STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION

STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION TDS METROCOM, LLC s Petition for a ) Limited Number of Temporary Waivers and ) Exceptions to the Quality of Service Rules for ) Telecommunications Services ) Case No. U-13822 ) ) TDS METROCOM, LLC S PETITION FOR A LIMITED NUMBER OF TEMPORARY WAIVERS AND EXCEPTIONS TO THE COMMISSION S NEW QUALITY OF SERVICE RULES I. INTRODUCTION TDS Metrocom, LLC ( TDS Metrocom ) is a facilities-based competitive local exchange carrier ( CLEC ) that offers local, long distance, and enhanced telecommunications services to residential, business, and governmental customers in Michigan, Wisconsin, and Illinois. As a facilities-based provider, TDS Metrocom has invested over 70 million dollars in Michigan to build its telecommunications network. TDS Metrocom s facilities are located in the following areas in Michigan: Ann Arbor, Battle Creek/Kalamazoo, Grand Rapids, and Lansing/East Lansing. TDS Metrocom employs over 100 persons within the State of Michigan. TDS Metrocom is providing telecommunications services to over 46,000 lines in Michigan, of which 26,000 lines are residential lines. As a new market entrant, TDS Metrocom understands the necessity of providing the highest possible quality of service to its customers in order to compete with the incumbent local exchange carrier, SBC Michigan ( SBC ), and other CLECs. Only by providing high quality service that meets or exceeds customers expectations at 1

competitive prices will TDS Metrocom be able to maintain and expand its nascent customer base within Michigan. TDS Metrocom understands that the provision of poor service will result in the loss of its customers, who will simply return to SBC or seek service from other CLECs. The provision of high quality service to its customers is necessary to TDS Metrocom s very survival in the marketplace. As a facilities-based provider, TDS Metrocom is uniquely situated to provide high quality service to its customers without the same degree of dependence upon SBC s systems and the facilities as compared to CLECs that provision customers through the unbundled network element platform ( UNE-P ). Nevertheless, TDS Metrocom is still dependent upon SBC for certain facilities and services in order for TDS Metrocom to provide service to its customers. Particularly, TDS Metrocom is dependent upon SBC to timely provision and properly maintain and repair the unbundled network element known as the loop, which provides a transmission pathway between TDS Metrocom s facilities and the customers premises. Even as a facilities-based provider, TDS Metrocom is dependent in certain respects on the performance of SBC in order to meet the quality of service expectations of this Commission and TDS Metrocom s customers. As a facilities-based provider, TDS Metrocom s service footprint is concentrated in the geographic areas in which its facilities are located. This type of concentrated service footprint is much different from the ubiquitous service footprint of incumbent providers and those CLECs providing service to their customers through the UNE-P. In order to gain critical economies of scale, TDS Metrocom often utilizes resources in a concentrated manner to provide services to all of its customers in all three states in 2

which it offers service. For example, TDS Metrocom s call center located in Madison, Wisconsin provides assistance to customers in all three states. As a result of these circumstances and after consultation with Staff, TDS Metrocom files this request for a limited number of temporary waivers and exceptions to the quality of service rules promulgated by the Commission. In doing so, TDS Metrocom is not seeking to avoid its obligation to provide high quality service to its customers. Further, TDS Metrocom is focusing its requests based on the discussions with Staff as to the implementation of the rules. As discussed above, TDS Metrocom is fully cognizant of the fact that the provision of high quality service is essential to its survival and growth as a new entrant in the local telecommunications market. Instead, TDS Metrocom seeks a limited number of temporary waivers and exceptions primarily for two purposes. First, TDS Metrocom seeks waivers of a limited number of data collection requirements, which would be economically burdensome or are not technically feasible. In some instances discussed below, the cost of attempting to comply would exceed several millions of dollars. Second, TDS Metrocom seeks waivers from rules where TDS Metrocom is dependent on SBC to provision and repair loops under SBC s control. TDS Metrocom requests only temporary waivers because it understands that future events may result in circumstances in which fuller compliance will be possible. II. STANDARDS FOR GRANTING WAIVERS AND EXCEPTIONS Rule 71 of the Commission s quality of service rules specifically recognizes that certain providers may need waivers or exceptions to the Commission s quality of service rules. Rule 71(1) and (2) provides: 3

