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Ohio Alternative Regulation. A form of “Rate Freeze” An off-the-shelf plan for all ILECs Applies to ILECs Services in Tiers Tier 1 Core Tier 1 non-Core Tier 2. What does an ILEC agree to. Provide flat-rate residential calling option Cap rates for Tier 1 core services for life of plan
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Ohio Alternative Regulation • A form of “Rate Freeze” • An off-the-shelf plan for all ILECs • Applies to ILECs • Services in Tiers • Tier 1 Core • Tier 1 non-Core • Tier 2
What does an ILEC agree to • Provide flat-rate residential calling option • Cap rates for Tier 1 core services for life of plan • Basic local and basic caller ID • Cap rates for Tier 1 non-core services for 24 months • After 24 months can raise second line and call waiting by no more than 10% per year, till get to double the original price • After 24 months can raise all other services to a cap that is double the initial rate • Tier 2 services are tariffed, but may be priced at market rates
The Tiers • Tier 1 non-core • 2nd basic local service line, 3rd basic local service line, call trace, PBX trunks, Centrex, non-published numbers, payphone access lines, N-1-1 service • Tier 2 • All other regulated services
Notification of rate changes • New Tier 1 services—30 day approval timeframe • Customer 15 day notice of increases within the range for Tier 1 services • Concurrent customer notice for Tier 2 increases • All customer notices approved by PUCO
More ILEC agreements • Provide advanced services • High Density Class 5 offices (500 people per square mile) • 12 months, offer broadband to within 12,000 feet of CO • 24 months, offer broadband to within 18,000 feet • County Seat Class 5 offices • 12 months, broadband to within 12,000 feet of CO • 24 month, broadband to within 18,000 feet of CO
Even more ILEC agreements • Lifeline program • Flat-monthly line service with touch-tone—applies to only one access line per household • Credit the subscriber for installation charges and also to match the Federal SLC credit • Waiver of deposit to start service, free toll blocking, option to purchase vertical features needed for medical or safety reasons
More on Lifeline • Eligibility tied to qualifying programs--SSI, food stamps, etc.—automatic • Special payment arrangements to help customers with past due local bills • Annual marketing effort to inform citizens of Lifeline availability
What do all the parties get? • ILEC • Pricing flexibility in competitive services; no earnings limitations • Consumers • Advanced services • Frozen local rates • Expanded Lifeline assistance