COUNSEL. (APPEARANCES TENDERED). CHIEF JUSTICE RABNER: GOOD AFTERNOON AND
WELCOME I WANT TO REMIND COUNSEL OR I'LL SAY THANK YOU TO COUNSEL TO LIMIT THE THE ONE
QUESTION IF FRONT OF THE COURT ON CERTIFICATION. THE TRP TAGS OF LOCAL TELEPHONE EXCHANGE.
MS. MANTELL. OF. NATALIE H. MANTELL: THANK YOU, YOUR HONOR RNGS MAY IT
PLEASE THE COURT. MAY I RESERVE 3 MINUTES FOR REBUTTAL. CHIEF JUSTICE RABNER:
IF YOU CAN TRY TO COPE KROR VOICE UP. NATALIE H. MANTELL: WILL DO. ALTHOUGH
THE APPELLATE DIVISION GOT A LOT RIGHT, IT ERRED IN INTERPRETING THE TERM LOCAL TELEPHONE
HAD N.J.S.A. 54:4-1, IN A WAY THAT IS AT ODDS OF WITH THE PLAIN LANGUAGE OF THE STATUTE
WHICH IS KNOWN ATS BUSINESS PERSONAL PROPERTY TAX OR VP P T. AND IT IS AT LODZ WITH
THE LEGISLATIVE INTENT. THE B P P T WAS AM MENTD IN 1997 TO ROW VICE THE
TABSES SCHEME ON 3 LOCAL TELL XHUN OCCASIONS CARRY YERTS, DURING THE ONDPOEING TRANSITION
TO A COMPETITIVE MARKET. FOLLOWING THE BREAKUP OF AT&T, THE DIVESTITURE OF THE BABY BELLS
INCLUDING NEW JERSEY BELL WHICH NOW VERY RYE SON AND THE FELD RUL TELL COMMUNE KATHSS
ASHTH OF 1996. THE B P P T DOES SEVERAL THING, IMPORTANTLY IT RK NIETDZ IN THE VERY 1ST
SENTENCE THAT CERTAIN PERSON UNTIL PROPERTY CAN BE EXCLUDED FROM OPERATION OF THIS CHAPTER.
THAT'S DISPIKTS AN AXE EM SHUN WHICH IS NOT AT ISSUE HERE. THE ALSOS SPECIFIES
HOW THE TAX OCHTS THE SRN PERSONAL PROPERTY YOUFD IN THE BUSINESS OF LOCAL EX CHAFRM TELEPHONE
COMPANIES THAT WERE SUBJECT TO THE GROETS RECEIPTS AND TRAN CHIES TAX AS OF APRIL 1,
1997, WHICH IS UNDISPUTED THAT VER ROY SON WAS AND THIS IS KEY, THE DEFINES LOCAL EX CHAFRM
TELEPHONE COMPANY AS TL COMMUNICATION CARRIER PROVIDING DIAL TONE AND ACCESS TO 51 PERCENT
OF THE LOCAL TELEPHONE EX CHAFRMG. SO IF A LOCAL TELECOMMUNICATIONS CARRIER IS NOT PROVIDING
DIAL TONE AND ACCESS TO 51 PERCENT OF A LOCAL TELEPHONE EX CHAFRM RGS THEN THE TAX DOES
NOT APPLY. BUT IT DOESN'T DEFINE WHAT COULDN'T STOUTS A LOCAL TELEPHONE
EX CHAFRM WHICH IS WHY WE'RE HERE. SO WHAT DID THE LEGISLATURE MEAN WHIT SAID LOCAL
TELEPHONE EX CHAFRM? VERIZON, THE LEADING LOCAL TELEPHONE PRO VOITD ISN'T NEW JERSEY AND
THE INDUSTRY AS A WHOLE HAVE DWIEPD THAT TERM THE SAME WAY VER VERIZON DOES HERE. THAT
DEFINITION IS THE ARRAY OF CUSTOMERS SERVED BY THE N P NXX CODES ASSOCIATE WITH THE
PARTICULAR RATE SEN, NPA/NXX COATS RAILROAD REALLY CARRY CODE AND EX CHACHL IN A TELEPHONE
NUMBER WHICH WE'RE ALL VERY FAMILIAR WITH. VERIZON HAS KIFRT AL USED THAT DEFINITION
TO CALCULATE ITS MARKET SHARE WITHIN A LOCAL TELEPHONE EXCHANGE, BOTH WHIT HAD MORE THAN
51 PERCENT OF THE MARKET SHARE AND WHIT NO MG ERR DID. THAT'S THE WAY VERIZON HAS DONE
IT FROM THE BEGINNING. IT YOU'VE THE INFORMATION VIEBL TO IT AND ACTED MORE THAN REASONABLY
IN THE ABSENCE OF ANY REGULATIONS SPECIFYING HOW THIS CALCULATION SHOULD BE MADE. AND
NOBODY QUESTIONED THAT CALCULATION THE UNTIL VERIZON HAD LESS THAN 51 PERCENT.
VERIZON DEFINITION IS CONSISTENT WITH LAW AND STATUTORY CONSTRUCTION PRINCIPLES. IT'S
THE SAME DEFINITION YOUFD IN THE NEW JERSEY ADMINISTRATIVE CODE AND BY THE U.S. SUPREME
COURT P OTHER STATES T LEGISLATURE INCORPORATED THAT TERM OF ART INTO THE B P P T. BUT
THE APPELLATE DIVISION IGNORED THE LEGISLATURE'S USE OF INDUSTRY TERMINOLOGY AND EVEN
SAID THAT THE LEGISLATURE WOULD NOT HAVE UNDERSTOOD THAT TERM, FWHULT IS CONTRARY TO
BASIC CANNONS OF CONSTRUCTION AND NUMBER CORRECTED. HELP WELL CLAIMS
THAT MAPS DEFINE THE EX CHAFRN RNS BUT JUST BECAUSE THERE'S A GEOGRAPHICAL COMPONENT TO
A LOCAL TELEPHONE EX CHAFRMG DID NOT MEAN THAT GEOGRAPHY DRIVES THE ANALYSIS MUCH THE
LOCATION OF CUSTOMERS WITH THE SAME AREA CODE AND EX CHAFRM TIED TO A PARTICULAR RATE CENTER
DRIVES WHAT THE MAP LOOKS LIEKS. THE MAP IS THE RESULT, NOT THE CAUSE. THE AREA CODE
AND EX CHAFRMG CAN BE DEPICTED AS HAVING GEOGRAPHICAL BOUNDARIES, BUT THEY DON'T
RECALL THE ANSWER. AFTER DERG LAGS, THE CUSTOMERS WITH THE CERTAIN AREA CODE
AND EXCHANGE WERE THE CLUSTERED. SORRY, BEFORE DOUGH REGULATION, THEY WERE CLUSTERED.
AFTER DEREGULATION, THEY WERE NO LONGER CLUSTERED, BUT THE DEFINITION OF LOCAL
TELEPHONE EX CHAFRMG, THE NPA/NXX CODES TIED TO THE LOCAL RATE CENTER DID NOT CHAFRMG K.
