`
`
`
`A FINAL REPORT OF THE
`REVIEW OF RETAIL SERVICE QUALITY
`PERFORMANCE OF
`
`
`VERIZON NEW YORK, INC.
`
`
`
`(PUBLIC)
`
`
`FOR THE
`NEW YORK STATE
`DEPARTMENT OF PUBLIC SERVICE
`
`DOHERTY & COMPANY, INC.
`
`Exhibit 2015 Page 1
`
`IV Exhibit 2015
`FedEx v. IV
`Case IPR2017-00741
`
`

`

`
`
`
`
`A FINAL REPORT OF THE
`REVIEW OF RETAIL SERVICE QUALITY
`PERFORMANCE OF
`
`
`VERIZON NEW YORK, INC.
`
`
`
`(PUBLIC)
`
`
`FOR THE
`NEW YORK STATE
`DEPARTMENT OF PUBLIC SERVICE
`
`
`
`OCTOBER 29, 2004
`
`DOHERTY & COMPANY, INC.
`
`Exhibit 2015 Page 2
`
`

`

`
`
`i
`
`TABLE OF CONTENTS
`
`I - INTRODUCTION........................................................................................................................I-1
`A - Objectives and Scope of the Review .....................................................................................I-3
`B - Approach and Study Methodology........................................................................................I-5
`Review Structure ...................................................................................................................I-5
`C - Project Team Organization....................................................................................................I-9
`D - Report Organization ............................................................................................................I-10
`
`II - EXECUTIVE SUMMARY ...................................................................................................... II-1
`A - Introduction ..........................................................................................................................II-1
`B - Objectives and Scope............................................................................................................II-2
`C - Approach...............................................................................................................................II-4
`D - Key Findings ........................................................................................................................II-9
`E - Summary of Recommendations..........................................................................................II-16
`
`III - ORGANIZATION AND EXECUTIVE MANAGEMENT................................................III-1
`A - Background......................................................................................................................... III-1
`Organizational Structure..................................................................................................... III-2
`Corporate Planning ........................................................................................................... III-12
`Human Resources Management ....................................................................................... III-17
`Labor Relations................................................................................................................. III-26
`B - Findings ............................................................................................................................ III-31
`C - Recommendations............................................................................................................. III-52
`
`IV - PERFORMANCE ANALYSIS & STATISTICS ................................................................IV-1
`A - Background......................................................................................................................... IV-1
`Analysis of Service Quality Objectives.............................................................................. IV-1
`Focused Review of High/Low Entities............................................................................. IV-39
`Service Inquiry Report Review ........................................................................................ IV-43
`Measurements Administration.......................................................................................... IV-46
`B - Findings ............................................................................................................................ IV-50
`C - Recommendations............................................................................................................. IV-70
`
`DOHERTY & COMPANY, INC.
`
`Exhibit 2015 Page 3
`
`

`

`
`
`ii
`
`TABLE OF CONTENTS, CONTINUED
`
`V - CAPITAL AND MAINTENANCE PLANNING................................................................... V-1
`A - Background.......................................................................................................................... V-1
`Capital Program Planning.................................................................................................... V-1
`Maintenance Program Planning......................................................................................... V-15
`Network Planning .............................................................................................................. V-23
`B - Findings ............................................................................................................................. V-32
`C - Recommendations.............................................................................................................. V-34
`
`VI - CUSTOMER SERVICE........................................................................................................VI-1
`A - Background......................................................................................................................... VI-1
`Business Offices ................................................................................................................. VI-3
`VRRC Organization.......................................................................................................... VI-36
`Directory & Operator Assistance...................................................................................... VI-49
`Customer Perceptions ....................................................................................................... VI-59
`B - Findings ............................................................................................................................ VI-70
`C - Recommendations............................................................................................................. VI-90
`
`VII - FIELD OPERATIONS ...................................................................................................... VII-1
`A - Background........................................................................................................................VII-1
`Installation and Maintenance.............................................................................................VII-1
`Network Construction......................................................................................................VII-14
`Network Design and Outside Plant Engineering .............................................................VII-23
`Outside Plant Engineering ...............................................................................................VII-27
`Central Office ..................................................................................................................VII-37
`Infrastructure Improvement Program ..............................................................................VII-44
`B - Findings ...........................................................................................................................VII-53
`C - Recommendations..........................................................................................................VII-102
`
`VIII - BEST PRACTICES .........................................................................................................VIII-1
`A - Background...................................................................................................................... VIII-1
`Best Practice Process ....................................................................................................... VIII-1
`Best Practices—Programmed System Deployments—Formal Process .......................... VIII-2
`Best Practices—From Within Verizon .......................................................................... VIII-18
`B - Findings ......................................................................................................................... VIII-23
`C - Recommendations.......................................................................................................... VIII-33
`
`DOHERTY & COMPANY, INC.
`
`Exhibit 2015 Page 4
`
`

