Transcript Voice Over IP / Internal Presentation

Q w e s t
W h o l e s a l e
M a r k e t s
Qwest Performance
Assurance Plan (QPAP)
Implementation
The Qwest CLEC Forum
September 16-17, 2002
The information provided on every slide in the following presentation is for training purposes only. The information provided
does not create or modify any legal obligations, promises or expectations between Qwest and CLEC customer. The parties’
relationship is governed by existing legal obligations and contracts.
Agenda

What is QPAP?

How does it work?

Positioning – What do CLECs need to do?

Pre-QPAP – SGATS, Questionnaire, Web site

Post-QPAP – Roles and Processes, CLEC reports

Resources/Support
Qwest Wholesale Markets
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What is a Performance Assurance Plan (PAP)?
The PAP is a performance remedy plan for services that
Qwest provides to CLECs
 The PAP encompasses a broad range of carrier-tocarrier functions
 Qwest offers the plan to CLECs in conjunction with its
271 application as an anti-backsliding mechanism once
271 approval has been granted

Qwest Wholesale Markets
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Payments

Per occurrence payments – Qwest pays on the difference
between CLEC performance and benchmark or parity
performance
Measures prioritized: High, Medium and Low

Tiers




Tier 1 payments to CLECs
Tier 2 to state designated funds
Payments under the plan will be self-executing - calculated
based on monthly performance results for each state
Qwest Wholesale Markets
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Generic ROC QPAP Features

PAP is essentially a per occurrence payment plan:



For example, if the CLEC performance on OP-3 was 85%
and the parity/benchmark performance was 90%, assuming
100 orders, Qwest would pay for 5 occurrences
Measures are classified as High ($150), Medium ($75) or
Low ($25) per miss to reflect relative importance
CLECs receive Tier I payments if Qwest does not provide parity
between the service it provides to the CLECs and that which it
provides to its retail customers or if Qwest fails to meet applicable
benchmarks
Qwest Wholesale Markets
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Generic ROC QPAP Features



Qwest will make additional Tier 2 payments to the state if
it fails parity and benchmark standards on an aggregate
CLEC basis
The amount of payment also depends on the number
of consecutive months of non-compliant performance
The CAP for payments is generally set at 36% of Qwest’s
FCC NOI
Qwest Wholesale Markets
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Generic ROC QPAP Reporting

On or before last business day of the month following the
performance period, e.g., January results reported by end
of February

5 day grace period in QPAP

$500 per calendar day payment for late reports

QPAP $500 per business day for 6-10 days, $1000 for
11-15 days, $2000 per day >15 business days
Qwest Wholesale Markets
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PAP Payments


Qwest will make bill credits to CLECs and will issue checks
of additional amounts due to CLECs over and above amount
owed to Qwest. In Colorado, Nebraska and Washington,
this will be primarily EFT and checks.
- It is important to note that credits will appear on CLEC
bills in March for January performance
Qwest will make payments to state funds for Tier 2
measures.
Qwest Wholesale Markets
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PAP Calculations
Step 1: Determine whether Qwest passed or failed

Benchmarks


“Stare and compare”
Parity measurements

Compare CLEC z-scores to critical z-values*
*For Colorado Tier 1A parity measurements require a comparison between the six
month rolling average of Qwest retail results adjusted for sample size and variance
Qwest Wholesale Markets
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ROC Statistical Table
Critical Values
Sample Size
1-10
11-150
151-300
301-600
601-3000
3001 and above
LIS Trunks, UDITs, resale,
unbundled loops -DS1 and DS3All
1.04 *
1.645
2.0
2.7
3.7
4.3
Other Parity
Measurements
1.645
1.645
2.0
2.7
3.7
4.3
*Applies for individual month testing. For purposes of determining consecutive month
misses, 1.645 shall be used. Zone 1 and Zone 2 shall be combined.
Qwest Wholesale Markets
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PAP Calculations
Step 2: Calculate Occurrences/Misses and Payment
Calculate the difference between the actual CLEC
performance and the benchmark or parity performance
 multiply the difference by CLEC denominator/volume
(number of items)
 Tier 2 calculations done similarly, except utilizes CLEC
aggregate rather than individual CLEC data

Qwest Wholesale Markets
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Payment Calculation – Percent Benchmark
Calculate Occurrences/Misses:
Resul t:
Denominator/Volume:
CLEC Result
78.30%
250
Benchmark
95%
Difference
(Occurrences/
Misses Paid)
16.7%
42
Calculate Payment:
Occur/Misses
Per
Occurrence/Miss
Payment
Payment
42
$150
$6,300
Qwest Wholesale Markets
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Payment Calculation – Interval Benchmark
Calculate Occurrences/Misses:
CLEC Result
7 Days
250
Resul t:
Denominator:
Benchmark
6 Days
Difference
(Occurrences/
Misses Paid)
16.7%
42
Calculate Payment:
Occur/Misses
Per
Occurrence/Miss
Payment
Payment
42
$150
$6,300
Qwest Wholesale Markets
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Payment Calculation – Parity Interval

Modified z-score
(CLEC Result – Qwest Result)
Qwest Std Dev * SQRT(1/Qwest Volume + 1/CLEC Qwest)

Calculate Occurrences/Misses
(Qwest Result + Critical z-value * Qwest Std Dev * (SQRT(1/Qwest Vol + 1/CLEC Vol)) - CLEC Result)
(Qwest Result + Critical z-value * Qwest Std Dev * (SQRT(1/Qwest Volume + 1/CLEC Volume))
* CLEC Volume