THE APPELLATE DIVISION'S ROIRT TO YOUS A MAP FROM 1974 TO DEFINE A LOCAL
TELEPHONE EX CHAFRMG TODAY IGNORES THE LEGISLATURE'S USE OF INDUSTRY TERMINOLOGY OF
THWARTS THE INTENT TO ENCOURAGE THE KET NIGS THE LOCAL TELEPHONE MARKET BY ELIMINATING
THE TAX ONCE COMPETITION EXISTS, VERIZON ASKS ADOPT VERIZON'S INTERPRETATION OF LOCAL
ENGS CHAM RGS ENTER JUDGMENT IN ITS FAVOR AND DIRECT THE MRT DIVISION T PUB MISH THAT
PORTION OF ITS OPINION HOLDING THAT THE STATUTE AP EMPLOYS ANNUALLY. THAT
CONCLUDE MY OPENING I'M HAPPY TO ANTS ANY QUESTIONS THE COURT MAY HAVE.
CHIEF JUSTICE RABNER: SO IT'S A TERM OF ART WE SHOULD LOOK AT THE TECHNICAL MEEPING OF THE
PHRASE AT THE TIME OF THE LEGISLATION WAS ENACT, CORRECT? P. NATALIE H. MANTELL:
YES. CHIEF JUSTICE RABNER: WHAT DOES TARIFF A-5 DO IN TERMS OF INFORMING
THE MEEPG OF THE PHRASE. NATALIE H. MANTELL: YOUR HONOR, BOTH THE TARIFF
THAT WAS IN EFFECT IN 1997 AS WELL AS THE PRODUCT GUIDE THAT EXISTS NOW DEFINES EXCHANGE
AS A UNIT THAT WAS CREATED FOR THE PURPOSE OF, LET ME QUOTE IT ACTUAL,' UNIT ESTABLISHED
BY VERIZON FOR THE ADMINISTRATION OF COMMUNICATION SERVICE WHICH USUALLY EM
BRATSDZ A CITY, TOWN OR VIL HITCH AND THE EN VOIRNING AND CONSISTS OF ONE OR MORE CENTRAL
AUFTSS WHICH MAY BE LOCATED WITHIN OR WITHOUT THE BOUN DWREE DEGREES OF THE EX CHAFRM,
BOW THE PRODUCT AND TAR GIVE, THE SAME WAP VERIZON DOES HERE, REFERENCE TO THE P N A N
XX CODES AND THE AREN'T EXCHANGE. JUSTICE WAINER APTER: IT DOES NOT AND CLOUD
THOSE WORDS. NATALIE H. MANTELL: IT DOES NOT INCLUDE THOSE WORD BUT THE
UNIT THAT IT REFERS TO IS THE NPA/NXX CODES, THE YOUNT IS NOT A MAP AND IT ALSO BEARS
NOTING THAT. JUSTICE WAINER APTER: THE DEFINITION IS THE UNIT ESTABLISH
BD BY VERIZON THAT MEANS ONE CODE? NATALIE H. MANTELL: NO, IT IS THE SPECIFIC
CODES THAT ARE TIED TO THE RATE CENTER. SO THE, IT ALSO, THIS IS WHAT I WAS ABOUT TO
SAY, YOUR HONOR, WHICH I BELIEVE AVENSS YOUR QUESTION, THE NEW JERSEY ADMINISTRATIVE CODE
LTS DEFINES EXCHANGE BY REFERENCE TO THE NXX CODE, IT SPECIFICALLY SAYS THE NXX CODE
DENOTES THE EXCHANGE AREA WITHIN AN AREA CODE. SO THE NEW JERSEY ADMINISTRATIVE CODE,
BUT -- JUSTICE WAINER APTER: THAT DOESN'T SAY ANYTHING ABOUT THE NXX CODE,
THE EGS CHANGE AREA WITHIN AN AREA CODE COULD ALSO BE A GEOGRAPHIC AREA?
NATALIE H. MANTELL: NO, YOUR HONOR, THE ADMINISTRATIVE SAYS THE NXX CODE DENOTES THE
AREA CODE -- SORRY, LET ME BACK UP. THE NXX CODE DENOTES THE EX CHAMG AREA WITHIN AN AREA
CODE. SO AGAIN THE ADMINISTRATIVE CODE IS TYING THE GEOGRAPHIC AREA TO THE NXX CODE.
CHIEF JUSTICE RABNER: YOUR TARIFF AND THE PRODUCT GUIDE EX STREGS THE SAY
THE TERRITORIAL BOUNDARIES OF THE EXCHANGE AREAS ARE WHAT ARE DEPICTED IN EACH OF THESE.
NATALIE H. MANTELL: YOUR HONOR, SDILT SAY THAT, AND THE THE PRODUCT GUIDE
IS MERELY A CARRY-OVER FROM THE TARIFF WHICH WAS A GEOGRAPHIC SHTHS, FORGIVE ME, A REGULATORY
REQUIREMENT. BUT AS OUR ARE WITNESS TESTIFIED DURING THE TRIAL, THE MAPs ARE MERE
REPRESENTATIONS OF THE CUSTOMERS WITH CERTAIN NPA/NXX CODES, THAT'S HOW THE MAP OF THE
HOPEWELL EXCHANGE WAS CROW 88ED IN THE FIRST PLACE IN 1974. IT WAS THE LOCATION OF THE
CUSTOMERS WITH THE NPA/NXX CODES TIED TO THE HOPEWELL RATE CENTER. SO THE
QUESTION THE BEFORE THE COURT REALLY IS WHEN PT SHOULD THE COURT, OR WHEN SHOULD THE LOCAL
TELEPHONE EXCHANGE BE DETERMINED? SHOULD THE BE DETERMINED BARK IN 1974 WHEN THAT MAP
WAS CREATED OR SHOULD IT BE DETERMINED IN THE PRESENT DAY? AND I WOULD SUBMIT CONSISTENT
WITH THE LANG WIF OF THE STATUTE AND THE LEGISLATIVE HISTORY, THE STATUTE IS FLUID.
THE STATUTE ENVISIONING AN ONGOING PROVISION OF LOCAL TELEPHONE SERVICE UP TO A POINT WHERE
COMPETITION EXISTS. AND ONCE COMPETITION EXISTS OVER TIME, THEN THE STATUTE SAYS THAT THE
TAX NO LONGER APPLIES. AND SO THE, I FOR DPOT MY TRAIN OF THOUGHT, YOU WERE, I APOLOGIZE.
DPOEING BACK TO YOUR QUESTION, THE, OH, THIS WHAT I WAS GOING TO SAY, THE WITNESS AT TRIAL,
MR. WEST, TESTIFIED THAT AFTER DEREGULATION, THE MAPS WERE NO LONGER ACCURATE. AND THEY
COULDN'T BE ACCURATE BECAUSE VERIZON DOESN'T HAVE THE INFORMATION THAT IS NECESSARY TO
CREATE A MAP NOW BECAUSE IT DOESN'T HAVE ALL OF THE LOCATIONS OF THE CUSTOMERS OF ITS
COMPETITORS. AND THAT WOULD BE WHAT WOULD BE REQUIRED TO CREATE A MAP, THAT'S IMPOSSIBLE
BECAUSE VERIZON DOESN'T HAVE ALL OF THAT INFORMATION. SO WHEN IT'S KUFT
MRS. WERE CLUSTERED, WHEN IT WAS THE OPENLY SERVICE PROEF VIETD IN THE STATE BACK IN 1974
AND AUM THE WAY THROUGH 1996 WHEN THE B.P.U. FIRST STARTED INVESTIGATING COMPETITION,
VERIZON KNEW THE LOCATION OF ITS CUSTOMERS AND COULD MAP AND MAP THEIR LOCATIONS AND THEY
WERE CLUSTERED IN A CERTAIN AREA. BUT AFTER DEREGULATION, WHEN COMPETITIVE LOCAL EX
CHAFRMG COMPANIES CAME IN, THEY CAN NO LONGER MAP THE LOCATION OF ALL THE CUSTOMERS WITHIN
A LOCAL TELEPHONE EXCHANGE. AND ALSO -- THE. JUSTICE SOLOMON:
IS THAT BECAUSE OF DEREGULATION THAT THEY CAN'T MAP WHERE THEY AND THEIR COMPETITORS ARE
OR IS THAT BECAUSE THE WHOLE WAY THAT THOSE THINGS ARE CONFIGURED HAS CHANGED WITH
TECHNOLOGICAL ADVANCES? THAT THE PEOPLE WITH THE EX CHAFRMG AREN'T NECESSARILY LIVING
OR WORKING ANYWHERE NEAR HOPEWELL? ISN'T THAT THE PROBLEM? NATALIE H.
