DEPARTMENT OF STATE

Public Service Commission

PROPOSED

PUBLIC NOTICE

4001 Rules for the Provision of Telecommunications Services (Dockets 10 and 45)

PUBLIC NOTICE OF PROPOSED AMENDMENTS TO THE

PUBLIC SERVICE COMMISSION'S RULES FOR

TELECOMMUNICATIONS SERVICE PROVIDERS

TO: ALL TELECOMMUNICATIONS CARRIERS, ALL

CONSUMERS, AND OTHER INTERESTED PERSONS

In April 2019, the role of the Delaware Public Service Commission (“Commission”) with respect to landline telecommunications regulation changed with the passage of Senate Bill No. 18 (“SB 18”). (The Commission does not regulate wireless or voice over internet services.) Among other things, SB 18 amended Title 26 of the Delaware Code by removing certain statutory requirements for Commission-regulated telecommunications service providers that are no longer consistent with recent decisions of the Federal Communications Commission, including significant changes to the Telecommunications Technology Investment Act (“TTIA”) (See 26 Del.C. §§215, 704-707).

Generally, telecommunications services provided over landlines fall into two categories: (1) “Basic Services,” which the Commission regulates for price and quality of service; and (2) “Competitive Services,” which the Commission does not regulate, other than to certify new carriers who seek to offer such services in Delaware. The SB 18 amendments maintained certification requirements for telecommunications carriers but revised the TTIA (§§704-707) to narrow the definition of “Basic Services” and to allow carriers to change the rates for Basic Services without Commission approval.

By Order No. 9506 dated December 5, 2019 (the “Order”), the Commission now proposes to revise its telecommunications rules to reflect the SB 18 amendments and to otherwise clarify and simplify its regulations by: (1) amending its “Rules for the Provision of Telecommunications Services,” codified at 26 Del. Admin. C. §4001 (“§4001”) (Regulation Docket Nos. 10 and 45); (2) moving the remaining TTIA requirements (as amended by SB 18) from 26 Del. Admin. C. §4005 (“§4005”) to §4001; and (3) repealing its “Regulations for the Implementation of the Telecommunications Technology Investment Act,” codified at §4005 (Regulation Docket No. 41).

The text of the Amendments are attached to the Order. The Order and related exhibits are reproduced in the January 2020 edition of the Delaware Register of Regulations and may also be reviewed online at the Commission’s website at www.depsc.delaware.gov. You may also obtain a paper copy of the Orders at the Commission’s Dover office for a fee of $0.25 per page.

Interested parties may file written comments, suggestions, briefs, compilations of data, or other materials concerning the Amendments. Such material (10 copies) may be submitted to the Commission on or before March 13, 2020, by email to lisa.driggins@delaware.gov or at the following address:

Delaware Public Service Commission

861 Silver Lake Boulevard

Cannon Bldg., Suite 100

Dover, Delaware, 19904

Attn: PSC Reg. Dckts. Nos. 10 & 45

The Commission will conduct a public hearing on the Amendments on Wednesday, February 26, 2020, beginning at 1:00 PM in the Hearing Room of the Delaware Public Service Commission, 861 Silver Lake Blvd., Dover, Delaware.

If you are handicapped and need assistance or aids in participating in this matter, please contact the Commission to discuss any needed assistance or aids. You may contact the Commission with questions or requests about this matter at the Commission's toll-free telephone number (800) 282-8574 (Delaware only) or (302) 739-4333 (including text telephone). You may also send inquiries by Internet e-mail addressed to psc@delaware.gov.

ORDER NO. 9506

AND NOW, this 5th day of December, 2019, the Delaware Public Service Commission ("Commission") determines and orders the following:

WHEREAS, on April 17, 2019, the Governor of the State of Delaware signed into law Senate Bill No. 18 (82 Del. Laws ch. 11) ("SB 18"), which, among other things, amended Title 26 of the Delaware Code by removing certain statutory requirements for Commission-regulated telecommunications service providers that are no longer consistent with recent decisions of the Federal Communications Commission, including significant changes to the Telecommunications Technology Investment Act ("TTIA") (See 26 Del.C. §§215, 704-707); and

