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DEFINITIONS: Understanding the Local Telecommunications Competitive Environment
Basic Local Telecommunications Service - This term means voice-grade,
flat-rate residential and flat-rate single-line business local exchange services
which provide dial tone, local usage necessary to place unlimited calls within a
local exchange area, dual tone multi-frequency dialing, and access to the following:
emergency services such as "911," all locally available interexchange companies,
directory assistance, operator services, relay services, and an alphabetical directory
listing. For a local exchange telecommunications company, such term shall include
any extended area service routes, and extended calling services in existence or
ordered by the commission on or before July 1, 1995.
Non-basic Service - Any telecommunications service provided
by a local exchange telecommunications company other than a basic local telecommunications
service, a local interconnection arrangement described in Section 364.16, Florida
Statutes, or a network access service described in Section 364.163, Florida Statutes.
Network Access - Any service or facility provided by the incumbent
local exchange company or the alternative local exchange company to another telecommunications
service provider for the purpose of originating or terminating long distance traffic.
Number Portability - The ability of users of telecommunications services
to retain, typically at the same location, existing telecommunications numbers without
impairment of quality, reliability, or convenience when switching from one telecommunications
carrier to another.
Rate of Return Regulated - Under this method, the Commission
determines the amount of revenue a firm needs in order to provide services. This
determination involves establishing the appropriate rate of return and the allowable
rate base and expenses for the firm. Once the company's revenue requirement has
been established, rates are set to produce that level of revenue. This process constrains
the company's ability to act, or react, quickly to competitive changes. In order
for the company to change rates either up or down, it must come to the Commission
for approval to do so. Price changes are subject to a 60 day notice period, although
the Commission can, for good cause shown, allow changes without requiring the full
60 days.
Price Regulated - Under this method, the Commission does not
determine an appropriate level of revenue; its efforts are redirected at review
of price changes. The Law limits the upward movement of rates by means of price
caps which are the maximum allowable prices that may be charged for services. Price
regulation thus provides companies with greater pricing flexibility. Prices may
be adjusted to any point below the ceiling level without prior Commission approval.
Tariff filings by price regulated incumbent local exchange companies have shortened
notice periods, 1 to 30 days, depending on the nature of the filing. Changes are
treated as presumptively valid rather than having to be reviewed for Commission
consent as is the case under rate of return regulation.
Local Access And Transport Areas (LATAs) - A geographic area in which the
BellSouth and Verizon local exchange companies carry telephone calls. Local access
and transport areas are loosely based on standard metropolitan statistical areas
(SMSAs).
InterLATA - Telecommunications services that originate and terminate in different
Local Access and Transport Areas (LATAs).
IntraLATA - Telecommunications services that originate and terminate in the
same Local Access and Transport Area (LATA).
1+ IntraLATA and InterLATA Presubscription - With presubscription, calls dialed using 1
+ the phone number are routed to the long distance company of the customer's choice,
with separate selections for intraLATA and interLATA calling, respectively.
Local Interconnection - This term means the physical linking
of two networks for the mutual exchange of traffic. Whenever the commission finds
that connections between any two or more local exchange telecommunications companies,
whose lines form a continuous line of communication or could be made to do so by
the construction and maintenance of suitable connections are necessary, the commission
may require such connections to be made, may require that telecommunications services
be transferred, and may prescribe through lines and joint rates and charges to be
made, used, observed, and in force in the future and fix the rates and charges by
order to be served upon the company or companies affected.
Each competitive local exchange telecommunications company shall provide access
to, and interconnection with, its telecommunications services to any other provider
of local exchange telecommunications services requesting such access and interconnection
at nondiscriminatory prices, terms, and conditions. If the parties are unable to
negotiate mutually acceptable prices, terms, and conditions, either party may petition
the commission to make a determination.
No local exchange telecommunications company or competitive local exchange telecommunications
company shall knowingly deliver traffic, for which terminating access service charges
would otherwise apply, through a local interconnection arrangement without paying
the appropriate charges for such terminating access service.
Unbundling and resale - Upon request, each local exchange telecommunications
company shall unbundle all of its network features, functions, and capabilities,
including access to signaling databases, systems and routing processes, and offer
them to any other telecommunications provider requesting such features, functions
or capabilities for resale to the extent technically and economically feasible and
required by federal law. The parties shall negotiate the terms, conditions, and
prices of any feasible unbundling request. If the parties cannot reach a satisfactory
resolution, either party may petition the commission to arbitrate the dispute. In
no event, however, shall the local exchange telecommunications company be required
to offer such unbundled services, network features, functions or capabilities, or
unbundled local loops at prices that are below cost.
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