3L /US-bY6-LYbU >> 5u4 54u ux3 r Y DoD/FEA Exhibit 1 Direct Testimony of Charles W. King 1 This case involves the transfer of the West Virginia exchanges and associated 2 long distance services of the West Virginia subsidiary of Verizon 3 Communications, Inc. (“Verizon”) to Frontier Communications Corporation 4 (“Frontier”). Federal offices in local exchange areas subject to being transferred 5 to Frontier
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