2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 30 - Alternative Form of Regulation of Telecommunications Services
3016 - Competitive services.

     § 3016.  Competitive services.
        (a)  Commission determination of protected, retail
     nonprotected and retail noncompetitive services as
     competitive.--
            (1)  A local exchange telecommunications company may
        petition the commission for a determination of whether a
        protected or retail noncompetitive service or other business
        activity in its service territory or a particular geographic
        area, exchange or group of exchanges or density cell within
        its service territory is competitive based on the
        demonstrated availability of like or substitute services or
        other business activities provided or offered by alternative
        service providers. The commission, after notice and hearing,
        shall enter an order granting or denying the petition within
        60 days of the filing date or within 150 days of the filing
        date where a protest is timely filed, or the petition shall
        be deemed granted.
            (2)  The local exchange telecommunications company shall
        serve a copy of its petition on the Office of Consumer
        Advocate, the Office of Small Business Advocate and each of
        the parties to the commission's proceeding in which the
        company's network modernization plan that was in effect on
        December 31, 2003, was approved by the commission.
            (3)  In making its determination, the commission shall
        consider all relevant information submitted to it, including
        the availability of like or substitute services or other
        business activities, and shall limit its determination to the
        service territory or the particular geographic area, exchange
        or group of exchanges or density cell in which the service or
        other business activity has been proved to be competitive.
            (4)  The burden of proving that a protected or retail
        noncompetitive service or other business activity is
        competitive rests on the local exchange telecommunications
        company.
        (b)  Declaration of retail nonprotected services as
     competitive.--Notwithstanding the provisions of subsection (a),
     a local exchange telecommunications company may declare any
     retail nonprotected service as competitive by filing its
     declaration with the commission and serving it on the Office of
     Consumer Advocate, Office of Small Business Advocate and each of
     the parties to the commission's proceeding in which the
     company's network modernization plan that was in effect on
     December 31, 2003, was approved by the commission, provided that
     a local exchange telecommunications company may not use this
     declaration process for any service that the commission
     previously has reclassified as noncompetitive under either
     subsection (c) or prior law. A declaration of a retail
     nonprotected service as competitive shall be effective upon
     filing by the local exchange telecommunications company with the
     commission.
        (c)  Reclassification.--
            (1)  A party may petition the commission for a
        determination of whether a service or other business activity
        previously determined or declared to be competitive is
        noncompetitive. The commission, after notice and hearing,
        shall enter an order deciding the petition within 60 days of
        the filing date or 90 days of the filing date where a protest
        is timely filed, or the petition shall be approved.
            (2)  The petitioner shall serve a copy of the petition on
        the affected local exchange telecommunications company if the
        petitioner is not the company, the Office of Consumer
        Advocate, the Office of Small Business Advocate and each of
        the parties to the commission's proceeding in which the
        company's network modernization plan that was in effect on
        December 31, 2003, was approved by the commission.
            (3)  In making its determination, the commission shall
        consider all relevant information submitted to it, including
        the availability of like or substitute services or other
        business activities, and shall limit its determination to the
        particular geographic area, exchange or density cell in which
        the service or other business activity has been proved to be
        noncompetitive.
            (4)  The burden of proving that a competitive service or
        other business activity should be reclassified as
        noncompetitive rests on the party seeking the
        reclassification.
            (5)  If the commission reclassifies a service or other
        business activity as noncompetitive, the commission shall
        determine a just and reasonable rate for the reclassified
        service or business activity in accordance with section 1301
        (relating to rates to be just and reasonable).
        (d)  Additional requirements.--
            (1)  The prices which a local exchange telecommunications
        company charges for competitive services shall not be less
        than the costs to provide the services.
            (2)  The commission may not require tariffs for
        competitive service offerings to be filed with the
        commission.
            (3)  A local exchange telecommunications company at its
        option may tariff its rates subject to rules and regulations
        applicable to the provision of competitive services.
            (4)  The commission may require a local exchange
        telecommunications company to maintain price lists with the
        commission applicable to its competitive services. Price
        changes that are filed in a company's tariff for competitive
        services will go into effect on a one-day notice.
        (e)  Pricing flexibility and bundling.--
            (1)  Subject to the requirements of subsection (d)(1), a
        local exchange telecommunications company may price
        competitive services at the company's discretion.
            (2)  A local exchange telecommunications company may
        offer and bill to customers on one bill bundled packages of
        services which include nontariffed, competitive,
        noncompetitive or protected services, including services of
        an affiliate, in combinations and at a single price selected
        by the company. A local exchange telecommunications company
        may file an informational tariff for a bundled package
        effective on a one-day notice.
            (3)  When an alternative service provider is offering
        local exchange telecommunications services within an exchange
        of a rural telecommunications carrier, the rural
        telecommunications carrier may reduce its prices on services
        offered within the exchange below the rates set forth in its
        otherwise applicable tariff in order to meet such
        competition. A rural telecommunications carrier may not
        offset revenue reductions resulting from such competitive
        pricing by increasing rates charged to other customers
        through its price stability mechanism or otherwise.
        (f)  Prohibitions.--
            (1)  A local exchange telecommunications company shall be
        prohibited from using revenues earned or expenses incurred in
        conjunction with noncompetitive services to subsidize
        competitive services.
            (2)  Paragraph (1) shall not be construed to prevent the
        marketing and billing of packages containing both
        noncompetitive and competitive services to customers.
     (Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

        2004 Amendment.  Act 183 added section 3016.
        Cross References.  Section 3016 is referred to in sections
     3012, 3013, 3019 of this title.