SCOTT C. LUNDQUIST

 

Consultant in Telecommunications

Regulation and Economics

 

53 Cottage St.

Natick, MA 01760 USA

tel: 1-508-654-2013

SLundquist@Verizon.net

 

 

Expertise:                     Telecommunications policy, regulation and economics, including interconnection, network unbundling, cost analysis, tariff design, policy and regulatory frameworks to accommodate emerging competition.  Serves as lead consultant and expert witness in regulatory proceedings, and advises and trains regulatory staff in developing countries on modern regulatory practices.

 

Education:                    Bachelor of Arts, Psychology and Social Relations, Harvard College (Cambridge, Massachusetts USA), 1985.

 

Professional Experience:

 

Consultant in Telecommunications Regulation and Economics – Associate of David N. Townsend & Associates  (Effective January 2005).

 

Vice President, Economics and Technology, Inc, Boston, Massachusetts USA. (1996 to December 2004). Equity partner and member of Board of Directors, 2002-2004. 

 

Consultant/Senior Consultant, Economics and Technology, Inc. (1988 to 1996).

 

Analyst/Senior Analyst, Economics and Technology, Inc.. (1986-88).

 

            Mr. Lundquist performs strategic and regulatory analysis, project management, and client support services for consulting projects in telecommunications regulation and economics.  Over the course of his nineteen year career in the field, Mr. Lundquist has developed a specialized expertise in the key areas of modern telecommunications regulation and policy, including service costs and pricing, network interconnection and unbundling, implementation of competition policies, incentive regulation, network modernization and productivity, and tariff design.  Mr. Lundquist frequently serves as an expert witness on these issues before U.S. state regulatory bodies and the federal telecommunications regulator, the Federal Communications Commission (“FCC”).  He has also advised regulatory agencies and ministries in developing nations on modern regulatory practices, and has developed and undertaken on-site training programs for their regulatory staff.  Mr. Lundquist regularly serves as the lead consultant and manager for these projects.

            Mr. Lundquist has provided expert witness testimony on over thirty occasions over the past twelve years, on behalf of state regulatory commission staff, competitive service providers, and consumer advocate agencies.  He has worked extensively with computerized cost models for telecommunications networks and services, including all of the major cost models introduced in U.S. regulatory proceedings (including the Hatfield Model, Benchmark Cost Model, ICM, FCC’s Synthesis Model, and Bell Operating Company proprietary models).  Mr. Lundquist has frequently testified concerning the appropriate costs and rates for interconnection and unbundled network elements, and his recommendations have been adopted by state public utility commissions.  He also has conducted seminars and training sessions for both U.S. and international clients on these topics.  In 2001, Mr. Lundquist co-authored a comprehensive report on inter-carrier compensation arrangements for interconnecting local telephone companies in a competitive environment, titled “Efficient Inter-Carrier Compensation Mechanisms for the Emerging Competitive Environment.” 

 

            Mr. Lundquist has participated in the development of “price caps” and other incentive regulation frameworks applied to U.S. telecommunications carriers since 1989, when he contributed to comments filed in the first price caps investigations conducted by the FCC.  Mr. Lundquist possesses in-depth knowledge of all aspects of incentive regulation, including measurement of carrier productivity gains and the specification of productivity offsets, monitoring of service quality, indexing and pricing rules, and impacts on investment and innovation.  He has testified before U.S. state regulatory commissions on these matters on several occasions and has co-authored two major reports in this area:  A Study of Total Factor Productivity in the Wisconsin Local Exchange Carrier Industry” (January 2003); and “Price Cap Plan for USWC: Establishing Appropriate Price and Service Quality Incentives in Utah” (March 2000).  Mr. Lundquist also has extensive knowledge of tariff policies and mechanisms, grounded in two years of direct analysis of tariff changes, and subsequent participation in numerous regulatory proceedings and consulting assignments addressing tariff design, cost of service, tariff rebalancing, and tariff flexibility.

 

            Mr. Lundquist has substantial experience in assisting telecommunications officials in foreign governments to improve their regulatory practices.  In 1994, Mr. Lundquist spent nine weeks in Beijing working closely with officials of the Ministry of Posts and Telecommunications (“MPT”) of the People’s Republic of China, as part of a technical assistance project sponsored by the Asian Development Bank. Mr. Lundquist developed and conducted several seminars for senior MPT officials on interconnection, tariffing and rate design for non-basic services, and regulatory restructuring issues.  Mr. Lundquist was also the Project Manager for ETI’s 1993-1994 engagement by the National Telecommunications Commission (“NTC”) of the Philippines (overseen by the World Bank).  Mr. Lundquist spent six months on-site in Manila conducting institutional strengthening activities, including a review and assessment of existing regulatory procedures, staff training in modern regulatory methods and computerized tools, and assistance in implementing new competition and interconnection policies. 

