$// Order; SWBT; Modifies PIU to include 700 access; Trans. 2414 & 2428; DA 95-240 //$ $/ Section 0.291 Delegated Authority /$ TRANSMITTED FOR FCC RECORD ONLY Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. In the Matter of ) DA 95 - 240 ) Southwestern Bell Telephone Company ) Transmittal Nos. 2414 and 2428 Revisions to Tariff F.C.C. No. 73 ) ORDER Adopted: February 15 , 1995; Released: February 15 , 1995 By the Acting Chief, Tariff Division, Common Carrier Bureau: 1. On December 23, 1994, Southwestern Bell Telephone Company (SWBT) filed Transmittal No. 2414 to revise its Tariff F.C.C. No. 73. In this filing, SWBT proposes to modify its current jurisdictional reporting requirements for Percentage of Interstate Usage (PIU) to include 700 access service. Description and Justification (D&J) at 1-1. Presently, SWBT develops a PIU for 700 originating traffic based on Feature Group C (FGC), Basic Serving Arrangement-C (BSA-C), Feature Group D (FGD), or Basic Serving Arrangement-D (BSA-D) call detail. D&J at 1-2. This filing would require customers that use FGC/BSA-C and/or FGD/BSA-D switched access service to report a separate PIU for the transport of originating 700 service traffic, enabling SWBT to bill based on an individual customer's actual traffic pattern in each jurisdiction. Id. 2. In the event a customer does not provide the required PIU reports for 700 service, SWBT's Transmittal No. 2414 establishes a default PIU of 0 percent interstate use, authorizing SWBT to bill 100 percent of the customer's 700 traffic as intrastate. D&J at 1-2. Pursuant to the modifications proposed in Transmittal No. 2414, customers in Arkansas, Kansas, Missouri and Oklahoma must provide SWBT with quarterly PIU reports; customers in Texas must provide SWBT with PIU reports both quarterly and annually. Id. Transmittal No. 2414 is scheduled to become effective on February 16, 1995. 3. MCI Telecommunications Corporation (MCI) filed a petition to reject Transmittal No. 2414 on January 9, 1995 to which SWBT replied on January 20. In its petition, MCI contends that SWBT's proposal to set the default PIU level at 0 percent for 700 service is arbitrary, unjustifiably punitive, and discriminatory. MCI Petition at 2. According to MCI, SWBT presents no legitimate argument to support the 0 percent interstate default level because 700 services can be either interstate or intrastate in nature. Id. To ensure that SWBT's default PIU more accurately reflects actual 700 traffic patterns, MCI recommends that SWBT adopt for 700 service a default PIU level of 50 percent interstate and 50 percent intrastate comparable to the default PIU SWBT has implemented for other services. Id. 4. In its reply, SWBT maintains that a 0 percent default PIU is reasonable, since many interexchange carriers (IXCs), including MCI, currently utilize 700 service solely for transport of intrastate toll calls within a given numbering plan area. Reply at 2. SWBT further argues that its 0 percent default PIU for 700 access service is not discriminatory because it is based on SWBT's estimation of actual 700 service traffic patterns. Id. at 4. SWBT concedes that 83 percent of its total 700 access service is intraLATA toll, while AT&T Communications and Sprint Communications Company, L.P., who do not offer 700 service as an alternative to 1+ intraLATA toll dialing, comprise the remaining 17 percent of SWBT's 700 access service. Id. at 3-4. Finally, SWBT maintains that its default PIU is not discriminatory because MCI can avoid the 0 percent default simply by submitting PIU reports to represent its actual 700 service traffic. Id. at 4. 5. On February 13, 1995, SWBT filed Transmittal No. 2428 to revise its proposed PIU default for 700 access service from 0 percent interstate to 17 percent interstate. According to SWBT, the revised PIU default is based on SWBT's assessment that 17 percent of the traffic in its region can be attributed to IXCs that do not offer 700 service as an alternative to intraLATA toll service. Transmittal No. 2428 is also scheduled to become effective on February 16, 1995. 6. The Tariff Division has reviewed Southwestern Bell Telephone Company Transmittal Nos. 2414 and 2428. We conclude that no compelling argument has been presented that the tariff revisions are patently unlawful so as to require rejection. 7. Accordingly, IT IS ORDERED that the petition to reject Southwestern Bell Telephone Company's revisions to Tariff F.C.C. No. 73, Transmittal No. 2414, filed by MCI Telecommunications Corporation, IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Geraldine A. Matise Acting Chief, Tariff Division Common Carrier Bureau