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"7>NGI "}OaOb#Xv P7XP##Xv P7XP#annotation tK&7>annotation textGw/ "7>NGI "~2c(d"H^,,l,R,,,,,,,,,,RRR (nMnMMn6n, , , ,,,,,,,,,,,  x D,,      n n n n ,,,,,,,,,, ,,,,,M,,    n n n ,,,,,,,,,MN, ,,,,,,,  ,W,,KW WNIIRYR,,Y,,l,R,,,,,,,,,,RRR (nMnMMn6n, , , ,,,,,,,,,,,  x D, W,,WM  ,WK,,,,x,,R,IY, nnnnRM,           ,,,,,,,I,,,,,,,"H^%ggV/ggggggggggg?Rg?g?g?ggg/gggggggg?YY gg??????????gggggggggg?ggggggg???????ggggg ggggNFg?gggggg""g??ggg?N gg%ggV/ggggggggggg?Rg?g?g?ggg/gggggggg?YYg?gg??gggggg"g"g Fg?g???????????gggggggggggggg2 w 5"5^!,6CCoh,,CK!,!%CCCCCCCCCC%%KKK;{`YY`QJ``,4`Qv``J`YJQ``~``Q,%,?C,;C;C;,CC%%C%hCCCC,4%CC`CC;@@H!,,,,5,CC`;`;`;`;`;vYY;Q;Q;Q;Q;,%,%,%,%`C`C`C`C`C`C`C`C`C`C`;`C`C`C`C`CJC`C`;`;Y;Y;Q;Q;Q;`C`C`C`C`C5C,C,,,C4`Cv`J4N/!%7777777777>>>1eOIIOC=OO%+OCbOO=OI=COOhOOC%%47%17171%777U7777%+77O77155;%%%%,%77O1O1O1O1O1bII1C1C1C1C1%%%%O7O7O7O7O7O7O7O7O7O7O1O7O7O7O7O7=7O7O1O1I1I1C1C1C1O7O7O7O7O7,7%7%%%7+O7bO=+N&27%177777"RR7!SS7R!%%117n%%77ln%1n%!N%<<>,?>77?%-77[U%%7>%7777777777>>>1eOIIOC=OO%+OCbOO=OI=COOhOOC%%47%17171%777U7777%+77O77155;N%71n77%n=%b%%11&7n%l+%OO%77777%S7>%S7,OOOOOO=7111111I111117777777<7777777"5^*7FSS$77Sp*7*.SSSSSSSSSS77pppSffoxffxx7Jo]oxfxfS]xff]]A.AFS7SSJSJ.SS..J.xSSSSAA.SJoJJAC.CZ*7777C7SSfSfSfSfSfSooJfJfJfJfJ7.7.7.7.oSxSxSxSxSxSxSxSxS]JfSxSxSxS]JxSfSfSfSfSoJoJfJfJfJxSxSxSxSxSCS7S777SJxSoSAN:*WSASSSSSS.4}}S2~~S}277]]S77SS7]72N7[[pC`pSS`*7FSS$77Sp*7*.SSSSSSSSSS77pppSffoxffxx7Jo]oxfxfS]xff]]A.AFS7SSJSJ.SS..J.xSSSSAA.SJoJJAC.CZv7S]SS7S777]]:S7A7o]*ASSSS.S7~.Sp7~SC[227`W*724S}}}Sffffffoffff7777xoxxxxxpxxxxx]fSSSSSSSoJJJJJ....SSSSSSS[SSSSSJS!y.C8*XɄC\  P6QP "7PC2XXP\  P6QXP#2I=.X &I\  P6Q&P .$2N=.X&N4  pQ&-0J=.X3L&J*f9 xQ&X2X^\  P6QP 3  Xp \  P6QpP4a$5,!XА5\  P6QP.5X;4  pQ6X3N*f9 xQX7<XI7X/+X\  P6QP8I(!X,(\  P6Q,P:P,%XJ,\  P6QJP{,C8*X3VC*f9 xQX0  Times New Roman 2 X   )1 S- #&I\  P6Q &P#Federal Communications Commission`~(#DA98 2110 ă  yx}dddy ) x` `  hh@October 2 \%8 8 \%8 , 1998 The Honorable Joseph P. Mettner Chairman Public Service Commission of Wisconsin P.O. Box 7854 Madison, WI 537077854  S - ` xRe:` ` Public Service Commission of Wisconsin letter order in Docket 05TI156, dated  Si -November 6, 1997(#` Dear Chairman Mettner:  S -T ă  Sj-  OxPursuant to the request of the Wisconsin Pay Telephone Association (WPTA),j@q {O-  ԍxSee Letter to Richard M. Metzger, Chief, Common Carrier Bureau, from Andrew J. Phillips, Counsel for WPTA, dated February 4, 1998. the Common  x\Carrier Bureau (Bureau) recently completed its review of the letter order issued by the Public Service  xCommission of Wisconsin (Wisconsin Commission) on November 6, 1997, in the abovereferenced  xproceeding. In the letter order, the Wisconsin Commission held that its own jurisdiction to investigate the  x.rates charged by local exchange carriers (LECs) to pay phone providers "is very narrowly circumscribed  xto enforcing a prohibition on cross subsidy . . . and discriminatory practices." The Wisconsin Commission  xalso stated that the statutory remedies available under Wisconsin law "only address whether the retail rates  xcharged by telecommunications utilities for competitive telecommunications service recover the underlying  x[cost for that service." Accordingly, the Wisconsin Commission has found that it lacks jurisdiction under  xjstate law to ensure that the rates, terms, and conditions applicable to providing basic pay phone services  xcomply with the requirements of Section 276 of the Communications Act of 1934, as amended, and the  xFCC's implementing rules. Because the Wisconsin Commission's inability to review these pay phone  xservice offerings implicates the FCC's obligations under Section 276, we are writing to advise you that  xwe intend to require the four largest LECs in Wisconsin to file with the FCC tariffs that set forth the rates,  x@terms, and conditions associated with pay phone services, along with the required supporting documentation.   