Section R14-2-1108. Determination of a Competitive Telecommunica- tions Service

A.      A telecommunications company may petition the Commission to classify as competitive any service or group of services pro- vided by the company. The telecommunications   company shall file with the Docket Control Center 10 copies of its peti- tion. The telecommunications company also shall provide notice of its application to each of its customers, if any, and to each regulated telecommunications company that serves the same geographic area or provides the same service or group of services, or a service or group of services similar to the service or group of services for which the competitive classification is requested.

B.       The petition for competitive classification shall set forth the conditions within the relevant market that demonstrate that the telecommunications service is competitive,  providing,  at  a minimum, the following information:

1.        A description of the general economic conditions that exist which make the relevant market for the service one that is competitive;

2.        The number of alternative providers of the service;

3.        The estimated market share held by each alternative pro- vider of the service;

4.        The names and addresses of any alternative providers of the service that are also affiliates of the telecommunica- tions company, as defined in R14-2-801;

5.        The ability of alternative providers to make functionally equivalent or substitute services readily available at com- petitive rates, terms, and conditions; and

6.        Other indicators of market power, which may include growth and shifts in market share, ease of entry and exit, and any affiliation between and among alternative pro- viders of the services.

C.      Alternatively, where the Commission has already classified a specific service within the relevant market as competitive, the petition shall provide the date and decision number of the Commission order.

D.      In any competitive classification proceeding, the telecommu- nications company filing the petition, and any telecommunica- tions company supporting the petition, shall have the burden of demonstrating that the service at issue is competitive. Clas- sification of the petitioners’ service as competitive does not constitute classification of any service provided by another telecommunications company as competitive, unless expressly ordered by the Commission.

E.       The Commission may initiate classification proceedings on its own motion and may require all regulated telecommunications companies potentially affected by the classification proceed- ing to participate in the proceeding. In an Order classifying a service as competitive, the Commission will specify whether the classification applies to the service provided by a specific company or companies or to that service provided by all tele- communications companies.

F.       If the Commission finds that a telecommunications company’s service is competitive, the telecommunications company pro- viding the service may obtain a rate change for the service by applying for streamlined rate treatment pursuant to R14-2- 1110.

G.      Any finding by the Commission, pursuant to the provisions of this Section, that a telecommunications service is competitive so as to qualify for streamlined rate treatment shall not consti- tute a finding that the service is deregulated.

H.      Any telecommunications service classified by the Commission as competitive may subsequently be reclassified as noncom- petitive if the Commission determines that reclassification would protect the public interest. Notice and hearing would be required prior to any reclassification. The burden of proof would be on the party seeking reclassification.

Historical Note

Adopted effective June 27, 1995, under a court-ordered exemption as determined by the Arizona Corporation Commission (Supp. 95-2).

Note

Editor’s Note: The Arizona Corporation Commission has determined that the following Section is exempt from the Attorney General certification provisions of the Arizona Administrative Procedure Act (A.R.S. § 41-1041) by a court order (State ex. rel. Corbin v. Arizona Corporation Commission, 174 Ariz. 216 848

P.2d 301 (App. 1992)).