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New York State Public Service Commission Issues Order Regarding Petition of Teleconnect Long Distance Services & Systems Company(Targeted News Service Via Acquire Media NewsEdge) ALBANY, N.Y., Oct. 23 -- The New York State Public Service Commission issued the following order: CASE 14-C-0380 - Petition of Teleconnect Long Distance Services & Systems Company Pursuant to Section 99 of the Public Service Law for Expedited Approval to Transfer Customers to its affiliate MCI Communications Services, Inc. d/b/a Verizon Business Services. SUMMARY OF RECOMMENDATION: Staff recommends that approval be granted, pursuant to Section 99 of the Public Service Law, for Teleconnect Long Distance & Systems Company to transfer its customer base to MCI Communications Services, Inc. d/b/a Verizon Business Services. SUMMARY By petition dated August 5, 2014, pursuant to Section 99 of the Public Service Law (PSL), Teleconnect Long Distance & Systems Company (Teleconnect) requests authority to transfer its customer base to its affiliate, MCI Communications Services, Inc. d/b/a Verizon Business Services (MCI Communications d/b/a Verizon Business). Other than a change in service provider name, the transaction will be transparent to New York customers, and Commission approval is recommended. BACKGROUND Teleconnect is an Iowa corporation with its principal office located in Basking Ridge, New Jersey. The company was originally authorized to provide resold interexchange services by order in Case 88-C-072, issued and effective June 1, 1988. Teleconnect currently provides resold long distance services including toll-free and calling card services to customers in New York. The company also provides "1010" dial around and operator services for casual calling customers. It is ultimately owned and controlled by Verizon Communications Inc., a publicly traded corporation with various subsidiaries providing telecommunications and other services. MCI Communications d/b/a Verizon Business is a Delaware corporation, with its principal offices located in Basking Ridge, New Jersey. The company was originally authorized to provide interexchange services in Case 28412, by order issued and effective April 25, 1983. It currently offers interexchange services in New York and is also ultimately owned and controlled by Verizon Communications Inc. PROPOSED TRANSACTION The Petitioners request approval for an internal corporate reorganization, whereby Teleconnect will transfer its customer base to MCI Communications d/b/a Verizon Business. MCI Communications d/b/a Verizon Business' tariffs will be revised to incorporate Teleconnect's services, as applicable. Following the transaction, Teleconnect will cease to operate and will file a request with the Commission to cancel its authority to operate in New York. According to the petition, Teleconnect's customers will not incur any charges as a result of the change in service provider from Teleconnect to MCI, and, for the most part, there will be no changes to customer rates, terms or conditions of service. In certain situations, where it will not be possible to move the customer's Teleconnect rate plan to the MCI billing system, customers will be offered a similar rate plan. Finally, following the transfer, Teleconnect customers who are solely calling card customers (i.e., with no other Teleconnect service) will no longer be able add minutes to use those cards or purchase new cards. Customers with prepaid cards will be able to use any remaining balances. Teleconnect customers were notified by mail beginning on August 1, 2014. The customer notification advised customers, among other things, of the pending change of their interexchange service carrier selection to MCI Communications d/b/a Verizon Business; that for most customers, there will be no change to rates, terms or conditions of service (for the few customers whose service cannot be moved over to the MCI billing platform, a description and detail of their proposed new service and rates is provided); that there will be no charges associated with the change to MCI as their interexchange carrier; that they have the option to select a different service provider if they prefer, with no penalty from Teleconnect. DISCUSSION The petitioners represent that the proposed transfer of customers is an internal corporate reorganization that will reduce costs and provide operational and economic efficiencies for Verizon as a whole. They further represent that the transaction will be virtually transparent to most customers and there will generally be no change in rates, terms and conditions of service, except in a certain few instances where customers will be offered a similar rate plan. Under Section 92-e(2) of the PSL, no telephone company is permitted to change a customer's preferred carrier unless it has complied with the authorization and confirmation procedures established by the Commission and by federal law and rules. Since there are no separate Commission authorization and confirmation procedures, compliance with the Federal Communications Commission rule, 47 C.F.R. Section 64.1120(e), satisfies the requirements of PSL Section 92-e(2). The petitioners will have notified all customers at least thirty days prior to the closing of this proposed transaction and such notice will satisfy 47 C.F.R. Section 64.1120(e) and, therefore, PSL Section 92-e(2). CONCLUSION Based on Staff's analysis and the representations in the petition, the proposed transfer of customers is in the public interest. Other than a change in service provider name, the transaction will generally be transparent to New York customers. RECOMMENDATION It is recommended that: 1. The Commission approve the petition for the proposed transfer of Teleconnect Long Distance Services & Systems Company's customer base to MCI Communications Services, Inc. d/b/a Verizon Business Services, pursuant to Section 99 of the Public Service Law. 2. Within 30 days following the closing of the transaction, Teleconnect Long Distance Services & Systems Company will file to cancel its tariff and request that its Certificate of Public Convenience and Necessity be withdrawn. 3. The case be closed. Respectfully submitted, JENNY QUIRK Utility Analyst II Office of Telecommunications Reviewed by, GRAHAM JESMER Assistant Counsel Office of General Counsel APPROVED: RUVAIN KUDAN Utility Supervisor Office of Telecommunications CC AutoTriage12bkp-141024-30VitinMar-4912432 (c) 2014 Targeted News Service |