Calculate Payment
Occurrences/Misses * per occurrence/miss amount
Qwest Wholesale Markets
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Occurrence/Miss Calculation – Parity Interval
Example: OP-4 Installation Interval
Statistical Critical Value:
1.645
Qwest
PID
OP-4
numerator denominator
1,700
500
CLEC
result
3.400
Standard
Deviation numerator denominator
1.000
400
100
result
4.00
Qwest Wholesale Markets
z score
5.4772
Parity
Value
3.5802
N occurrences
to pay
12
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Payment Calculation – Parity Percent

Modified z-score
(Qwest Result - CLEC Result)
SQRT(Qwest Result * (1 - Qwest Result))*(1/Qwest Volume + 1/CLEC Volume))

Calculate Occurrences/Misses
Qwest Result - Critical z-value * (SQRT((Qwest Result * (1 - Qwest Result)) * (1/Qwest Vol + 1/CLEC Vol)) CLEC Result) * CLEC Volume

Calculate Payment
Occurrences/Misses * per occurrence/miss amount
Qwest Wholesale Markets
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Occurrence/Miss Calculation – Parity Percent
Example: MR-3 Out of Service Cleared within 24 Hours
Statistical Critical Value:
1.645
Qwest
PID
MR-3a
numerator denominator
3,450
3,500
CLEC
result
98.57%
numerator denominator result
80
100 80.00%
Qwest Wholesale Markets
z score
15.431
Parity
Value
96.6%
N occurrences
to pay
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Generic Tier 1 per Miss/Occurrence Table
All states except Colorado and Minnesota
Per Occurrence
Measurement Group
High
Medium
Low
Month 1
$150
$75
$25
Month 2
$250
$150
$50
Month 3
$500
$300
$100
Month 4
$600
$400
$200
Month 5
$700
$500
$300
Month 6 and
succeeding
months
$800
$600
$400
Month 5
$125,000
$50,000
$25,000
Month 6 and
succeeding
months
$150,000
$60,000
$30,000
Per Measure/Cap
Measurement Group
High
Medium
Low
Month 1
$25,000
$10,000
$5,000
Month 2
$50,000
$20,000
$10,000
Month 3
$75,000
$30,000
$15,000
Month 4
$100,000
$40,000
$20,000
Qwest Wholesale Markets
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Generic QPAP ROC Tier 2 Payment Table
Per Occurrence
Measurement Group:
High
Medium
Low
$500
$300
$200
Per Measurement/Cap
Measurement Group:
High
$75,000
Medium
$30,000
Low
$20,000
Qwest Wholesale Markets
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Payments Utilizing per Measure Structure
Performance
State Payment
1% or lower
>1% to 3%
>3% to 5%
>5%
$1,000
$10,000
$20,000
$30,000
14 State
Payment
$14,000
$140,000
$280,000
$420,000
2 sec or less
>2 sec to 5 sec.
>5 sec to 10 sec.
>10 sec.
$1,000
$5,000
$10,000
$20,000
$14,000
$70,000
$140,000
$280,000
OP-2/MR-2
1% or lower
>1% to 3%
>3% to 5%
>5%
$1,000
$10,000
$20,000
$30,000
$14,000
$140,000
$280,000
$420,000
PO-20
Resale POTS/
UNE-P (POTS)
1% or lower
>1% to 3%
>3% to 5%
>5%
$500
$2,500
$5,000
$7,500
$7,000
$35,000
$70,000
$105,000
Unbundled Loops
(Analog and 2-Wire
Non-Loaded
1% or lower
>1% to 3%
>3% to 5%
>5%
$500
$2,500
$5,000
$7,500
$7,000
$35,000
$70,000
$105,000
Measurement
GA-1, 2, 3, 4, 5 ,6
PO-1
Qwest Wholesale Markets
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Communication Strategies

Qwest QPAP Web site initiated August 16th

New PAP CLEC Questionnaire issued August 16th

CLEC Forum – September 17th
Qwest Wholesale Markets
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Positioning


QPAP is predicated on and a subset of Performance
Indicator Definitions (PIDS). PIDs were developed during
271 workshops in all 14 states.
The two “triggers” for QPAP are: (1) Qwest 271 approval
and (2) An approved amendment to an interconnection
agreement.
Qwest Wholesale Markets
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Steps a CLEC Takes to Elect QPAP
30-60 Days
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SGAT “Opt in” Process



CLECs should review Qwest template website.
The CLEC contacts Qwest to obtain a copy of the “template”.
If 271 approval occurs first, the date of execution determines
when the CLEC becomes eligible for the QPAP. If the agreement
is executed prior to 271 approval, the 271 approval date
determines when the CLEC becomes QPAP eligible.
Qwest Wholesale Markets
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CLEC Questionnaire





Follows same form and procedures as other questionnaires.
Asks CLECs to declare the form of payment preferred
(Paper check vs Electronic Funds Transfer).
Should be completed and returned prior to QPAP execution.
Provides critical information to ensure QPAP payments
are issued correctly.
Must be updated should CLEC’s information concerning
QPAP change.
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Validation of CLEC Information

Qwest Accounts Payable will validate all CLEC information
and confirm usefulness and accuracy of this detail obtained
via CLEC QPAP questionnaire.
Qwest Wholesale Markets
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CLEC Reports


Individual CLEC PID/PAP calculations will be available on a
password protected website. This site will provide two
months of a CLEC’s performance reports and one month of
their QPAP payment calculations.
A digital certificate is necessary to obtain access to this
information.
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Key Resources
QPAP Agreements and Questionnaire site:
http://www.qwest.com/wholesale/clecs/negotiations.html
Notifications:
http://www.qwest.com/wholesale/notices/cnla/
Website to obtain digital certificate:
http://www.qwest.com/wholesale/systems/generalinfo.html
Qwest Wholesale Markets
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