Document text
Small long-distance carriers win one PUC gives companies direct access to facilities By DAVID PRESZLER A ruling from the Oregon Public Utility Commission is expected to make it easier for companies other than US West and GTE to offer local phone service. But it remains to be seen how many of the more than 70 companies that are certified to offer phone service in the Rogue Valley will do so. "Everyone files in every possible area," says PUC spokesman Ron Karten. "Very few have actually started business." The PUC's ruling, handed down last Friday, orders US West and GTE to give competitors direct access to their facilities. It would be impractical to install new lines where the big companies already have them, so the federal law says other companies can use components of US West's and GTE's existing systems to compete against them. Friday's ruling is the latest in a series of negotiations between the PUC and phone companies about how competitors will be allowed to use the existing systems and how much US West and GTE can charge them to do so. Direct access to all lines and facilities is one of two options the PUC has approved for competitors, Karten says. The other is co-location, where competitors place equipment at the big company's wire centers and have limited access to the existing system. Karten says US West and GTE proposed co-location, while most upstarts favor direct access. "The hope is that with one option unappealing to one and one unappealing to the other, they will be able to come up with a compromise," he says. Industry observers, including US West regional manager Gary Miller, doubt that anyone will compete with US West to provide residential service in the Rogue Valley in the near future. "It won't have a big impact in this area," Miller says. "It's not a big enough market for competitors to be successful. We do welcome competition." Business service, however, may be another matter. "The Rogue Valley has a concentration of businesses and folks are going after the business customers," says Gary Bauer. He is director of the Oregon Telecommunications Association, a state trade association. Some companies are already purchasing phone service from US West and reselling it to Rogue Valley consumers as part of larger packages such as cellular service, Miller says. "It's a reality," he says of widespread competition. "It's just a matter of time." Companies that want to offer phone service must apply with the PUC to be competitive local exchange carriers (CLECs), though filing alone doesn't mean a company plans to offer phone service. Of the 71 companies who have filed to provide service in the Rogue Valley, only three are based here: CDS Networks Inc., of Medford, ComputerPros Telecommunications of Grants Pass and Centurion Telecommunications, also of Grants Pass. None of those companies has announced intentions to offer phone service, though at least one says it may make use of the ruling down the road. "We're pleased with their decision, and we look forward to taking advantage of that decision in our future plans," says Jaye Mathisen, the head of CDS Networks and CDS Internet. Todd Grannis, who owns ComputerPros, another Internet provider, says he doesn't have any plans for phone service. No one from Centurion could be reached Thursday. The city of Ashland has applied to be a CLEC, but has not yet been approved. City Administrator Mike Freeman says the filing is part of the city's fiber-optics network and that Ashland has no plans to offer phone service. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1998, Medford, Oregon USA