Contrary to what AT&T claims, the FCC still uses cost- allocation...

companies, including financial, manufacturing and other big businesses. The FCC has until Thursday to rule on an AT&T petition seeking relief from the accounting rules, which require that Bell companies keep records separating interstate and intrastate costs. In an interview Tuesday, Ad Hoc lawyer James Blaszac attacked recent statements by Bob Quinn, AT&T regulatory senior vice president, whom Blaszak debated on the issue Monday afternoon in McDowell’s office (CD April 22 p5). If the FCC no longer used allocation data, it wouldn’t have forced the Bells to keep collecting it in an order last August, Blaszak said. The August order, which let Bells combine their local and long distance divisions, says Bells remain subject to “a number of legal obligations,” particularly FCC “accounting and cost allocation rules and related reporting requirements.” And the FCC will need such data to complete proceedings under way on special access and intercarrier compensation, Blaszak said. The FCC also should keep getting the data to monitor price cap regulation efficacy, he said. Quinn told us Monday that the data don’t accurately measure for that purpose, because the percentages used to separate costs have been frozen since a 2001 Federal- State Joint Board on Jurisdictional Separations reform proceeding began. Data accuracy is an issue for the separations proceeding, not this forbearance petition, said Blaszac. Discussing Monday’s debate, Blaszac said it was unclear from McDowell’s questions which issues preoccupy him. McDowell will be an “important vote,” he said.