`

`
`
`iii
`
`TABLE OF CONTENTS, CONTINUED
`
`APPENDIX A – OFF-SITE ASSOCIATE MEETINGS........................................APPENDIX A-1
`
`GLOSSARY.................................................................................................................. GLOSSARY-1
`
`DOHERTY & COMPANY, INC.
`
`Exhibit 2015 Page 5
`
`

`

`
`
`iv
`
`TABLE OF EXHIBITS
`
`Exhibit I-1 DCI’s Approach and Methodology .................................................................................I-6
`Exhibit I-2 Areas of Investigation......................................................................................................I-7
`Exhibit I-3 Verizon NY Review Areas..............................................................................................I-8
`Exhibit I-4 Project Organization........................................................................................................I-9
`Exhibit II-1 DCI’s Approach And Methodology..............................................................................II-5
`Exhibit II-2 Areas Of Investigation ..................................................................................................II-6
`Exhibit II-3 Verizon NY Review Areas............................................................................................II-7
`Exhibit II-4 Summary of Recommendtions....................................................................................II-19
`Exhibit III-1 Verizon Corporation Organization ............................................................................ III-3
`Exhibit III-2 Domestic Telecom Organization ............................................................................... III-4
`Exhibit III-3 Network Services Group............................................................................................ III-8
`Exhibit III-4 Northeast Region Organization ................................................................................. III-9
`Exhibit III-5 Engineering Organization .......................................................................................... III-9
`Exhibit III-6 Retail Markets Group............................................................................................... III-10
`Exhibit III-7 Enterprise Solutions Group...................................................................................... III-10
`Exhibit III-8 Domestic Telecom Finance Group .......................................................................... III-11
`Exhibit III-9 November 2003 Voluntary Separation Offers ......................................................... III-18
`Exhibit III-10 Verizon Employee Health and Productivity Organization .................................... III-24
`Exhibit III-11 Bargaining Tables .................................................................................................. III-27
`Exhibit III-12 NY State Training Hours At Verizon-Owned Locations....................................... III-37
`Exhibit III-13 Verizon NY Non-Management Absence Rate....................................................... III-37
`Exhibit III-14 Primary Appointment Date Codes......................................................................... III-41
`Exhibit III-15 Average Interval Result Highlights: Residential, New.......................................... III-42
`Exhibit III-16 Trouble Reporting/Resolution Process Flow......................................................... III-44
`Exhibit III-17 VRRC Screening Cue Time FOR March and April 2004 ..................................... III-46
`Exhibit III-18 Analysis of FECO Results for 2003 and January 2004 ......................................... III-47
`Exhibit III-19 146 Additional Picture Status ................................................................................ III-48
`Exhibit III-20 NFV versus FV “I” Report Rate ............................................................................ III-51
`Exhibit III-21 High “I” Reports .................................................................................................... III-51
`Exhibit IV-1 VIP Retail Service Quality Plan ................................................................................ IV-2
`Exhibit IV-2 Trouble Report Rates (Statewide) March 2002–May 2004....................................... IV-3
`Exhibit IV-3 Installations within Five Days (Statewide) March 2002–May 2004......................... IV-4
`Exhibit IV-4 PSC Complaints (Statewide) March 2002–February 2004 ....................................... IV-5
`Exhibit IV-5 Out-of-Service > 24 Hours (Statewide) March 2002–February 2004....................... IV-7
`Exhibit IV-6 Outliers (Statewide) March 2002–February 2004 ..................................................... IV-8
`Exhibit IV-7 Statewide Outliers by Type March 2002–February 2004 ......................................... IV-9
`Exhibit IV-8 SIRs by Region and by Type–PY2.......................................................................... IV-11
`Exhibit IV-9 Verizon’s Intrastate Special Services Process Improvement Program.................... IV-12
`Exhibit IV-10 Special Services PIP On Time Performance ......................................................... IV-13
`Exhibit IV-11 Special Services PIP Maximum Interval ............................................................... IV-14
`Exhibit IV-12 Special Services PIP Mean Time to Clear............................................................. IV-15
`Exhibit IV-13 New York State Service Quality Standards for Telephone Companies ................ IV-16
`
`DOHERTY & COMPANY, INC.
`
`Exhibit 2015 Page 6
`
`

