BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII In Matter Applicati ) TIME WARNER CABLE INFORMATION ) DOCKET NO. 04-013 5 SERVICES (HAWAII), LLC For a Certificate Authority Provide Local Lg Distance Internet Procol Voice Services. DECISION AND ORDER NO. ( Filed, 2004 At o clock M Chief Clerk C rnmissi ATTEST; A True Copy KAREN HIGASHI Chief Clerk, Public Utilities C issi ate Hawaii.

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII In Matter Applicati ) TIME WARNER CABLE INFORMATION ) Docket No. 04-0135 SERVICES (HAWAII), LLC ) Decisi Order No. ~ For a Certificate Authority Provide Local Lg Distance Internet Procol Voice Services. DECISION AND ORDER I. Introducti TIME WARNER CABLE INFORMATION SERVICES (HAWAII), LLC ( Applicant ) requests a certificate authority ( COA ) provide trastate telecommunicatis services with State Hawaii ( State ). Applicant makes its request pursuant Hawaii Admistrative Rules ( HAR ) 6-80-17(c). Applicant served two (2) copies its Applicati DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS, DIVISION OF CONSUMER ADVOCACY ( Csumer Advocate ). On July 22, 2004, Csumer Advocate filed its Prelimary Statement Positi formg commissi that it is still vestigatg this matter, has questis ccerns regardg implicatis Applicant s proposed services Hawaii s telecommunicatis market wher such services should be Applicant s Applicati, filed June 2, 2004 ( Applicati )

subject regulary oversight. Therefore, it will state its positi up completi its vestigati. On July 8, 2004, Csumer Advocate issued formati requests ( IRs ) relatg stant applicati for COA. Applicant filed its respses Csumer Advocate s IRs July 30, 2004 with excepti certa subsectis CA-IR-5 deemed be cfidential by Applicant. On August 8, 2004, commissi issued Protective Order No. 21220, Applicant reafter submitted its respse cfidential portis CA-IR-5, pursuant Protective Order No. 21220. On September 15, 2004, Csumer Advocate filed its Fal Statement Positi statg that it does not object approval Applicati, subject certa qualificatis. 2 II. A. Descripti A~licant Applicant is a member-managed Delaware limited liability company authorized do busess State as a foreign limited liability company. Its prcipal place busess is Stamford, Cnecticut. Time Warner Entertament Company, L.P., dba Oceanic Time Warner Cable ( Time Warner Cable ), which provides cable services Hawaii, owns e 2 The Csumer Advocate raises various ccerns recommendatis its Fal Statement Positi relatg Applicant s proposed tariff, which are discussed more detail Secti III., below. 04 0135 2

hundred per cent (100%) membership terest Applicant. Applicant is also affiliated with Time Warner Communicatis Hawaii, L.P., ciba Oceanic Communicatis, which presently holds a certificate public cvenience necessity State provide trastate telecommunicatis services. 3 B. Prosed Services Applicant tends provide trastate telecommunicatis services with State as a reseller facilities-based carrier. 4 Specifically, Applicant tends provide local lg distance Internet Procol ( IP ) voice services (aka, Voice over Internet Procol or VOIP) targeted Hawaii cusmers who reside Oceanic Time Warner Cable s Road Runner service areas. In provisig se services, Applicant will also be utilizg Time Warner Cable s cable televisi plant facilities, as well as its own facilities equipment. 5 3 See, Decisi Order No. 14145, filed August 17, 1995, Docket No. 94-0093. 4 Applicant s Applicati is silent as wher it seeks provide trastate telecommunicatis services as a reseller or as a facilities-based carrier. However, based Applicant s Applicati proposed tariff describg type services equipment be employed Applicant s affirmative respse Csumer Advocate s formati request as wher Applicant should be csidered be a facilities-based provider, we will treat Applicati as a request for a COA provide trastate telecommunicatis services with State as a reseller facilities-based carrier. See also, Applicant s July 30, 2004 Respse CA-IR-2. 5 Applicant s July 30, 2004 Respse CA-IR-2a. 04 0135 3