(1) A provider may petition for a permanent or temporary waiver or exception from these rules when specific circumstances beyond the control of the provider render compliance impossible or when compliance would be unduly economically burdensome or technologically infeasible. (2) A provider may request a temporary waiver in order to have sufficient time to implement procedures and systems to comply with these rules. (Emphasis added.) For the reasons set forth below, TDS Metrocom seeks temporary waivers and exceptions to certain limited rules because compliance would cause undue economic burden or is currently technologically infeasible. III. REQUEST FOR TEMPORARY WAIVERS AND EXCEPTIONS A. Rule 35(3) and Rule 61(1)(c) - - Business Offices TDS Metrocom maintains a toll free number which allows customers during normal business hours to call TDS Metrocom s call center located in Madison, Wisconsin. TDS Metrocom encourages and publishes the toll free number as the number customers should contact to assist customers. Nevertheless, TDS Metrocom has a number of business offices located throughout the State of Michigan including: Holland, Grand Rapids, Okemos, Portage, Jackson, and Livonia. Customers do contact these offices to obtain assistance. TDS Metrocom staffs all of its business office, including its call center in Madison, Wisconsin, to quickly respond to all customer questions and concerns. Rule 35(3) requires that a provider allow a customer to talk to someone who is able to provide assistance within a monthly average of 120 seconds of calling. Rule 61(1)(c) requires that TDS Metrocom measure this performance. TDS Metrocom s 4

Madison call center, however, receives calls and assists customers from Michigan as well as Wisconsin and Illinois. While the Madison call center has the ability to measure average hold times it does not have the ability to measure the average hold times separately for callers from Michigan, Illinois and Wisconsin. Thus, TDS Metrocom seeks a limited waiver from Rule 61(1)(c) and request to be allowed to measure compliance with Rule 35(3) based on all callers (whether from Michigan, Wisconsin or Illinois) to the Madison call center. Any attempt to segregate and measure separately Michigan callers would cause undue economic burden to TDS Metrocom and at this time is not technologically feasible given TDS Metrocom s current systems. TDS Metrocom s best estimate of the cost to segregate calls by state would cost 2 to 3 million dollars. In addition to the Madison, Wisconsin call center, TDS Metrocom has other business offices in Michigan. While customers are encouraged to call the toll free number to the call center, customers do call and do obtain assistance from the local Michigan offices. These smaller offices in Michigan do not have equipment to measure the monthly average response times. The cost of the equipment to measure response times in the Michigan offices is estimated to cost 2 to 3 million dollars for each office. As a result, TDS Metrocom requests a temporary waiver for calls to the Michigan offices because the cost to install measuring equipment would cause undue economic burden to TDS Metrocom. B. Rule 53(1) and Rule 61(1)(d) - - Customer Repair Requests As required by this rule, TDS Metrocom makes provisions for the receipt of customer repair requests at all hours. TDS Metrocom also offers support and seeks to 5

promptly assist any and all customers to resolve their repair problems. TDS Metrocom offers such assistance at its local Michigan business offices and through its call center s toll free number. In fact, TDS Metrocom provides extended hours of assistance Monday through Friday through its toll free number. On Saturdays and Sundays assistance through the toll free number is available from 9AM to 5PM. During other times, TDS Metrocom has an answering service which will connect a person seeking a repair to an appropriate TDS Metrocom representative. Rule 53(1) requires a provider to maintain adequate personnel to answer customer repair calls within a monthly average of 25 seconds. Rule 61(1)(d) requires that TDS Metrocom measure this performance. As stated above, the call center does not separately measure hold times for its callers from the 3 states that TDS Metrocom serves. Thus, TDS Metrocom seeks a limited waiver from Rule 61(1)(d) and request to be allowed to measure compliance with Rule 53(1) based on all callers (whether from Michigan, Wisconsin or Illinois) to the Madison call center. Any attempt to segregate Michigan callers and those callers requesting repairs would cause undue economic burden to TDS Metrocom. Furthermore, to the extent that repair calls are received after the extended business hours on a Monday through Friday or after 5PM on Saturday and/or Sunday, an answering service will connect the caller to a TDS Metrocom representative. It is possible that while the answering service is utilized the average call time may take more than 25 seconds. Furthermore, TDS Metrocom does not have systems in place to measure the length of time for a call to be processed by the answering service. An effort to install measuring systems and modify its answering service system to attempt to 6

measure all calls to determine a monthly average wait time for repair requests does not appear to be technologically feasible and other alternatives would result in an undue economic burden for TDS Metrocom. As discussed above in addition to the Madison, Wisconsin call center, TDS Metrocom has other business offices in Michigan. While customers are encouraged to call the toll free number to the call center, customers do call and do obtain assistance from the local Michigan offices. These smaller offices in Michigan do not have equipment to measure the monthly average response times. The cost of the equipment to measure response times in the Michigan offices is estimated to cost 2 to 3 million dollars. As a result, TDS Metrocom requests a temporary waiver for calls to the Michigan offices because the cost to install measuring equipment would cause undue economic burden to TDS Metrocom. C. Rule 55 and Rule 61(1)(b) - - Out of Service Repairs With respect to certain aspects of this rule, TDS Metrocom seeks a temporary waiver to the extent the out-of service repair relates to loops. Despite TDS Metrocom owning its own facilities, it is still dependent on SBC to maintain and repair the loops connecting TDS Metrocom s customers to TDS Metrocom s facilities. As a result, when a problem exists with the loops, TDS Metrocom can not assure that the trouble report is cleared within a monthly average of 36 hours after being reported to or found by the provider. Due to its dependence on SBC to correct these circumstances, TDS Metrocom requests an exception to this portion of the rule where the problem is caused by a loop owned and controlled by SBC. 7

