Date: 29 Jan 92 19:13:44 CST
From: Telecom Digest Reprint (
[email protected])
Subject: US West / Oregon PUC Hearing Summary
(Attempts by telecom companies to increase rates for BBSs by
classifying them as businesses continues to plague hobbyists. Most
states have multiple companies serving customers, so there is no
consistent policy within a given state. In Illinois, for example, GTE
(formerly Contel) has had a BBS-as-business policy for several years
but has never enforced it. Because GTE only recently took over Contel,
it is unclear how they will act in the future, but Contel
spokespersons indicated last summer that they only raised the issue if
somebody brought it to their attention, and no one could think of an
Illinois BBS that paid business rates. In the past year, other state
public utilities commissions (PUCs) have authorized telecos to charge
BBSs with business rates (eg, Indiana, Michigan), and the issue is
currently alive in Illinois.
The following summary of the Oregon Public Utility Commission hearings
addressing BBS rates is reprinted from Telecom Digest. Telecom Digest
is the best source for technical and other information on
telecommunications, and is accessible either through usenet
(comp.dcom.telecom) or from the TD mailing list (contact the
moderator, Pat Townson).
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
(Forwarded from Fidonet echo PNB-BELL)
Message #1241 "PNB.Bell"
Date: 29-Dec-91 10:53
This was posted by Bob Covington who was there:
NOTES ON PUC HEARING (Wagner vs. US West) - 12/10/91
REFERENCES:
ORS 759.210
Rules and Regulations Section 12 (Tariff Agreement)
Schedule 1-A
US West Interogatory Document
In attendance:
13 Portland Sysops
2 Salem Sysops
-Bob Covington
-Jeff Heistand
3 US West Representatives
-Mr. Holmes, Attorney
-Jeff Pennington, Regulatory Manager/PUC Liaison
Points raised by US West:
1. First Choice BBS has 618 users. Sysop does not personally
participate in all conferences (500+) nor read all messages, nor
correspond with all users. BBS is open to "all comers" and therefore
isn't for personal use or interest of the subscriber.
2. US West views BBS's as "Bulletin Board Services" and refers to
users as "customers."
3. Whether a BBS charges a subscription/membership fee or takes
donations isn't an issue for US West. A BBS is not residential under
the Tariff section saying "... or use of the service is not obviously
limited to domestic use." "Domestic use" may involve phone subscriber
and household members only. Allowing the public to use a BBS is
therefore not interpreted as "domestic use."
4. Residential rates are insufficient to recover costs of service.
Domestic rates are subsidized by 44% in an attempt to comply with
legislation calling for "universal service" (ie: access to phone
service to all citizens). Business rates are adjusted to recover full
costs of service. Residential rates (both measured and flat rate) are
discounted 44%.
5. BBS calling patterns meet the definitions for that associated with
business use. Rates are set based on volume, whether calls originate
or terminate at "premise" (phone location), and other factors. High
volumes of calls cost US West more to service than residential use.
Business rates are charged to United Way, Boy Scouts, churches and
others for similar non-residential use.
6. Asking for residential rates for a BBS is "asking all subscribers
to subsidize your hobby." It is unfair to ask "full cost recovery"
subscribers to subsidize residential BBS's.
7. End users (those calling BBS's with modems) are making personal
calls and are not affected by US West's position on BBS use. Calls
originate from the subscriber's phone when a BBS is called. But calls
terminate at the BBS phone. The number of terminating calls is a key
factor in determining rate charged.
8. Higher usage means higher costs for US West. Measured service
costs US West more to maintain than flat-rate service, due to the cost
of call counting equipment and billing on a per call basis.
9. BBS's "go beyond the definition of immediate household use."
They provide a service to the public at large without any
attendance or involvement of the [phone] subscriber.
10. US West does not see a need to establish other subscriber billing
levels since BBS use is clearly non-residential. Although they do
have a rate higher than residential but lower than business called
"Teen Link" which provides enhanced phone services.
11. Service costs decrease up to the previous number of installed
lines. The number of lines included in a "drop" is determined by
demographics, intended use, expected growth and other factors. Older
neighborhoods tend to have only two lines laid ... while newer larger
complexes have five lines standard. Once capacity is reached, US
West's costs increase to provide more lines, and at residential rates
these costs are not recoverable.