xSection 276 of the Act establishes requirements designed to promote competition among payphone  xservice providers and promote the widespread deployment of payphone services to the benefit of the  S- x.general public.J"@q yOc"-ԍx47 U.S.C.  276(b)(1).J In its Payphone Reclassification Proceeding,b@q {O#-  ԍxImplementation of the Pay Telephone Reclassification And Compensation Provisions of the  {O$- xhTelecommunications Act of 1996, CC Docket No. 96128, Report and Order, 11 FCC Rcd 20541 (1996) (Payphone  {O%- xOrder); Order on Reconsideration, 11 FCC 21233 (1996) (Payphone Reconsideration Order), aff'd in part and  {OQ&- xremanded in part, sub nom. Illinois Pubic Telecommunications Assn. v. FCC and United States, Case No. 96134 (D.C. Cir. July 1, 1997). b the FCC adopted regulatory requirements  So- ximplementing Section 276. The FCC required, inter alia, that incumbent LECs file tariffs for basic  xKpayphone lines at the state level only, and that unbundled features and functions provided by LECs to their"=j , * *,,e""  S- xown payphone operations or to others be tariffed at both the state and federal levels.n {Oh-ԍxPayphone Reconsideration Order, 11 FCC Rcd at 2130709.n The FCC required  xkthat all incumbent LEC payphone tariffs filed at the state level be costbased, nondiscriminatory, and  S- x/consistent with both Section 276 and the Commission's Computer III tariffing guidelines.Z {O-ԍxPayphone Clarification Order at para. 2, citing Payphone Reconsideration Order, 11 FCC Rcd at 21308. The FCC  x[determined that the rates assessed by LECs for payphone services tariffed at the state level must satisfy  xthe requirements that the FCC applies to new interstate access services proposed by incumbent LECs  S- x.subject to price cap regulation (the "new services test").# {O -  .ԍxImplementation of the Payphone Reclassification and Compensation Provisions of the Telecommunications  {OX -Act of 1996, CC Docket 96128, Order, 12 FCC Rcd 21370 (1997) (Payphone Limited Waiver Order). # The new services test is a costbased test that  xestablishes the direct cost of providing the new service as a price floor. LECs then add a reasonable  S- xamount of overhead to derive the overall price of the new service.yH {O -ԍxSee Section 61.49 of the Commission's Rules, 47 C.F.R.  61.49.y The FCC stated that it would rely  xinitially on state commissions to ensure that the rates, terms, and conditions applicable to the provision  S6- xof basic payphone lines comply with the requirements of Section 276.m6 {O-ԍxPayphone Reconsideration Order,11 FCC Rcd at 2130709.m The FCC determined that state  xjcommissions that are unable to review these tariffs may require incumbent LECs operating in their states  S- xto file these tariffs with the FCC.: l  {O-ԍxId.: The Bureau has emphasized that the FCC retains jurisdiction under  S - x.Section 276 to ensure that all requirements of Section 276 and the Payphone Reclassification Proceeding  Sk -are met.q k  {O -ԍxPayphone Limited Waiver Order, 12 FCC Rcd at 21379, n. 60.q   ]xIn its November 6, 1997 decision in Docket 05TI156, the Wisconsin Commission indicated that  xit was unable to review incumbent LECs' rates for existing payphone service offerings because it lacked  x!the authority and jurisdiction to determine whether these service offerings comply with the FCC  ximplementing rules. Furthermore, your letter reflects that the Wisconsin Commission did not review any  xMof the incumbent LEC pay phone filings nor affirmatively conclude that the rates for incumbent LEC payphone services in Wisconsin satisfy the Act's pricing requirements. " ,l(l(,,"   xIn light of these circumstances, we will need to require the federal tariffing and federal review of  xpayphone services offered by the four largest LECs operating in Wisconsin and that the Wisconsin  xjCommission has not reviewed and found to be in compliance with Section 276 and applicable FCC rules.  xWe plan to issue an order that will direct all incumbent LECs in Wisconsin to file with the FCC tariffs  xjfor such services together with the supporting documentation necessary to demonstrate compliance with the requirements of Section 276 and our implementing rules.   xIf you have any questions concerning this matter, please do not hesitate to contact me at (202) 4181500. x` `  hh@Sincerely,  \%8   \%8  x` `  hh@Kathryn C. Brown x` `  hh@Chief, Common Carrier Bureau x` `  hh@  S-