• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Court Slaps State Regulators -- Tennessee Authority 'Abused Discretion' in Handling Competitors' Complaint Against BellSouth 'Reward'

Posted on: Saturday, 3 December 2005, 12:00 CST

By Beth Rucker Associated Press

NASHVILLE - The Tennessee Regulatory Authority mishandled complaints from consumer advocates and various phone service providers about a business phone service program offered by BellSouth Telecommunications Inc., the state Court of Appeals has ruled.

The TRA should have held a formal hearing, known as a contested case proceeding, to allow the Consumer Advocate and Protection Division of the state Attorney General's Office and several telecommunications companies to address their concerns that BellSouth's "Welcoming Reward Program" was not available to all business customers.

"We have determined that the authority abused its discretion by refusing to open a contested case proceeding to resolve the contested issues," Judge William C. Koch Jr. wrote in the court's opinion.

Richard Collier, general counsel for the Tennessee Regulatory Authority, said the authority is reviewing the ruling, but declined further comment.

BellSouth filed its "Welcoming Reward Program" with the TRA in January of 2003, offering $100 credit per phone line to new business customers in return for signing a 12-month service contract.

Three weeks later, a coalition of four BellSouth competitors - Access Integrated Networks Inc., Cinergy Communications, Xspedius Communications and AT&T Communications of the South Central States Inc. - filed a petition with the authority. They were later joined by the Consumer Advocate and Protection Division.

The competitors objected to the program because they said it was not available to existing BellSouth customers and was not available for resale at wholesale prices to other phone services providers, which is required by law.

"Should the issue be raised again, the program would have to be available for resale so that customers of all carriers could potentially take advantage of the program," said Nashville attorney Henry Walker, who represented the BellSouth competitors.

The appeals court recognized that the regulatory authority gave both sides multiple chances to make oral presentations during regular meetings of the TRA's directors. Director Deborah Tate and Chairman Sara Kyle urged BellSouth to adjust the reward program to satisfy the complaints against it, according to the court opinion.

"The TRA's effort to negotiate this case rather than litigate was well-intentioned but misguided," Walker said. "To the TRA's credit, since this appeal was filed, they have largely stopped doing that."

The regulatory authority approved an amended version of the short- term program that was offered through May 30, 2003.

Because the program has expired, the appeals court ruling's intent is to ensure that complaints against future telecommunications programs will be heard in a formal hearing.

Source: Commercial Appeal, The

More News in this Category