Order 15624 - Public Interest Payphones: Order Announcing the Opening of the Docket

 

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

PUBLIC UTILITIES COMMISSION

ORDER

WHEREAS, Section 276(b)(2) of the Telecommunications Act of 1996 ("Act") required the Federal Communications Commission ("FCC") to determine whether public interest payphones ("PIPs") should be maintained and, if so, ensure that such public interest payphones are funded fairly and equitably; and

WHEREAS, The Act defined a PIP as a pay telephone which (1) fulfills a public policy objective in health, safety, or public welfare, (2) is not provided for by a location provider with an existing contract for the provision of a payphone, and (3) would not otherwise exist as a result of the operation of the competitive marketplace; and

WHEREAS, The FCC, in Order No. FCC 96-388, CC Docket No. 96-128, determined that states have the authority to address the need for PIPs, and that any effort to implement a uniform national program would unlikely be as successful in accounting for differing conditions among the states; and

WHEREAS, The FCC directed each state to evaluate whether it needs to take any measures to ensure that PIPs serving important public interests will continue to exist in light of the elimination of subsidies and other competitive provisions established pursuant to Section 276, and to complete the evaluation by October 7, 1998; and

WHEREAS, The FCC also determined that the states should administer and fund PIPs in a manner that is competitively neutral, and which fairly and equitably compensates entities providing PIPs. States have discretion as to how to fund the PIPs program, so long as the funding mechanism fairly and equitably distributes the costs of such a program, and does not involve the use of subsidies prohibited by Section 276(b)(1)(B); and

WHEREAS, The Public Utilities Commission ("Commission") opens this docket in order to accomplish its evaluation of the need for PIPs pursuant to Section 276, as interpreted by the FCC orders and rules. The docket raises the following questions, among others:

1. What is the definition of payphone services?

2. What objective standards should determine where PIPs should be located?

3. Is there a need for PIPs in Rhode Island? Why or why not?

4. Who or what entity should determine the geographical placement of PIPs?

5. Who should be allowed to petition for the placement of PIPs?

6. Should each payphone location be required to contribute to the funding of PIPs?

7. If it is determined that the State is responsible for the funding of PIP service, what methods should be used to raise the necessary revenues?

8. How should the amount required to provide PIPs be determined?

9. Should a cap be established regarding the total amount to be provided for such PIPs?

10. If a separate fund is established, who should administer the fund?

11. How can the Commission ensure that subsidies for these PIPs are available to payphone service providers on a nondiscriminatory basis?

12. How will be subsidy for individual PIPs be determined?

WHEREAS, Parties desiring to participate in this docket (other than the Division of Public Utilities and Carriers and the incumbent local exchange carrier, New England Telephone and Telegraph Company d/b/a Bell Altantic - Rhode Island) are directed to file petitions to intervene not later than June 26, 1998.

Accordingly, it is

(15624) ORDERED:

Docket No. 2742 is hereby opened to respond to the FCC's mandate regarding public interest payphones. Parties desiring to intervene must file petitions not later than June 26, 1998.

DATED AND EFFECTIVE AT PROVIDENCE, RHODE ISLAND ON JUNE 9, 1998.

PUBLIC UTILITIES COMMISSION