A clash between cellular operator Western Wireless Corp. and a rural telephone company in North
Dakota could set a precedent with the Federal Communications Commission concerning wireless competition with
landline service.
Consolidated Telephone Cooperative, a rural landline phone company in North Dakota, last week
disconnected wireless numbers assigned to Western Wireless after the cellular company launched wireless local loop
service Jan. 7 in Regent, N.D., population 268.
Consolidated declined to comment, but indicated in letters to
Western Wireless and the North Dakota Public Service Commission it disconnected the numbers because Western
Wireless did not have a competitive interconnection agreement with Consolidated. It also urged the North Dakota PSC
to begin a complaint against Western Wireless, claiming the carrier violated the Public Convenience and Necessity
Law governing local telephone companies.
At issue is whether Western Wireless, in offering wireless local loop
service and applying for eligible telecommunications carrier status with the North Dakota commission, falls under
regulations designed for landline operators. Western Wireless argues it is governed by FCC regulations because it uses
cellular frequencies to provide service.
“We’re governed by the FCC,” said John Uhlmann, general
manager of Cellular One in North Dakota. “Quite frankly, they’re trying to block competition and keep new
technology from being delivered in North Dakota. They are using anything from interconnect agreements to diffuse the
issue through legal tactics.”
At RCR press time, Western Wireless was expected to file a complaint with North
Dakota’s commission, and may file a complaint with the FCC and in federal court. The company filed a lawsuit in
North Dakota District Court, asking the court to order Consolidated to re-activate the numbers and pay for
damages.
Michele Farquhar, counsel for Western Wireless, said Western Wireless already had an interconnection
agreement with regional Bell operator U S West Communications Inc., which in turn has a web of agreements with
cooperative telephone companies in North Dakota.
“Consolidated never mentioned [Western Wireless]
needed an interconnection agreement,” said Farquhar. “We don’t believe there is a requirement that [the
two companies] should have any separate interconnection agreement. Nor does there appear to be an interconnection
agreement requirement under state law.”
The FCC and North Dakota’s PSC are working together on the issue.
The FCC is concerned as it is under public and political pressure to promote more local competition for residents and
businesses. FCC Chairman William Kennard is pushing wireless service as a competitor to wireline service, though the
wireless industry insists more deregulation is necessary before such competition will become
widespread.
“We’re busy looking over our jurisdiction and the issues involved,” said Susan Wefald,
commissioner with North Dakota’s PSC. “This is a different case than if we are dealing with two line-based
carriers on interconnection.”
Western Wireless said it purchased 2,000 numbers from Consolidated in August,
and in hearings before North Dakota’s PSC in November, it laid out plans to offer wireless residential service based on
analog cellular service with no objections from Consolidated. The carrier is offering wireless local loop service in
Nevada to areas not served by Nevada Bell.
Western Wireless’ residential customers-which number three-cannot
receive inbound calls and don’t have access to enhanced 911 services, said Uhlmann. The company has been marketing
the service through direct sales representatives and is offering competitive rates and a larger calling area than
Consolidated’s. Uhlmann said it has 12 more people interested in the service despite the problems.
“Western
Wireless believes that customers of Regent have been damaged,” said Uhlmann. “One of the things that
Western Wireless and Cellular One have prided ourselves on is our ability to deliver service. During the flood of 1997,
the worst disaster in the state’s history, never once did we have a cell site go off the air. In one day, our reputation to
provide service was damaged by Consolidated.”
