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GTE in California
It seems like all the attention on ISDN in California has been in Pacific
Bell territory. In the meantime GTE has been filing tariffs for ISDN
through the years that have sailed through virtually unopposed, and have set
some bad precedents. One of my clients is a subscriber to GTE ISDN service
and on his behalf I have been studying this in the last couple of weeks, but
it may be too late to undo some of the damage.
In some respects GTE's ISDN tariff is better than Pacific Bell's for voice
calls, but is horrible for data. GTE residential customers can order _one_
ISDN line with flat-rate unlimited local voice calls, but _all_ data calls
are measured 24 hours a day, 7 days a week. Residential customers who want
more than one ISDN line, as well as all business customers, must pay
measured rates for voice as well as data. Apparantly GTE believes that any
residence asking for more than one ISDN line must be running a business.
GTE is also a little more flexible and lower priced than Pacific Bell for
all the various add-on features for voice ISDN.
Another major difference with the GTE tariff is that they charge a large
price for the ISDN repeater if the subscriber's line happens to need one,
rather than averaging the repeater cost among all subscribers. I don't have
the tariff with me right now so I forget the exact prices, but the repeater
charge is something like $50 for the original installation and then an
_additional_ $21.50 or $28.00 _per month_ forever (the lower price is for
the single residential line, the higher price is for multiple residential or
business lines).
GTE also submitted an application with the PUC last July asking that all
aspects of ISDN except one be changed from Category I to Category II. I
will not define these here because they are defined in the material attached
below. There was no opposition whatsoever to this application except for a
limited protest by AT&T concerning part of the definition of Category II.
AT&T did not oppose the results of the application, only some of the
wording. The PUC approved this application on January 24, 1996 changing
everything to Category II, which will probably now be a precedent in the
Pacific Bell case. On February 26 I filed an Application for Rehearing (an
appeal) on behalf of my client trying to get at least part of this Decision
changed.
The following is the text of the Application for Rehearing followed by an
OCR'd version of the Decision.
======================================================================
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application )
of GTE California Incorporated )
(U 1002 C), a corporation, for )
authority to establish a tariff ) Application 95-07-042
schedule for Integrated Services ) (Filed July 19, 1995)
Digital Network )
DIRK HUGHES-HARTOGS' APPLICATION FOR REHEARING
AND RECONSIDERATION OF A LIMITED PORTION
OF DECISION NO. D.96-01-023
Dirk Hughes-Hartogs is a shareholder of GTE and a subscriber to their
residential ISDN service. Pursuant to Public Utilities Code §1731(b) he
requests a re-hearing of D.96-01-023 to address what appears to be a
contradiction in the order due to possible misunderstandings on the part of
the Commission of various features of ISDN service. As a suggestion to the
Commission, this re-hearing should be considered along with Pacific Bell's
recent Application for ISDN Rate Increase (A.95-12-043) because identical
issues of the proper categorization of features will no doubt arise in that
proceeding also.
It is unfortunate that Dr. Hartogs was not aware of this proceeding earlier,
as he would have intervened and presented evidence that we believe would
have resulted in a very different decision. The Proof of Service on
A.95-07-042 shows that subscribers to ISDN service were not notified, and
Dr. Hartogs had no knowledge of the Application or proceeding that led to
this Decision until after the Decision was made public.
Unlike perhaps the majority of ISDN users in California, Dr. Hartogs uses
ISDN lines primarily for voice access rather than data, and is a strong
advocate for the eventual migration of all voice telephones in California to
ISDN. He currently has only ISDN lines in his residence, so ISDN is his
family's basic telephone service. The high-fidelity sound quality of ISDN
is a particular interest to Dr. Hartogs' family because his wife is a little
hard of hearing. She finds that she can always understand people much
better on a call with ISDN phones at both ends and that this often literally
makes the difference between whether she can use the telephone or not.
Their daughter moved away to college and they installed an ISDN phone in her
dorm room specifically because of the better fidelity. His wife can
understand their daughter clearly on the ISDN phone, but not on other
phones. He suggests that this issue rises to the level of an obligation of
the phone companies under the Americans with Disabilities Act to provide
ISDN lines to people with hearing disabilities.
