PR-08-85 -- PSC Grants Embarq Request For Competitive Classification In Some Of Its Exchanges

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- NOVEMBER 29, 2007

JEFFERSON CITY—The Missouri Public Service Commission has granted an Embarq Missouri, Inc. (Embarq) request for competitive classification for all of its residential services, other than exchange access service, in its Ft. Leonard Wood, St. Robert and Waynesville exchanges.  In addition, Embarq was granted competitive classification for all of its business services, other than exchange access service, in its Warrensburg exchange.

Under competitive classification, Embarq will no longer be subject to price or rate regulation by the PSC for its residential services, other than exchange access service, in the Fort Leonard Wood, St. Robert and Waynesville exchanges and for its business services, other than exchange access service, in the Warrensburg exchange.   Embarq will be permitted to raise or lower its telephone prices at its own discretion, subject to the marketplace.  The PSC will continue to regulate quality of service, service termination and other billing issues.

In this case, state law requires the commission to issue its decision within 30 days of Embarq’s November 6, 2007, filing.  Under the law, the 30-day criteria for determining competitive classification is based upon the existence of two other nonaffiliated entities providing basic local telecommunications service, one of which may be a wireless provider, the other a wireline company providing local voice service using facilities in which it has a partial or full ownership interest.

The commission reviewed information filed by Embarq as well as the PSC staff recommendation for approval and determined the request should be approved.

The PSC staff stated in its recommendation that there is at least one facilities-based wireline carrier and at least one wireless carrier serving Embarq’s Ft. Leonard Wood, St. Robert and Waynesville exchanges who are not affiliated with Embarq but provide basic local phone service to at least two residential customers located within those exchanges.  In addition, staff stated that there are at least two qualifying carriers serving Embarq’s Warrensburg exchange who are not affiliated with Embarq but provide local phone service to business customers in the exchange.

-30-

Case No. TO-2008-0147