CLECs are girding for fight to stop SBC/Ameritech from raising it...

rates in state. Ameritech said revised cost studies showed current rates for UNEs and UNE platform service were far below cost, violating federal Telecom Act and forcing it to subsidize its competitors. AT&T said Ameritech presented new cost study using “inappropriate methodology” rather than update of its 1999 study. AT&T also said Ameritech failed to provide coherent explanation of why its costs had changed so much since 1999, nor why its new cost model’s dramatically higher costs were more accurate depiction of its expenses. AT&T said Ameritech hadn’t justified its proposed increase in UNE-P rate to $34 monthly from $14.44. It said some proposed increases in nonrecurring charges were astronomical, such as 2,400% boost in line migration fee when no network changes were involved -- fee would rise to $8.84 from 35 cents. AT&T cited other nonrecurring fee boosts of 200-800%. Ameritech responded that its studies provided accurate and lawful depiction of its costs and demonstrated that its ability to maintain work force and network investment would suffer unless it could recover its costs to provide service. Meanwhile, ASCENT sent letters to Mich. PSC and other 4 Ameritech state commissions urging them to resist Ameritech’s “aggressive campaign” to control competition by increasing its UNE rates. Group said federal court decisions in last year had shown “fallacy” of claim that total element long run incremental costing (TELRIC) inhibited incumbents’ network investment. ASCENT expressed doubt that current UNE rates were below Ameritech’s costs and urged state commissions to “consider once again the wealth of data” showing competitive value of appropriately priced UNEs and weakness of Ameritech’s claims. Ameritech also has pending petition in Ill. for UNE rate increase and has indicated it planned to seek UNE boosts in all its states.