PUBLIC SERVICE COMMISSION

Statutory Authority: 26 Delaware Code, Section 209(a) (26 Del.C. 209(a)

PROPOSED

BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF DELAWARE

Regulation Docket No. 10

Regulation Docket No. 45

IN THE MATTER OF THE |

SALE, RESALE, |

AND OTHER PROVISIONS |

OF INTRASTATE |

TELECOMMUNICATIONS |

SERVICES | PSC REGULATION

(OPENED MAY 1, 1984; | DOCKET

REOPENED | NO. 10

NOVEMBER 17, 1998) |

IN THE MATTER OF THE |

DEVELOPMENT OF |

REGULATIONS FOR THE |

FACILITATION OF |

COMPETITIVE ENTRY INTO |

THE TELECOM- | PSC REGULATION

MUNICATIONS LOCAL | DOCKET NO. 45

EXCHANGE SERVICE |

MARKET (OPENED |

NOVEMBER |

21, 1995; REOPENED |

NOVEMBER 17, 1998) |

ORDER NO. 4949

AND NOW, to-wit, this 17th day of November, 1998;

BY ORDER OF THE COMMISSION:

Chairman

Vice Chairman

Commissioner

Commissioner

Commissioner

ATTEST:

Secretary

BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF DELAWARE

IN THE MATTER OF THE |

SALE, RESALE, |

AND OTHER PROVISIONS |

OF INTRASTATE |

TELECOMMUNICATIONS |

SERVICES | PSC REGULATION

(OPENED MAY 1, 1984; | DOCKET

REOPENED | NO. 10

NOVEMBER 17, 1998) |

IN THE MATTER OF THE |

DEVELOPMENT OF |

REGULATIONS FOR THE |

FACILITATION OF |

COMPETITIVE ENTRY INTO |

THE TELECOM- | PSC REGULATION

MUNICATIONS LOCAL | DOCKET NO. 45

EXCHANGE SERVICE |

MARKET (OPENED |

NOVEMBER |

21, 1995; REOPENED |

NOVEMBER 17, 1998) |

NOTICE OF PROPOSED RULE AMENDMENT

DELAWARE PSC RULES FOR THE PROVISION OF COMPETITIVE INTRASTATE TELECOMMUNICATIONS SERVICES

Rule 1 - Definitions

Rule 2 - Certification Requirement.

All persons (Ccarriers) wishing to provide public intrastate telecommunications services within the State of Delaware are required to file with the Commission an original and ten (10) copies of an Application for Certificate of Public Convenience and Necessity. Such application shall contain all the information and exhibits, hereinafter required and may contain such additional information as the Applicant deems appropriate to demonstrate to the Commission that it possesses the technical, financial and operational ability to adequately service the public interest and that the public convenience and necessity requires or will require the operation of such business.

Rule 3 - Notice.

Notice of the filing of such an application shall be given at the time determined by the Commission Staff of the filing. to each certificated telephone company (excluding each holder of a COCOT Certificate), the Public Advocate, and to such other entities as may be required by the Commission. Each applicant shall publish notice of the filing of the application in two (2) newspapers having general circulation throughout the State in a form to be prescribed by the Commission.

Rule 4 - License Requirement.

Each applicant for a Certificate shall demonstrate that it is legally authorized and qualified to do business in the State of Delaware, including that it has having received authority to do business issued by the Secretary of State all licenses required by the Division of Revenue of the State of Delaware and by local authorities within the area of proposed operation within the State.

Rule 5- Traffic.

Persons (Ccarriers) seeking to provide intrastate telecommunications service within the State of Delaware shall be required in their filings to set forth an effective plan for identifying and billing intrastate versus interstate traffic, and shall pay the appropriate Local Exchange Company for access at its prevailing access charge rates. If adequate means of categorizing traffic as interstate versus intrastate are not or cannot be developed, then, for purposes of determining the access charge to be paid to the local exchange company for such undetermined traffic, the traffic shall be deemed to be of the jurisdiction having the higher access charges and billed at the higher access charges.

Rule 6 - Additional Requirements.

Applicants shall be required to present substantial evidence supporting their financial, operational and technical ability to render service within the State of Delaware. Such evidence shall include, but is not limited to:

h.i. Copies of the Applicant’s authority to do business in Delaware State Business License issued by Delaware’s Secretary of State. Delaware Division of Revenue.

Rule 7 - Tariffs and Cost Studies.

Each application for a Certificate of Public Convenience and Necessity shall include proposed initial tariffs or price lists, rules, regulations, terms and conditions of service specifically adapted for the State of Delaware. Carriers filing rates for new services or changing rates for existing services should provide a statement to the Commission that such rates generate sufficient revenues to cover the incremental cost of offering such service. Carriers do not need to provide cost data showing that rates are generating sufficient revenue to cover the incremental cost of offering a service unless specifically requested to do so upon written request by the Commission Staff. Initial tariffs shall be accompanied by cost studies or other supporting data establishing the reasonableness and sufficiency of the proposed rates and charges. Other supporting data filed in lieu of a cost study must clearly establish the economic basis for management's decision to enter the Delaware market for each of the proposed services. Copies of Applicant's tariffs or price lists, and terms and conditions of service in other jurisdictions must be provided to the Commission upon request. Applicant's tariffs must include specific policies for customer deposits and advances, for prompt reconciliation of customer billing problems and complaints, and for timely correction of service problems. Applicants Applications must provide and keep current the name, address and telephone number of Applicant's Delaware Resident Agent.

