Bell Atlantic ISDN Action Page

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Bell Atlantic ISDN Action

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CPT's Mission
Background on Bell Atlantic's Pricing of ISDN
Recent News

New Articles

ISDN News
Public Meetings Scheduled for NJ ISDN
Public Meetings in MD ISDN Rate Case Rescheduled for Wednesday, January 29, 1997
The California ISDN Proposed Order is out recommending under $30 per month with 200 hours of off peak (5:00 p.m. to 9:00 a.m.) usage included. See CIUG's page which has the full opinion.
MD Office of People's Counsel--Expert Recommends $29 Flat Rate

MD Staff Plays Lapdog to BA, Again
Virginia State Corporation Commission Calls for Comments on ISDN Pricing

New Jersey BPU to Hold Hearings on ISDN Pricing
Previous News Posts
Filing Basics
CPT's Recent Comments
How and Where to File Comments
Links
CPT's Mission
The Consumer Project on Technology is leading the fight against Bell Atlantic's over-priced ISDN offerings--$249 for a flat rate option. This page will be updated frequently to provide timely information for those wanting to become involved in the tariff battles before their state utility commissions. Everything you need to protest Bell Atlantic's outrageous ISDN rates is contained on these pages.
CPT encourages you to become involved. Often state utility commissions are responsive to citizens' comments and complaints so your participation will make a difference. In every proceeding in which CPT has filed comments, the state commission has investigated the rates offered by the local telephone monopoly. For an excellent primer on ISDN check out Microsoft's Infopage or for a discussion of pricing issues see CPT's Talking Points.

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Background on Bell Atlantic's Pricing of ISDN
Bell Atlantic recently filed new ISDN tariff offerings in several states. The new proposals were made by BA in response to pressure from consumers, consumer advocates, and state utility commissions. Unfortunately, the new filing, like the original tariff, is exorbitantly priced. While many telephone companies are offering ISDN with unlimited usage for $17-$30 per month, BA charges $45 for a mere 30 hours of usage (based on 2B+D). Check out CPT's Survey for a sampling of some of the ISDN prices across the U.S. and compare those prices with BA's Rates. CPT also has a virtual copy of the full Maryland ISDN Tariff. We encourage you to read the tariff--it is loaded with minutia and you never know what little gem you may find.

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Recent News

Maryland OPC Expert Recommends $29/mo. Flat Rate

Trevor R. Roycroft, Ph.D., the ISDN expert retained by the Maryland Office of People's Counsel, recommended in his testimony this week to the MD Public Service Commission that ISDN be offered by Bell Atlantic on a flat rate basis for $29 per month. This rate was broken down into the non-traffic-sensitive component of $18.50, with a usage charge of $10.50 per month to recover the the traffic-sensitive costs. This rate covers the cost of providing the service as well as contribution to joint and common costs--meaning that Bell Atlantic would make money offering the service at this rate.
A non-flat rate option was also offered by Dr. Roycroft in the event that the Commission rejected the flat rate proposal. A basic service of $18.50 with usage accruing at $0.0035 per minute, per B channel, was recommended. This would allow for 40 hours of usage (1B) for a monthly fee of $26.90; 100 hours (1B) would cost $39.50.
Dr. Roycroft also recommended that ISDN be treated as a "basic" service, rather than as a "discretionary" service, meaning that it would have to be priced in fairly close relation to its costs. In addition, Dr. Roycroft found that Bell Atlantic's cost study contained inflated pricing. Inappropriate cost elements were included and the result was an overstatement by Bell Atlantic of the incremental cost of providing ISDN.

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MD Staff Plays Lapdog to Bell Atlantic, Again
In an event that would surprise only the uninitiated, the Maryland Staff Counsel this week submitted testimony that, with the exception of a few sentences, might very well have been drafted by Bell Atlantic's own attorneys. Ann Dean, promoted to the position of Assistant Director of Telecommunications on the same day she offered pro-BA testimony at the July 3 ISDN hearing, again went to bat for Bell (for a description of Ms. Dean's role in the July 1996 hearing see our prior post). Ms. Dean apparently fails to realize that her salary is paid by the residents of Maryland, and it is to them that she owes her allegiance, not Bell Atlantic.
Ms. Dean claims to have reviewed the BA cost study, a huge document attempting to justify some of the highest ISDN rates in the US, and here is an example of her testimony:
Q. Given the cost support filled [sic] by BA-MD, are BA-MD's current rates reasonable?
A. Yes. Staff maintains that the rates accepted by the MDPSC for Residential ISDN, and [sic] other than competitive service, are reasonable.
At least she is consistent. The hearings that are occuring now are the result of the Commission requiring them over the recommendation by Ms. Dean that the rates go into effect without any investigation. In addition to obviously giving BA's cost study quite a scouring, Ms. Dean goes on to answer a question about rates offered in other states, and comes to a startling conclusion:
Q. Did Staff review ISDN Pricing in other states?
A. Yes. ... Based on the survey responses, various rates are available: measured service, flat rate options and usage packages.
That's it: Different pricing options exist. Ms. Dean doesn't go on to discuss the most pertinant issue -- the price charged by other telcos, many of which are far below BA's proposed fees.
The one modification made by the MD Staff Counsel, was recommending that BA not be permitted to charge $ .02 per minute during peak periods, but be limited to $.01 per minute for on- and off-peak usage. Even this recommended "improvement" to the rate proposal is 3 times higher than the usage fee recommended by the Office of People's Counsel at $ .0035 per minute, and 4-8 times higher than usage rate recommended by the New Jersey Ratepayer Advocate at $ .0025 per minute for peak hours and $ .00125 per minute for non-peak hours.
It is obvious that the hearing will be an uphill battle with consumers, CPT, and the Office of People's Counsel on one side, while Bell Atlantic, and its subsidiary, the Maryland PSC's Office of Staff Counsel, line up on the other side.

