SWBT amends long-distance applications

(Telephony) In an attempt to improve its chances of gaining section 271 approval in Oklahoma and Kansas, Southwestern Bell Telephone has submitted a change to its application with the Federal Communications Commission that lowers interconnection costs in those states. The Commission, however, has yet to decide if it “will accord any weight to the supplemental evidence.”

According to a letter from SWBT lawyer Geoffrey Klineberg to the FCC, the Department of Justice has voiced concerns over recurring and non-recurring rates for unbundled network elements (UNEs) in those states. The rates in Oklahoma and Kansas are higher than the rates in Texas, where SWBT was granted permission to provide long-distance service last spring.

Klineberg, however, claims that Kansas and Oklahoma set the rates for UNEs in accordance with total element long run incremental cost (TELRIC) methodology as outlined in the Telecommunications Act of 1996, and that such costs vary among the states.

Comparing Oklahoma and Kansas to Texas then, is unsound methodology, Klineberg said “[S]uch a state-by-state comparison is inappropriate and meaningless, especially since the costs vary significantly from state to state.

“Nevertheless as part of its joint application for interLATA relief pursuant to section 271 and as a compromise to allay these concerns, SWBT agrees to a voluntary reduction of some of the TELRIC-based non recurring rates in Kansas and some of the TELRIC-based recurring and non-recurring rates in Oklahoma.”

Under the terms of this compromise offer, in Kansas SWBT will apply a 25% discount to all non-recurring charges (NRC) as outlined by the Kansas Corporation Commission (KCC) on November 3. If an NRC prescribed by the KCC in a December 22 order is lower than the rate with the 25% discount, than the lower rate will be used. If, however, any of these rates are lower than what is offered in Texas, than SWBT will offer the Texas rates.

In Oklahoma, SWBT will extend the alternative regulation discounts set up by the Oklahoma Corporation Commission (OCC) to all cross-connect non-recurring charges. The carrier will also apply a 25% discount to any NRC that has not received an alternative regulation discount. None of these discounts, however, will go below what is offered in Texas. In addition, SWBT will use the alternative regulation discounts to the recurring chares for all loops.

There is some question, though, whether the Commission will even look at these changes when considering SWBT’s long-distance application. According to an FCC statement, “The Commission expects that a section 271 application, as originally filed, will include all of the factual evidence on which the applicant would have the Commission rely in making its determination. If parties in a section 271 proceeding choose to submit new evidence, however, the Commission retains the discretion to waive its procedural rules and consider the evidence.”