WHEREAS, in part, SB 18 amends: (1) § 215(h) to permit telecommunications carriers to undergo transfers of control and to issue securities without Commission approval; and (2) the TTIA to narrow the definition of "Basic Services" to only switched access services and to allow carriers to change their rates for Basic Services without Commission approval; and

WHEREAS, the Commission now proposes to revise its telecommunications rules to reflect the SB 18 amendments and to otherwise clarify and simplify its regulations by: (1) amending its "Rules for the Provision of Telecommunications Services," codified at 26 Del. Admin. C. §4001 ("§4001") (Regulation Docket Nos. 10 and 45); (2) moving the remaining TTIA requirements (as amended by SB 18) from 26 Del. Admin. C. §4005 ("§4005") to §4001; and (3) repealing its "Regulations for the Implementation of the Telecommunications Technology Investment Act," codified at §4005 (Regulation Docket No. 41);

NOW, THEREFORE, IT IS HEREBY ORDERED BY THE AFFIRMATIVE

VOTE OF NOT FEWER THAN THREE COMMISSIONERS:

1. That, for the reasons set forth above, and pursuant to 26 Del.C. §§209 and 703(3) and 29 Del.C. §10114, the Commission proposes to revise its "Rules for the Provision of Telecommunications Services," which were last revised by PSC Order No. 8695 (January 6, 2015) and published at 18 DE Reg. 653 ("Telecom Rules") and to repeal its "Regulations for the Implementation of the Telecommunications Technology Investment Act," which were established by PSC Order No. 4821 (June 9, 1998) and published at 2 DE Reg. 280 ("TTIA Rules"). The proposed revised Telecom Rules are attached to this Order as Exhibit "A." Redlined versions of the existing Telecom Rules and the existing TTIA Rules are attached as Exhibit "B."

2. That, pursuant to 29 Del.C. §10115(a), the Secretary shall transmit a copy of this Order, with the attached exhibits, to the Registrar of Regulations for publication in the January 1, 2020 edition of the Delaware Register of Regulations.

3. That, pursuant to 29 Del.C. §10115(b), the Secretary shall cause the form of public notice attached as Exhibit "C" to be published in two-column format, outlined in black, in the following two newspapers on the following dates:

The News Journal December 19, 2019

Delaware State News December 19, 2019

In addition, the Secretary shall mail a copy of this Order, with its exhibits, to the Division of the Public Advocate and to all persons or entities who have made written requests for advanced notice of this Commission’s rule-making proceedings. The Secretary shall file a certification of the completion of these tasks by December 31, 2019.

4. Pursuant to 26 Del.C. §209(a), the Commission will hold a public hearing on the proposed amendments on Wednesday, February 26, 2020, beginning at 1:00 PM in the Hearing Room of the Delaware Public Service Commission, 861 Silver Lake Blvd., Dover, Delaware. Interested persons or entities may submit written suggestions, compilations of data, briefs, or other written materials concerning these proposed amendments on or before March 13, 2020.

5. The Commission reserves the jurisdiction and authority to enter such further orders in this matter as may be deemed necessary or proper by Order of the Commission.

BY ORDER OF THE COMMISSION:

4001 Rules for the Provision of Telecommunications Services (Dockets 10 and 45)

Docket 10 The Sale, Resale and Other Provisions of Intrastate

Telecommunications Services

Docket 45 Regulations For The Facilitation of Competitive Entry into the

Telecommunications Local Exchange Service Market

Effective: [TBD]December 10, 2001

PART A

CERTIFICATION AND REGULATION OF CARRIERS

"Basic Service" shall mean switched access service.

“Carrier” shall mean any person or entity offering to the public Telecommunications service that originates or terminates within the State of Delaware. The term "Carrier" does not include:

"Competitive Service" shall mean any service that is not classified as a Basic Service.

“CPCN” shall mean a Certificate of Public Convenience and Necessity issued by the Commission.

“Commission” shall mean the Public Service Commission of Delaware.

“Local Telecommunications Exchange Service” shall mean non-toll, intrastate Telecommunications Services provided over a Local Exchange Carrier’s network, including, but not limited to, exchange access services and basic local services.

“Rules” shall mean these Rules, including PARTS A and B, governing the provision of telecommunications services in Delaware.

“Telecommunications” shall mean the transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form and content of the information as sent and received.

