Number te-9523 Date June 17, 2008 Mail Log N

Number TE-9523

Date June 17, 2008

Mail Log No. 110972

To: Steven B. Larsen, Chairman

Harold D. Williams, Commissioner

Allen M. Freifeld, Commissioner

Susanne Brogan, Commissioner

Lawrence Brenner, Commissioner
FROM: Anthony Myers, Assistant Executive Director
Re: Teleconnect Long Distance Services and System Company ("Teleconnect") – Tariff Filing
Description of Application:
Teleconnect proposes to grandfather the “TUSA TalkSmarter Block of Time 500” and “TUSA TalkSmarter USA” plans.
Groups which should receive a copy of Staff Recommendation:
Applicant.
Recommended Action (Including Conditions):
Staff recommends that the Commission accept the tariff for filing.

______________________________ __________________________

Merwin R. Sands, Director James W. Boone

Telecommunications Division Staff Counsel

Commission Action on_________________________:
Approved________ Disapproved_________ Accept for Filing_______
cc: Douglas R. M. Nazarian, General Counsel

Terry J. Romine, Executive Secretary

Bryan G. Moorhouse, Chief Hearing Examiner

LaWanda Edwards, Manager, Office of External Relations

COMMENTS OF THE TELECOMMUNICATIONS DIVISION
Introduction
The Company is proposing to grandfather the TUSA TalkSmarter Block of Time 500 and TUSA TalkSmarter USA plans. The Company is requesting an effective date of June 29, 2008.
Description of Proposed Tariff
Teleconnect is proposing to grandfather both the TUSA TalkSmarter Block of Time 500 plan and the TUSA TalkSmarter USA plan effective June 29, 2008. These plans are targeted at residential customers and provide these customers with inbound and outbound toll calling, as well as options for calling card service, directory assistance, and operator services.
Applicable Law
InterLATA toll (long distance or interexchange) services are competitive services, regulated pursuant to the Commission’s Order in Re MCI Telecommunications Corp., 75 Md. P.S.C. 331 (1984). In that Order, the Commission determined that a streamlined regulatory approach is appropriate for competitive long distance carriers. The Commission therefore waived many of the COMAR requirements that would otherwise apply to such carriers. The Commission has since classified intra-LATA toll services as competitive services in Verizon’s Price Cap Plan.¹ The FCC has eliminated the tariffing requirement at the Federal level. However, since interexchange service is provided on an intrastate basis within Maryland, and interexchange carriers remain public service companies under the definition in § 1-101 of the Public Utility Companies Article (“PUC Article”) of the Maryland Code, they continue to file tariffs at the Maryland Public Service Commission, pursuant to § 4-202 of the PUC Article.
Analysis
When Teleconnect introduced TUSA TalkSmarter Block of Time 500 and TUSA TalkSmarter USA on December 7, 2005, it inadvertently omitted the pages that included the rates for these plans. Since Teleconnect has been charging for these services which were not included in the tariff, it may be necessary for the Company to refund any previously charged amounts associated with these services. Staff has begun discussions with the Company in order to ascertain both the number of customers and the amounts charged. If it is determined that a refund is necessary, Staff will work with the Company to ensure that a suitable mechanism is found, and that all refunds are made properly. Staff intends to file supplemental comments in order to update the Commission on its investigation into this matter. Staff recommends that the Commission accept the tariff revisions so that the Company is in compliance prospectively.
Recommendation
Staff recommends that the Commission accept the tariff for filing.

___________________________

Kevin Mosier

Regulatory Economist

1 See In the Matter of the Provision of Universal Service to Telecommunications Consumers, et. al., Case Nos. 8745, 8918 and 8937, Order No. 80407 (Nov. 23, 2005) (approving the Settlement Agreement which reclassified intra-LATA toll as competitive); In the Matter of Verizon Maryland, Inc.’s Transmittal 1420 Proposing to Increase Rates for the IntraLATA Toll Component of the Regional Essentials and Regional Value Packages, Case 9090, Order No. 81547 (Aug. 3, 2007) (acknowledging that intra-LATA toll is regulated as a competitive service, but constraining Verizon’s ability to raise the price of the service when it is sold in a bundle with non-competitive services).