MANTELL: IT'S BOTH FSHGS YOUR HONOR. JUSTICE SOLOMON: TO WHAT EXTENT OR
EITHER. NATALIE H. MANTELL: BECAUSE OF DEREGULATION, THE ENTRANCE OF
COMPETITORS INTO THE MARKET ALLOWED THE COMPETITORS TO ASSIGN NPA/NXX CODES TO
CUSTOMERS THAT ARE NOT NECESSARILY LOCATED WITHIN THE MAP, SO TO SPEAK. JUSTICE
SOLOMON: THEY COULD BE LOCATED WITHIN THE MAP. NATALIE H. MANTELL: THEY
COULD BE BUT THEY DON'T HAVE T. JUSTICE SOLOMON: MAYBE I INTERRUPTED WHAT
YOU WERE SAYING BUT WE ALSO DON'T KNOW WHERE THE COMPETITORS ARE IN OR OUTSIDE THE HOPEWELL.
RIGHT? NATALIE H. MANTELL: CORRECT. JUSTICE SOLOMON:
OKAY. TECHNOLOGY, THAT EFFECT. CAN. NATALIE H. MANTELL: BUT WE THE ADD VNTS
OF TECHNOLOGY, IT IS REALLY DOES MAKE THE MAPS OBSOLETE, TO BE FRANK, BECAUSE I ADVENT
OF TECHNOLOGY, THE MAPS WERE ORIGINALLY PUT INTO THE TARIFF AND THEN INTO THE PRODUCT
GUIDE TO COMMUNICATE THE BILLING OF CERTAIN TELEPHONE CALLS, RIGHT, I MEAN WE ALL LEB
GETTING A TELEPHONE BILL THAT HAD CERTAIN CALLS AND CERTAIN EXCHANGES, THEY WERE EITHER
LEL OR LONG DISTANCE, THAT DOESN'T HAPPEN ANYMORE AND THAT HASN'T HAPPENED SINCE LONG
BEFORE 2008 WHEN THIS CASE AROSE. SO THE MAPS NO LONGER REFLECT THE ACCURACY --
THE INACCURATE LOCAL TESTIFY EX CHAFRMG. AND THAT'S REALLY THE ISSUE THAT WE HAVE.
BECAUSE THE NPA/NXX CODES CONTINUE TO REFLECT THE LOCAL TELEPHONE EXCHANGE. THE MAPS NO
LONGER DO. JUSTICE WAINER APTER: THE STATUTE IS FLUID, BUT WE ARE LOOKING
AT A STATUTORY DEFINITION. WE ARE TRYING TO DEFINE THE TERM AS OF THE TIME THAT THE
LEGISLATURE PUT IT IN A STATUTE, CORRECT? NATALIE H. MANTELL: YES.
JUSTICE WAINER APTER: ARE YOU SUGGESTING THAT THE MEANING OF THE TERM CHANGES OVER TIME?
NATALIE H. MANTELL: NO, THE MEANING OF THE TERM IS THE SAME. AND IT WAS.
JUSTICE WAINER APTER: LOOK AT WHAT THE TERM MEPTS IN 1989 COMBH THE STATUTE
WAS ORIGINALLY PASSED OR 1997 WHEN IT WAS ACHLED TO DEFINE THIS PHRASE, CORRECT?
NATALIE H. MANTELL: CORRECT. JUSTICE WAINER APTER: 19 NOUCH A PRESUMABLY
WHEN TWU END ANLDED TO DEFINE THITS PHRASE. NATALIE H. MANTELL: AND IT WAS ON
THE HEELS OF THE TELECOMMUNICATIONS ACT OF 1996. AND EVERYBODY IN THE INDUSTRY UNDERSTOOD
WHAT THAT TERM MEANT. THIS NOT A DID HE HAVE NITHS THAT HAS CHANGED. AT THIS TIME A
TERM OF ART THAT THAT BEEN YOUFD IN THE INDUSTRY FOR DECADES REALLY. JUSTICE
WAINER APTER: AS THE CHIEF POISONED YOU OUT IN YOUR MATERIALS FROM THAT TIME AND EVEN
ALL THE WAY, I THINK IT WAS FROM 1993 TO 2014, YOU SPECIFICALLY STATED THAT THE LATAS,
ENCOMPASS CONTINUOUS LOCAL EXCHANGE AREAS. SO FOOR HE WILL EXCHANGE AREA
TO BE CONTIGUOUS RGS DOESN'T VITS TO HAVE GEOGRAPHY OR DOESN'T IT HAVE TO BE GEOGRAPHIC
IN SOME WAY? NATALIE H. MANTELL: IT DOES, YOU WERE RGS AND IN AT THE TIME
IN 1993 UP THE IN THE STATUTE ACH AP THIS WAS 1993 THROUGH TWOJ TREEN THAT YOU SAID THIS.
NATALIE H. MANTELL: YES, YOU WERE RNGS BECAUSE IN 2014 THE MRUKT GUIDE REPLACED
THE TARIFF. BUT AT THE TIME WHEN THE STATUTE WAS ENACTED IN 1997, THE PT
L T E WAS CONTIGUOUS BECAUSE VERIZON WAS A MONOPOLY AND IT WAS A SOO, AL AGO YOU SETD
LATA ENCOMPASSES CONTIGUOUS LOCAL EKTS CHAFRM AREAS IMPLYING THAT THE LOCAL EX CHAFRM
AESHS WERE THEPTSZ SOMETHING THAT COULD BE CONTIGUOUS. NATALIE H. MANTELL:
SO A COUPLE OF THOUGHTS HERE, YOU WERE. 1ST IS A LATA IS SEPARATE FROM A LOCAL TELEPHONE,
THERE ARE THREE LATAS IN NEW JERSEY, THEY'RE VERY LARGE AREAS AND. JUSTICE WAINER
APTER: UNDERSTOOD AND THERE ARE A NUMBER OF LOCAL HE CAN CHACHLS WITHIN EACH ONE.
NATALIE H. MANTELL: CORRECT, AND IN 1987 AND 1993 WHEN THE TARIFF WAS CREATED, THOSE L
T E, THE LOCAL TELEPHONE EX CHAFRMS WITHIN THE LAN ERR LATAS WERE CONTIGUOUS BECAUSE VERIZON
HAD A MONOPOLY AT THE TIME. AGRICULTURE THE TIME IS 1993 TWOJ 2014. NATALIE H.
MANTELL: THE DIN CHANGE ESSENTIALLY. AGRICULTURE YOU DECIDED TO CHACHLG OR NOT CHAFRM
SO DON'T YOU HAVE TO LIVE TO WHAT YOU HAVE TO DESCRIBE WHATEVER IT WAS FOR THE PURPOSES
OF THE LEGISLATURE'S UNDERSTANDING WHAT EXACTLY IT WAS THEY WERE PUTTING INTO THE STATUTE?
