Date: 29 Jan 92 19:13:44 CST From: Telecom Digest Reprint (telecom@eecs.nwu.edu) Subject: US West / Oregon PUC Hearing Summary (Attempts by telecom companies to increase rates for BBSs by classifying them as businesses continues to plague hobbyists. Most states have multiple companies serving customers, so there is no consistent policy within a given state. In Illinois, for example, GTE (formerly Contel) has had a BBS-as-business policy for several years but has never enforced it. Because GTE only recently took over Contel, it is unclear how they will act in the future, but Contel spokespersons indicated last summer that they only raised the issue if somebody brought it to their attention, and no one could think of an Illinois BBS that paid business rates. In the past year, other state public utilities commissions (PUCs) have authorized telecos to charge BBSs with business rates (eg, Indiana, Michigan), and the issue is currently alive in Illinois. The following summary of the Oregon Public Utility Commission hearings addressing BBS rates is reprinted from Telecom Digest. Telecom Digest is the best source for technical and other information on telecommunications, and is accessible either through usenet (comp.dcom.telecom) or from the TD mailing list (contact the moderator, Pat Townson). ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ (Forwarded from Fidonet echo PNB-BELL) Message #1241 "PNB.Bell" Date: 29-Dec-91 10:53 This was posted by Bob Covington who was there: NOTES ON PUC HEARING (Wagner vs. US West) - 12/10/91 REFERENCES: ORS 759.210 Rules and Regulations Section 12 (Tariff Agreement) Schedule 1-A US West Interogatory Document In attendance: 13 Portland Sysops 2 Salem Sysops -Bob Covington -Jeff Heistand 3 US West Representatives -Mr. Holmes, Attorney -Jeff Pennington, Regulatory Manager/PUC Liaison Points raised by US West: 1. First Choice BBS has 618 users. Sysop does not personally participate in all conferences (500+) nor read all messages, nor correspond with all users. BBS is open to "all comers" and therefore isn't for personal use or interest of the subscriber. 2. US West views BBS's as "Bulletin Board Services" and refers to users as "customers." 3. Whether a BBS charges a subscription/membership fee or takes donations isn't an issue for US West. A BBS is not residential under the Tariff section saying "... or use of the service is not obviously limited to domestic use." "Domestic use" may involve phone subscriber and household members only. Allowing the public to use a BBS is therefore not interpreted as "domestic use." 4. Residential rates are insufficient to recover costs of service. Domestic rates are subsidized by 44% in an attempt to comply with legislation calling for "universal service" (ie: access to phone service to all citizens). Business rates are adjusted to recover full costs of service. Residential rates (both measured and flat rate) are discounted 44%. 5. BBS calling patterns meet the definitions for that associated with business use. Rates are set based on volume, whether calls originate or terminate at "premise" (phone location), and other factors. High volumes of calls cost US West more to service than residential use. Business rates are charged to United Way, Boy Scouts, churches and others for similar non-residential use. 6. Asking for residential rates for a BBS is "asking all subscribers to subsidize your hobby." It is unfair to ask "full cost recovery" subscribers to subsidize residential BBS's. 7. End users (those calling BBS's with modems) are making personal calls and are not affected by US West's position on BBS use. Calls originate from the subscriber's phone when a BBS is called. But calls terminate at the BBS phone. The number of terminating calls is a key factor in determining rate charged. 8. Higher usage means higher costs for US West. Measured service costs US West more to maintain than flat-rate service, due to the cost of call counting equipment and billing on a per call basis. 9. BBS's "go beyond the definition of immediate household use." They provide a service to the public at large without any attendance or involvement of the [phone] subscriber. 10. US West does not see a need to establish other subscriber billing levels since BBS use is clearly non-residential. Although they do have a rate higher than residential but lower than business called "Teen Link" which provides enhanced phone services. 11. Service costs decrease up to the previous number of installed lines. The number of lines included in a "drop" is determined by demographics, intended use, expected growth and other factors. Older neighborhoods tend to have only two lines laid ... while newer larger complexes have five lines standard. Once capacity is reached, US West's costs increase to provide more lines, and at residential rates these costs are not recoverable. 12. US West does not keep records of calls for flat-rate subscribers, but does for metered-rate subscribers. 