Press Release

HARRISBURG, Pa. – Concerned that Bell Atlantic-Pennsylvania may be unable to process large volumes of orders when competitors begin mass marketing local telephone service, the state Public Utility Commission (PUC) today ordered several additional steps to ensure the phone company’s system can handle the rigors of local competition.

By a 5-0 vote, the commissioners approved a motion by Commissioner Terrance Fitzpatrick ordering Bell to analyze and reveal the "root cause" of problems identified during testing of its operational support systems (OSS). Bell must then demonstrate that it has fixed that problem.

The PUC also ordered KPMG, the independent third-party consultant hired by Bell to test its systems, to issue an updated status report by June 23. The report must include the items that have been tested, items that must be retested, the significance of the items which must be retested, the scheduled completion date for testing and the projected date a final report will be issued.

KPMG began testing Bell’s OSS in May 1999 and the PUC expected testing to be completed by September 1999. However, testing reached into this year and was suspended in February so Bell could address OSS problems in New York. Testing resumed the first week of June.

"The commission is concerned with the significant delays in completing the KPMG test process because it reflects uncertainty as to whether the OSS of Bell is capable of handling increased volumes when competitors begin mass marketing local service," said Commissioner Terrance Fitzpatrick. "The steps we’re taking today send a clear signal that the PUC is determined to see OSS testing completed in a timely manner.

"Local competition in the Commonwealth will not be truly viable unless OSS communication between Bell and its competitors is seamless, timely, and effective," he added.

Until now, testing has involved KPMG identifying a particular problem and Bell addressing it. By requiring Bell to identify the "root cause" of problems, the PUC can ensure that the defects identified by KPMG are fixed.

As part of today’s order, the PUC also recommended hiring a consultant to help the agency evaluate the actual operation of the OSS when the testing is complete. The consultant would also assist in analyzing reports that Bell has been ordered to file regarding the current operation of its OSS.

Operations support systems are the mechanized and manual systems used by Bell and other local phone companies to provide services to customers, such as order entry and billing. Under federal law designed to boost telephone competition, Bell must allow competitors to use its OSS.

The support system is crucial to local telephone competition. Competitors must be able to enlist customers and complete all functions for the customers in a timely and efficient manner. If the OSS does not operate properly, competitors risk losing customers and suffering damage to their reputations.

OSS testing is conducted in a "military style," meaning KPMG will test and retest the components until it is satisfied all of the components are working properly.

Bell maintains that its OSS will be able to handle competition by the third quarter of this year. Under the federal Telecommunications Act of 1996, the baby Bells must prove that their territory is open to local competition in order to receive authority to provide long distance service.

For additional news releases or more information about the PUC, visit our website at http://puc.paonline.com.

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