THEY COULD TAKE YOUR DEP NIGS AND UNDERSTAND THAT IT WAS GEE GRAPHIC AND BELIEVE WHEN
THEFRP ENACTS THE STATUTE THAT IT WAS GEE GRAPHIC BECAUSE THAT'S WHAT YOU TOLD THEM IN
1997 OR 1989. NATALIE H. MANTELL: YOUR HONOR, THE LEGISLATURE UNDERSTOOD
THAT LOCAL TELEPHONE EX CHAFRMG WAS TIED TO THE NPA/NXX CODES. IT WASN'T SOLELY GEOGRAPHIC.
IT HAS A GEOGRAPHIC COMPONENT BECAUSE THE LOCATIONS OF THE CUSTOMERS WITH THOSE CONCERN
NPA/NXX CODES CAN BE PLOTTED ON A MAP AND THAT'S EXACTLY HOW THEY WERE PLOT THE IN 1974.
AND THAT'S HOW THEY CONTINUED TO BE PLOTTED IN 1993 AND IN 1997. AFTER
1997, THERE CAME COMPETITION. TN AS A RESULT OF THAT COMPETITION, IT WAS NO LONGER POSSIBLE
TO PLOT EVERY KUFT MIR WITHIN, WITH CERTAIN NPA/NXX CODES ON A MAP BECAUSE -- ACH AP IN
2014 AS THE CHIEF JUSTICE POISONED OUT THE MAPS SHOWED THE TERRITORIAL BOUNDARY OF EACH
EXCHANGE AREA? NATALIE H. MANTELL: THAT'S TRUE, YOUR HONOR, AND I HAVE
TO CONCEDE THAT THAT'S WHAT THE PRODUCT GUIDE SAYS, BUT ALSO WRANT TO LET THE COURT KNOW
THAT WAS A REGULATORY REQUIREMENT, TO HAVE THAT PRODUCT GUIDE THE ON FIEM WAS A REGULATORY
REQUIREMENT. BUT IN TWOJ -- JUSTICE WAINER APTER: IT IT'S EXISTENCE WAS
A REGULATORY RIERT, BUT THEY DIDN'T TERRITORIAL A ENGS CHAFRM AREA. NATALIE H.
MANTELL: THAT'S TRUE, YOU WERE, BUT THE PRODUCT GUIDE, IT WAS REALLY, THE MAP REALLY
EBBS SIFTED FOR AT THAT TIME FOR CONVENIENCE, SO TO SPEAK. AT THAT TIME BOTH IN 2014 AND
MUCH EARLIER THAN THAT, THE WAY THAT PRICING WAS DONE IN THE INDUSTRY CHANGED COMPLETELY.
SO THE MAPs WEREN'T USED ANYMORE EVEN AT THAT TIME TO IDENTIFY THE PRICE OF A CERTAIN
CALL. IT WAS CALLED ZONE PRICING, THERE WAS NO ZONE PRICING ANYMORE IN 2014 OR EVEN IN
PT 2008. THE EDGE TIRE INDUSTRY CHAFRMED AS JUSTICE SHOL MON NOTED. SO
THE MAPS ARE ROLLY OBSOLETE. THE Ary ROLLY A WAY FOR LAYPEOPLE TO GENERALLY UNDERSTAND
WHAT A LOCAL TELEPHONE EXCHANGE IS. BUT THAT'S NOT THE DEFINITION, THAT'S NOT WHAT THE
LEGISLATURE UNDERSTOOD IN 1997 TO BE THE DID HE HAVE NITHS. AND ALSO KEEP IN
MAY I APPROACH ARE THE INDUSTRY WAS HEAVILY INVOLVED IN CRAFTING THIS STATUTE. THAT'S
IN THE PAST MEMO, THAT'S EVERYWHERE. IT'S REEL, IT WAS REALLY A JOINT EFFORT BY LOTS
OF INTERESTED PARTIES TO CRAFT THIS LEGISLATION. AND, AS I SAID, TWA MUCH 0 THE HEELS
OF THE MANY TELL COMMUNICATION ACT OF 19 NIBS, WHICH OVERHAULED THE ENTIRE STREEN DPOT
INDUSTRY READY FOR COMPETITION. SO IF EVERYBODY UNDERSTOOD AT THE TIME THAT
IT WAS, WHAT A LOCAL TELEPHONE EX CHAFRM WAS. AND I THINK WHAT IS REALLY TELLING IS WHAT
I MENTIONED BEFORE WHICH IS THE NEW JERSEY ADMINISTRATIVE CODE PUT THAT, CODIFIED THAT
UNDERSTANDING INTO -- LELTS ME BAG UP. THE B.P.U. CODIFIED THAT UNDERSTANDING NO THE
NEW JERSEY ADMINISTRATIVE CODE. JUSTICE WAINER APTER: CAN YOU TELL THUS
CITATION ONE MORE TIME. NATALIE H. MANTELL: N.J.A.C. SECTION 14:10-311.
AND SO THE B.P.U. ALSO UNDERSTOOD THAT THIS TERM MEANT, IT WAS WITH REFERENCE
TO THE NPA/NXX CODES. THAT WAS THE INDUSTRY UNDERSTANDING. AND IT WAS ESSENTIALLIES
APPROACH WAS RATIFIED IN 2007. AND THAT IS ALSO BEARS SOMETHING BECAUSE IT WAS BEFORE
VERIZON SENT THE LETTER TO HOPE PEL IN THIS CASE THAT HIT FALL LEP BELOW 51 PERCENT BASED
UPON THAT INTERPRETATION. AND IT WAS REASONABLE FOR VERIZON TO ROW LIE UPON THAT
INTERPRETATION AND THAT'S THE WAY ET HAD DONE IT BEFORE THAT AND THAT'S THE WAY IT HAS
DONE IT SINCE. THAERS BEEN NO VER YAGS, VERIZON HAS BEEN ROLLY AN EN CREDIBLE CORPORATE
CITIZEN IN THIS, IN THIS MANNER AND IN THIS AREA. EVEN WHEN IT DISPUTED FILING, HAVING
TO FILE THIS RETURN AND HAVING TO PAY THITS TAX, IF IT RECEIVED A TAX BILL, IT PAID IT
AND THEN FILED A TAX APPEAL. CHIEF JUSTICE RABNER: THERE'S NO QUESTION
BEFORE US ABOUT WHAT A GOOD CORPORATE CITIZEN VERIZON IS WE'RE TRYING TO UNTHE STATUTE.
NATALIE H. MANTELL: NO BROB, YOUR HONOR, IEN. JUSTICE SOLOMON:
TO SAY THAT THE LEGISLATURE UTILIZED VERIZON'S DEFINITION OF THE LOCAL EXCHANGE. I MEAN
P I DON'T, I DIDN'T SEE ANYTHING IN THE LEGISLATIVE HISTORY OR FRANKLY THE CASE THAT
YOU TALKED ABOUT IN THE SUPREME COURT THAT SUGGESTED THEY ADOPT THAT DEFINITION. THEY
ALWAYS REFER TON THE MAPS AND THE GEOGRAPHIC AREAS. NATALIE H. MANTELL:
THE LOIF HISTORY DOESN'T SAY ANYTHING ABOUT THE MAPS OR GEOGRAPHIC AREA OR THE DEFINITION
OF THE. JUSTICE SOLOMON: I DPREE WITH THAT. NATALIE H. MANTELL:
AGAIN ANOTHER HE SHALL HEEFRPT BUT THE U.S. SUPREME'S COURT DECISION DOES IN FACT COMPORT
WITH VERIZON'S DEFINITION. JUSTICE SOLOMON: WHICH DECISION?