13. "BBS use is a new issue with US West." And they intend to make adjustments to those subscribers pending the outcome of this case. New subscriber installations for BBS use at this time are now charged non-residential rates automatically if they are aware of such use. 14. BBS's provide an opportunity for business transactions through "For Sale" conferences, or in messages. Unless sysops read all messages and have policies prohibiting any advertising, marketing or sales activities online ... then there is no guarantee that business isn't being conducted. 15. If a caller is confronted with the name of the BBS rather than a person's voice, then residential use is suspect. A BBS name, for this purpose, is the same as a business name. 16. There is no truth in the idea that US West is trying to put BBS's "out of business" or that they are in competition with any proposed services they may offer. US West is interested in not allowing residential BBS's to be subsidized when their use is non-residential. Questions Raised by Hearings Officer: 1. Is the phone answered by person or by machine? 2. Does any advertising, small business marketing, or sales activity ever take place on the BBS? (excepting the equivalent of "Nickle Ads") 3. Are any fees of any kind collected? Are any donations or other income received in connection with BBS operation? 4. Are business contacts or referrals ever made in relation to operation of the BBS? Is there any contact with customers or potential customers on the BBS? 5. Do shareware files downloaded from a BBS require payment? Are shareware files on the BBS written by "amateurs" in their spare time, or by professionals? 6. Do any of the echo conferences include advertisements for products for sale, or does any ordering of products take place? Timeline/Follow-ups: Hearings Officer ordered transcript. Will be available in 3-4 weeks. PUC staff will research whether any previous decision relating to this case are on file. Opening Briefs due no later than 1/14/91. US West final written comments due by 1/24/91. Additional public comment accepted for 30 days from date of hearing. By Bob Covington ++++++++++++++++++++++++ And here is a post by Bob listing the part of the tariff agreement which US West is basing their claims and case on: On August 22, 1987, the following section of "Rule and Regulation 12" applying to US West's Business and Residence Service was adopted as PUC Order No. 5: A. GENERAL The applicability of business and residence rates is governed by the actual or obvious use made of the service. The use which is to be made of the service will be ascertained from the applicant at the time of application for service. 1. Business rates apply at the following locations: A. In offices, stores, factories and all other places of a strictly business nature. B. In boarding houses and rooming houses with more than five rooms available for rent (except as noted under 2.) colleges, clubs, lodges, schools, libraries, churches, lobbies and halls of hotels, apartment buildings, hospitals, and private and public institutions. C. At any location when the listing of "office" is provided or when any title indicating a trade, occupation or profession is listed (except as modified under the directory listing schedule) and at any location classified under 2., regardless of the form of listing when extension service is provided to a place not a part of a domestic establishment. D. At residence locations when the customer has no regular business telephone service and the use of the service by himself, members of his household, or his guests is for the purpose of conducting a business, trade, or profession, or whose use of the service is obviously not confined to domestic use. E. In general, at any place where the substantial use of the service is occupational rather than domestic. 2. Residence rates apply in locations where customers reside and whose substantial use of the service is domestic and not for purposes of conducting business. 3. If it is found that a customer is using residence service for business purposes, the Company will require the customer to take business service, except in cases where the customer use of the service is primarily for social or domestic purposes. Customers moved from residential to business service will be notified by the Company of their right of appeal with the Public Utility Commission of Oregon. Aside from the sexist language in Section D ("himself," "his"), US West is clearly focusing (in this case at least) on proving that because a sysop does not personally know, or have contact with all callers to his/her BBS, that it is not "domestic use." And that it is the electronic equivalent of the types of locations mentioned under Section C if the BBS provides public access. Of course, my reading of these same sections clearly tells me that a residential BBS does NOT fall under any stretch of the "business" definitions herein. Just wanted to get these online for those interested. Hope this helps anyone. ++ "Lightfinger" Rayek's Friendly Casino: 206/528-0948, Seattle, Washington. Downloaded From P-80 International Information Systems 304-744-2253