CPUC to Vote on Frontier Investment Instead of Paying Fines

advice letters Sept. 27 as part of their consent agenda, which requires unanimous consent. Rules permit a carrier to invest no less than twice the amount of its annual fine to enhance service quality in a measurable way within two years. One draft resolution would accept 25 Frontier broadband projects valued at about $1.95 million instead of a $759,833 fine for failing to meet minimums for out-of-service repair interval and answer-time metrics. Another draft resolution would accept a Frontier plan to invest $128,555 in five service-quality projects rather than take a $63,540 fine. Frontier supports the draft orders accepting investment proposals in lieu of fines, a spokesman said. "Frontier’s proposed investment for its 2017 performance is substantially higher than applicable fines and will deliver much-needed enhancements to California’s telecommunications infrastructure. Instead of contributing to a general fund not dedicated to service quality improvement, Frontier’s approach will improve telecommunications infrastructure in California in a measurable way within two years, while also addressing targeted service quality improvements." These actions would mean “Frontier keeps the money,” emailed Tellus Venture Associates President Steve Blum, a consultant for local governments. “In theory, it should be money that wouldn't have otherwise been spent on service quality upgrades, but that's impossible to know.” With the items on the consent agenda, he said, “it might skate through without comment.” The Utility Reform Network hasn't weighed in on the Frontier case but is generally skeptical of the CPUC policy allowing carriers to avoid fines for service-quality lapses by promising investment, said TURN Managing Director-San Diego Christine Mailloux. Also at the meeting, commissioners plan to vote on a draft order to extend to Sept. 29 the statutory deadline in an interconnection dispute between AT&T and VoIP provider Vaya (see 1712290022).