NATALIE H. MANTELL: THE VERIZON COMMUNICATION VES THE FCC 535 U.S. 467. AT PAGE 490
FROM 2002. AND THE LANGUAGE IN THAT DECISION P IS TELLING, I THINK. IT SAYS A TRANSPORTATION
NET FOR FOR COMMUNICATION SIGNAL NULTS, RADIATING LOIK A ROOT SYSTEM FROM A CENTRAL OFFICE
OR SEVERAL OFFICES FOR LARGER AREAS TO INDIVIDUAL TELEPHONE, FAXES AND THE LIKE.
IT'S TALKING ABOUT THE SAME -- JUSTICE SOLOMON: DON'T THEY SPECIFICALLY
SAY WITHIN A GEOGRAPHIC AREA? NETWORK CONNECTING TERMINALS LIKE TELEPHONES, AND MODEM
TO OTHER TERL NULS WITHIN A GEOGRAPHICAL AREA LIKE A CITY. NATALIE H.
MANTELL: YES, YOU WERE SOM SOL DOESN'T THAT SEEM TO BE IP KICHT APARTMENT WITH WHAT YOU'RE
ARGUING? NATALIE H. MANTELL: NO BECAUSE THERE A GEOGRAPHICAL COMPONENT
THO THIS, BUT WHAT THE MAP LOOKS LIKE IS DRIVEN BY THE PEOPLE HOOL HAVE SEARCH AREA CODE
AND EXCHANGES. THERE IS A GEOGRAPHICAL AREA RS THERE CAN BE A GEOGRAPHICAL AREA NOW.
BUT THE MAP IS ALL OEFRT PLACE RGS SO 0 TO SPEAK, BECAUSE THE CUSTOMERS THE WITH THOETS
NPA N.X X CODES FROM COMPETITIVE LOCAL EX CHAFRMG COMPANIES AND VERN THE OTHER TWO ILECS
ARE ALL OVER THE PLACE. BUT THE REASON IT'S IMPORTANT FOR THAT DEFINITION IS BECAUSE
VERIZON, IF THE MAPS ARE USED NOW, VERIZON CAN'T GO BACK AND SEEK A REFUND FROM THE
MUNICIPALITIES WHERE IT PAID THE TAX BASED UPON ITS CALCULATION OF THE, BASED UPON THE
NPA/NXX CODES. SO THERE ARE MUNICIPALITIES WHERE VERIZON WOULD NOT HAVE HAD TO PAY THE
TAX HAD IT RELIED ON THE MAPS. BUT IT DID BECAUSE IT RELIED ON THE NPA/NXX CODES. AND
THEN THERE ARE -- IN THOSE JURISDICTIONS, VERIZON CAN'T GE BA, THE PEA NOT POSSIBLE TO
GO BACK AND CHAFRMG THE CALCULATION NOW BECAUSE VERIZON CAN'T SEEK A REFUND IN THOSE PLACES.
BUT SO THAT ALSO BRINGS ME TO A REQUEST. SO IF IN THE EVENT THE COURT DOES ADOCHT THE
MAPS AS THE APPROACH THAT SHOULD BE USED, VERIZON REQUESTS THAT IT ONLY DO SO PROSPECTIVELY
FROM ITS DECISION. THE FOR THE REASONS I JUST SAID BECAUSE IT'S NOT, FRANKLY, IT'S NOT
FAIR FOR VERIZON TO HAVE YOU'VE THE INDUSTRY DEFINITION AND RELIED AND ON THE INDUSTRY
DEFINITION KIFRT CYSTLY P NOT BE ABLE TO GO BACK NOW. IT PRESERVES ITS RIGHTS IN EVERY
CASE WHERE IT MREEFSHS IT WAS NOT REQUIRED THE. IT WAS NOT REQUIRED TO PAY THE TAX AND
FOR THE COURT TO CHAFRMG THAT NOW WOULD REALLY BE, WOULD REALLY BE UNFAIR.
CHIEF JUSTICE RABNER: COIN SELL, WE'RE ABOUT 25 MIVENTS FRNS IS THERE ACHE YOU WOULD TLOIK
ADD BEFORE WE BRIPG YOU BACK ON REBUTTAL? NATALIE H. MANTELL: NO, YOUR HONOR
RNGS I THINK I'VE COVERED EVERYTHING. TR TAUR CHIEF JUSTICE RABNER: MR.
TAURIELLO. JOSEPH C. TAURIELLO: THANK YOU, YOUR HONORS. MAY
IT PLEASE THE COURT. AS COUNSEL INDICATED THE SINGLE ISSUE BEFORE THIS COURT
IS THE TERM LOCAL TELEPHONE EXCHANGE WHICH IS USED BY THE LEGISLATURE, BUT NOT DEAF FIEND
IN THE OPERATIVE TAXING STATUTE. THAT, UNFORTUNATELY, IS PROBABLY WHERE OUR
AGREEMENT ENDS. THIS ISSUE REALLY STAKES OUT DISPARATE POSITIONS, HOPEWELL,
THE TRIAL COURT AND THE APPELLATE COURT TAKE THE POSITION THAT A LOCAL TELEPHONE EXCHANGE
IS A GEO PHOTOGRAPHIC KAL AREA DEFINED BY KNOWN BOUNDARIES AND CONTRARY TO WHAT COUNSEL
SAID HERE TODAY, SHE'S ACTUALLY DISAGREED WITH THE TESTIMONY OF VERIZON'S EXPERT, MR.
WEST. MR. WEST AND VERIZON TOOK THE POSITION AT TRIAL AND AT THE APPELLATE
COURT THAT A LOCAL TELEPHONE EXCHANGE, AGAIN, DESPITE WHAT WAS SAID HERE TODAY WAS A
THEORETICAL CONSTRUCT, NOT TETHERED TO IF WE OG TRAF FEE AT ALL. THAT WAS THE TESTIMONY
AT TRIAL. SO, THE PROBLEM WITH VERIZON'S POSITION IS IT IS CONTRARY TO THE
WAIKT OF THE EVIDENCE AND IT'S CONTRARY TO THEIR OWN INTERNAL DOCUMENTS. THE PRODUCT
GUIDE THAT IS ON FILE WITH THE BPU TODAY SAYS MAPS ARE CONTAINED IN SEPARATE BEEND DERS.
THESE BINDERS CONTAIN A MAP FOR EACH EXCHANGE AREA. THE MAPS WHICH ARE PART OF THIS
SECTION OF THIS PRODUCT GUIDE SHOW THE TERRITORIAL BOUNDARIES FOR EACH EXCHANGE
AREA. THAT STATEMENT WAS A HUNDRED PERCENT CORRECT IN 1974 AND IT'S HUNDRED
PERCENT TODAY AND MOST IMPORTANTLY IT WAS HUNDRED PERCENT CORRECT ON THE DAY THE LEGISLATURE
CRAFTED THE STATUTE. THAT WAS IN THE PUBLIC DOMAIN ON FILE WITH THE BPU IN THE FORM OF
A TARIFF. WHEN VERIZON CHANGED THE TARIFF TO A PRODUCT GUIDE, THEY CHOSE TO
ADOPT ALL OF THE VERBIAGE FROM THEIR TARIFF INTO THE PRODUCT GUIDE, INCLUDING THOSE MAPs.
