BASIS, PURPOSE. AND STATUTORY AUTHORITY The basis for these rules is to identify nonoptional operator services which are subject to the Commission's jurisdiction. Under §40-15-401(1)(j), C.R.S., operator services are declared to be exempt from Commission jurisdiction. However, the definition of operator Services found at §40-15-102(20), C.R.S., states that only certain operator services are exempt from Commission urisdiction and provides as follows:

(20) “Operator services” means optional services provided by operators to customers which offer individualized and select call processing.

(Emphasis supplied.)

Only optional operator services are deregulated. Nonoptional operator services which do not offer individualized and select call processing remain regulated. Thus, the purpose of these rules is to establish regulatory treatment for nonoptional operator services and operator service providers that provide nonoptional operator services. The statutory authority for the Commission's rulemaking authority is found at §40-2-108, C.R.S.

The basis for this amendment to these rules is a need for a more flexible regulatory treatment for providers of nonoptional operator services. The purpose of this amendment is to provide a form of relaxed regulatory treatment to all providers of nonoptional operator services. The statutory authority for this amendment is found at §40-15-302, C.R.S. RULE 1. APPLICABILITY.

These rules apply to all public utilities and providers of telecommunications service which are regulated under Title 40, Article 15, Parts 2 and 3, C.R.S. Any provider of local exchange services that also furnishes nonoptional operator services by contracting with a regulated interexchange carrier and that concurs in the tariffed rates, terms, and conditions of that regulated interexchange carrier shall be exempt from these rules.

RULE 2. DEFINITIONS.

For the purposes of these rules only, unless context otherwise requires: 2.1 Access Code means a sequence of numbers that, when dialed, connects the caller to the provider of operator services associated with that sequence.

2.2 Aggregator means any person, that, in the ordinary course of its operations, makes telephones available to the public or to transient users of its premises for telephone calls using a provider of operator services.

2.3 Call Splashing means the transfer of a telephone call from one provider of operator services to another provider of operator services in such a manner that the subsequent provider is unable or unwilling to determine the location of the origination of the call and, because of such inability or unwillingness, is prevented from billing the call on the basis of such location. 2.4 Commission means the Colorado Public Utilities Commission. 2.5 Consumermeans a person initiating any intrastate telephone call using nonoptional operator services. 2.6 Debit card- A method of paying for calls wherein the customer pays for the services prior to making any calls. As the customer makes calls using this service, that customer's charges are deducted from the value of the account on a real-time basis until the value of the account is exhausted. 2.7 Interexchange carrier means any regulated provider of Colorado intrastate public switched network services not included in basic local exchange service, and which are priced based upon usage. 2.8 Local calling area means the commission-approved local calling area for an exchange or wire center. 2.9 A local call is any call originating and terminating within the same local calling area. 2.10 Operator service provider means any provider of nonoptional operator services as defined in Rule 3, or any other person determined by the Commission to be providing nonoptional operator services. 2.11 Person means any individual, firm, partnership, corporation, company, association, joint stock association, and other legal entity.

2.12 Presubscribed provider of operator services means the provider of operator services to which the consumer is connected when the consumer places a call using a provider of operator services without dialing an access code.

2.13 Public Utility is defined in § 40-1-103, C.R.S. and for purposes of these rules includes providers of telecommunications services which are regulated under Title 40, Article 15, Parts 2 and 3, C.R.S. 2.14 Travel card is defined as a method of placing a call exclusively using the interexchange service provider that issues the account rather than the presubscribed interexchange service provider at the originating location. The call is usually completed by dialing an access number or code, a personal account identification number or PIN, and the desired destination telephone number. The customer must have a prearranged account with the service provider. Standard telephone calling cards and commercial credit cards that may be accepted and billed by providers other than the desired interexchange service provider do not qualify as travel cards. Travel cards are also referred to as proprietary calling cards. RULE (4 CCR) 723-18-3. NONOPTIONAL OPERATOR SERVICES.

723-18-3.1 Nonoptional operator services include, but are not limited to: 723-18-3.1.1 Calls made at coin-operated or coinless telephones, both public and semipublic, which require operator intervention or a synthesized message to advise the party of coins to be deposited or when the time has expired.

723-18-3.1.2 Calls made from telephone exchanges which do not allow for direct dialing, also described as Dial Station-to-Station calls, which require operator intervention to complete what would, otherwise be a direct-dialed call.