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`
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`v
`
`TABLE OF EXHIBITS, CONTINUED
`
`Exhibit IV-14 % of Entities with CTRR > 5.5 March 2002–May 2004....................................... IV-18
`Exhibit IV-15 % of COE Entities with CTRR ≤ 3.3 March 2002–May 2004.............................. IV-19
`Exhibit IV-16 Proportion of Entities Meeting OOS > 24 Hrs March 2002–May 2004 ............... IV-20
`Exhibit IV-17 % SA > 48 Hours March 2002–May 2004............................................................ IV-21
`Exhibit IV-18 Proportion of Entities Meeting SA > 48 Hrs Target March 2002–May 2004....... IV-22
`Exhibit IV-19 % of Entities with 80% (or Greater) Basic Service Installations within
` Five Days March 2002– May 2004 ...................................................................... IV-23
`Exhibit IV-20 Proportion of Entities Meeting 10% (or Less) Missed Basic Service Installation
` Appointments March 2002–May 2004 ................................................................. IV-24
`Exhibit IV-21 Business Office % Answered within 30 Seconds Consumers
` March 2002–May 2004......................................................................................... IV-26
`Exhibit IV-22 Business Office % Answered within 30 Seconds General Business
` March 2002–May 2004......................................................................................... IV-27
`Exhibit IV-23 Repair Service Bureau % Answered within 30 Seconds March 2002–May 2004 IV-28
`Exhibit IV-24 Operator Assistance ASA March 2002–May 2004 ............................................... IV-29
`Exhibit IV-25 Special Services Guidelines................................................................................... IV-30
`Exhibit IV-26 Order Confirmation Timeliness January 2002–May 2004 .................................... IV-31
`Exhibit IV-27 On time Performance January 2002–April 2004................................................... IV-32
`Exhibit IV-28 Missed Installation Appointment Delays January 2002–April 2004 .................... IV-33
`Exhibit IV-29 Quality of Installation Work January 2002–April 2004........................................ IV-34
`Exhibit IV-30 Missed Appointments Due to a Lack of Facilities January 2002–April 2004....... IV-35
`Exhibit IV-31 Percent Jeopardies January 2002–May 2004......................................................... IV-36
`Exhibit IV-32 Reliability of Service January 2002–April 2004 ................................................... IV-37
`Exhibit IV-33 Promptness of Repair January 2002–April 2004................................................... IV-38
`Exhibit IV-34 Monthly Trouble Report Rate Outside Plant 2003................................................ IV-40
`Exhibit IV-35 Daily Trouble Report Rate Outside Plant Example IMC Data 2003 .................... IV-41
`Exhibit IV-36 Extreme Trouble Days........................................................................................... IV-42
`Exhibit IV-37 VIP SIRs Count by Month..................................................................................... IV-44
`Exhibit IV-38 SS SIRs Count by Month....................................................................................... IV-45
`Exhibit IV-39 Big 5 PY1 and PY2 Results................................................................................... IV-51
`Exhibit IV-40 OOS > 24 Hours Misses by Region and IMC ....................................................... IV-53
`Exhibit IV-41 Verizon NY Labor Productivity Trends (2000–2003) .......................................... IV-56
`Exhibit IV-42 Key Problem Areas Special Services Installation Performance Results
` On Time Performance............................................................................................ IV-58
`Exhibit IV-43 Key Problem Areas Special Services Installation Performance Results
` Missed Installation Appointment Delays............................................................... IV-59
`Exhibit IV-44 Key Problem Areas Special Services Installation Performance Results
` Quality Of Installation Work ................................................................................ IV-60
`Exhibit IV-45 Key Problem Areas Special Services Maintenance Performance Results
` Mean Time To Clear............................................................................................. IV-61
`Exhibit IV-46 NY Complaints...................................................................................................... IV-62
`Exhibit IV-47 Verizon NY Complaints in Capital Region........................................................... IV-63
`Exhibit IV-48 Verizon NY Complaints in Island Metro Region.................................................. IV-63
`
`DOHERTY & COMPANY, INC.
`
`Exhibit 2015 Page 7
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`