Further, TDS Metrocom seeks a waiver of credit provisions set forth in Rule 55(2) and (3) to the extent that they relate to trouble caused by SBC s facilities. Initially, the Commission had considered a proposed recourse rule which would allow CLECs to seek recourse directly against SBC for having to pay these credits, if SBC s failure to timely repair service triggered the payment of the credit. Due to a recent federal court decision, the Commission reconsidered the wisdom of its proposed recourse rule and withdrew it. Instead, the Commission encouraged CLECs to negotiate recourse provisions within their interconnection agreements. Currently, TDS Metrocom is negotiating its interconnection agreement with SBC. TDS Metrocom intends to include such a recourse provision in its new interconnection agreement. Until such an agreement becomes effective, however, TDS Metrocom requests a waiver from the requirement to pay these credits where the credits are triggered by actions or inactions of SBC. Rule 61(1)(b) requires providers to measure their performance in meeting the 36 hour repair standard. TDS Metrocom requests a waiver from measuring this performance to the extent it relates to the repair of loops in the control of SBC. D. Rule 57 - - Repair Appointments and Commitments TDS Metrocom requests a temporary waiver of Rule 57. Recently, TDS Metrocom explored the possibility of obtaining software which would enable TDS Metrocom to coordinate customer repair requests and provide a time in which a customer could expect repair. An investigation to obtain such software revealed that this product is not currently available in the market. If and when such software becomes available, the estimated cost is expected to be in the neighborhood of 5 million 8

dollars. As a result, TDS Metrocom requests a temporary waiver of this rule while it continues to search the marketplace for an economic solution. E. Rule 58(1) and Rule 61(1)(e) - -Installation Commitments Rule 58(1) is written in a manner which recognizes, to a certain extent, that the ability of a CLEC to provide service to a customer is dependent upon the actions of others. Here, TDS Metrocom seeks a limited waiver due to the fact that it is a facilitiesbased provider. TDS Metrocom cannot immediately begin providing service to customers without first securing a working loop from SBC. TDS Metrocom requests a waiver to the extent that after SBC provides a working loop, TDS Metrocom should have 5 days to complete the installation. The need for this waiver is demonstrated by the length of time it takes SBC to provision a working T1 loop for a small business customer. TDS Metrocom has determined that the best manner to provide the highest quality of service to a business customer with more than 12 lines is through a T1 loop. The provisioning of a T1 loop by SBC will take longer than a standard loop. As a result, a waiver is necessary so that the small business customer with 12 or more access lines may have the benefit of a T1 loop. TDS Metrocom requests a waiver to the extent that after SBC provides a working T1 loop, TDS Metrocom should have 5 days to complete the installation. TDS Metrocom also requests an exception to this rule when large increases in the volume of new installation requests are received. For example, TDS Metrocom s facilities and thus its service areas are concentrated in Ann Arbor, East Lansing and Kalamazoo where three large universities are located University of Michigan, Michigan State University and Western Michigan University. At certain times each year during a 9

one to two month period, an extremely large number of telephone service installation requests are received in these areas. Neither TDS Metrocom nor SBC are staffed to meet this peak demand. Thus, it is very difficult for TDS Metrocom to secure loops and provision service within the time allotted by Rule 58(1) during this time period in these areas. With respect to time periods where the requests for new service installations exceed by more than 25% the average requests for new service in an area, TDS Metrocom requests an exception to the application of Rule 58. Such an exception is appropriate because it is not economically feasible to be staffed to meet this peak demand. In addition, TDS Metrocom requests a waiver of the credit provision to the extent the delay is caused by SBC. As discussed above, a waiver is appropriate because the Commission had initially considered a proposed recourse rule which would allow CLECs to seek recourse directly against SBC for having to pay for these credits, if SBC s failure to timely provide service triggered the need to pay the credits. As discussed above, the Commission did not adopt this proposed recourse rule. Instead, the Commission encouraged CLECs to negotiate recourse provisions within their interconnection agreements. Until such a new agreement is effective TDS Metrocom requests a waiver from the requirement to pay these credits where the credits are triggered by actions or inactions of SBC. Rule 61(1)(e) is the requirement to measure compliance with Rule 58(1). TDS Metrocom requests that the performance measure be modified to reflect the above exceptions. 10

IV. RELIEF REQUESTED WHEREFORE, TDS Metrocom, LLC, requests that the Commission grant its temporary waivers and exceptions as set forth above. Respectfully submitted, Fraser Trebilcock Davis & Dunlap, P.C. Attorneys for TDS Metrocom, LLC Dated: July 1, 2003 By: Michael S. Ashton (P40474) Business Address: 1000 Michigan National Tower Lansing, Michigan 48933 (517) 482-5800 Peter R. Healy Manager CLEC External Relations TDS Metrocom, LLC. 525 Junction Road Suite 56000 Madison, Wisconsin 53717 (608) 664-4117 11