723-18-3.1.3 [REPEALED - RESERVED FOR FUTURE USE.] 723-18-3.1.4 Calls made by individuals who identify themselves as disabled to the extent that they are functionally unable to complete a call (for example, unable to use rotary dial or Touch- Tone pad) without operator assistance. These calls include those made with telecommunications devices for the deaf.

723-18-3.1.5 Operator-assisted call reconnection for disconnection or poor transmission, and operator-handled credit requests.

723-18-3.1.6 [REPEALED - RESERVED FOR FUTURE USE.] 723-18-3.1.7 Emergency services, including calls made to operators by customers seeking emergency assistance from authorized emergency agencies. 723-18-3.1.8 Credit card calls, also known as calling-card station-to-station calls. This includes credit card or calling-card calls made via 800 service, 950, or 10XXX access. 723-18-3.1.9 Collect local or long distance calls.

723-18-3.1.10 Local or long distance third party billing calls. 723-18-3.1.11 Person-to-person calls.

723-18-3.1.12 Operator services provided to customers where the use of an operator is required in order to obtain a particular service or in order to complete a call in order to complete a call and where no individualized or select call processing is provided. 723-18-3.2 Nonoptional operator services include the provision of those services through the use of synthesized voices rather than through a live operator. 723-18-3.3 Nonoptional operator services provided by or through hotels, motels, or other lodging-type entities which resell intrastate toll and wide area telephone services (WATS) to their lodging patrons, nonoptional operator services provide by or through any other entities which resell to the general public long distance telephone services by using the tariff services and facilities of regulated telephone utilities collectively known as “resellers”, or nonoptional operator services provided by or through any customer- owned or leased pay telephone terminal equipment which resells local exchange and toll service by using the tariff services and facilities of regulated telephone utilities known as COCOTs (Customer Owned Coin Operated Telephones) are regulated by the Commission.

RULE (4 CCR) 723-18-4. OPTIONAL OPERATOR SERVICES.

723-18-4.1 Optional operator services provided by operators to customers which offer individualized and select call processing include, but are not limited to: 723-18-4.1.1 Foreign language operator services.

723-18-4.1.2 Operator services provided for conference calling. 723-18-4.1.3 Operator services provided for voice messaging or the taking of messages. 723-18-4.1.4 Operator services provided for electronic mailing. 723-18-4.1.5 Debit card and travel card services.

723-18-4.1.6 Directory assistance.

723-18-4.1.7 Calls made by inmates at penal institutions or other correctional facilities who are not permitted to use coins when placing calls at coin operated or coinless telephones or who are required to use an operator's services to complete a call because of the rules or regulations of said institutions or facilities.

723.18-4.1.7.1 Providers who have tariffs for inmate services on file with the Colorado Public Utilities Commission as of June 18, 2003, shall file an advice letter and/or a transmittal letter, as appropriate, which removes from existing tariff and/or price list any and all rates, terms, and conditions related to inmate service. These filings may be allowed to become effective on not less than 1 day notice to the Commission. 723-18-4.2 Persons who provide optional operator services and who provide the nonoptional operator services described in Rules 3.1.4 through 3.1.7 at no additional cost to the user in order to support the public switched network, and incidental to the primary business of providing optional operator services, shall not be considered nonoptional operator service providers subject to the Commission's jurisdiction. RULE (4 CCR) 723-18-5. MANNER OF REGULATION.

723-18-5.1 Nonoptional operator services, the associated rates, and the provider of nonoptional operator services are regulated by the Commission.

723-18-5.2 Persons who provide nonoptional operator services shall provide information to the Commission in accordance with 40-15-302(2), C.R.S., and Rule 4 CCR 723-25. After a determination of completeness, the Commission shall issue a letter of registration granting operational authority for the company, upon approval of its tariff. Telecommunications service providers or telephone utilities which already have certificates or the authority to provide nonoptional operator services shall continue to have the authority. 723-18-5.3 Persons who provide nonoptional operator services shall be granted specific regulatory treatment as follows:

723-18-5.3.1 Customer notice as required in Rule 41 (e) of the Commission's Rules of Practice and Procedure (4 CCR 723-1) shall be waived, i.e., no specific customer notice of proposed rate changes shall be required.

723-18-5.3.2 Rule 25 (c) of the Commission's Rules of Practice and Procedure (4 CCR 723-1) relating to the maintenance of accounting information in accordance with Uniform System of Accounts prescribed by the Federal Communications Commission shall be waived for all providers that do not maintain their books of account in accordance with the Uniform System of Accounts and that maintain their books of account according to generally accepted accounting principles.

