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Local Telephone Competition

Fortnightly Magazine - September 1 1995

The Arizona Corporation Commission (CC) has approved new rules that allow telephone companies to provide basic dial tone service in competition with existing monopoly providers. The competitive companies may also provide intraLATA toll service. According to the CC, cable television companies, companies currently building fiber-optic networks in the state, and other utilities may apply for certificates to provide both business and residential service in competition with the 11 existing Arizona monopoly telephone companies; however, all companies will be required to participate in a universal service fund to assure that basic local service is available at reasonable rates. The rules also provide for streamlined regulation of competitive services. Re Rulemaking Regarding Competitive Telecommunications Services, Dkt. No. R-0000-94-424, June 21, 1995 (Ariz.C.C.) The New York Public Service Commission

(PSC) recently granted expedited certificates to two applicants, authorizing them to provide competitive local telephone service in major metropolitan areas. The newly certificated carriers are New York Local Telephone Corp., authorized to provide service in the New York City area, and Hyperion Telecommunications of New York, Inc., authorized to provide local exchange services in the Buffalo area. Both applications contemplate constructing new facilities as well as leasing the facilities of other carriers. The PSC relied, in part, on earlier findings concerning the beneficial effects of competition in the telecommunication markets, but ruled that both carriers would comply with new requirements designed to protect the public interest (em such as payment of universal service fees if new offerings are targeted at limited service markets. Re New York Local Telephone Corp., Case No. 95-C-0042, June 5, 1995 (N.Y.P.S.C.); Re Hyperion Telecommunications of New York, Inc., Case No. 94-C-0994, March 10, 1995 (N.Y.P.S.C.).

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