Initially, Applicant plans market its services solely residential cusmers, se services will be fered a flat-rate basis for local domestic lg distance calls. In provisig se services, Applicant s cusmers will be able call be called by or IP voice subscribers Applicant. Applicant s IP voice service subscribers will also have access public switched telephe network ( PSTN ),, thus, will be able call be called by anye cnected PSTN. Applicant represents that it will also provide operar services, direcry assistance, white page direcry lists, enhanced 911 services, outbound 800 ll free callg, ternatial calls, local number portability access telecommunicatis relay services. III. A. COA Up review applicati, commissi makes followg fdgs pursuant HAR 6-80-18(a): 1. Applicant possesses sufficient technical, fancial, managerial resources abilities provide proposed services; 2. Applicant is fit, willg, able properly perform telecommunicatis services cform terms, cditis, rules prescribed or adopted by commissi; 04 0135 4

3. Applicant s proposed telecommunicatis services are public terest. Accordgly, commissi ccludes that Applicant should be granted a COA provide trastate telecommunicatis services as a reseller facilities-based carrier. B. Proposed Tariff In its Fal Statement Positi, Csumer Advocate provides six (6) recommended revisis Applicant s proposed tariff. Based commissi s review Csumer Advocate s recommended revisis, we fd its six (6) recommended revisis proposed tariff be reasable necessary. The commissi also has its own ccerns recommended revisis. Thus, we cclude that Applicant s proposed tariff should be revised as follows: 1. To avoid any Cusmer cfusi, Stard Cable televisi service referred Secti 1.2. (Origal Page 10) should be furr defed describe what is cluded Oceanic Time Warner Cable Basic Value Services ; 2. Csistent with HAR ~ 6 80 102 6 80 107, Secti 2.8.3 (Origal Page 27) should be amended by sertg followg language: 04 0135 5

If Cusmer is unable resolve dispute with Company, Cusmer may ctact Hawaii Public Utilities Commissi at followg address telephe facsimile numbers: Hawaii Public Utilities Commissi 465 South Kg Street, Room 103 Holulu, Hawaii 96813 Telephe: (808)586 2020 Facsimile: (808)586 2066 3. Secti 2.8.4 (Origal Page 28) should be amended csistent with requirements set forth HAR 6-80-106. Specifically, this secti should be amended reflect fact that service may be disctued for [n)payment for a past due bill not dispute. See, liar 6-80-106(b) (1). 4. Csistent with liar 6-80-105, Secti 2.9 (Origal Page 28) should be amended clude followg new language: The Company may require Cusmer make a casfr advance guarantee payment bills for service until credit is established. The deposit may not exceed two (2) times average mthly bill. In additi, cash advance shall be returned Cusmer with thirty (30) days Cusmer s establishg credit. If returned with thirty (30) days, terest deposit need not be paid. If deposit is not returned with thirty (30) days, simple terest 04 0135 6

percent deposit (6%) at rate at least per year will be paid from date establishment credit until: deposit is returned; (3) Notice six is sent (2) (1) The Service is termated; Cusmer s or last known address that deposit is no lger required. 5. Stard Cable referred Programmg Secti Services 4.1.2 (Origal Tier Page 39) should be defed or described detail. 6. The Busy Le Verificati Emergency Interrupt rates Secti 4.1.5 (Origal excessive or unreasable. Page 41) appear These rates should be amended be comparable with market rates Hawaii. Veriz As Hawaii services are als~, asserted In Inc. s $0.55 re Docket No. 03-0385, (March 9, 7. by Csumer Advocate, current rates $1.05, respectively. Operar Service read, (Origal Page 45) 20842 should be amended as follows: From time [without furrj up prior approval Public Utilities Commissi, tariff changes ~ 6-80-39 promotial specified 04 0135 See Company, Decisi Order No. relevant part, time, HAR se 2004) Secti 4.3 through for programs period 7 filed 6-80-40, that time Company may~ accordance elect shall not waive, exceed with fer for six a (6)

