Foes of cost-assignment forbearance for Bells slammed a Verizon c...
Foes of cost-assignment forbearance for Bells slammed a Verizon compliance plan submitted last week. Verizon offered the plan to show how it will give the FCC usable accounting data at the agency’s request once an order granting Verizon forbearance…
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on cost-assignment rules takes effect. Verizon said its approach “generally” follows one AT&T submitted two months ago (CD Sept 5 p7). AT&T’s plan hasn’t gotten Wireline Bureau approval. “Verizon’s compliance plan is, like AT&T’s plan, better described as a non-plan,” said James Blaszac, attorney for the AdHoc Telecommunications Users Committee. “If the [Wireline Bureau] were to accept these compliance plans, it would act contrary to its delegated authority because it would put the commission in a position in which [it] would be unable to satisfy the statutory obligations that it recognizes as still important. Approval of these plans would be irresponsible deregulation, and would harm customers.” A Sprint Nextel spokesman said Verizon copied AT&T’s proposal. “Just like AT&T, Verizon has simply told the commission, ‘Trust us,'” he said. “This approach is not sound public policy and we believe this plan, like AT&T’s, should be pronounced dead on arrival.” Verizon said it will maintain Uniform System of Accounts books, except for two sections on non-regulated activities and affiliate transactions. Verizon promised to maintain its most recent cost-assignment results. If the FCC needs more data, Verizon “will perform such a study to the extent it is not unreasonably burdensome.” Verizon will keep data and documentation about its accounting methods and cost- allocation procedures, such as its most recently filed Cost Allocation Manual, it said. And Verizon plans to record and price affiliate transactions in accordance with Generally Accepted Accounting Principles, and keep data and documentation on its present accounting methods and procedures for affiliate deals, it said. Once the bureau approves Verizon’s plan, the carrier plans immediate implementation of the proposed changes, it said. “Verizon expects a very short transition period,” it said.