News
Regulated Industries > Telecommunications >
Generic interconnection cost and pricing dockets
The Commission signed an order on Feb. 9, 2005, settingVerizon’s rates for wholesale charges to other phone carriers that rent space on the company’s lines. The order addresses recurring rates – rates Verizon charges on a monthly or periodic basis for unbundled network elements (UNEs). The decision also created a five-zone rate structure for loops and switching.
This proceeding was the first test nationally for Verizon’s newly developed "VzCost" model, a web-based program used to help calculate recurring rates. The commission said the new Verizon model had “merits and demerits.” The commission used Verizon’s model, but not exclusively, as it also employed a version of an earlier program known as the Hatfield model. (Docket Nos. 023003 and 033034. See links at the bottom of this page for more information.)
Background:
The UTC's "generic cost case" began during the intial round of interconnection arbitrations after passage of the Telecommunications Act of 1996. It has proceeded through a series of parts to establish cost and prices for interconnection and unbundled network elements. The case has proceeded in phases.
In Aug. 2003 the commission began this investigation of non-recurring costs separate from recurring costs. Qwest's issues were removed from the proceeding in Nov. 2003, leaving only Verizon. The commission dismissed part of this proceeding dealing with non-recurring costs for Verizon in Oct 2004. At a recent prehearing conference, several participants said they no longer wished to go forward with this proceeding given major changes and uncertainties in telecommunications regulation. Given the difficulty of developing a record if the primary parties did not participate, the commission dismissed the proceeding without prejudice. (Docket 033034. See document links below for more information.)
The commission approved a settlement agreement submitted by Qwest, Commission Staff and AT&T on May 11, 2004. Under the agreement, Qwest agreed to implement five different rates for using the company's lines in different parts of the state. The proposed settlement resolves remaining Qwest issues, so only Verizon's costs are still at issue in the case. (Docket No. 023003. For more information, see document links for this docket below).
In approving the agreement, the commission said that rates in the settlement will move prices toward costs in all areas of the state. "Accurate pricing provides carriers the best information to rely on in making decisions whether to invest in facilities to serve a given geographic area." Qwest agreed to implement the five-zone loop-rates shown below:
| Zone 1 | $11.26 |
| Zone 2 | $13.63 |
| Zone 3 | $16.92 |
| Zone 4 | $28.23 |
| Zone 5 | $67.77 |
The UTC's generic cost case began during the intial round of interconnection arbitrations after passage of the Telecommunications Act of 1996. It has proceeded through a series of parts to establish cost and prices for interconnection and unbundled network elements. The case has proceeded in phases:
Second Phase, Generic Cost and Pricing
The second generic proceeding (Docket UT-003013) was to determine costs and prices for network elements that were not included in the initial proceeding, and to address issues left unresolved in that proceeding. This proceeding was also divided into several phases, referred to as "parts."
The WUTC issued its Part A Order (13th Supplemental), which determined prices for line sharing, operations support systems and collocation, on January 31, 2001.
The WUTC issued its Part B Order (32nd Supplemental) on June 21, 2002. It addresses issues line splitting, line sharing over fiber loops, OSS, loop conditioning, reciprocal compensation, and nonrecurring and recurring rates for some unbundled network elements.
Part C, which was to address microwave collocation issues, was was cancelled June 14, 2001, after parties reached agreement on rates. The WUTC held evidentiary hearings in Part D May 6-10, 2002.
Initial Generic Cost and Pricing Docket
The WUTC's initial generic cost and pricing proceeding (Docket UT-960369) established the cost and prices for unbundled network elements (UNE) including the unbundled loop. The primary orders from this proceeding are listed below:
| Phase I: Costs The WUTC completed the cost phase of the proceeding in 1998. The cost determinations are in these orders: | Phase II: Prices The second phase of the proceeding established statewide average prices. The WUTC completed this phase in 1999. The price determinations are in these orders: | Phase III: Deaveraging The third phase of the proceeding established deaveraged prices for interconnection and unbundled network elements. The WUTC issued its decision in this phase on May 4, 2000, and an order on reconsideration on December 15, 2000. |
The address of this page is: www.wutc.wa.gov/telecom/generic_cost
Posted/updated: 05/14/2007
Document list:
033034 Documents Schedule Orders All
023003 Documents Schedule Orders All
003013 Documents Schedule Orders All
960369 Documents Schedule Orders All