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`
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`vi
`
`TABLE OF EXHIBITS, CONTINUED
`
`Exhibit IV-49 Verizon NY Complaints in Liberty Region........................................................... IV-64
`Exhibit IV-50 Repeat Report Rates October 2000–May 2004 ..................................................... IV-65
`Exhibit IV-51 Subsequent Report Rates October 2000–May 2004.............................................. IV-66
`Exhibit IV-52 Out of Service Troubles Charged to Disposition Code 666 .................................. IV-67
`Exhibit V-1 Domestic Telecom Finance Organization.................................................................... V-2
`Exhibit V-2 Verizon New York Actual Capital Expenditures, By Region, for the Twelve Months
` Ended December 31 (Millions of Dollars).................................................................. V-3
`Exhibit V-3 Verizon New York Volume Forecast Data 2003/2004................................................ V-4
`Exhibit V-4 Verizon NY Capital Expenditures By Class of Plant .................................................. V-5
`Exhibit V-5 New York OSP Capital ($M’s) Gross Construction Expenditure—Excludes
` Disaster Recovery ....................................................................................................... V-6
`Exhibit V-6 VCAM Model .............................................................................................................. V-8
`Exhibit V-7 Budget Process........................................................................................................... V-13
`Exhibit V-8 Verizon Domestic Telecom Operating Budget FlowChart........................................ V-18
`Exhibit V-9 Verizon New York Region’s Budget/Actual Information ......................................... V-19
`Exhibit V-10 Actual Dispatches for NY 2001–2003 Actuals and Commitment View for 2004 .. V-20
`Exhibit V-11 Expense Commitment View Budget Forecast of Productivity for NY and
` Actuals for 2001, 2002, and 2003........................................................................... V-21
`Exhibit V-12 Network Planning and Engineering Organization ................................................... V-25
`Exhibit V-13 Outside Plant Planning............................................................................................. V-25
`Exhibit VI-1 Call Center Service Quality (Performance) Measures VIP Retail Service
` Quality Plan .............................................................................................................. VI-2
`Exhibit VI-2 Consumer Sales Organization Installation Order/Provisioning Consumers.............. VI-4
`Exhibit VI-3 Consumer Sales Call Centers Installation Order/Provisioning Consumers............... VI-5
`Exhibit VI-4 Typical Call Center Organizational Structure Consumer Sales ................................ VI-6
`Exhibit VI-5 Business Sales And Billing Center Organization Installation Order/Provisioning
` Small Businesses....................................................................................................... VI-7
`Exhibit VI-6 Typical BSBC Organizational Structure ................................................................... VI-8
`Exhibit VI-7 Business Billing Center Organization ....................................................................... VI-9
`Exhibit VI-8 Multi-Channel Market Organization Installation Order/Provisioning
` Medium/Large Businesses ...................................................................................... VI-10
`Exhibit VI-9 Complementary Sales Organization ........................................................................ VI-12
`Exhibit VI-10 Enterprise Solutions Group Organization.............................................................. VI-14
`Exhibit VI-11 Enterprise Solutions Group Organization Installation Order/Provisioning
` Large/Premium Businesses................................................................................... VI-16
`Exhibit VI-12 Typical Organizational Structure Large/Premium Businesses.............................. VI-17
`Exhibit VI-13 Receivables Management Organization ................................................................ VI-19
`Exhibit VI-14 Consumer Call Volumes versus Staffing Levels................................................... VI-22
`Exhibit VI-15 General Business Call Volumes versus Staffing Levels ....................................... VI-23
`Exhibit VI-16 Forecasting & Monitoring Systems Used.............................................................. VI-25
`Exhibit VI-17 Consumer Call Center Systems ............................................................................. VI-27
`Exhibit VI-18 General Business Call Center Systems.................................................................. VI-28
`Exhibit VI-19 ESG Application Systems ..................................................................................... VI-29
`
`DOHERTY & COMPANY, INC.
`
`Exhibit 2015 Page 8
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`

