Allnet Communications Serv., Inc. v. Pub. Util. Comm.

1994 Ohio 460
CourtOhio Supreme Court
DecidedSeptember 13, 1994
Docket1993-1612
StatusPublished

This text of 1994 Ohio 460 (Allnet Communications Serv., Inc. v. Pub. Util. Comm.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allnet Communications Serv., Inc. v. Pub. Util. Comm., 1994 Ohio 460 (Ohio 1994).

Opinion

OPINIONS OF THE SUPREME COURT OF OHIO The full texts of the opinions of the Supreme Court of Ohio are being transmitted electronically beginning May 27, 1992, pursuant to a pilot project implemented by Chief Justice Thomas J. Moyer. Please call any errors to the attention of the Reporter's Office of the Supreme Court of Ohio. Attention: Walter S. Kobalka, Reporter, or Deborah J. Barrett, Administrative Assistant. Tel.: (614) 466-4961; in Ohio 1-800-826-9010. Your comments on this pilot project are also welcome. NOTE: Corrections may be made by the Supreme Court to the full texts of the opinions after they have been released electronically to the public. The reader is therefore advised to check the bound volumes of Ohio St.3d published by West Publishing Company for the final versions of these opinions. The advance sheets to Ohio St.3d will also contain the volume and page numbers where the opinions will be found in the bound volumes of the Ohio Official Reports.

Allnet Communications Services, Inc., Appellant, v. Public Utilities Commission of Ohio et al., Appellees. [Cite as Allnet Communications Serv., Inc. v. Pub. Util. Comm. (1994), Ohio St.3d .] Public Utilities Commission -- Telephone companies -- Intra-state and intra-LATA access services and charges -- Commission order affirmed, when. (No. 93-1612 -- Submitted May 24, 1994 -- Decided September 14, 1994.) Appeal from the Public Utilities Commission of Ohio, PUCO No. 86-771-TP-CSS. In United States v. Am. Tel. & Tel. Co. [D.D.C. 1982], 552 F. Supp. 131, affirmed sub nom. Maryland v. United States 1983, 460 U.S. 1001, 103 S.Ct. 1240, 75 L.Ed.2d 472, the District of Columbia federal district court approved a consent decree dividing the Bell territory into Local Access and Transport Areas ("LATAs") (roughly the equivalent of area code boundaries in Ohio). The Bell Operating Companies ("BOCs") were limited to carrying traffic between telephones in the same LATA and providing access to their local exchange networks (on both an inter-LATA and intra-LATA basis) to AT&T and other long distance carriers ("interexchange carriers" or "IXCs"). In United States v. W. Elec. Co., Inc. (D.D.C. 1983), 569 F.Supp. 990, and 569 F. Supp. 1057, the district court further clarified the consent decree approved in AT&T. As to the access service to be provided by the BOCs, the district court required that it be "equal in type, quality, and price to that provided to AT&T and its affiliates." AT&T, supra, at 196; W. Elec., supra, at 1062. Prior to divestiture, AT&T was provided access to the local exchange networks through Feature Group C, which was superior to the Feature Groups A and B access provided to its competitors.1 Feature Group C was not only higher in technical quality than Feature Groups A and B, but also permitted AT&T to access the local network through "one-plus dialing."2 Under Feature Groups A and B access, AT&T's competitors could access the local network only by dialing multi-digit access codes. The federal mandate required inter-LATA equal access for all IXCs to be provided through facilities equipped with Feature Group D, which provided the same technical quality of service and one-plus dialing for all IXCs on a presubscribed basis.3 The conversion to Feature Group D access was to be phased-in over a period of time. During the interim, the district court ordered that reduced access rates be charged to those IXCs that received access inferior to AT&T (i.e., "non-premium" access). AT&T at 199. The Federal Communications Commission ("FCC") subsequently adopted rules and approved Ameritech's (Ohio Bell's parent) tariff for inter-state, inter-LATA access services that contained a fifty-five percent discount for non-premium service, i.e., access provided over Feature Groups A and B. The rate for access provided over Feature Group D was not discounted. The Ohio Public Utilities Commission ("commission") chose to "mirror" the FCC-approved access charges for intra-state (inter-LATA and intra-LATA) traffic in its May 21, 1984 order in case No. 83-464-TP-COI, without specifically addressing the district court's distinction between inter-LATA and intra-LATA equal access. Thus on an inter-LATA basis, the BOCs are to provide to the IXCs access equal to that provided AT&T, which would include one-plus dialing on a presubscribed basis through Feature Group D. However, on an intra-LATA basis, the district court's definition of equal access did not include dialing parity as in the inter-LATA definition. Rather, it permitted inequalities between the BOCs on the one hand (which subscribers could access using one-plus dialing) and AT&T and the its competing IXCs on the other hand (which subscribers could access by using a five digit-code ["10XXX"]). The court permitted this inequality, noting that one-plus dialing for all would involve presubscribing to either an IXC or BOC. It reasoned that most, if not all, subscribers would choose an IXC because, under the terms of the consent decree, an IXC can carry inter- and intra-LATA toll calls, while the BOCs can carry only intra-LATA calls. It stated that "it was not the Court's intention to require the decimation of the local telephone networks or to deprive customers of the conveniences and cost benefits which the Operating Companies have succeeded in making available to them." W. Elec., supra, at 1108. Ultimately, it left to the individual states what intrastate calling arrangements best suited their circumstances. Id. at 1109. On May 7, 1986, appellant, Allnet Communications Services, Inc. ("Allnet"), an IXC which provides inter- and intra-LATA toll service in Ohio, filed a complaint with the commission, under R.C. 4905.26, alleging that Ohio Bell's intra-state, intra-LATA access services and charges were unjustly discriminatory, unreasonable, and unlawful. Allnet contended that it was paying premium access rates while being provided inferior access service. It requested that its access charges be reduced to reflect the "non-premium" service it was receiving, and that Ohio Bell be required to provide one-plus access to Allnet and other IXCs, upon their request. The commission granted Ohio Bell's motion to dismiss the complaint, finding that the issue of intra-LATA access charges should be addressed in a generic proceeding initiated by the commission and involving all IXCs. On August 24, 1988, we reversed and remanded the case for hearing, finding that reasonable grounds for complaint had been stated under R.C. 4905.26. We also left to the commission's discretion "whether the hearing should be limited to Allnet's complaints against Ohio Bell or part of a 'generic' proceeding." Allnet Communications Serv., Inc. v. Pub. Util. Comm. (1988), 38 Ohio St.3d 195, 196, 527 N.E.2d 840, 842. On remand, hearing was first scheduled to proceed on a complaint basis; the commission then encouraged all local exchange companies ("LECs") and IXCs to intervene (as in a generic case); then ruled that all LECs would be joined as respondents and all IXCs that intervened as complainants; and finally dismissed all parties except Allnet and Ohio Bell, finding that a generic proceeding would be held at a later date.

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