723-18-5.3.3 Rule 3 of the Commission's Rules Regulating Telecommunications Service Providers and Telephone Utilities (4 CCR 723-2) pertaining to the requirement that all records be kept within the state shall be waived. However, such records must be made available to the Commission or its authorized representative at any time upon request and at the utility's expense. 723-18-5.3.4 The Commission's Cost Allocation Rules (4 CCR 723-27) shall be waived for operator service providers whose primary telecommunications business is the provision of operator services and/or long distance services.

723-18-5.3.5 Each provider's tariffs shall contain the maximum rates of the provider. Additionally, a price list shall be filed with the Commission representing the current rates of the provider. Price list changes that result in rates that are less the provider's maximum tariff rates shall be allowed to become effective upon fourteen days' notice to the Commission. If the Commission determines that such proposed rates may not be just and reasonable, either by its own analysis or upon protest of another party, it may suspend the proposed changes using standard Commission practices.

723-18-5.3.6 A provider may seek a specific form of relaxed regulation or deregulation of nonoptional operator services in accordance with the Rules Regulating Emerging Competitive Telecommunications Service found at 4 CCR 723-24.

723-18-5.3.7 Rules 4 and 5 of the Commission's Rules Prescribing Principles for Costing and Pricing of Regulated Telecommunications Services of Telecommunications Service Providers (4 CCR 723-30) pertaining to the requirement that cost studies be provided for every rate proposal filed with the Commission shall be waived if such rate proposal is in compliance with Rule 5.4.3 of these rules.

723-18-5.4 Persons who provide nonoptional operator services shall charge just and reasonable rates pursuant to § 40-3-101 C.R.S.

723-18-5.4.1 All rates, terms, and conditions shall be stated in tariffs on file with the Commission unless, the Commission has deregulated a specific nonoptional operator service. Rates, terms, and conditions for deregulated or optional operator services shall not be included in tariffs or price lists for nonoptional operator services.

723-18-5.4.2 Operator service tariff rates must be just and reasonable as determined using applicable Commission rules 723-18-5.4.3 In the absence of a specific order by the Commission, operator service tariff rates charged by providers shall not exceed the benchmark maximum operator service rates adopted by the Commission as Appendix A to these Rules.

723-18-5.4.4 Operator service tariff rates filed by providers, wherein the rates to be charged by the provider are above the Commission-determined benchmark rate in Rule 5.4.3 shall be subject to investigation by the Commission in hearings conducted pursuant to the Commission's Rules of Practice and Procedure. A provider proposing rates in excess of the benchmark rates shall be required to prove that such rates are just and reasonable and shall provide cost studies as required by Rules 4 and 5 of the Commission's Rules Prescribing Principles for Costing and Pricing of Regulated Services of Telecommunications Service Providers. 723-18-5.4.5 In the case where the Commission approves rates for a provider that are higher than the benchmark rate, the Commission may require oral disclosure by the provider of the total charges for the call and that such charges are higher than the benchmark rate to the person responsible for payment of the telephone call, if the Commission determines that such disclosure is in the public interest. This disclosure shall be made at no charge to the caller and before the call is connected, allowing the caller to disconnect before incurring any charges. 723-18-5.4.6 If the Commission finds, after notice and opportunity for hearing, that a nonoptional operator service provider has violated an order adopted pursuant to Rule 5.4.5, the Commission may, in addition to such other enforcement powers as may be authorized by statute, order any regulated telecommunications service provider to block access to the nonoptional operator services provider for all intrastate operator-handled calls. A regulated telecommunications provider that blocks the access of a nonoptional operator services provider in compliance with an order of the Commission and incurs attorney fees or costs to defend such action shall be entitled to recover its costs and attorney fees in each such proceeding. At the end of such proceeding, the regulated telecommunications service provider shall provide an itemized list of these costs and attorney fees to the Commission. The Commission shall enter an order requiring the nonoptional operator services provider to pay these amounts to the regulated telecommunications service provider.

723-18-5.4.7 Any provider whose current tariffs are in accordance with Rule 5.4.3 on the effective date of this revised Rule, will be allowed to have its current tariffs remain in effect without further filings or proceedings.