mths, whole or part fee /or (2) (1) any stallati any recurrg or nrecurrg fees for any services or than local voice service or trastate ll service. (New text underscored; deleted text bracketed.) C. Waiver Certa Regulary Reguirements Through its respse CA-IR-4, Applicant furr requests that commissi waive certa requirements Hawaii Revised Statutes ( HRS ) rate base regulati, 269-16, HAR extent 6-80-35(a), Applicant is required submit cost it calls for extent that studies or or evidence that costs fully or partially competitive services or njurisdictial services ncompetitive (local) HRS are not subsidized by service. 269-16.9(e) HAR 6-80-135 permit commissi, up its own moti or up written request any pers or requirements telecommunicatis applicable carrier, waive telecommunicatis regulary providers if we determe that competiti will serve same purpose as public terest regulati. requirements not fd decle waive any regulary applicable Applicant at this time because we do anythg Commissi s We satisfacti that record substantiate waiver certa regulary requirements is public terest or that competiti will serve same purpose as public terest regulati, pursuant 04 0135 8

HRS 269-16.9 HAR 6-80-135. respse waivers. CA-IR-4 Accordgly, certa regulary terest mimum, appropriate this Applicant admistrative cta we such means fd file matter provide opportunity we view Applicant s request for if Applicant ctues seek waivers appropriate notice tervene also an requirements, require applicati pers as Moreover, such request proceedg rules. it a new request, for public separate at very allow commissi accordg formati public, The new separate sufficient approval our applicable applicati data any should justify grantg such waivers accordance with HRS 269-16.9 liar 6 80 135. IV. Orders THE COMMISSION ORDERS: 1. Applicant telecommunicatis is granted a COA provide services State as a trastate reseller facilities-based carrier. 2. all applicable chapters 6-80 commissi As holder a COA, Applicant shall be subject rules, provisis 6-81, any or HRS chapter applicable any orders that State 269, liar laws commissi may issue from time time. 3. with HAR 04 0135 Applicant ~ 6-80-39 shall file 6-80-40. 9 its tariffs Applicant s accordance tariffs shall

comply with provisis MAR chapter 6-80. In event a cflict between any tariff provisi State law, State law shall prevail. 4. Applicant shall cform its itial tariff applicable provisis HAR chapter 6-80 by, amg or thgs, corporatg tariff revisis set forth secti III.B. this decisi order. itial tariff additial An origal eight shall be copies (8) copies filed with commissi, shall be served two Csumer (2) Advocate. Applicant shall ensure that appropriate issued effective dates are reflected its tariffs. 5. With decisi order, $60, thirty (30) Applicant shall pursuant MRS 269-30. payable Hawaii days from date pay a public utility this fee The busess check shall be made Public Utilities Commissi, sent commissi s fice at 465 S. Kg Street #103, Holulu, HI, 96813. 6. With thirty (30) days from date this decisi order, Applicant shall also pay a telecommunicatis relay service ( TRS ) pursuant : (A) 269 16.6); (B) Docket No. ctributi Act 50, 04-0070. Hawaii TRS, Services, Inc., adopted May 7, Order No. (A here as Exhibit 1.) copy $10.00, 2003 established (codified at MRS 20149, filed June 10, Order No. 20149 is attached sent Hawaii TRS Admistrar, 80 The busess check shall be made payable S. Jeffers Road, Whippany, NJ Written pro payment shall be sent commissi. 04 0135 2004, 10 NECA 07981.

7. Failure promptly comply with requirements set forth paragraphs 3 6 may cstitute cause void this decisi order, may result furr regulary acti, as authorized by law. OCT 222004 DONE at Holulu, Hawaii PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII By (~ Carli P. Caliboso, Chairman ~ By~1~4 Jan~itE. Kawelo, /1 APPROVED AS TO FORM: Kris N. Nakagawa Commissi Counsel 04.0~35.ac 04 0135 11 Commissier

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII In Matter PUBLIC UTILITIES COMMISSION ) DOCKET NO. Institutg an Investigati Carrier Ctributi Facr Telecommunicatis Relay Services Fund Size for period July 1, 2004 through June 30, 2005. ORDER NQ. Filed At ~ 21049 ~O o clock, r 2004.M. Chief Clerk Commissi Exhibit 1 04-0070