“Telecommunications Service” shall mean the offering of telecommunications for a fee directly to the public within the State of Delaware (originating or terminating within the State, without regard to how the Carrier decides to route the traffic), or to such classes of users as to be effectively available to the public, regardless of the facilities used. "Telecommunications Service" does not include:

These Rules shall apply to all new Carriers, as defined by these Rules, and shall be construed consistently with Rule 3 of these Rules.

3.1 Rules of Practice and Procedure

The practice and procedure governing any proceedings required or authorized by these Rules shall be as set forth by the Commission’s Rules of Practice and Procedure adopted in PSC Docket No. 99-9, by Order No. 5057 (April 6, 1999) as the same may be hereafter from time to time amended. See 1001 General Regulations.

4.1 Certification Requirement.

No person or entity shall offer public intrastate or local exchange telecommunications service within the State of Delaware without first obtaining from the Commission a Certificate of Public Convenience and Necessity authorizing such service. A Carrier offering telecommunications service within the State of Delaware without a CPCN duly issued by this Commission is acting unlawfully and shall immediately cease offering such service until a CPCN is granted.

4.2 Application.

An applicant for a CPCN shall file with the Commission in the format described in 26 DE Admin. Code §1001-1.6.3, together with the statutory filing fee set forth in 26 Del.C. §114, as the same may from time to time be amended. 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 serve the public and that the public convenience and necessity requires or will require the operation of such business. If the applicant fails to provide the required information and exhibits within six months of the application, the Commission may take action to close this docket and the applicant will forfeit its application fee.

4.3 Notice.

The applicant shall serve a notice of the filing of such an application upon the Public Advocate, and to such other entities as may be required by the Commission. The applicant shall provide public notice of the filing of the application in one (1) newspaper having general circulation throughout the county or counties where service is to be offered in a form to be prescribed by the Commission.

4.4 Business License and Registered Agent.

An applicant shall demonstrate that it is legally authorized and qualified to do business in the State of Delaware, including that it has received authorization to do business issued by the Secretary of State. An applicant shall provide the name, address, and telephone number of its Delaware Resident Agent. Following certification, all Carriers shall promptly notify the Commission in writing of changes of Resident Agent or the name, address, or telephone number thereof.

4.5 Initial Tariffs or Price Lists.

4.5.1 An applicant shall file proposed initial rates, prices, rules, regulations, terms and conditions of service for switched access services. Any revisions to this tariff must be filed with the Commission. An applicant may need not file tariffs or price lists for other services or provide a website link to its tariff or price list which the Commission will post on its website.

4.6 Demonstration of Fitness.

4.6.1 An applicant shall be required to demonstrate to the Commission its financial, operational, and technical ability to render service within the State of Delaware. Such demonstration shall include, but is not limited to, the following:

4.6.1.1 The applicant’s certified financial statements current within twelve (12) months of the filing, and, where applicable, the most recent annual report to shareholders and SEC Form 10-K;

4.6.1.2 A brief narrative description of the applicant’s proposed operations in Delaware, any present operations in all other states, and states for which service applications are pending;

4.6.1.3 A description of the relevant operations experience of applicant’s personnel principally responsible for the proposed Delaware operations;

A Carrier may abandon or discontinue service Competitive Services, in whole or in part, at any time; provided, however that such Carrier shall provide the Commission with contemporaneous notice of abandonment or discontinuance of all of its Competitive Services in the State. A Carrier may abandon or discontinue Basic Services in accordance with the terms of 26 Del.C. § 706(d) for carriers electing to be governed under subchapter VIIA of Title 26 or § 203(A)(c), for non-electing carriers 26 Del.C. §203A(d).

6.1 Any Carrier providing local telecommunications exchange service shall provide to its customers:

6.1.1 Access to 911 enhanced emergency system;

6.1.2 Access to telecommunications relay service.

7.1 Except for the determination of rate changes, the offering of Basic Services is subject to the provisions of subchapters I and V of chapter I of Title 26, §§201, 202, 203A(c), 204, 206, 212, 217, 218, and 222 of Title 26, and all Commission procedures, rules, and regulations except to the extent inconsistent with subchapter VII of chapter I of Title 26.

