Virginia Flate Rate ISDN battle

[James Love <love@tap.org>]

from tap-info, a newsletter from listrpoc@tap.org
October 11, 1995


           Virginia Commission considers ISDN tariffs

       If you Live in Virginia and Object to Metered ISDN
                                
                           READ THIS!

On September 25, 1995 Bell Atlantic submitted to the Virginia
State Corporation Commission General Services Tariff #203-14B for
Residential BRI service. This tariff would be the cost of  local
measured service  (LMS) for POTS (roughly $14 per month in the
Washington DC area), plus a monthly premium of $19.50.  In
addition, there would be a per minute usage charge, for both data
and voice.

The BA tariff would make a distinction between data and voice. 
The  Circuited Switched Data  (CSD) rate would be 2 cents per
minute per B channel between 7 am and 7 pm, Monday through
Friday, and 1 cent per minute at all other times.  Voice calls
would be priced at the LMS rate (the same as for measured
telephone) at all times. (LMS charges vary but are typically 2
cents per minute.)  No flat rate option for residential ISDN was
offered.  

The Commission staff opposed this proposal and requested Bell
Atlantic to also submit flat rate tariffs for voice provided
through the residential ISDN service. Bell Atlantic countered
with a request to start the measured tariff now, and they would
then offer a flat rate tariff (at an unspecified price) for voice
no later than April 1, 1996.  Bell Atlantic told the Consumer
Project on Technology (CPT) and the Commission staff that the
delay was needed so that the company could modify their billing
system to accommodate flat rate billing -- a seemingly ridiculous
assertion, since Bell Atlantic offers flat rate residential POTS
service now.

In Tennessee a PSC staff analysis said that residential ISDN only
costs the telephone company $9.77 per month more than POTS.
[Borrows and Pollard, The National regulatory Research Institutes
Review of Tennessee s ISDN Cost Studies, NRRI Quarterly Bulletin
15:1] In 1991, the Massachusetts Department of Public Utilities
found that the incremental cost of ISDN service was $7.40 per
month over the cost of POTS.  Very little of Bell Atlantic s
costs of providing residential ISDN services are sensitive to
usage.

The Commission is interested in hearing from Virginians regarding
this tariff. Contact:

Ms. Kathleen Cummings
Virginia State Corporation Commission
PO Box 1197, Richmond VA 23209
voice:  804/371-9101; fax: 804/371-9069


The Consumer Project on Technology will provide updates on this
issue.

 http://www.essential.org/cpt
 Consumer Project on Technology
 P.O. Box 19367, Washington, DC 20036
 Voice: 202/387-8030; Fax 202/234-5176

Written: October 9, 1995

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