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`
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`vii
`
`TABLE OF EXHIBITS, CONTINUED
`
`Exhibit VI-20 % Answered within 30 Seconds for Consumer (Residential) Call Center
` Organizations March 2002–May 2004 ................................................................. VI-31
`Exhibit VI-21 % Answered within 30 Seconds for General Business Call Center Organizations
` March 2002–May 2004......................................................................................... VI-32
`Exhibit VI-22 Business Office Performance Measures (2 Pages) ................................................. VI-33
`Exhibit VI-23 New York VRRC Organization............................................................................. VI-36
`Exhibit VI-24 Customer Service Organizations Repair................................................................ VI-37
`Exhibit VI-25 VRRC Locations.................................................................................................... VI-38
`Exhibit VI-26 Typical VRRC Call Center Organizational Structure ........................................... VI-38
`Exhibit VI-27 VRRC Call Volumes versus Staffing Levels ........................................................ VI-39
`Exhibit VI-28 Computer Systems Used........................................................................................ VI-43
`Exhibit VI-29 Repair Service Bureau % Answered within 30 Seconds
` March 2002–May 2004......................................................................................... VI-45
`Exhibit VI-30 LiveSource Directory Assistance Organization .................................................... VI-50
`Exhibit VI-31 Verizon NY Directory Assistance Centers............................................................ VI-51
`Exhibit VI-32 Directory Assistance Call Volumes versus Staffing Levels.................................. VI-52
`Exhibit VI-33 Potomac DA and East CC Organization................................................................ VI-54
`Exhibit VI-34 Verizon NY Operator Assistance Centers ............................................................. VI-55
`Exhibit VI-35 Call Completion Call Volumes versus Staffing Levels......................................... VI-55
`Exhibit VI-36 Operator Assistance ASA...................................................................................... VI-57
`Exhibit VI-37 General Business Provisioning CCI Scores........................................................... VI-60
`Exhibit VI-38 General Business Repair CCI Scores .................................................................... VI-61
`Exhibit VI-39 Consumer Provisioning CCI Scores ...................................................................... VI-62
`Exhibit VI-40 Consumer Repair CCI Scores................................................................................ VI-63
`Exhibit VI-41 Complaint-Handling Process................................................................................. VI-68
`Exhibit VI-42 Business Office % Answered within 30 Seconds Consumer
` March 2002–May 2004......................................................................................... VI-70
`Exhibit VI-43 Business Office % Answered within 30 Seconds General Business
` March 2002–May 2004......................................................................................... VI-71
`Exhibit VI-44 Repair Service Bureau % Answered within 30 Seconds
` March 2002–May 2004......................................................................................... VI-72
`Exhibit VI-45 Annual VIP Service Level Results by Center Per Plan Year ................................ VI-73
`Exhibit VI-46 Operator Assistance ASA...................................................................................... VI-74
`Exhibit VI-47 Verizon Consumer Misdirected Calls.................................................................... VI-77
`Exhibit VI-48 Misdirected Call Percentages By Organization..................................................... VI-77