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII In Matter ) ----- ) ) ) ) ) ) ) ) PUBLIC UTILITIES COMMISSION Institutg an Investigati Carrier Ctributi Facr Telecommunicatis Relay Services Fund Size for period July 1, 2004 through June 30, 2005. Docket No. 04-0070 Decisi Order No. 21049 DECISION AND ORDER I. Backcrround By Order No. 20904, filed April 15, 2004, commissi itiated stant proceedg exame wher modify Telecommunicatis Relay Services ctributi facr fund size ( TRS ) carrier for period July 1, 2004 June 30, 2005, established accordance with Order No. 20193, filed May ( Order No. 20193 ) modify 23, 2003, Specifically,.~ Docket No. commissi proposes carrier ctributi facr from 0.00375 July 1, Facr ). The proposed carrier ctributi facr 0.0010 is expected effect Carrier 0.0010 ( Proposed effective rema 2004 03-0058 through June Ctributi 30, 2005. ~In Docket No. 03-0058, commissi selected SPRINT COMMUNICATIONS CO., LP. ( Sprt ) as exclusive provider trastate TRS with State Hawaii ( State Hawaii ) from July 1, 2003 June 30, 2006. ~ Decisi Order No. 20163, filed April 30 2003. Order No. 20193, filed May 23, 2003, Docket No. 03-0058.

The commissi also proposes keep projected TRS fund size, as July 1, 2004, at $680,000 ( Proposed TRS Fund Size ). The commissi served copies The Divisi Csumer Advocacy, Order Department No. 20904 Commerce Csumer Affairs ( Csumer Advocate ) Sprt, parties this proceedg, chartered, carriers, mailed copies certificated registered except payphe providers, file with commissi. Csumer Advocate No. 20904 all telecommunicatis at ir mailg addresses Written comments proposals were accepted until May 14, 2004. ly Order As date this order, filed written comments commissi s proposals.2 II. Background On May 23, 2003, commissi issued Order No. 20193, Docket (1) every No. 03-0058 which, telecommunicatis amg or carrier providg telecommunicatis service State with Sprt for provisi thgs, Hawaii ordered: trastate ctract telecommunicatis relay service, for period begng July 1, 2003 June 30, 2006; (2) every carrier providg trastate telecommunicatis service Hawaii shall ctribute TRS fund basis gross operatg revenues from retail provisi trastate telecommunicatis services durg precedg calendar year, 2Csunier Advocate s Statement Positi, 2004. 2 filed May 7,

csistent with terms Order No. 20l93~ (3) ctriburs ctributi TRS fund shall be product ir gross operatg revenue from retail provisi trastate telecommunicatis services durg precedg calendar year, which is subject ctributi facr vestigati determed by annually commissi, by a commissi, csistent with terms Order No. 20193; (4) annual TRS fundg period commences July 1 ends June 30 each year. III. Discussi A. Csumer Advocate s Statement Positi The Csumer Advocate states that it has no objectis Commissi s proposed carrier ctributi facr fund size. fund size However, order mir sufficiency protect agast degradati service, Csumer Advocate recommends that Sprt should be required provide TRS reports a quarterly basis so that commissi may be better more quickly able determe wher changes ctributi Csumer (1) actual Advocate number facr are warranted. recommends TRS calls that reports fered by mth; number abed calls by mth; 3The commissi specifically from ctributg TRS fund. 3 Specifically, (3) cta: (2) actual average speed answer excluded payphe providers