The Decision authorizes a change of all GTE ISDN features except "ISDN
Single Line Basic Exchange Access" from Category I to Category II on the
grounds that all of these features are "enhancements to basic telephone
service" and are "discretionary services". But several of the "features"
that were moved to Category II are essential for getting the minimum voice
dial tone from an ISDN line and cannot be separated from the concept of
"Basic Exchange Access". These features, as listed in Appendix A of the
Decision and with Dr. Hartogs' comments, are:
ISDN Access: This is a charge for the actual connection of the ISDN line to
the central office. The line will obviously not operate in any way without
this "feature".
ISDN Multipoint Access: This is necessary for ISDN voice phones, especially
several extension phones in different rooms of a residence, to operate.
Without this feature, the ISDN line can only be used for point-to-point data
transmission.
B-Voice: This feature is also essential for voice usage of an ISDN line.
Additional telephone numbers: It is unclear what the word "additional"
means in this context. An ISDN line should have a minimum of two telephone
numbers included in the basic price because one ISDN line acts like two
analog voice lines. Perhaps additional telephone numbers beyond two could
be Category II.
Individual Line Loop Extension: This is a charge for an ISDN repeater, or
amplifier, which is required for ISDN to operate over more than
approximately three miles of copper loop from the central office. This is
not an optional feature; either the particular line needs it or it doesn't,
depending on the length and characteristics of the loop.
Exception Provisioning: This means that GTE will provide an ISDN line to a
subscriber even if their closest central office cannot handle ISDN. Again
this is not something over which the subscriber has any control or
discretion; either the local central office can handle ISDN or it must be
provided via an office farther away.
The above features are absolutely required for voice ISDN service, but there
are several more that might arguably also be in Category I because they are
necessary to support the feature push buttons on most ISDN phones. The ISDN
phone will give a dial tone and can be used to make calls without these
features, but the Hold, Drop, Intercom, etc. buttons will not work unless
these features are enabled in the central office. GTE lumps these features
together in a package that they call "ISDN Basic Station Service." GTE
offers a second package of features called "ISDN Deluxe Station Service"
which adds the more exotic PBX-like features. Perhaps the Deluxe package
should be Category II and the Basic package Category I.
ISDN for voice calls should not be considered esoteric or abnormal or
discretionary, but is simply the modern version of Plain Old Telephone
Service. ISDN is an alternative to old-fashioned telephone service in
precisely the same way that a compact disk is an alternative to a vinyl
record, a quartz analog watch is an alternative to a wind-up analog watch,
or an AT&T cross-country fiber-optic digital trunk is an alternative to an
analog trunk. One could say that it is discretionary for a music lover to
buy a compact disk, but it is just as discretionary to buy vinyl. If you
want to listen to music you need one or the other, and it seems odd to
describe one as basic and the other discretionary when they are equal
alternatives towards the same goal. If anything, shouldn't the modern one
be considered as basic?
The same is true about voice telephone service. Either the subscriber
installs an analog line, or they install a modern ISDN digital line. The
result is the same: plain old voice dial tone. The Decision makes it sound
like it is possible to install an old-fashioned phone line and then install
ISDN as a "feature" on top of it. But that is not the way ISDN works, and
this makes no more sense then buying a vinyl record and trying to install a
compact disk as a feature on top of it. ISDN has nothing to do with add-on
features such as three-way calling or call forwarding. It is a complete
replacement for achieving the same goal.
Perhaps ISDN data services and the features that are truly add-ons to basic
voice ISDN should be in Category II, but everything required for basic voice
dial tone should remain in Category I, whether the dial tone is provided via
an analog or a digital connection. There is simply no conceptual difference
between the two.
The Decision seems to rely on a conclusory statement by GTE that "there is
no cost-effective ISDN customer premises equipment for multiple extensions
normally needed in a home environment." Dr. Hartogs is prepared to submit
evidence in a re-hearing that this statement is no longer true. ISDN voice
phones have come down in price recently to as low as $105 for a three-line
ISDN instrument during a recent AT&T special sale. Motorola manufactures a
device called the BitSurfer Pro which is available mail order this week for
around $300 and going down rapidly. This is considered to be a data
interface for ISDN, but also provides two analog ports that allow several
old-fashioned phones to be used on each of the two voice circuits. A
BitSurfer Pro is a complete package for using voice ISDN and is very
competitively priced to analog equipment when you consider that it acts like
a super-high-speed modem as well. Many people nowadays are paying up to
$200 just for a 28.8 kbps modem.
