Illinois Independent Telephone Ass'n v. Illinois Commerce Commission

539 N.E.2d 717, 183 Ill. App. 3d 220, 132 Ill. Dec. 154, 1988 Ill. App. LEXIS 1892
CourtAppellate Court of Illinois
DecidedNovember 3, 1988
DocketNos. 4—87—0899, 4—87—0919 cons.
StatusPublished
Cited by17 cases

This text of 539 N.E.2d 717 (Illinois Independent Telephone Ass'n v. Illinois Commerce Commission) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Independent Telephone Ass'n v. Illinois Commerce Commission, 539 N.E.2d 717, 183 Ill. App. 3d 220, 132 Ill. Dec. 154, 1988 Ill. App. LEXIS 1892 (Ill. Ct. App. 1988).

Opinion

JUSTICE KNECHT

delivered the opinion of the court:

This case involves questions concerning the conditions under which long-distance telephone carriers may provide service between points located in the same market service area (MSA). Several provisions of the Universal Telephone Service Protection Law of 1985 (Protection Law) (Ill. Rev. Stat. 1985, ch. 1112/3, pars. 13 — 100 through 13 — 803) provide the principal bases for the contentions of the parties.

Many technical terms peculiar to the telecommunications industry pervade this opinion. These terms are defined in our recent opinion in GTE MTO, Inc. v. Illinois Commerce Comm’n (1988), 166 Ill. App. 3d 916, 521 N.E.2d 547, and we will not in this opinion repeat their definitions. (On January 6, 1989, the supreme court dismissed a petition for leave to appeal this court’s decision in GTE MTO and vacated this court’s judgment in that case. In a further order entered February 24, 1989, the supreme court denied a motion to reconsider its January 6, 1989, dismissal of the petition for leave to appeal in GTE MTO and remanded the cause to this court with instructions to consider all issues briefed and argued by the parties. The apparent basis for these orders was amendments to the Universal Telephone Service Protection Law of 1985 (Ill. Rev. Stat. 1985, ch. 1112/3, pars. 13 — 100 through 13 — 803), which were passed by the legislature and signed into law after the filing of this court’s opinion in GTE MTO. (Pub. Act 85 — 1161, eff. Aug. 12, 1988; 1988 Ill. Legis. Serv. 1188, 1188-89 (West); 1988 Ill. Laws 1306 (amending Ill. Rev. Stat. 1987, ch. 1112/3, par. 13 — 405).) These statutory amendments are discussed later in this opinion. They do not, however, affect the validity of the definitions of technical terms contained in this court’s opinion in GTE MTO.)

On December 22, 1986, respondent MCI Telecommunications Corporation (MCI) filed with the Illinois Commerce Commission (ICC) an application for modification of its intra-MSA certificate of interexchange service authority, requesting it be authorized to provide facility-based intra-MSA interexchange telecommunications services throughout Illinois. MCI’s application noted the ICC had previously found MCI possesses sufficient technical and operational competence, and possesses the legal authority and financial ability, to be entitled to authority to provide inter-MSA service in Illinois. MCI further noted that on May 16, 1986, the ICC had granted it authority to provide resold intraMSA interexchange telecommunications services throughout Illinois.

In orders not included in the record, the Illinois Independent Telephone Association (UTA) and GTE North, Inc. (GTE), were apparently granted leave to intervene in this proceeding.

An evidentiary hearing on MCI’s application for modification of its certificate of interexchange service authority was held on May 26, 1987. Robert M. Barry, a senior analyst for MCI, presented prepared testimony. Barry stated MCI possesses the technical and managerial ability to provide intra-MSA service. He stated, “the evidence used to support MCI’s qualifications to provide inter-MSA service is identical to that needed to support an application to provide intra-MSA service.” Barry also testified MCI’s ability to provide intra-MSA service is further demonstrated by its continued provision of inter-MSA service.

Barry also stated MCI is financially qualified to provide intra-MSA service. It is the second largest interexchange telephone company in the nation, with substantial assets and a demonstrated ability to secure funds in the capital market. Barry further stated MCI’s customers will use carrier-specific access codes when using MCI’s dial one/direct dial service on an intra-MSA basis.

On cross-examination, Barry stated the services which MCI seeks to provide on an intra-MSA basis are the same as those it currently provides on an inter-MSA basis — dial one/direct dial service, credit card service, dedicated leased line service, and MATS service. There are presently no plans to provide services other than these.

