Local Exchange Resale: Two Views

Fortnightly Magazine - September 15 1996
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

Two recent decisions from Hawaii and Michigan illustrate some of the issues now arising on the question of resale of telephone service by local exchange carriers (LECs).

DC PSC RFP Technical Consultant for Formal Case (FC) No. 1156

In Michigan, the state public service commission has directed the state's LECs to offer all basic local exchange services for resale in a nondiscriminatory manner to competitors and affiliates at wholesale rates. It defined "wholesale rates" as retail rates less the avoided costs to the LEC.

Elsewhere, the Hawaii Public Utilities Commission (PUC) has prohibited the resale or use of residential lines to offer business services, citing concerns about the potential for arbitrage if resale or residential access is left unrestricted. It acted in the first phase of a planned three-part blueprint to restructure the state's telecommunications industry.

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.