ISDN for voice dial tone is common in other parts of the world and eventual
conversion of all voice lines in California should be encouraged, not
discouraged by arbitrary pricing decisions. As more subscribers convert to
ISDN, the equipment prices will come down and will rapidly be competitive
and eventually cheaper than the equivalent analog devices. If the
Commission has difficulty believing this, look at every other technology
that has recently converted from analog to digital for numerous examples.
At first glance digital equipment appears to be more complex and the startup
costs for development and manufacturing are higher, but large quantities of
digital equipment will always be less expensive in the long run.
We have heard the sentiment that ISDN lines are not appropriate as the only
voice service in a residence because the phone will stop working in a power
failure. This can be handled easily by common battery-backup equipment, or
by a change in philosophy of who pays for what. In Europe the telephone
company provides the NT-1 device, which is the electronic box that
interfaces the ISDN line to the ISDN phones in the residence or business.
The telephone-company-supplied NT-1's are always powered from the central
office or from batteries maintained by the telephone company. In the U.S.
the customer provides the NT-1, so they cannot be powered from the central
office and subscribers might not want to pay the extra price for battery
backup, but this is certainly available and the prices are falling rapidly.
We urge the Commission to keep the Category I designation for all of the
elements of ISDN required to provide basic voice dial tone and we stand
prepared to submit evidence in an evidentiary hearing on this subject.
Dated: February 26, 1996
Respectfully submitted,
Richard L. Kashdan
Attorney for Dirk Hughes-Hartogs
Law Office of Richard L. Kashdan
25 Van Ness Ave. #710
San Francisco, CA 94102
Voice: (415)621-4080
Fax: (415)621-3248
======================================================================
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE-OF CALIFORNIA
In the Matter of the Application
of GTE California Incorporated
(U 1002 C), a corporation, for
authority to establish a tariff Application 95-07-042
schedule for Integrated Services (Filed July 19, 1995)
Digital Network.
Decision 96-01-023 January 24, 1996
OPINION AUTHORIZING CHANGE IN
SERVICE CATEGORIZATION
Summary of Decision
This decision authorizes GTE California Incorporated (GTEC) to change the
service categorization of certain Integrated Services Digital Network (ISDN)
services from Category I to Category II.
Brief Background for Context
Service Categories.
It was in 1989 that the Commission first established specific categories for
services within which local exchange carriers (LECs) were granted levels of
pricing flexibility, and thereby the ability to better respond to market
conditions. Category II services were defined to "include discretionary or
partially competitive services for which the LEC retains significant (though
perhaps declining) market power." (D.89-10-031, 33 CPUC 2d 43, at 125.) The
Commission defined "discretionary" to refer to the "characteristic of the
telecommunications function rather than to whether other similar local
exchange carrier services exist." (Id.) The LECs were granted downward
pricing flexibility for these services. Category I services are "basic
monopoly services" for which no pricing flexibility is allowed.
Existing Authority.
In 1991, GTEC made its initial request to provide ISDN services. At that
time, GTEC requested ISDN be categorized as a Category II service. In
D.92-06-062, the Commission authorized GTEC to establish a tariff for ISDN,
without pricing flexibility, as a Category I service. This authorization
was intended to be interim, pending review and final determination of
appropriate rates and categorization in the Alternative Regulatory Framework
Implementation Rate Design (IRD) proceeding (I.87-11-033, Phase III).
However, the record in the IRD proceeding did not specifically address ISDN
rates and categorization, so the resulting Commission decision did not
address ISDN recategorization.
What Is ISDN?
ISDN is a worldwide standard for transmitting digital voice and data
services over regular copper wiring. ISDN is a technology that "digitizes"
the wire that connects a home or business to the local phone company Central
Office (the "local loop"). With the addition of customer premise equipment
capable of reading the ISDN signal from the Central office, high capacity
digital transmission is made possible without replacing existing copper
wire. Practically speaking, ISDN lines are used, for example, for voice
communications, data transmission, digital information transmission, and
image transmission -- separately or simultaneously over a single line. ISDN
applications include video conferencing, remote health care, and remote
teaching.
GTEC's Application
GTEC requests authority to recategorize the following services from Category
I to Category II: ISDN Basic Rate Interface (BRI), ISDN Single Line, and
ISDN Primary Rate Interface (PRI).
