..Case Studies

Ameritech

The Public Utility Commission of Ohio adopted telephone service quality standards and marketing restrictions applicable to local exchange service.  Among the most comprehensive standards and restrictions at the state level anywhere in the country, the Commission attached significant penalties for failing to meet them, and, particularly after the acquisition of Ameritech by SBC.  Significant rewards for achieving state-wide targeted service levels were also established.  Following the merger, there arose significant concerns about the quality of local exchange service being delivered.  The Commission sought an independent review of two critical questions: whether changes in capital and O&M resources or activities were contributing to any service quality declines, and whether the way that the company was measuring service performance was sufficiently accurate and comprehensive to meet the detailed penalty and incentive provisions that existed. 

In 2001, the Commission chose Liberty to provide independent, objective answers to these questions.    Liberty’s investigation addressed aspects of two related, yet distinct, elements of Ameritech-Ohio’s service quality: (a) how well Ameritech managed the performance of the work activities that it takes to deliver that service, and (b) how well Ameritech measured the quality of its service. Components of this evaluation included an assessment of how Ameritech-Ohio managed Ohio Minimum Telephone Service Standard (MTSS) performance and compliance, how it managed MTSS record keeping and provision of credits to customers for poor performance, and how it complied with selected marketing and disclosure requirements in communications with its customers.

As part of this engagement, Liberty provided its assessment of Ameritech-Ohio’s installation and repair operations and processes. Liberty also reviewed the policies, procedures, and work practices of Ameritech-Ohio’s call center management to better understand how Ameritech handled Ohio customer calls and how its workforce had been trained, coached, and prepared to deliver Ohio Commission disclosures. Liberty conducted an extensive investigation into the methods used by the company to calculate its MTSS performance measures and service quality benchmarks (required under a merger stipulation), as well as the credits provided to customers for missed installation and repair appointments or lapsed service.

After a detailed examination, Liberty identified a number of areas where changes in capital or O&M practices had contributed to service quality declines.  Liberty also identified a set of specific areas where service quality measurements needed to change to improve accuracy, timeliness, and consistency with the service attributes necessary to be measured under applicable penalty and incentive provisions.  This work led to a comprehensive settlement with the Company.  The quality and objectivity of Liberty’s work as seen by all sides was validated by the decision of the Company and Commission to include Liberty as part of a joint effort to develop a series of specific measurement changes designed to respond to the recommendations made in Liberty’s audit.