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Virginia Corporation Commission Investigates ISDN Rates
Last week the Virginia Corporation Commission requested public comments on Bell Atlantic's ISDN tariffs. This ends several months of speculation during which Bell Atlantic made misleading representations that Virginia had simply approved its rate proposal. The comments are due by November 15, 1996, they should prominently refer to "Bell Atlantic ISDN Tariff -- Case No. PUC950078," and be sent to the following addresses:

William J. Bridge, Clerk
State Corporation Commission
C/O Document Control Center
PO Box 2118
Richmond, VA 23218

Edward L. Petrini
Office of Attorney General
Insurance & Utilities
Regulatory Section
900 E. Main Street
Richmond, Virginia 23219

This opportunity to file comments is the best chance ordinary consumers will have to express their views on Bell Atlantic's proposed ISDN rates. The amount of time you spend writing and mailing in your comments may yield very real results. The Virginia Commission has been fairly responsive to consumer concerns about the pricing of ISDN in calling for public comments, but it can only be responsive to your specific issues if it actually receives your letters. CPT strongly encourages you to take this opportunity to write to the Commission and demand fair and reasonable ISDN rates. We have many resources on this page (see "Filing Basics" below) and our main ISDN page to assist you in drafting comments, and you can forward any questions you may have to CPT's Staff Attorney, Todd Paglia at <tpaglia@tap.org>.

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New Jersey to Hold Investigative Hearings on ISDN Proposal
On September 25, 1996 the NJ Board of Public Utilities (BPU) issued an order subjecting Bell Atlantic's ISDN proposal to formal evidentiary hearings. While the investigation is being conducted, the BPU allowed interim rates to go into effect, but they are subject to refund pending the outcome of the hearings. This is an almost total defeat for Bell Atlantic. As more information becomes available on the true cost of ISDN and the rates voluntarily charged by similarly situated telcos, Bell Atlantic's claims will be increasingly undermined. The interim rates, which modestly reduce BA's Proposal , are as follows:
```
                                                     
 Package 
(B Hours)                  Monthly Rate           
---------                 -------------         

Measured                     $23.50+usage fee*     
20 Hours  (10 hours of 2B)   $31.00                   
60 Hours  (30 hours of 2B)   $41.00                   
140 Hours (70 hours of 2B)   $53.00                   
300 Hours(150 hours of 2B)   $75.00                  
500 Hours(250 hours of 2B)  $108.00                 
Unlimited                   $239.00                 
```
*Voice and data usage will be charged at a rate of 1 cent per minute per B channel for on- and off-peak usage.

The decision to reject the rates as proposed and institute investigatory proceedings is very significant. It is yet another example of a utility commission being persuaded that the monopolist Bell Atlantic is attempting to charge its captive customers far more than the cost plus a reasonable return for providing ISDN. As utility commissions take a hard look at Bell Atlantic's ISDN rates, the fees will continue to fall because they are currently many multiples beyond the cost of providing the service.

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Previous News Posts
You can link to old posts formerly in the "Recent News" section, including brief discussions of the First Domino to Fall--Delaware's reasonable ISDN ruling, as well as the Maryland Hearing, and links to CPT's recent ISDN filings.

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Filing Basics

A Few Pointers on Writing Your Comments
- Make prominent note of the docket number on the top of your letter (this info can be found below in the individual state pages);
- Briefly tell the commission who you are, where you live, how long you have lived there, and your interest in ISDN;
- Explain why ISDN is important to you or your company;
- Discuss the pricing problems with the tariff in comparison to flat rates available from other companies (see CPT's Survey).
- ISDN should be a Basic Service, not one that is Discretionary. BA would like it to be discretionary so higher fees could be assessed. That it should be a basic service is clear--there is no practical alternative to ISDN, as a monopoly BA faces no competition in providing ISDN, and other telephone companies treat ISDN as basic.
- The more you know, the better your comments will be. In writing your comments feel free to peruse CPT's Sample Filings and CPT's Talking Points. There are many other sources of ISDN info and links are provided from CPT's CPT's Main ISDN Page.
- You can also get up to speed by reading a brief email from ISDN Guru Fred Goldstein or comments filed in MD by Brad Knowles of AOL.
- Be concise; and
- Most importantly: Be like Mike----Just Do It!
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CPT's Recent Comments
Check out
CPT's Comments Filed in the Maryland Proceeding
or review
CPT's NJ Comments
which include some new flat rates applicable in other areas.

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How and Where to File Comments

Comments in the Bell Atlantic ISDN proceedings may be filed according to the instructions for your individual state:
DC, MD, NJ, PA, VA.
Individuals may file a single copy, organizations or individuals seeking to ensure that their voices are heard should file an original plus the number of copies noted for that particular commission. See CPT's filing in Maryland and feel free to borrow from it.

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Links

Links to State Utility Commissions

Link to CPT's Direct Broadcast Satellite Page

Return to CPT's Main ISDN Page

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This page has been accessed times since June 20, 1996.

Comments or Corrections to Todd Paglia <tpaglia@tap.org>.

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Welcome to the Consumer Project on Technology's Page on:

Quick Finder Index

New Articles

Maryland OPC Expert Recommends $29/mo. Flat Rate

A Few Pointers on Writing Your Comments