Rule 8 - New Options or Offerings

Rule 9 - Abandonment or Discontinuation of Service.

No person (Ccarrier) shall abandon or discontinue service, or any part thereof, established within the State of Delaware without prior Commission approval and without having previously made provision, approved by the Commission, for payment of all relevant outstanding liabilities (deposits) to customers within the State of Delaware.

Rule 10 - Reports to be provided to the Commission.

All persons (Ccarriers) certificated to provide Intrastate telephone service for public use after the effective date of these Rules shall provide such information concerning Delaware operations to the Public Service Commission as the Commission may from time to time request.

NOTE: All reports filed pursuant to the requirement of this section may be deemed to be non-public records within the contemplation of the exemption from public record status accorded by 29 Del. C. § 10002 (d)(2) for trade secrets and commercial or financial information obtained from a person which is of a privileged or confidential nature. Such reports to receive confidential treatment must be clearly and conspicuously marked on the title page as containing proprietary information. Each page with the report containing information deemed by the Company to be proprietary in nature shall be so marked.

Rule 11 - Discrimination Prohibited.

No person (Ccarrier) shall unreasonably discriminate among persons requesting a tariffed service within the State of Delaware. The Commission directs that the operating rule shall be service pursuant to tariff or price list. If, in specific instances, a Ccarrier wishes to provide service pursuant to contract as a response to direct competition, that Ccarrier is required to demonstrate affirmatively that (i) the request is in response to actual rather than potential competition and (ii) that the proposed contract structure and rates are at least equal to incremental cost.

Any finding of unreasonable discrimination shall be grounds for suspension or revocation of the Certificate of Public Convenience and Necessity granted by the Commission as well as the imposition of monetary and other penalties pursuant to 26 Del. C. Sections 217, 218.

Rule 12 - Suspension or Revocation of Certificate.

Excessive subscriber complaints against a person (Ccarrier) shall be a basis for suspension or revocation of a carrier's Certificate of Public Convenience and Necessity if, after hearing, the Commission determines such complaints to be meritorious. In all proceedings, the Commission shall give to the person (Ccarrier) notice of the allegations made against it and afford the Ccarrier with an opportunity to be heard concerning those allegations, prior to the suspension or revocation of the Ccarrier's Certificate of Public Convenience and Necessity or other formal action. The burden of establishing the adequate provision of service is upon the utility.

Rule 13- Blockage.

Persons (Ccarriers) who intentionally or otherwise carry intrastate telecommunications traffic for sale or resale within the State of Delaware on facilities or equipment available to the public are required:

Rule 14 - Service Quality.

All persons subject to these Rules shall provide telephone service in accordance with such Telephone Service Quality Regulations as the Commission has adopted in PSC Regulation Docket No. 20, Order No.3232. An Applicant seeking to be exempted from any portion of those Rules should file an appropriate application for exemption with the Commission, pursuant to Rule 1.2.3 of the rules adopted by the Commission in Order No. 3232 (PSC Regulation Docket No. 20).

Rule 15 - PIC Changes -

No Carrier shall submit to a LEC a primary interexchange carrier (PIC) change order generated by telemarketing unless the order has first been confirmed in accordance with the following procedures:

Rule 16 - Letter of agency form and content

Rule 17- Enforcement

INTERIM RULES GOVERNING COMPETITION IN THE MARKET FOR LOCAL TELECOMMUNICATIONS SERVICES PSC REGULATION DOCKET NO. 45

CERTIFICATION AND REGULATION OF COMPETITIVE LOCAL EXCHANGE CARRIERS

TABLE OF CONTENTS

Section 1: Definitions

Section 2: Application of Rules to ILEC

Section 3: Certification of Competitive Local Exchange Carriers

Section 4: Post Certification Requirements of CLECs

Section 5: Enforcement

DELAWARE PUBLIC SERVICE COMMISSION REVISED INTERIM RULES

Governing Competition in the Market for Local Telecommunications Services PSC Regulation Docket No. 45

CERTIFICATION AND REGULATION OF COMPETITIVE LOCAL EXCHANGE CARRIERS

Section 1: Definitions

Section 2: Application of Rules to ILEC

Section 3: Certification of Competitive Local Exchange Carriers

Section 4: Post-Certification Requirements of CLECs

Dial tone line services

Local usage services

Access to all available long distance carriers

TouchTone service

White pages listing

Access to 911 enhanced emergency system

Local directory assistance service

Access to telecommunications relay service

If a consumer’s CLEC service is changed, within ten working (10) days of when service has been changed the customer must be notified of the changes in writing or by independent third-party verification of the change. Furthermore, the customer shall have the opportunity to cancel the LEC change request without charge if requested by the customer within fifteen working (15) days of initiating a CLEC change request. If the customer cancels the LEC change within fifteen working days, the costs of the cancellation would be borne by the LEC who’s service the customer was canceling.

Section 5: Enforcement

(2) Violation and Penalties: Failure of a CLEC to comply with any provision of these Rules may result in the suspension or revocation of its CPCN, and/or of the imposition of monetary or other penalties as authorized by 26 Del. C. § 217, 218.

2 DE Reg. 946 (12/01/98) (Prop.)