Specifically, GTEC seeks to recategorize 19 ISDN-Single Line Services rate
elements, 23 ISDN-BRI Services rate elements,. and 4 ISDN-PRI Services rate
elements (see Appendix A for a list of each rate element). GTEC notes that
future rate elements are not intended to be excluded. GTEC is requesting
the Basic Exchange Access Line for ISDN-Single Line Services remain in
Category I.
In support of its request, GTEC asserts that ISDN Services are discretionary
and partially competitive. Alternative, but not identical services are
delineated. GTEC states that the primary advantage of ISDN over alternative
services is that ISDN relies upon telephone numbers as addresses to send
voice, image and data. Alternative services are dependent on what is
typically a more limited set of pre-defined addresses. ISDN, GTEC
concludes, therefore has greater networking potential enabling communication
with an unlimited number of users. GTEC expects its ISDN customers to
continue to come from small- to medium-sized businesses.
GTEC supports it request that the Basic Exchange Access Line for ISDN-Single
Line Services remain in Category I by stating that ISDN-Single Line Service
for a residential customer is purchased in addition to the "plain old
telephone service" residential line; that there is no cost-effective ISDN
customer-premises equipment for multiple extensions normally needed in a
home environment.
GTEC proposes no change in the rate structure for ISDN in its application.
If granted, however, GTEC will exercise pricing flexibility for ISDN.
With its application, GTEC filed a cost study accompanied by a Motion to
Accept Under Seal. This motion was granted August 28, 1995, by the Law and
Motion Administrative Law Judge.
Protest
AT&T Communications of California, Inc. (AT&T) filed a limited protest to
GTEC's application.. AT&T expresses concern with GTEC's assessment of
competitive alternatives or substitutes to ISDN. AT&T suggests the
Commission approve GTEC's request on the basis that ISDN services are
discretionary. If the Commission intends to move ISDN from Category I to
Category II on the basis of GTEC's competitive alternatives assessment, AT&T
asks that the validity of GTEC's assessment be examined in evidentiary hearings.
AT&T asserts that most Category II services can only be accurately described
as emergently competitive, at most, and that still others are only
discretionary with no competitive alternatives.
Discussion
We agree that, at this time, ISDN services are enhancements to basic
telephone service. They are discretionary services, not basic monopoly
services GTEC provides its customers. We agree with AT&T that Category II
is to be applied to discretionary or partially competitive services. Since
we have found ISDN services discretionary, we need not address GTEC's
competitive alternatives assessment.
However, we agree with GTEC that the basic exchange access lines to ISDN
services should remain in Category I. This decision should not be read as
prejudging our determination of the definition of universal service or
monopoly building blocks. Rather, retaining ISDN Single-Line Service Basic
Exchange Access in Category I continues without change our existing practice.
Findings of Fact
1. GTEC requests authority to change the service categorization for its
ISDN Basic Rate Interface, ISDN Single Line, and ISDN Primary Rate Interface
from Category I to Category II.
2. At this time., ISDN services are enhancements to basic telephone
service. They are discretionary services.
Conclusion of Law
Category II services were defined to include discretionary or partially
competitive services. GTEC should be authorized to change the service
categorization for ISDN Basic Rate Interface, ISDN Single Line, and ISDN
Primary Rate Interface from Category I to Category II. ISDN Single Line
Basic Exchange Access should remain in Category I.
ORDER
IT IS ORDERED that:
1. GTE California Incorporated (GTEC) is authorized to change the service
categorization for Integrated Services Digital Network (ISDN) Basic Rate
Interface, ISDN Single Line, and ISDN Primary Rate Interface from Category I
to Category II, as described in the application, on five days' notice to the
Commission and the public. ISDN Single Line Basic Exchange Access shall
remain in Category I.
2. The Law and Motion Administrative Law Judge's Ruling granting the motion
for a limited protective order keeping GTEC's cost study confidential is
affirmed.
3. GTEC shall recover all copies of its sealed cost study within 30 days of
the effective date of this order. If the sealed data is not retrieved
within this time period, it shall be discarded in the Commission's recycled
paper bin.
This order is effective today.
Dated January 24, 1996, at San Francisco, California.
P. GREGORY CONLON
JESSIE J. KNIGHT, JR.