Barry stated according to MCI’s tariff, MATS customers must originate calls via dedicated facilities between their premises and MCI’s terminal location, and such calls are terminated via a combination of MCI-provided intercity facilities, local business telephone lines, and the resold facilities of other carriers. According to Barry, MCI is not certified to provide any facility-based local exchange service in Illinois. It might technically be possible for users of MCI’s MATS, credit card, and dial one/direct dial services to use the services to make calls within a local exchange, but such use of these services is not cost effective. This is not “the service that MCI involves in the market place” and is not a service that MCI promotes. Sophisticated MATS users would have “very little incentive to give of a cost associated with tying up of a MATS line to make local exchange calls.”

Carrier-specific access codes are not applicable to dedicated leased line service, and Barry believed they are also not applicable to MATS service. In some instances, MCI uses equipment and services provided by local exchange carriers in providing dedicated facilities between the users’ premises and MCI’s terminal location. Thus, use of dedicated facilities does not always permit the bypassing of local exchange carriers. Barry further stated the majority of MATS customers are “sophisticated telecommunications customers which are in most instances business customers.”

To Barry’s knowledge, the blocking of local calls is very difficult, and he does not feel MCI has the capability of doing this. Barry did not know if MCI’s MATS service involves different technology from that involved in dial one/direct dial service.

Also submitting prepared testimony at the evidentiary hearing was Madelon A. Kuchera, who is director of the Telecommunications Program of the ICC’s Policy Analysis and Research Division. Kuchera stated it was not necessary MCI demonstrate its financial, managerial, and technical standing to the ICC in this proceeding, since it had already demonstrated these matters in previous inter-MSA and reseller of service certificate of service authority proceedings. Mfiien asked if the introduction of facilities-based intra-MSA competition is in the public interest, Kuchera responded:

“Yes, the introduction of competition into the intraMSA market will yield more efficient pricing. Competition will ensure that prices better reflect the economic cost of providing the service. In the long run the public will benefit from facilities-based intraMSA interexchange competition through increased choices of service offerings and the potential for lower prices brought about from increased competition.”

Kuchera recommended MCI be granted authority to modify its existing certificate of interexchange service authority “to include the provision of intraMSA interexchange facilities based certificate of service authority.”

On cross-examination, Kuchera stated she has done no studies to determine the impact on the primary toll carrier plan of granting MCI an intra-MSA certificate of interexchange service authority.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Tyianna J.
2017 IL App (1st) 162306 (Appellate Court of Illinois, 2017)
Heritage Healthcare Services, Inc. v. Marques
14 A.3d 932 (Supreme Court of Rhode Island, 2011)
Heritage Healthcare Serv. v. Marques, Pb
Superior Court of Rhode Island, 2007
Ramsey Emergency Services, Inc. v. Illinois Commerce Commission
854 N.E.2d 809 (Appellate Court of Illinois, 2006)
Ramsey Emergency Services v. ICC
Appellate Court of Illinois, 2006
Satellite Cable Serv.
1998 SD 67 (South Dakota Supreme Court, 1998)
Atkins v. Deere & Co.
685 N.E.2d 342 (Illinois Supreme Court, 1997)
Chicago SMSA Ltd. Partnership v. Illinois Commerce Commission
672 N.E.2d 37 (Appellate Court of Illinois, 1996)
Scott v. Midwest, Ltd.
933 F. Supp. 735 (C.D. Illinois, 1996)
Citizens Utility Board v. Illinois Commerce Commission
651 N.E.2d 1089 (Illinois Supreme Court, 1995)
Monarch Gas Co. v. Illinois Commerce Commission
633 N.E.2d 1260 (Appellate Court of Illinois, 1994)
Peoples Gas Light & Coke Co. v. Illinois Commerce Commission
584 N.E.2d 341 (Appellate Court of Illinois, 1991)
Governor's Office of Consumer Services v. Illinois Commerce Commission
580 N.E.2d 920 (Appellate Court of Illinois, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
539 N.E.2d 717, 183 Ill. App. 3d 220, 132 Ill. Dec. 154, 1988 Ill. App. LEXIS 1892, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-independent-telephone-assn-v-illinois-commerce-commission-illappct-1988.