 

 

Languages:                  English (native), French (limited)


Illustrative Project Experience:

 

         Below are brief summaries of selected consulting projects undertaken by Mr. Lundquist in the areas of telecommunications costing and pricing, network interconnection, and foreign government advisory/institutional strengthening initiatives.  Mr. Lundquist was either the project manager or senior consultant for each of these projects.

 

Project:       Expert Witness for AT&T Communications

                    Testimony on Costs of Network Interconnection and Unbundled Elements, 2004

 

Project Activities:

 

           Mr. Lundquist provided expert testimony on behalf of AT&T Communications before the Washington Utilities and Transportation Commission (telecommunications regulatory authority for the state of Washington), responding to proprietary cost models presented by Verizon to support its proposed costs and rates for interconnection to competitive local telephone companies.  Mr. Lundquist’s cost model analysis and resulting testimony focused on capital asset depreciation and non-capital expense items, including marketing and other retailing functions, as well as the impacts of inflation and productivity on future costs.  Mr. Lundquist recommended a series of cost study adjustments in these areas and defended them during live cross-examination by Verizon and the Commissioners. This case marked the fifth occasion on which Mr. Lundquist served as an expert witness on behalf of AT&T.

 

Project:           Universal Service Report for Western Wireless Corporation

                        “Lost in Translation: How Rate of Return Regulation Transformed the Universal Service Fund for Consumers into Corporate Welfare for the RLECs,” 2004 

 

Project Activities:

 

         Mr. Lundquist co-authored a report commissioned by Western Wireless Corporation that provided a critical examination of the federal “high cost” funding mechanisms applied in the U.S. to assist rural local telephone companies to meet the universal service objective of widespread availability of affordable basic telecommunications services.  Using a national dataset encompassing 90% of the rural telephone lines supplied under traditional rate of return regulation, Mr. Lundquist conducted a best-in-class benchmarking analysis of rural telcos’ corporate overhead expenses.  Mr. Lundquist confirmed and augmented this analysis by reviewing detailed financial and operating data for 140 rural telcos.  In addition, Mr. Lundquist prepared additional chapters of the report that address rural telco workforce levels, economic disincentives against consolidation of rural telcos, and case studies of specific rural telcos, and contributed to the report’s final conclusions and recommendations.  Mr. Lundquist has also prepared various follow-up analyses in response to industry reactions to that report, which were included in the client’s subsequent comment filings in the FCC’s universal service proceeding (WC Docket No. 96-45).

 

Project:       Expert Witness for GlobalNAPs Inc. (Competitive Services Provider)

                    Testimony on Interconnection Costs, Prices, and Policy Issues, 2001-2002

 

Project Activities:

 

         Mr. Lundquist provided expert testimony on interconnection issues on behalf of a competitive services provider, GlobalNAPs, Inc., before the state regulatory authorities in seven states (including California, Illinois and Ohio) in which the client was seeking to interconnect to the major incumbent local telephone company.  In formal, contested cases in each of those states, Mr. Lundquist’s testimony provided an analysis of call transport costs specific to each state, analyzed and responded to the incumbent’s proposed terms for interconnection, and explained the client’s innovative use of routing codes to provide new services catering to Internet Service Providers (“ISPs”).  Mr. Lundquist also presented and defended his recommendations during live cross-examination by the incumbent telephone companies and regulatory Commissioners at hearings in each case. 

 

Project:       People’s Republic of China, Ministry of Posts and Telecommunications

                    Telecommunications Management Support Consultancy, 1994

 

Project Activities:

 

         Mr. Lundquist served as a key contributor to a joint project of ETI and France Telecom’s consulting division, Sofrecom, which was the Asian Development Bank’s first-ever technical assistance project to the China Ministry of Posts and Telecommunications (“MPT”) in 1994.  The primary objectives for the consultancy were to increase the MPT’s institutional capabilities to administer and regulate the country’s rapidly evolving telecommunications sector.  Mr. Lundquist’s participation focused on advising on regulatory and market structure issues, specifically:

 

·   Tariffing, pricing and service provisioning rules for non-basic services;

·   Interconnection and revenue settlement arrangements for non-basic services provided through multiple, interconnected networks; and

·   Institutional strengthening of ministerial functions for regulation in a multi-supplier environment.