HENRY M. DUQUE
JOSIAH L. NEEPER
Commissioners
Commissioner Daniel Wm. Fessler is necessarily absent on official business.
============= APPENDIX A =============
On ISDN-Single Line Services, the following rate elements, which are the
features, are recategorized to Category II.
1. ISDN Access: provides exchange access and line termination at the serving
central office.
2. ISDN Multipoint Access: allows up to eight terminals belonging to the
same customer to share a single BRI line.
3. B-Voice: assigns voice traffic to one-of the two B channels.
4. B-Circuit Switched Data (CSD): assigns circuit switched data traffic to
one of the two B channels.
S. B-Voice/CSD: assigns either voice or CSD on an on-demand basis to one of
the two B channels.
6. B-Packet: dedicates one B channel to packet switched data.
7. D-Packet: allows the customer to use the D channel for packet switched data.
8. Additional telephone numbers.
9. ISDN Basic Station Service: allows voice features to be assigned to line.
10. ISDN Deluxe Station Service: allows additional voice features to be
assigned to a line.
11. Data 1000: allows circuit switched data features to be assigned to a line.
12. Data 2000: allows additional circuit switched data features to be
assigned to a line.
13. X.25 Basic: allows X.25 features to be assigned to a channel.
14. X.25 Deluxe: allows additional X.25 features to be assigned to a line.
15. Data Direct Connect: allows a single stored number dialing on a Circuit
Switched Data channel.
16. Data Closed User Group: allows circuit switched data channels to only
call each other within a business group.
17. Data Base Change: one time charge for specific data base rearrangements.
18. Individual Line Loop Extension: provides a longer loop capability on an
ISDN line
19. Exception Provisioning: provides ISDN service in non-capable central office.
For ISDN-BRI Services, the following rate elements are recategorized to
Category II.
1. ISDN Access: provides exchange access and line termination at the service
central office.
2. ISDN Multipoint Access: allows up to eight terminals belonging to the
same customer to share a single BRI line.
3. B-Voice: assigns voice traffic to one of the two B channels.
4. B-Circuit Switched Data (CSD): assigns circuit switched data traffic to
one of the two B channels.
5. B-Voice/CSD: assigns either voice or CSD on an on-demand basis to one of
the two B channels.
6. B-Packet: dedicates one B channel to packet switched data.
7. D-Packet: allows the customer to use the D channel for packet switched data.
8. Additional telephone numbers.
9. ISDN Basic Station Service: allows voice features to be assigned to line.
10. ISDN Deluxe Station Service: allows additional voice features to be
assigned to a line.
11. Data 1000: allows circuit switched data features to be assigned to a line.
12. Data 2000: allows additional circuit switched data features to be
assigned to a line.
13. X.25 Basic: allows X.25 features to be assigned to a channel.
14. X.25 Deluxe: allows additional X.25 features to be assigned to a line.
15. Data Direct Connect: allows a single stored number dialing on a Circuit
Switched Data channel.
16. Data Closed User Group: allows circuit switched data channels to only
call each other within a business group.
17. Data Base Change: one time charge for specific data base rearrangements.
18. Basic Exchange Access Line for ISDN-BRI: provides local loop access to
network for a CentraNet business group configuration.
19. CentraNet 1000, 2000, 3000 for ISDN-BRI only: provides CentraNet voice
features to an ISDN line.
20. CO Attendant Service for ISDN-BRI only: provides attendant service to an
ISDN line.
21. Individual Line Loop Extension: provides a longer loop capability on an
ISDN line.
22. Automatic Call Distribution/Management Information System (ACD/MIS):
provides basic and optional ACD and ACD/MIS features.
23. Exception Provisioning: provides ISDN service in non-capable central office.
For ISDN-PRI Services, the following rate elements are recategorized to
Category II.
1. ISDN-PRI Access "All Interface: provides central office termination per
line terminating at the central office.
2. ISDN-PRI Access "B" Interface: provides central office termination to an
Intermediary Customer or central office to central office.
3. PRI Access Facilities: already Category II-
4. "B" Channel Configurations - Dedicated Trunks: provides Circuit Switched
Data, DID/DOD Service, Intermediary Customer Services, 800 Services, and
OutWATS Service.
5. Optional Features: provides Special Access Line and Call-by-Call Trunk.