DS 98-185
                                
                         Bell Atlantic
                                
    Petition to Revise Tariff NHPUC-No. 77 and Introduce the
"Weekend Choice" Plan as an Optional Residential Intralata Toll
                         Calling Plan.
                                
              Order Granting Conditional Approval
                                
                   O R D E R   N O.   23,083
                                
                       December 11, 1998
                                
       On October 15, 1998, New England Telephone and
     Telegraph Company, d/b/a Bell Atlantic (Bell Atlantic), filed a
     petition with the New Hampshire Public Utilities Commission
     (Commission) requesting authority to introduce a new optional
     residential intralata toll calling plan called "Weekend Choice".
     Pursuant to Order No. 23,065, the time to review the filing was
     extended for an additional 30 day period.
       Subscribers of "Weekend Choice" will be able to make an
     unlimited amount of Intralata toll calls on the weekend at no
     charge.  All weekday calls will be billed at $0.15 per minute.
     The minimum monthly charge per subscriber line will be $5.95. 
     There is no service establishment or subscription charge for this
     service.  "Weekend Choice" is available only to residential
     customers who utilize Bell Atlantic as their local and intralata
     toll service provider. 
       Along with the petition, Bell Atlantic provided an
     initial set of supporting documents which suggested forecasted
     average revenues per minute of usage (ARPM) will exceed the cost
     of relevant access, a requirement pursuant to Order No. 20,916 in
     docket DE 90-002. Based on the formula prescribed by Order No.
     20,916, the current cost of relevant access is $.0775 per minute. 
       According to Bell Atlantic, customers migrating from
     message telecommunication service or 603 CallAround to "Weekend
     Choice" will double the amount of their current conversation
     minutes during Weekend days. Concurrent with increases in weekend
     conversation minutes, Bell Atlantic also anticipates the same
     customers will suppress current weekday conversation minutes by
     10%.   Based on the Company's analysis of changes in customer
     demand characteristics, the Company believes aggregate ARPM
     generated by all "Weekend Choice" customers during the week will
     exceed the relevant cost of access even though weekend calls are
     free of charges.
       After analyzing the initial set of Bell Atlantic
     documents, Staff recommended that the Commission extend the time
     to review the petition for an additional 30 days. In Staff's
     opinion, the documents attached to the Company's filing did not
     adequately support Bell Atlantic's assertion that ARPM exceeded
     the relevant cost of access.  At the time, Staff was concerned
     the amount of unrated weekend conversation minutes would reduce
     ARPM below the cost of relevant access. Subsequent to Order No.
     23,065, Bell Atlantic provided a number of additional workpapers
     in support of the petition.  Based on an analysis of these
     workpapers, Staff now recommends that the Commission grant
     conditional approval. 
       New information provided by Bell Atlantic indicates
     that, on average, weekend conversation minutes of those customers 
     most likely to subscribe to "Weekend Choice" will have to
     increase by more than a factor of 3 times before the cost of
     access will exceed ARPM generated by this service. Additionally,
     Bell Atlantic claims that increases in weekend conversation
     minutes are limited.  In support of this assertion, Bell Atlantic
     provided information about weekend calling patterns in New York
     where "Weekend Choice" has been available since July, 1998.
     According to this information, the average customer subscribing
     to "Weekend Choice" increased the amount of their weekend
     conversation minutes between the date of service introduction and
     October, 1998.  However, that increase is less than the critical
     3.0 threshold factor for New Hampshire.
       Because New Hampshire Intralata toll customers
     subscribing to this service will have to increase their current
     average weekend calling usage by more three times before the cost
     of access exceeds ARPM, it is Staff's opinion that approval is in
     the public interest.  However, Staff recommends that the
     Commission also order Bell Atlantic to submit "Weekend Choice"
     reports on a quarterly basis for a minimum of two years from the
     date of this order.  In Staff's opinion, aggregate ARPM will
     exceed the relevant cost of access for at least several months
     after introducing this service.  Over time, customer calling
     patterns may change as a result of increased marketing efforts.
     As customers change calling habits by postponing weekday calls to
     the weekend, ARPM will decrease.  Reports indicating by month the
     number of subscribers, Weekday Conversation Minutes, Weekend
     Conversation minutes, Total Conversation minutes, "Weekend
     Choice" day rate ($0.15\minute), total actual usage revenue,
     actual minimum bill revenue, total actual revenue and average
     revenue per minute will provide the Commission with useful
     information on the amount of increases in Weekend conversation
     minutes by subscribers. In addition, a quarterly report will
     indicate whether or not ARPM generated by the service exceed the
     cost of access.  With advanced notification from these reports,
     Staff will have sufficient information to make additional
     recommendations on modifying this Service such as increasing the
     Weekday rate or charging for weekend calling.
       After reviewing the petition and Staff's
     recommendation, we find Bell Atlantic's request to be in the
     public interest.  Approval will provide the Company additional
     flexibility to meet the demands of its customers.  Because this
     is a new service in New Hampshire, we will require the Company to
     submit quarterly reports indicating by month the number of
     subscribers, Weekday Conversation Minutes, Weekend Conversation
     minutes, Total Conversation minutes, "Weekend Choice" day rate
     ($0.15\minute), total actual usage revenue, actual minimum bill
     revenue, total actual revenue and average revenue per minute.  We
     will direct Bell Atlantic to submit quarterly reports for a two
     year period from the date of this order.  With the reports, the
     Commission will be able to monitor increases in Weekend
     conversation minutes and whether ARPM exceed the cost of relevant
     access. If the cost of access exceeds ARPM generated from this
     service at a point in the future, we will direct the Company to
     immediately modify this service by either increasing the current
     Day rate of $0.15 per minute, charging for weekend conversation
     minutes or terminating the service.  
       Based upon the foregoing, it is hereby
       ORDERED,that the proposed request is APPROVED with
     Conditions ; and it is
       FURTHER ORDERED, that Bell Atlantic file quarterly
     reports as described above for  two years from the date of this
     Order.  Reports shall be submitted no later than the 15th day
     following the end of each fiscal quarter.
       By order of the Public Utilities Commission of New
     Hampshire this eleventh day of December, 1998.
     
                                                                      
           Douglas L. Patch       Susan S. Geiger     Nancy Brockway
               Chairman           Commissioner          Commissioner
     
     
     Attested by:
     
     
                                      
     Thomas B. Getz
     Executive Director and Secretary