SECOND, AS THE TRIAL AN APPELLATE COURT CORRECTLY NOTED A LOCAL ACCESS AND
TRAJS SPORT AREA OR A LATA ARE IMPORTANT ASPECTS OF THE TELECOMMUNICATION REGULATORY
FRAMEWORK. WHERE THE GO OH GRAPHICALLY DEFINED LOCAL TELEPHONE EXCHANGES FORMED THE BUILDING
BLOCKS OF THESE LATAS AND THEY WERE INTEGRAL TO THE REGULATION OF THE TELECOMMUNICATIONS
INDUSTRY BECAUSE AFTER DEREGULATION THE BABY BELLS WERE NOT ALLOWED TO COMPETE INTER-LATA,
I GUESS. THEY HAD TO STAY WITHIN THE THEIR LATA. THEY HAD TO STAY WITHIN THEIR LANE.
THEY COULD NOT COMPETE INTO EXTERNAL LATAS SO IT'S ALL ABOUT THE GEOGRAPHY. THE LATAS
ARE AN INTEGRAL COMPONENT OF THE TELECOMMUNICATIONS INTERNAL REGULATIONS.
THIRD VERIZON'S INTERNAL EXPERT, SAID AT TRIAL AT S C.A. AT PAGE 47 THAT THAT THE
DEFINITION OF A LOCAL TELEPHONE EXCHANGE COULD NOT BE TIED TO ANY SPECIFIC GEOGRAPHIC
AREA. THAT WAS HIS TESTIMONY. INDEED HIS DIN THEY SIZED DEAF NIRGS RESULT
IN DIAL TONE AND ACCESS LINES LOCATED IN TRENTON, LOCATED IN ATLANTIC ZIT OR FOR THAT
MATTER, LOCATED ANYWHERE ELSE IN THE STATE OF NEW JERSEY TO FORM THE HOPEWELL LOCAL TELEPHONE
EXCHANGE. THAT COULD NOT BE WHAT THE LEGISLATURE CONTEMPLATED AND I WOULD
JUST ADD AS THIS COURT STATED IN ROAST V LOOIL 245 N J 105 IN 2021, THAT WHEN INTERPRETING
THE LEGISLATIVE INTENT THE COURT SHOULD AVOID ABSURD RESULTS. I WOULD SUGGEST THAT THIS
WOULD BE THE POSTER CHILD OF AN ABSURD RESULT IN ALLOWING TELEPHONE AN ACCESS LINES SCATTERED
THROUGHOUT THE STATE OF NEW JERSEY TO BE THE SINGULAR DEFINITION OF A HOPEWELL LOCAL
EXCHANGE. AND ON CROSS-EXAMINATION, MR. WEST WAS ASKED, BECAUSE HE TESTIFIED
THAT THIS WAS HIS DEFINITION. HE CREATED IT OUT OF HIS 35 YEARS OF EXPERIENCE. AND HE WAS
ASKED THAT IF THERE WAS ANY DOCUMENTS -- LET ME PHRASE IT THIS WAY. HE CONCEDED THAT
WHILE HE ADVOCATED HIS SYNTHESIZED DEFINITION HE COULD NOT POINT TO A SINGLE AUTHORITY
OR DOCUMENT THAT FLOID HIS DEFINITION OF A LOCAL TELEPHONE EXCHANGE INCLUDING ALL OF VERIZON'S
MAPS, ALL OF VERIZON'S PRIOR TARIFFS AN VERIZON'S PRODUCT GUIDE. FINALLY VERIZON'S
POSITION IS NOT IN ACCORD WITH THE UNITED STATES SUPREME COURT COURT'S 2002 DESCRIPTION
OF A LOCAL EXCHANGE WHICH I THINK WAS ALLUDED TO IN THE COLLOQUY BEFORE WHERE THE U.S.
SUPREME COURT DESCRIBED THE LOCAL EXCHANGE AS A NETWORK CONNECTING TERMINALS LIKE TELEPHONES
FAXES MODEMS AND OTHER TERMS ANALYSIS WITHIN A GEOGRAPHIC AREA LIKE A CITY, CASE CITED
AT PAGE 489 AND 490. CONVERSELY, HOPE, HOPEWELL CORRECTLY NOTED THE WIDESPREAD
AND LONG HELD INDUSTRY PRACTICE DOCUMENT THAT A LOCAL TELEPHONE EXCHANGE IS AS DEFINED
BY VERIZON IN ITS LONG STANDING EXCHANGE MAPS THAT HAVE REMAINED ON FILE WITH THE BOARD
OF PUBLIC UTILITIES FROM THE EARLY 1970S. THEY WERE ON FILE WHEN THE LEGISLATURE ADOPTED
THE STATUTE AN THEY ARE ON FILE TODAY. SO, AT BOTTOM, GEOGRAPHY AND BOUNDARIES
MATTER WHEN YOU'RE DEFINING A MARKET. IN FACT, THE BOUNDARIES AN GEOGRAPHY
ARE SO KRIT TAL TO UNDERTAKE AN ANALYSIS THAT VERIZON'S OWN EXTERNAL EXPERT AT TRIAL,
MR. VAN CONCEDED HE COULDN'T PROFFER HIS OPINION OR DO HIS ANALYSIS WITHOUT RELYING ON
THE LOCAL HOPEWELL TELEPHONE EXCHANGE MAP AND THAT'S FOUND AT S C.A. AT PAGE 57.
THIS I WOULD SUBMIT IS A RATHER SIMPLE CASE TO DECIDE. THIS COURT SHOULD AFFIRM THE
APPELLATE DIVISION'S AFFIRM MANS OF THE TRIAL COURT BECAUSE ACCEPTING OF THE BURST
DEFINITION OF A LOEL TELEPHONE EXCHANGE IS CONSISTENT WITH THE COMMON AN HISTORICAL
UNDERSTANDING WITHIN THE TELECOMMUNICATIONS INDUSTRY. IT'S CONSISTENT WITH VERIZON'S OWN
PRODUCT GUIDE ON FILE WITH THE BPU AS WELL AS ITS FORMER TAR RIFS AN IET LOCAL EXCHANGE
MAPS WHICH HAVE BEEN INCORPORATED IN BOTH. IT'S CONSISTENT WITH THE ORIGINAL GEOGRAPHICAL
CONSTRUCT OF A LATA WHICH STILL REMAIN IMPORTANT TODAY AND IT'S CONSISTENT WITH THE MEANING
ASCRIBED BY OTHERS WHETHER IT'S THE UNITED STATES SUPREME COURT OR THE FCC OR NOOEL SENT
OR THE OTHER NOOEL SENT OR OTHERS THAT VERIZON'S EXPERT CITED IN HIS REPORT ALL RELYING
ON BOUNDARIES; THAT'S HOW YOU TO AN ANALYSIS OF THE MARKET. YOU NEED TO KNOW THE PRODUCT
YOU NEED TO KNOW THE MASHLTH THAT'S WHAT THIS DOES. JUSTICE SOLOMON: I HAVE
A QUESTION BECAUSE THIS IS SOMETHING I REALLY HAVE DIFFICULTY XRE HENDING AMONG MANY
DIFFERENT THIPGS IN THIS AREA, BUT THIS IS ONE, VERIZON IS TAXED TO THE PROPERTY THAT THEY
HAVE IN AN AREA AND THAT TAX IS BASED UPON THE VALUE OR THE NATURE OF THAT PROPERTY, IT
COULD BE, YOU KNOW, PIPES, WIRES, ALL THIS INFRASTRUCTURE THAT ALL THE OTHER COMPANIES
NOW USE APPARENTLY, BUT VERIZON USES, ALSO, AND IT'S HOUSED IN A PARTICULAR AREA. AND
THAT THAT AREA DETERMINES HOW MUCH OF THAT STUFF AND WHAT THE VALUE OF IT IS THAT IS TO BE
TAXED IS WHAT IS REALLY BEING FOUGHT ABOUT HERE. DOES THAT MAKE ANY SENSE
WHEN NOTHING VERIZON DOES ANYMORE, JUST BECAUSE THEY HAVE THIS CENTER, THIS EXCHANGE CENTER
IN HOPEWELL SERVES HOPEWELL. IT SERVES PEOPLE PROBABLY ALL OVER THE WORLD WHO HAVE VERIZON
CELLPHONES, INCLUDING LINES AT AT&T AN MERRILL LYNCH AN ELSEWHERE. DOES THIS
MAKE ANY SENSE FOR TAXING PURPOSES? DOES THIS IN ANY WAY FULFILL ANY PURPOSE
OF THE TAX CODE TO TAX THEM BASED ON THIS STUFF THAT SERVES A HUGE EX SPANS OF CUSTOMERS
ALL OVER A REGION, A COUNTRY, MAYBE THE WORLD. I MEAN, I AM TRYING TO FIGURE
OUT HOW THIS DEBATE BEARS ANY REASONABLE RELATIONSHIP TO THIS TAX ISSUE ANY MORE?
