1. (a) A local exchange carrier is a dominant carrier for retail service in an exchange unless the commission orders, upon a petition or on its own motion, that the carrier is nondominant in an exchange

   1. (1) served by a rural telephone company, as defined by 47 U.S.C. 153(44) and where a second unaffiliated certificated facilities-based local exchange carrier offers service to the public;
   2. (2) where the local exchange carrier's and its combined affiliates' local exchange market share in the exchange is 60 percent or less; or

   3. (3) where at least two unaffiliated local exchange carriers

      1. (A) are eligible telecommunications carriers; and
      2. (B) each individually have a market share of 20 percent or more in that exchange.
2. (b) For purposes of (a) of this section, market share is measured by the carrier's percentage of customer connections.

3. (c) Notwithstanding (a) of this section, a local exchange carrier that owns the only facilities used to provide local exchange service to the majority of customers in a competitive local exchange market is a dominant carrier with regard to the following services provided in that area unless the commission determines otherwise as a result of an investigation or review under (e) or (f) of this section:

   1. (1) line extension services;
   2. (2) construction services;
   3. (3) subdivision services agreements;
   4. (4) interexchange carrier access services, including special access services.
4. (d) Notwithstanding (a) of this section, during or after the commission's review of a competitor's application for certification or during the commission's review of a competitor's application for eligible telecommunications carrier designation, a carrier or an affected person may petition for review of any carrier's dominant or nondominant carrier status.
5. (e) Notwithstanding any other provisions of this section, the commission may, after investigation, determine a carrier to be a dominant or nondominant carrier for the provision of a service or group of services.

6. (f) In conducting a review of an incumbent local exchange carrier's status as a dominant carrier in response to a petition filed under (d) of this section or in response to any other petition for a change in status, the commission will determine whether a local exchange carrier will be unfairly competitively disadvantaged with respect to a service or group of services by considering the following factors:

   1. (1) the market share of the carrier and the competitive entrants, as measured in a manner relevant to the service for which nondominant carrier status is requested;
   2. (2) the number, size, nature, and capabilities of competing carriers;
   3. (3) the existence and nature of barriers to entry in competition for the service;
   4. (4) the availability of reasonably substitutable service;
   5. (5) the availability of alternative competitive facilities;
   6. (6) the existence of safeguards to restrain the exercise of market power;
   7. (7) the number of the carrier's customers transferred to a competitor;
   8. (8) the number of customers projected to be lost to a competitor in the next 12 months after the date the petition is filed; and
   9. (9) other factors relevant to determining whether the carrier will be unfairly competitively disadvantaged, including the existence or absence of consumer complaints related to the service.
7. (g) A local exchange carrier holding dominant carrier status as of September 16, 2005 shall retain dominant carrier status until the carrier's status is changed by an order of the commission. A local exchange carrier holding nondominant carrier status as of September 16, 2005 shall retain nondominant carrier status until the carrier's status is changed by an order of the commission.
8. (h) Upon designation of a competitive local exchange market, a local exchange carrier owning the only facilities providing local exchange service to the majority of customers in the newly designated competitive local exchange market is a dominant carrier for services provided to that area, and all other local exchange carriers serving that area are nondominant carriers until otherwise ordered by the commission.

(Eff. 6/21/98, Register 146; am 9/16/2005, Register 175)

Authority: AS 42.05.141, AS 42.05.221, AS 42.05.990, AS 42.05.151, AS 42.05.711