secds secds by TRS mth; calls (5) by mth; number (4) TRS average work time complats filed eir verbally or writg by mth; (6) detailed data actual revenues, expenses vestments for TRS services Hawaii. B. Reportg Requirements Up Csumer reportg review, Advocate s commissi recommendati requirements primarily decles relatg because we adopt additial fd se requirements are unnecessary redundant. Pursuant terms cditis Request for Service ( RFS ) Docket No. 03-0058, which governs commissi s arrangement with Sprt for provisig TRS, Sprt is required submit followg reports: a. Secti 4.5 (Payment): No more than fifteen days after close each mth, service provider will submit a report (i.e., billg statement] Commissi detailg previous mth s work. Then, Commissi, with thirty (30) days receipt said report, will authorize or determe a date provider is authorized withdraw payment from TRS account or fund. Total reimbursement shall not exceed tal fixed bid per mute price. b. Secti 4.13 (Reports): [A] mthly report with mthly billg statement which will enable Commissi mir wher Relay service is meetg each FCC State performance stards. The report shall also clude summary formati complats, when appropriate. When applicable, mthly report should clude formati any hardware procedural or service enhancements made Relay service. After receivg authorizati from Commissi, selected service provider may request designati certa written reports as proprietary, csistent with Commissi s practice procedures. 4

In compliance with Secti 4.5 RFS, NECA Services, Inc. ( NECA ) Fund files Performance; cludes tal carriers, a mthly basis: (2) a Delquent fund revenues disbursements (1) a Statement Report. The formati collected from telecommunicatis Sprt as authorized by commissi, fund balance as end previous mth, delquent carriers that have not paid ir TRS fund ctributis. Furrmore, RFS, Sprt compliance provides comprehensive, with Secti 4.13 detailed formati mutes use; traffic reportg statistics, cludg number calls fered abed, average speed answer, average work time; speech--speech statistics; CapTel results. The billg statement also cludes summary reportg cusmer complats outreach efforts. The commissi notes that Csumer Advocate has not been copied any se commissi Csumer we hereafter Advocate Sprt s existg reports Csumer Advocate formati vestment not reports previously appears cluded formati, will se require Sprt reports gog forward. cta much be seekg. Sprt s however, we filed with copy formati The reports ly is do not believe type specific that that formati needs be cluded compliance reports.4 4As Sprt has already been dog, it should ctue keep commissi formed, seek our approval as appropriate, new vestments it plans make its network or operatis that are expected impact TRS Hawaii. Sprt should also keep Csumer Advocate formed se new vestments. 5

C. Carrier Ctributi Facr Fund Size Up furr review, commissi fds it reasable adopt commissi s proposals modify existg carrier ctributi facr fund size ir entirety as stated Order No. 20904. In particular, carrier ctributi facr for period July 1, 2004 June 30, 2005 is 0.0010 projected TRS fund size as July 1, 2004 will be established at $680,000. III. Orders THE COMMISSION ORDERS: 1. existg The commissi s ctributi facrs proposed modificatis fund size, as stated Order No. 20904, is adopted ir entirety. 2. The ctributi facr 2004 June 30, 2005 is 0.0010. for period July 1, The projected TRS fund size as July 1, 2004 is $680,000. 3. Each carrier shall complete submit a TRS Reportg Worksheet, attached this Order as Exhibit A. 4. Annual ctributis who owe ctributis are due July $1,200 or more may pay mthly stallments, due th 26 th; 26 twelve equal each mth, provided that y submit ir TRS Reportg Worksheet by July 26th. 6 carriers

5. For carriers reportg $10,000 or less gross trastate retail revenues, y shall ctribute at least $10.00 for period July 1, 2004 June 30, 2005. 6. Every carrier, Service ( CMRS ) providers, requirement TRS surcharge busess, HRS except Mobile Radio shall comply with 30-day notice 269-16(b) imposed its recover Commercial liar cusmers, amount 6-80-40(b) both for any residential its ctributi. CMRS providers shall place formati ir TRS surcharges ir websites, csistent with Decisi Order No. 20890, filed April 7, 2004, Docket No. 02-0186. 7. Sprt followg reports Performance; (2) shall copy Csumer Advocate commissi: Delquent Report; (1) Statement (3) TRS Fund Performance Informati Statistics. 8. Docket No. Order 03-0058, No. 20193, filed is amended csistent cditis this decisi order. Order No. 20193 remas unchanged. 7 May 23, 2003, with terms In all or respects,

DONE at Holulu, Hawaii this 10th day June, 2004. PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII By~ ~~ Carli P. Caliboso, Chairman By (EXCUSED) Wayne H. Kimura, Commissier By Jane E. Kawelo, Commissier APPROVED AS TO FORM: ~ Kev N. Katsura Commissi Counsel 04-O07Oel~ 8