JOSEPH C. TAURIELLO: WELL, THERE IS A LOT TO TRY AND ANSWER THERE. I AM GOING
TO START BY SAYING IT'S BEEN SOME TIME SINCE I READ THE HISTORY OF THE DEREGULATION BECAUSE
THAT WAS NOT A QUESTION BEFORE THIS COURT SO I AM GOING TO RELY UPON MY MEMORY WHICH CAN BE
-- SOMETIMES IT CAN COMBET ME IN TROUBLE. JOSEPH C. TAURIELLO: DOES THAT
MATTER IN THIS CASE. JOSEPH C. TAURIELLO: YES, IT DOES. IT'S CRITICAL IN
THIS CASE AN ACTUALLY WHAT COUNSEL HAD REQUESTED AS A RELIEF OF APPLYING IT PROSPECTIVELY,
BASICALLY WHAT THEY ARE SAYING IS THEY DON'T WANT TO PAY A TAX FROM 2009 FORWARD BECAUSE
I THINK IF WE WERE TO DO A MARKET ANALYSIS IN THE HOPEWELL LOCAL EXCHANGE IN 2024 THEY
PROBABLY DON'T HAVE 51 PERCENT AND THE TAX THEY ARE SUBJECT TO WOULD HAVE BEEN SUNSETED
BY THAT POINT. THERE ARE 200 PLUS LOCAL EXCHANGES IN THE STATE OF NEW JERSEY
AT A PARTICULAR -- I THINK VERIZON IS THE INCUMBENT LOCAL EXCHANGE IN 180 OF THEM SO
IT'S NOT JUST THAT THERE IS A HOPEWELL LOCAL EXCHANGE THERE IS SOME 200 OF THEM AN
WHEREVER THE PROPERTY IS SITUATED, THAT PERSONAL PROPERTY THAT IS SITUATED, THE LEGISLATURE
CHOSE THE SCHEME AND THIS IS WHERE IT KIND OF TIES INTO DEREGULATION BECAUSE THERE WAS
A SHUFFLE WITH THE C B T TAX AND THIS OTHER TAX, THE MUNICIPALITY AS THE TAXING STATUTES
WERE CHANGING AND PLAYING MUSICAL CHAIRS, IT WAS THE MUNICIPALITY THAT WAS LOSING THE
OPPORTUNITY TO GET REVENUE TO BLANK. THE COMPROMISE AS I UNDERSTOOD IT WAS
THEY WILL AT LEAST GET THIS TAX FOR THE TELECOMMUNICATIONS INDUSTRY BECAUSE IT WAS
AT&T THROUGH THE DEREGULATION THAT WOUND UP PAYING THE KRB T TAX BECAUSE THEY WEREN'T
A LOCAL KRAR YER ANYMORE SO THIS WAS HOW THE LEGISLATURE ALLOWED FOR THE MUNICIPALITIES
TO CONTINUE TO RECEIVE TAXING REVENUE. I THINK THAT ANSWERS YOUR QUESTION. AND,
YES, IT MATTERS BECAUSE THERE IS IN -- I WILL JUST USE HOPEWELL AS AN EXAMPLE, COUNSEL
SAID VERIZON IS A GOOD CITIZEN BECAUSE THEY PAY THEIR TAXES. WELL, THE TRUTH IS AS THIS
COURT KNOWS YOU DON'T HAVE STANDING TO FILE A TAX APPEAL UNLESS YOU FILE YOUR TAXES.
THEY PAID FROM 2009 THROUGH -- BECAUSE THAT'S THE ONLY WAY THEY GET STANDING TO CHALLENGE
THE TAX. AND THAT MONEY, IF THIS COURT WAS TO CHANGE THE RULES OF THE FWAM, CHANGE THE
LONG HELD UNDERSTANDING OF WHAT A LOCAL TELEPHONE EXCHANGE IS, IT WOULD ALLOW VERIZON
TO GET OUT OF THE TAX THAT THEY OTHERWISE OWE. IT MATTERS A GREAT DEAL. IT MATTERS
CERTAINLY A COMBRAT DEAL TO MY CLIENT. IT DOES. I THINK -- I HOPE I ANSWERED.
JUSTICE SOLOMON: OH, NO, YOU DID. YOU DID. JUSTICE PIERRE-LOUIS: WHAT
IS YOUR RESPONSE TO COUNSEL'S ARGUMENT THAT NOT ONLY DID DEREGULATION CHANGE THE CLUSTERS
OF THE GEOGRAPHICAL AREA, BUT SO DID TECHNOLOGY SO THAT NOW THERE ARE NUMBERS WELL OUTSIDE
THE HOPEWELL AREA THAT HAVE THE NPA AN NXX THAT WAS NOT THE CASE IN PRIOR YEARS?
JOSEPH C. TAURIELLO: TWO THINGS. FIRST IT WAS NEVER THE CASE THAT LOCAL
EXCHANGE WAS DIVIDED BY NPA, NXX CODES, DESPITE COUNSEL'S STATEMENT TODAY THAT THAT WAS
THE INDUSTRY STANDARD AND LONG HELD, WHAT IS CONSPICUOUSLY ABSENT IS A SINGLE DOCUMENT
THAT POENTS TO THAT FACT. WHAT THERE IS IS AN INUNDATION OF DOCUMENTS THAT SHOW THAT
A LOCAL EXCHANGE IS AS DEFINED IN THEIR PRODUCT GUIDE WHICH IS BY TERRITORIAL BOUNDARIES.
WHAT VERIZON HAS DONE IS THEY HAVE CONFLATED THE DIFFERENCE BETWEEN A RATE
CENTER AND A LOCAL EXCHANGE. AND A RATE CENTER IS NOT A GEOGRAPHICAL. IT'S ON A MAP.
