Troy -Moscow EAS situation.

[Tom Trail <RepTrail@infotrail.com>]

Troy -Moscow EAS situation.   During the past two years I've been in contact
with the Idaho
PUC, GTE, and the Troy Telephone Company concerning the Troy-Moscow EAS. I
was informed last week by Commissioner Smith of the Idaho PUC that the Troy
Telephone (TDS) Company is withdrawing its EAS application to the PUC.   The
Company studied many options and the Company concluded that the cost for
customers would be too much. The PUC and the Company intend to remind
customers of the many long distance options available and also also the use
by many customers of e mail.   Commissioner Smith  indicated that the PUC
will close the file on the case.

I've met on a number of occasions with Troy customers, GTE and TDS
officials, and members of the PUC.   This is an extremely complex situation.
The revenue stream for TDS has to be neutral and fair to customers in order
to move to a EAS.  Calculations completed by TDS and verified by PUC staff
indicate that the majority of Troy's customers would probably incur an
increase in total telecommunications costs if a traditional flat rate
EAS were granted between Troy and Moscow.  TDS analyzed a variety of options
but could not identify
any options that reduced total costs for the majority of Troy's customers.
TDS has over 1000 lines with an
increase in lines of about 50 new lines/year. 

Troy's survey of its customers failed to identify any clear alternative that
would be preferred by the majority of customers.  The survey asked customers
to choose between a traditional mandatory EAS at a flat rate option, a
measured rate calling plan, and leaving things as they are. The flat rate
plan had the highest level of customer support.   For example,   there are
about 250 Troy customers who seldom make long distance calls.   In order to
achieve a EAS these customers would have to go from about a $9.00 per month
rate to almost
$17.00/month rate.  This would obviously be unfair.

GTE also surveyed its Moscdow customers.  A narrow majority of the
respondents to that survey indicated they did not want to incur the
additional costs of EAS.  The Internet is already driving changes.  There
are over 400 Internet accounts in Troy.   Many of Troy's 90 plus businesses
are using the Internet and e mail to reduce communications costs.  Long
distance rates are coming down as competition increases.  What's competitive
now in
two years will be obsolete and tied into another cheaper alternative.  Long
distance TDS traffic has dropped
off between Troy-Moscow by almost 20% since e mail came in.

That's the current report on the matter.   The additional options of the
Internet, e mail, and cheaper alternative long distance plans are the way
that Troy customers are headed.  This is one of those stories that doesn't
make everyone happy.

Rep. Tom Trail/Dist 5