State Hawaii Public Utilities Commissi Telecommunicatis Relay Services Carrier Remittance Worksheet For Period July 1, 20 June 30, 20 - ~ 1~~TJø$~~ ~ Date: Company Name: Mailg Address: Email Address: 1. Gross Revenues (Prior Calendar Year) 2. 3. 4. 5. 6. (e.g., Current year is 2004; Report revenues from 2003) (Amount should match ~ossrevenues reported for Hawaii PUC Fee purposes, HAS 269-30) Less: Revenue Adlustments (describe, see Secti E) > Gross Intrastate Retail Revenues Hawaii TRS Ctributi Facr Gross Hawaii TRS Assessment (le 3 x le 4) Greater le 5 or $10.00 (mimum duej.001 If Le 6 is less than $1,200, this is your annual ctributi TRS Fund for period begng July l~ current year June 30th followg year. Please pay amount le 6, full, by July 26th current year. Send your remittance with a copy this worksheet address listed below. If Le 6is $1,200 or more, ctue le 7 below. I 7.Dividele6byl2 Le 7 is your first mthly ctributi TRS Fund, for period begng July 1~f current year June 30m followg year. Send your 1St monthly remittance with a copy this worksheet address listed below. Please pay amount le 7 by July 26h~ NECA Services, Inc. will n send you a bill for ~remag eleven mthly payments. $EcTLQ~4p*~i~p~~ Under penalties as provided by law, I certify that I am duly authorized verify foregog formati ctaed here that formati is true correct best my knowledge belief. Date Officer Name Officer Signature Officer Title Date Ctact Name Ctact Phe Ctact Title Make checks payable Hawaii TRS send with worksheet : Attn: Hawaii TRS Admistrar NECA Services, Inc. 80 S. Jeffers Road Whippany, NJ 07981 Questis??? Hawaii TRS Admistrar NECA Services, Inc. 80 S. Jeffers Road Whippany, NJ 07981 Phe (973) 884-8011 Fax (973) 599-6504 HAW-PUC 03-400 EXHIBIT A (1 2)

If revenue adjustment(s) are not explaed here, amounts deducted will be disallowed proposed assessments may be prepared agast you. Describe amounts deducted from Gross Revenues obta Gross Intrastate Retail Revenues (list): Amount 1. 2. 3. 4. 5. 6. 7. B. 9. 10. TOTAL EXHIBIT A (2 2) HAW-PUC 03-400

CERTIFICATE OF SERVICE I hereby certify that I have this date served a copy foregog Order No. 21049 a copy here be up followg parties, by causg mailed, postage prepaid, addressed each such party. DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS DIVISION OF CONSUMER ADVOCACY P. 0. Box 541 Holulu, HI 96809 MAGGIE SCHOOLAR GOVERNMENT ACCOUNT EXECUTIVE SPRINT COMMQNICATIONS 1321 Rurford Lane, Suite 120 Aust, TX 78753 Karen Higashi DATED: June 10, 2004 properly

CERTIFICATE OF SERVICE I hereby certify that I have this date served a copy foregog Decisi Order No. parties, 21427 up by causg a copy here be mailed, followg postage prepaid, properly addressed each such party. DEPARTMENT OF CONMERCE AND CONSUMER AFFAIRS DIVISION OF CONSUMER ADVOCACY P. 0. Box 541 Holulu, HI 96809 J. DOUGLAS ING, ESQ. PAMELA J. LARSON, ESQ. WATANABE ING KAWASHIMA & KOMEIJI LLP rd 999 Bishop Street, 23 Floor Holulu, HI 96813 Atrneys for TIME WARNER CABLE INFORMATION SERVICES (HAWAII), INC. JULIE Y. PATTERSON, ESQ. TIME WARNER CABLE ASSISTANT GENERAL COUNSEL 290 Harbor Drive Stamford, CT 06902 ~ Karen Hi~4~J~i DATED: OcT 222004