`Exhibit VI-49 Relationship Of Key Performance Drivers............................................................ VI-79
`Exhibit VI-50 Results Of DCI Key Performance Driver Analysis............................................... VI-80
`Exhibit VI-51 VRRC Factors Historical Data .............................................................................. VI-81
`Exhibit VI-52 VRRC ASA versus NCO....................................................................................... VI-82
`Exhibit VI-53 VRRC ASA versus Staffing Levels....................................................................... VI-82
`Exhibit VI-54 VRRC ASA versus AHT....................................................................................... VI-83
`Exhibit VI-55 General Business Call Centers Factors Historical Data ........................................ VI-84
`Exhibit VI-56 General Business Call Centers ASA versus AHT ................................................. VI-85
`
`DOHERTY & COMPANY, INC.
`
`Exhibit 2015 Page 9
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`
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`viii
`
`TABLE OF EXHIBITS, CONTINUED
`
`Exhibit VI-57 General Business Call Centers ASA versus NCO................................................. VI-85
`Exhibit VI-58 General Business Call Centers ASA versus Staffing Levels................................. VI-86
`Exhibit VI-59 Consumer Call Centers Factors Historical Data.................................................... VI-87
`Exhibit VI-60 Consumer Call Centers ASA versus Staffing Levels ............................................ VI-88
`Exhibit VI-61 Consumer Call Centers ASA versus AHT ............................................................ VI-88
`Exhibit VI-62 Consumer Call Centers ASA versus NCO ............................................................ VI-89
`Exhibit VII-1 I&M Market Areas ..................................................................................................VII-1
`Exhibit VII-2 I&M Market Area Comparison as of October 2003 and as Reported to NYPSC...VII-2
`Exhibit VII-3 Capital Market Area Organization ..........................................................................VII-4
`Exhibit VII-4 Liberty Market Area Organization..........................................................................VII-4
`Exhibit VII-5 Island Metro Market Area Organization .................................................................VII-5
`Exhibit VII-6 Typical Area Organization ......................................................................................VII-5
`Exhibit VII-7 Approximate I&M Staffing Levels .........................................................................VII-9
`Exhibit VII-8 CXM Area Organization .......................................................................................VII-15
`Exhibit VII-9 CXM Staffing Levels ............................................................................................VII-17
`Exhibit VII-10 Backlog Work .....................................................................................................VII-18
`Exhibit VII-11 Percentage Rush Jobs..........................................................................................VII-18
`Exhibit VII-12 Trunk Groups/Trunks..........................................................................................VII-26
`Exhibit VII-13 Volume of Inward DS1 Orders ...........................................................................VII-29
`Exhibit VII-14 Fiber Deployment by Market Area .....................................................................VII-31
`Exhibit VII-15 DAML Deployment ............................................................................................VII-34
`Exhibit VII-16 Island Metro Market Area Metrics......................................................................VII-35
`Exhibit VII-17 Capital Market Area Metrics...............................................................................VII-35
`Exhibit VII-18 Liberty Market Area Metrics...........................................