 

To that end, Mr. Lundquist advised the MPT on international experiences with sector restructuring and policy/regulatory reforms, focusing on the frameworks devised for expanded competition in the sector; reviewed the MPT’s existing rules and policies concerning non-basic services, and made recommendations concerning their further implementation; and conducted a series of presentations and workshops, along with other project team members, on regulatory issues for the national and provincial-level authorities of the MPT.  In preparation for those workshops, Mr. Lundquist and other project team members engaged in two months of on-site interactions with MPT officials in Beijing.

 

Project:       Republic of the Philippines, National Telecommunications Commission (“NTC”)

                    Telecommunications Regulation Consultancy 1993-1994.

 

Project Activities:

 

            Mr. Lundquist was the lead on-site project manager for a year-long consultancy funded by a Japan Grant (overseen by the World Bank), intended to strengthen the NTC’s regulatory and policy implementation capabilities.  Mr. Lundquist worked directly with NTC officials and regulatory staff for a total of six months in Manila, and also developed and conducted several off-site workshops for NTC training and policy development.  The specific assistance he provided was to:

 

·         Review and assess the NTC’s existing operations and regulatory procedures, and devise an appropriate institutional strengthening program;

·         Train NTC staff in the techniques of regulatory analysis, including the use of specific regulatory software tools devised in the course of the consultancy;

·         Assist the NTC to improve its carrier reporting requirements and better align them with regulatory needs; and

·         Advise the NTC on carrier interconnection policy and reform of carriers’ tariff adjustment mechanisms to reflect foreign currency value fluctuations.

 

Publications:

 

            “Lost in Translation: How Rate of Return Regulation Transformed the Universal Service Fund for Consumers into Corporate Welfare for the RLECs” (with Susan M. Gately), February 2004.  Prepared for Western Wireless Corporation.

 

            “A Study of Total Factor Productivity in the Wisconsin Local Exchange Carrier Industry” (with Lee L. Selwyn, Sarah C. Bosley), January 2003.  Prepared for the Public Service Commission of Wisconsin.

 

            “Efficient Inter-Carrier Compensation Mechanisms for the Emerging Competitive Environment” (with Lee L. Selwyn), August 2001.  Prepared for Pac-West Telecomm, Inc., Focal Communications Corp., and US LEC Corp.

 

            “Price Cap Plan for USWC: Establishing Appropriate Price and Service Quality Incentives in Utah” (with Patricia D. Kravtin and Susan M. Baldwin).  Prepared for the Utah Division of Public Utilities, March 2000.

 

            “Bringing Broadband to Rural America: Investment and Innovation in the Wake of the Telecom Act” (with Lee L. Selwyn and Scott A. Coleman).  Prepared for AT&T, September 1999.

 

            “Promises and Realities: An Examination of the Post-Merger Performance of the SBC/Pacific Telesis and Bell Atlantic/NYNEX Companies” (with Scott A. Coleman).  Prepared for the AARP Public Policy Institute, July 1999.

 

            “Manual of Procedures for the Rates Regulation Division” (with Paul S. Keller).  Prepared for the Philippines National Telecommunications Commission, August 1994.

 

            “Review of Annual Reporting Requirements for Telecommunications Common Carriers.”  Prepared for the Philippines National Telecommunications Commission, October 1993.

 

            “The Infrastructure Dilemma: Matching Market Realities and Policy Goals” (with W.P. Montgomery).  Prepared for the International Communications Association, January 1993.

 

            “A Roadmap to the Information Age: Defining a Rational Telecommunications Plan for Connecticut” (with Susan M. Baldwin et al).  Prepared for the Connecticut Office of Consumer Counsel, October 1992.

 

            “New Connections for the 1990s: Managing the Changing Relationship Between Corporate Telecommunications Needs and the Local Telephone Company” (with W. Page  Montgomery).  Prepared for the International Communications Association, April 1990.

 

            “Adapting Telecom Regulation to Industry Change” (with Dr. Lee L. Selwyn).  Prepared for the International Communications Association and published in IEEE Communications Magazine, January 1989.

 

            “A Study of Rate of Return Regulation and Alternatives - An Examination of Applicability to regulation of Telephone Companies by the Canadian Radio-Television and Telecommunications Commission” (with W. Page Montgomery and Lee L. Selwyn).  Prepared for the Canadian Radio-Television and Telecommunications Commission, March 1989.

 

            “Telecommunications Competition in Michigan and Regulatory Alternatives: Market Structure and Competition in the Michigan Telecommunications Industry” (with Lee L. Selwyn, David N. Townsend, Patricia D. Kravtin).  Prepared for the Michigan Divestiture Research Fund Board, April 1988.

 

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