723-18-5.4.8 Any Provider seeking to maintain a current tariff rate higher than the benchmark rate described in Rule 5.4.3 must refile that rate as a new, proposed tariff rate within 60 days after the effective date of this revised rule. The filing must comply with Rule 5.4.4 (cost studies to be provided) and contain sufficient information for the Commission to determine if the provider's rates are just and reasonable. If the provider fails to meet this 60 day filing requirement, any existing tariffs with rates in excess of those established in Rule 5.4.3 shall be deemed invalid on the sixtieth day following the effective date of these revised rules without further action by the Commission, and any revenues collected pursuant to such tariffs shall be deemed illegally collected. Upon filing of proposed rates under this rule, if done within 60 days of the effective date of these amended rules, the current rates will be allowed to remain in effect, subject to refund pursuant to order of the Commission, until the Commission approves new rates. 723-18-5.5 Upon request, the Commission shall provide the consumer with information regarding these rules. Specifically, the Commission will inform consumers of their right to withhold payment for unapproved charges (as determined by the currently effective company tariff) billed to the consumer by providers and, when possible, will direct the billing agent to remove such charges from the consumer's bill.

723-18-5.6 The Commission will keep a complete record of complaints received from consumers regarding the provision of operator services. Any provider found to be in violation of current Commission rules; current company tariffs, or Colorado statute will be subject to having its authority to provide such services revoked, its certificate of public convenience and necessity suspended, and/or the imposition of fines pursuant to Public Utility Law (§40-7-105(1), C.R.S.). 723-18-5.7 All providers of operator services shall include all relevant portions of Rule 6 of these rules within their tariff regulations.

723-18-5.8 All providers of operator services shall specify rates for local non-optional operator handled calls in their tariffs.

723-18-5.8.1 If the technology used by the provider allows for the identification of local calls, rate comparisons as identified in Rule 5.4.3 will be made to equivalent operator assisted services of the local exchange telephone company.

723-18-5.8.2 If the technology used by the provider does not allow for the identification of local calls, the operator service provider must obtain a waiver of these rules until such time as local calls can be identified.

RULE 4 CCR 723-18-6. REQUIREMENTS FOR OPERATOR SERVICE PROVIDERS. 723-18-6.1 Each provider of operator services shall:

723-18-6.1.1 Identify itself, audibly, and distinctly, to the customer at the beginning of each telephone call before the customer incurs any charges for the call; and 723-18-6.1.2 Permit the customer to terminate the call at no charge before the call is connected; and 723-18-6.1.3 Disclose immediately upon request and without charge to the customer: the rates or charges for the customer's intended call; the methods by which such rates or charges will be collected; and, the methods by which complaints concerning rates, charges, or collection practices will be resolved.

723-18-6.1.4 Not bill for unanswered telephone calls in areas where equal access is available. 723-18-6.1.5 Not knowingly bill for unanswered telephone calls where equal access is not available.

723-18-6.1.6 Not engage in call splashing unless the consumer requests to be transferred to another provider of operator services, the consumer is informed prior to incurring any charges that the rates for the call may not reflect the rates from the actual originating location of the call, and the consumer then consents to be transferred.

723-18-6.1.7 Except as provided in subparagraph 6.1.6, not bill for a call that does not reflect the location of the origination of the call.

723-18-6.1.8 Ensure by contract or tariff that each aggregator for which the provider is the presubscribed provider of operator services is in compliance with the requirements of Rule 7 and Rule 8.

723-18-6.1.9 Withhold payment of any compensation to aggregators if the provider reasonably believes that the aggregator is not in compliance with Rule 8. 723-18-6.2 Upon receipt of any emergency telephone call, a provider of operator services shall immediately connect the call to the appropriate emergency service of the reported location of the emergency, if known, and, if not known, of the originating location of the call. 723-18-6.3 No location or premise surcharges shall be charged by an operator service provider on behalf of an aggregator.

723-18-6.4 For the purpose of Rules 6.1.1 through 6.1.3, the customer is the person who will be billed for the call.

723-18-6.4.1 In cases where the operator service utilizes automated, or store-and-forward, equipment, and is technologically incapable of compliance with Rules 6.1.l through 6.1.3 on collect or third number billed calls, those providers must seek a waiver of this Rule until such compliance may be accomplished.

723-18-6.4.2 Operator services provided using automated, or store-and-forward, equipment must provide the capability for accepting charges on a collect or third number billed call through a positive response by the billed party. No charges will be allowed wherein the customer has not provided a positive response to the equipment.

723-18-6.5 The provisions of Rules 6.1.8, 6.1.9, and 6.2 shall not apply to nonoptional operator services as described in Rule 3.1.3.

723-18-6.5.1 In cases where the operator service utilizes automated, or store-and-forward, equipment, and is technologically, incapable of compliance with Rules 6.1.1 through 6.1.3 on collect or third number billed calls, those providers must seek a waiver of this rule until such compliance may be accomplished.