12. US West does not keep records of calls for flat-rate subscribers,
but does for metered-rate subscribers.
13. "BBS use is a new issue with US West." And they intend to make
adjustments to those subscribers pending the outcome of this case.
New subscriber installations for BBS use at this time are now charged
non-residential rates automatically if they are aware of such use.
14. BBS's provide an opportunity for business transactions through
"For Sale" conferences, or in messages. Unless sysops read all
messages and have policies prohibiting any advertising, marketing or
sales activities online ... then there is no guarantee that business
isn't being conducted.
15. If a caller is confronted with the name of the BBS rather than a
person's voice, then residential use is suspect. A BBS name, for this
purpose, is the same as a business name.
16. There is no truth in the idea that US West is trying to put BBS's
"out of business" or that they are in competition with any proposed
services they may offer. US West is interested in not allowing
residential BBS's to be subsidized when their use is non-residential.
Questions Raised by Hearings Officer:
1. Is the phone answered by person or by machine?
2. Does any advertising, small business marketing, or sales activity
ever take place on the BBS? (excepting the equivalent of "Nickle
Ads")
3. Are any fees of any kind collected? Are any donations or other
income received in connection with BBS operation?
4. Are business contacts or referrals ever made in relation to
operation of the BBS? Is there any contact with customers or
potential customers on the BBS?
5. Do shareware files downloaded from a BBS require payment? Are
shareware files on the BBS written by "amateurs" in their spare time,
or by professionals?
6. Do any of the echo conferences include advertisements for products
for sale, or does any ordering of products take place?
Timeline/Follow-ups:
Hearings Officer ordered transcript. Will be available in 3-4 weeks.
PUC staff will research whether any previous decision relating to this
case are on file.
Opening Briefs due no later than 1/14/91.
US West final written comments due by 1/24/91.
Additional public comment accepted for 30 days from date of hearing.
By Bob Covington
++++++++++++++++++++++++
And here is a post by Bob listing the part of the tariff agreement
which US West is basing their claims and case on:
On August 22, 1987, the following section of "Rule and Regulation 12"
applying to US West's Business and Residence Service was adopted as
PUC Order No. 5:
A. GENERAL
The applicability of business and residence rates is governed by
the actual or obvious use made of the service. The use which is
to be made of the service will be ascertained from the applicant
at the time of application for service.
1. Business rates apply at the following locations:
A. In offices, stores, factories and all other places
of a strictly business nature.
B. In boarding houses and rooming houses with more than
five rooms available for rent (except as noted under 2.)
colleges, clubs, lodges, schools, libraries, churches,
lobbies and halls of hotels, apartment buildings,
hospitals, and private and public institutions.
C. At any location when the listing of "office" is provided
or when any title indicating a trade, occupation or
profession is listed (except as modified under the
directory listing schedule) and at any location
classified under 2., regardless of the form of listing
when extension service is provided to a place not a
part of a domestic establishment.
D. At residence locations when the customer has no regular
business telephone service and the use of the service by
himself, members of his household, or his guests is for
the purpose of conducting a business, trade, or
profession, or whose use of the service is obviously not
confined to domestic use.
E. In general, at any place where the substantial use of the
service is occupational rather than domestic.
2. Residence rates apply in locations where customers reside
and whose substantial use of the service is domestic and not
for purposes of conducting business.
3. If it is found that a customer is using residence service
for business purposes, the Company will require the customer
to take business service, except in cases where the customer
use of the service is primarily for social or domestic
purposes. Customers moved from residential to business
service will be notified by the Company of their right of
appeal with the Public Utility Commission of Oregon.
Aside from the sexist language in Section D ("himself," "his"), US
West is clearly focusing (in this case at least) on proving that
because a sysop does not personally know, or have contact with all
callers to his/her BBS, that it is not "domestic use." And that it is
the electronic equivalent of the types of locations mentioned under
Section C if the BBS provides public access.
Of course, my reading of these same sections clearly tells me that a
residential BBS does NOT fall under any stretch of the "business"
definitions herein.
Just wanted to get these online for those interested.
Hope this helps anyone.
++
"Lightfinger" Rayek's Friendly Casino: 206/528-0948, Seattle, Washington.
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