7.2 Rate changes for Basic Services do not require Commission approval.

7.3 Rates for switched access service must be established according to prevailing federal jurisdiction.

7.4 Competitive Services are not subject to tariff or other filing requirements and Carriers are not required to provide notice to the Commission for any new competitive service.

7.5 Commission approval is not required for any reorganization or merger, mortgage or transfer of property, issuance of securities, assumption of obligation of another, or transfer of control of a Carrier.

PART B

CUSTOMER ELECTION OF PREFERRED CARRIER

For purposes of this Part B, in addition to the Definitions set forth by Part A, the following definitions shall apply:

13.1 Preferred Carrier shall mean the Carrier providing service to the customer at the time of the adoption of these Rules, or such Carrier as the customer thereafter designates as the customer’s Preferred Carrier.

13.2 Preferred Carrier Change Order shall mean generally any order changing a customer’s designated Carrier for local exchange service, intraLATA intrastate toll service or both.

Any Carrier offering intrastate and/or local exchange service for public use within the State of Delaware, including the ILEC, Bell Atlantic-Delaware, Inc., shall be subject to the provisions of these Part B Rules.

No Carrier shall submit a Preferred Carrier Change Order unless and until the Order has been first confirmed in accordance with one of the procedures set forth in 47 C.F.R. § 64-1120.

A Carrier may use a letter of agency to obtain written authorization and/or verification of a customer’s request to change his or her Preferred Carrier selection. A letter of agency that does not conform with the requirements set forth in 47 C.F.R. § 64.1130 is invalid.

Submission and execution of changes in customer carrier selection shall comply with 47 C.F.R. § 64.1120.

A Preferred Carrier freeze prevents a change in a customer’s Preferred Carrier selection unless the customer has given the Carrier from which the freeze was requested his or her express consent. All Carriers who offer Preferred Carrier freezes must comply with the provisions of 47 C.F.R. § 64.1190.

19.1 Procedures To Be Followed By The Customer.

19.1.1 A customer who believes his or her Carrier or Carriers have been changed, without the customer’s authorization, and/or that the customer has been billed for charges not authorized by the customer, should first attempt to resolve the matter with the Carrier or Carriers responsible for the unauthorized changes and/or charges. If the customer is not satisfied with the resolution offered by the Carrier, the customer may file a complaint with the Commission.

19.2 Procedures To Be Followed By Carriers.

19.2.1 A Carrier who is informed by a customer that the customer believes the Carrier has caused or allowed a change in the customer’s Carrier without the customer’s authorization, or that the Carrier has caused or allowed the customer to be billed for charges not authorized by the customer shall attempt to resolve the complaint promptly and in good faith. If the customer and Carrier are not able to resolve the complaint, then the Carrier shall inform the customer orally or in writing of the right to file a complaint with the Commission and shall provide the customer with the Commission’s address and telephone number.

19.3 Carriers to Maintain Record of Complaints.

19.3.1 Each Carrier shall maintain a record of the complaints received by it alleging that the Carrier has caused or allowed a customer’s Carrier to be changed without the customer’s authorization or has caused or allowed the customer to be billed for charges not authorized by the customer. The Carrier shall maintain the record of each complaint for a period of two years following initial notification of the complaint. Upon request by the Commission or its staff, a Carrier shall furnish a copy of its complaint records and such other information as the Commission Staff may require. A Carrier’s complaint records shall include at least the following information:

19.3.1.1 name, address, and telephone number of complainant and the date and manner received by the Carrier; and

19.3.1.2 a chronological summary of the dispute and its current status, including any resolution and date of resolution.

19.4 Refund and Penalties.

19.4.1 In the event the Commission determines that a Carrier has caused a customer’s Carrier for a service to be changed without the customer’s authorization obtained in exact compliance with these Rules, or has caused the customer to be billed for charges imposed without exact compliance with these Rules, then the Commission shall require the Carrier to promptly refund or void to the customer any charges the Carrier has caused to be billed as a result of the unauthorized change or charge, and/or any other remedies available for violation of these Rules as allowed by law. 26 Del.C. §924(c). The Commission’s remedies are in addition to those required under 47 C.F.R. § 64.1170 to the extent the FCC’s remedies have not provided a refund or credit to the subscriber in the amount of 100% of all charges the Carrier caused to be billed as a result of the unauthorized change or charge.