COMMUNICATIONS DAILY WEDNESDAY, AUGUST 27, 2008


Local exchange providers in Virginia took exception to a state
Corporation Commission proposal to give
the agency explicit authority to impose fines and other sanctions on
carriers that fail to meet state service quality standards. The
commission in June proposed this and other quality rule changes after
finding that it had very limited options for addressing service quality
lapses. Hearings on the proposal are to open Sept. 25.

The commission staff last October concluded that Verizon had failed to
meet state outage repair timeliness standards the past 2.5 years,
despite orders to correct the situation, and proposed fining Verizon
$17.5 million. Verizon successfully objected, saying state regulations
don't specify penalties for quality non-compliance so there's no legal
basis for the proposed fine.

The proposed rules (Case PUC-2008-00047) would create a new enforcement
section in the service quality rules explicitly authorizing the
commission to levy fines and impose other sanctions if carriers don't
comply with orders to correct service quality noncompliance. The
proposal would require carriers with over 10,000 access lines to file
quarterly quality reports on timeliness of repairs, installations and
call center responses and percentage of installation appointments kept
on time. They also would have to notify regulators of
major outages on the day an outage occurs.

Verizon and Embarq opposed the rules, saying local competition is
strong enough to ensure that companies always strive for top quality,
and that customers unhappy with a particular company can switch to other
providers. Verizon said rigid service quality standards would deter
carriers from offering innovative customized services. Such standards
also would put traditional telephone carriers at a disadvantage against
intermodal rivals that aren't state regulated, Verizon said.   Embarq
said the reporting requirement would mean consumer resources are better
used to improve service. It also said its complaint volume has fallen
more than 20 percent since 2005.

Competitive carriers XO Communications and Cavalier Telephone opposed
the rules for a different reason. They said they buy wholesale network
elements from incumbents, and their ability to meet timeliness standards
on repairs and installations depends on wholesalers' service. They said
they shouldn't be punished for service quality lapses beyond their
control.

But the CWA backed the new rules, particularly the power to fine
carriers for not meeting standards. The CWA said competition isn't
everywhere and that the rules would help ensure quality for people with
no realistic alternative. The CWA urged one change, to make the
quarterly quality reports public documents.

Perriello Launches Economic REVIVAL Plan

Tom Perriello, the Democratic nominee for Virginia's Fifth Congressional District, today launched his seven-point REVIVAL plan for economic prosperity in Southside and Central Virginia. Perriello spoke in Martinsville, the municipality with the highest unemployment in the Commonwealth, where local furniture company American of Martinsville laid off more than half of its workforce last week.
Click here for more information about the REVIVAL plan.

"American of Martinsville's recent layoffs are just one example of a deepening problem in Southside," said Perriello. "An economic revival focused on jobs will be my number one priority in Congress. This district needs a leader willing to roll up his sleeves and work as hard as workers here do to bring living wage jobs back home. There are no shortcuts or quick fixes—only a major commitment to economic revival for our communities."

"We have all watched as those jobs disappeared overseas," said Jim White, Martinsville Representative for the Communication Workers of America who also spoke at the press conference. "Our current representation in Congress has closed their eyes and made a lot of empty promises about the future. We need to bring to Washington the kind of real leadership that will work for the 5th Congressional district, for Martinsville-Henry County and for all Americans and not special interest groups that most certainly do not have our interests at heart."

The seven-point REVIVAL plan focuses on work-force development, investment in infrastructure, and support for small businesses. Real energy solutions, greater education funding and putting Virginia workers first are other aspects of the plan. Perriello will visit all 22 counties and municipalities in the district in July, meeting with workers, small business owners, chambers of commerce, and local educators to hear their concerns and explain his positions on economic revival.