723-18-6.5.2 Operator services provided using automated, or store-and-forward, equipment must provide the capability for accepting charges on a collect or third number billed call through a positive response by the billed party. No charges will be allowed wherein the customer has not provided a positive response to the equipment.

723-18-6.6 The provisions of Rules 6.1.8, 6.1.9, 6.2, and 6.3 shall not apply to nonoptional operator services as described in Rule 3.1.3.

RULE 4 CCR 723-18-7. ARRANGEMENTS WITH CALL AGGREGATORS. 723-18-7.1 Except as provided in Rule 7.3, operator service providers shall require each call aggregator to display plainly on or in close proximity to all telephones available for customer use printed documentation containing:

723-18-7.1.1 The name, address, and toll-free telephone number of the provider of operator services;

723-18-7.1.2 A statement that the rates of the operator service provider will be quoted upon request; and 723-18-7.1.3 A written disclosure that informs customers that they have a right to obtain access to the carrier of their choice, and that they may contact their preferred carrier for information on accessing that carrier's service using that telephone.

723-18-7.1.4 Specific instructions to obtain rates or charges for operator assisted local calls, including any charges per minute and operator surcharges, if applicable. 7.2 Operator service providers shall require that aggregators ensure that no charge by the aggregator to the consumer for using an 800, a 950 or a 10XXX access code is greater than the amount the aggregator charges for calls placed using the presubscribed provider of operator services. 7.3 The provisions of Rules 7.1 and 7.2 shall not apply to nonoptional operator services as described in Rule 3.1.3.

RULE 8. CALL BLOCKING PROHIBITED 8.1 Call blocking occurs when an end-user is prevented from accessing the preferred operator service provider through access codes 800, 950, or, if available, 10XXX. 8.2 Except as provided in Rule 8.3:

8.2.1 Operator service providers shall neither require nor participate in the blocking of any customer's access to the customer's provider of choice. 8.2.2 Call aggregators shall neither require nor participate in the blocking of any customer's access to the customer's provider of choice.

8.2.3 Owners of pay telephones shall neither require nor participate in the blocking of any customer's access to the customer's provider of choice. 8.2.4 Applicable contracts or tariffs shall be modified so as to effectuate the provisions of Rules 8.2.1 through 8.2.3.

8.3 The provisions of Rules 8.2 shall not apply to nonoptional operator services as described in Rule 3.1.3.

4 CCR 723-18 Effective May 30, 1994 RULE 9. ACCESS CODES OF OPERATOR SERVICE PROVIDERS 9.1 All providers of operator services, as defined in Rule 2.10 shall establish an 800, a 950 or a 10XXX access code.

9.2 The provision of Rules 9.1 shall not apply to nonoptional operator services as described in Rule 3.1.3.

RULE 10. ACCESS FROM REGISTERED EQUIPMENT Requirements that registered equipment allow access to common carriers. 10.1 Aggregators who provide payphones must unblock 10XXX access. 10.2 Aggregators who use non-payphone equipment must unblock 10XXX access according to the following schedule:

10.2.1 Equipment that can now selectively process 10XXX dialing sequences must unblock upon installation of such equipment.

10.2.2 Equipment that can be modified to selectively process 10XXX dialing sequences for no more than $15.00 per line must unblock by December 1, 1993. 10.2.3 Installed equipment, manufactured on or after April 17, 1992, must unblock 10XXX access upon installation of such equipment.

10.2.4 All other equipment must unblock 10XXX access no later than April 17, 1997. 10.3 The provisions of Rules 10.1 and 10.2 shall not apply to nonoptional operator services as described in Rule 3.1.3.

RULE 11. WAIVERS FROM RULES The Commission may permit variance from these rules for good cause shown if it finds compliance to be impossible, impracticable, or unreasonable, if not otherwise contrary to law. RULE (4 CCR) 723-18-APPENDIX A - BENCHMARK MAXIMUM OPERATOR SERVICES RATES No. Operator Service Rate Usage Rates 1. Flat (Message) Rate per .11 call Flat (Measured) Rate per minute 2. Day .20 3. Evening/Night/Weekend .11 Calling Card Station Rates Customer Dialed 4. Automated (Mechanized) .30 5. Operator Assist .58 6. Operator Dialed 1.13 7. Operator Assistance .75 Operator (Assisted)

8. Station-to-Station 1.25 9. Collect 1.85 10. Billed to Third Party 1.51 11. Person-to-Person 3.00 Busy Line 12. Verification 1.25 13. Interrupt 2.00 14. [RESERVED FOR FUTURE USE] 15. Pay Telephone Charge .26 (Facilities based providers only)