DATE:	October 7, 2004
TO:	Director, Division of the Commission Clerk & Administrative Services (Bayó)
FROM:	Division of Competitive Markets & Enforcement (M. Watts) Office of the General Counsel (Rockette-Gray)
RE:	Docket No. 041056-TI – Request for waiver of carrier selection requirements of Rule 25-4.118, F.A.C., due to acquisition of long distance residential and commercial customer base and certain assets of Econodial, LLC (IXC Registration No. TJ691) by Master Call Communications, Inc. (IXC Registration No. TJ788).
AGENDA:	10/19/04 – Regular Agenda – Proposed Agency Action – Interested Persons May Participate
CRITICAL DATES:		None
SPECIAL INSTRUCTIONS:		None
FILE NAME AND LOCATION:		S:\PSC\CMP\WP\041056.RCM.DOC

 

Case Background

On September 8, 2004, the Florida Public Service Commission (the Commission) received a petition seeking a waiver of the carrier selection requirements of Rule 25-4.118, Florida Administrative Code, from Econodial, LLC (Econodial) and Master Call Communications, Inc. (Master Call) due to Master Call’s purchase of the customer base and other telecommunications assets of Econodial.

Rule 25-24.490, Florida Administrative Code, incorporates Rule 25-4.118, Florida Administrative Code, thereby extending applicability to interexchange carriers.  The basis for seeking a waiver is set forth in Rule 25-24.455(4), Florida Administrative Code.  The Commission may consider whether the petition is in the public interest, whether market forces obviate the need for the provision in a particular instance, and whether reasonable alternative regulatory methods may serve the same purpose.

The Commission is vested with jurisdiction in this matter pursuant to Sections 364.02, 364.336, and 364.603, Florida Statutes.

 

 

 

 

 

 

Discussion of Issues

Issue 1:  Should the Commission approve the waiver of the carrier selection requirements of Rule 25-4.118, Florida Administrative Code, in the transfer of long distance customers from Econodial, LLC to Master Call Communications, Inc.?

Recommendation:  Yes.  (M. Watts, Rockette-Gray)

Staff Analysis:  Pursuant to Rule 25-4.118(1), Florida Administrative Code, a customer’s carrier cannot be changed without the customer’s authorization.  Rule 25-4.118(2), Florida Administrative Code, provides that a carrier shall submit a change request only if one of the following has occurred:

(a) The provider has a letter of agency (LOA) . . . from the customer requesting the change;

(b) The provider has received a customer-initiated call for service . . . ;

(c) A firm that is independent and unaffiliated with the provider . . . has verified the customer’s requested change . . .

            Pursuant to Rule 25-24.490, Florida Administrative Code, Rule 25-4.118, Florida Administrative Code, is incorporated into Chapter 25-24, and applies to IXCs.

            Rule 25-24.455(4), Florida Administrative Code, states in pertinent part:

An interexchange company may petition for a waiver of any provision of this Part.  The Commission may grant a waiver to the extent that it determines that it is consistent with the public interest to do so.  The commission may grant the petition in whole or part, may limit the waiver to certain geographic areas and/or may impose reasonable alternative regulatory requirements on the petitioning company.  In disposing of a petition, the Commission may consider:

(b) The extent to which competitive forces may serve the same function as, or obviate the necessity for, the provision sought to be waived; and

(c) Alternative regulatory requirements for the company which may serve the purpose of this Part.

            Master Call has attested that it will provide for a seamless transition while ensuring that the affected customers understand available choices with the least amount of disruption to the customers.  Staff has reviewed the notice that will be sent to Econodial customers and found it to be adequate.  The customers should not experience any interruption of service, rate increase, or switching fees.

            Staff believes that in this instance it is in the public interest to waive the carrier selection requirements of Rule 25-4.118, Florida Administrative Code.  If prior authorization is required in this event, customers may fail to respond to a request for authorization, neglect to select another carrier, and lose their long distance service.  Furthermore, staff believes that granting this waiver will avoid unnecessary slamming complaints during this transition.

            Further, Econodial does not have any outstanding regulatory assessment fees, penalties or interest.  Master Call, the acquiring company, owes $3.00 in penalty and interest for late payment of the 2003 regulatory assessment fee.

            Therefore, staff recommends that the carrier selection requirements in Rule 25-4.118, Florida Administrative Code, be waived in this instance.

 

 

 

 

 

 

Issue 2:  Should this docket be closed?

Recommendation:  If no person whose substantial interests are affected by the proposed agency action files a protest within 21 days of the issuance of the order, this docket should be closed upon the issuance of a consummating order.  (Rockette-Gray)

Staff Analysis:  At the conclusion of the protest period, if no protest is filed, this docket should be closed upon the issuance of a consummating order.