Give the People What They Want

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Give the PeopleWhat They Want

• A survey of the features and functions of basic
  telecommunications service that customers value
  as we plow onward into the age of deregulated
  monopoly.
• Regina Costa
• TURN
• 711 Van Ness Ave., Suite 350, San Francisco, CA
• National Association of State Utility Consumer
  Advocates Summer Meeting
• June 24, 2008, Salt Lake City, UT

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Why a Survey?

• Competition
• Forward Looking policies to account for new
  communications service options
• The prevailing assumption that

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wireless RULES
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i.e., the assumptions that

• Wireless has overtaken wireline service in
  popularity based on minutes and accounts now,
  therefore be it resolved that
• Wireless is a substitute for landline telephone
  service
• (Note - the FCC does not believe wireless is a
  substitute for landline.)

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Reality Rears its Ugly Head

• Data from multiple surveys, including TURNs,
  shows that the majority of customers view
  landline as their primary phone.
• Data from surveys shows that wireless is a
  complement, not a substitute. The FCC agrees with
  this conclusion.

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Survey data comparison

• TURN CDC
• Landline 83
  84.1
• ILEC 74
• Cable 9
• Wireless Only 13 12.8
• Landline Wireless 44
  44.3
• CDC, Wireless Substitution Early release
  of Estimates based on Data from the National
  Health Interview Survey, released 5/14/07

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Context for TURNs California Survey

• Intrastate high cost subsidy reform
• Reverse auction - CA is once again on the cutting
  edge of something.
• In an auction, a bidder needs to know what they
  are bidding on - What is this basic service
  thing, anyway?
• Desire of a commissioner and her staff to
  encourage bidders - Lower the bar so wireless
  will qualify, regardless of whether they have any
  intention of bidding. This will inevitably apply
  to the entire state.

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Survey Approach

• Methodology- Voter rolls
• Captured wireless, VoIP, Cable
• The Survey considered two aspects of basic
  service
• Elements in a formal definition
• Functionality - i.e., important things you can
  do with a landline phone not formally captured in
  a regulatory definition (e.g., send a fax)

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Survey Results 1

• Local Phone Books used by 90 of Californians .
• 68 use Phone Books to Find Business Listings.

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Survey Results 2

• Total
  Imporant
• 
  
  ( Very Important)
• 
  
  Voters Overall
• Direct Access to local 911
  96 (86)
• Making/receiving unlimited local
• Calls for a flat monthly fee
  89 (69)
• Extended Area Service
  85 (62)
• Making 800 and toll free calls with no
• Limit on minutes and no extra charges
  84 (60)
• Service for Deaf and hearing impaired
  80 (60)
• Receiving reverse 911 calls at home
  78 (58)
• Using emergency operator services, e.g.

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Survey Results 3

• Total Imporant
• 
  
  ( Very Important)
• 
  
  Voters Overall
• Receiving the free local yellow pages Phone Book
  77 (46)
• Receiving the free local white pages book
  75
  (44)
• Choosing not to list your phone number in
• the phone book without being charged
  74
  (54)
• Blocking 976 calls or other toll numbers
• without being charged
  
  73 (52)
• Using Privacy services like call trace
  
  69 (44)
• Listing your number for free in the local phone
  book 43 (25)
• Connecting to the internet using the phone line

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Survey Implications

• Customers value the key elements and capabilities
  of traditional phone service
• Forward looking policy intended to address
  technological innovation should result in
  upgrading service, not diminishing service by
  eliminating options that customers value
• Cutting edge deregulatory approaches that
  promote competition by lowering the bar lead to
  this

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The Monty Python Foot

• The Public