IT'S JUST A POINT. AND A RATE CENTER, WHICH IS BECOMING LESS IMPORTANT TODAY BECAUSE
OF THE TYPES OF TELEPHONE PLANS WE HAVE, BUT BACK IN THE DAY, IT WAS YOU WOULD BE CHARGED
A -- FOR YOUR PHONE CALL BASED UPON THE MILEAGE BETWEEN THE TWO RATE CENTERS, POINT A
TO POINT B, AGAIN THAT IS BECOMING LESS RELEVANT TODAY, BUT THAT IS THE -- THE NPA-NXXES
ARE ASSIGNED TO RATE CENTERS NOT TO AN EXCHANGE SO WHAT THERE HAS BEEN IN MY OPINION IS
A CON FLAKES BETWEEN THOSE TWO DOCUMENTS EVEN THOUGH THEIR EXPERT, MR. WEST CONCEDED ON
CROSS-EXAMINATION THAT THEY ARE TWO SEPARATE THINGS. JUSTICE WAINER APTER:
EXCEPT I THINK COUNSEL SAID THAT THE WAY THE MAP WAS CREATED IN 1974 WAS BY LOOKING, OKAY,
WHERE ARE ALL THE NPA-NXX CODES ASSOCIATED WITH THE HOPEWELL RATE CENTER AND NOW LET'S
CREATE A MAP WHERE ALL THOSE CODES WERE INSIDE OF IT AN THEN WE WILL DO THE SAME THING
WITH THE OTHER 208 LOCAL EXCHANGES. IT SEEMS LIKE YOU'RE CONTESTING THAT,
BUT THEN HOW WAS THE MAP CREATED? JOSEPH C. TAURIELLO: I WILL ANSWER YOUR
QUESTION THIS WAY. WHAT COUNSEL SAID TODAY IS NOT SUPPORTED IN THE RECORD BELOW. THERE WAS
NO TESTIMONY REGARDING THAT THAT I AM AWARE OF THAT THAT WAS HOW THE MAP WAS CREATED.
JUSTICE WAINER APTER: HOW WAS THE MAP CREATED? JOSEPH C.
TAURIELLO: I DON'T KNOW THE ANSWER TO THAT. I DON'T KNOW. IT WAS NOT AN ISSUE AT EITHER
THE TRIAL OR APPELLATE LEL. THE ISSUE WAS WHETHER OR NOT THE LOCAL EXCHANGE IS DEFINED
BY THE MAPS THAT WERE CREATED BY VERIZON. NO ONE DISPUTED THAT THEY WERE CREATED, BUT
TO SUGGEST THAT SOMEHOW THAT DID NOT REPRESENT WHAT THE UNDERSTANDING WAS IS JUST FACTUALLY
NOT CORRECT. ESPECIALLY AT THE TIME WHEN THE LEGISLATURE ADOPTED THE STATUTE.
I ALSO JUST WANTED TO COMMENT. I DIDN'T WANT TO INTERRUPT COUNSEL ON HER OPENING, BUT
SHE REFERENCED AN ADMINISTRATIVE CODE SECTION AND I DOUBLE CHECKED THE BRIEFS THAT WERE
SUBMITTED. L UNLESS I AM MISSING IT. I DON'T SEE THAT THAT WAS IN THE BRIEFS I DON'T KNOW
WHAT THAT SECTION IS. I JUST WANT THE COURT TO KNOW THAT THE REASON I AM NOT PREPARED
TO ADDRESS IT IS IT WAS NOT RAISED AT THE TRIAL LEVEL, THE APPELLATE LEVEL AN NOT RAISED
IN THE BRIEFS SUBMITTED TO THIS COURT SO I APOLOGIZE I AM NOT PREPARED TO ADDRESS THAT.
SFLFRNLTS OTHER QUESTIONS ANYONE? THANK YOU, COUNSEL. JOSEPH C.
TAURIELLO: THANK YOU SFLFRNLTS MS. MANTELL, BRIEF REBUTTAL? HAD. NATALIE H.
MANTELL: YES, YOUR HONOR. YOUR HONOR, JUST A FEW POINTS. I WOULD
LIKE TO DIRECT THE COURT TO DAY 1 OF THE TRIAL TRANSCRIPT WHERE MR. WEST, VERIZON'S WITNESS,
PAGE 73 TESTIFIED THAT THE MAP WAS BASED UPON THE ASSIGNED NPA-NXX CODES AND THE CUSTOMER'S
LOCATIONS IN 1974. ALSO, AT PAGE 5 OF VERIZON'S REPLY BRIEF IN THIS MATTER
ON THE PETITION, WE CITE THE NEW JERSEY ADMINISTRATIVE CODE SECTION 14: 14-3.1 IN
FOOTNOTE 3. AND I WOULD LIKE TO ADDRESS A COUPLE OF OTHER POENTS IN COUNSEL'S ARGUMENT.
THE FIRST BEING THAT COUNSEL SAID THAT THE -- WHEN THE TAXING STRUCTURE OR
WHEN THE TAXING STATUTES WERE ALL RESTRUCTURED HIS UNDERSTANDING WAS THAT THE BP TT WAS
SUPPOSED TO ESSENTIALLY POLICE THE GRAPH TAX FOR THE MUNICIPALITIES; THAT'S NOT ACCURATE.
IN THE ASSEMBLY STATEMENT CLOP ESSENTIALLY REPLACE THE CLOP.
THE ASSEMBLY POLICY AND REGULATORY OVERSIGHT COMMITTEE STATEMENT WHICH IS AVAILABLE IN
THE RECORD AT VERIZON'S REPLY APPENDIX IN THE APPELLATE DIVISION, P R A 0094 TO 96. IT
DESCRIBES THE FACT THAT THE GROSS RECEIPTS AN FRANCHISE TAX WAS BEING ELIMINATED BUT IT
WAS BEING REPLACED BY THE CORPORATION BUSINESS TAX AND THERE WAS A SPRT FUND THAT WAS
BEING CREATED WHICH WOULD REPLACE THE REVENUE FROM THE GRAPH TAX. THE BPT WAS NOT INTENDED
IN ANY WAY TO REPLACE THE REVENUE FROM MUNICIPALITIES; THAT WAS INTENDED TO BE
REPLACED BY THE CORPORATION BUSINESS TAX AND THEN THE STATE FUND THAT WAS CREATED.
ALSO, WITH RESPECT TO WHETHER OR NOT THE TAX WOULD STILL BE BEING PAID BY VERIZON IF THE
MAPS WERE USED, THEY WOULD NOT. THE IN FLUKS OF COMPETITION HAS CREATED A SITUATION WHERE
NOW IN MANY, MANY OF THE LP Es, REGARDLESS OF WHETHER THE MAPS ARE USED OR THE NPA-NXX
CODES HAVE USED VERIZON'S MARKET SHARE HAS FALLEN BELOW 51 PERCENT. SPECIFICALLY
IN HOPEWELL THE REASON HOPEWELL CONTINUES TO PAY THE TAX IS BECAUSE HOPEWELL'S TAX ASSESSOR
CONTINUES TO RELY ON THE 2008 FORM P P-10 THAT WAS SUBMITTED TO ISSUE THE TAX YEAR AFTER
YEAR AFTER YEAR. THEY HAVE NOT -- THEY HAVE NOT DONE ANYTHING TO BRING THAT CURRENT.
JUSTICE SOLOMON: THAT'S NOT OUR ISSUE; THAT'S NOT WHAT HERE.
NATALIE H. MANTELL: IT IS NOT. I WAS JUST RESPONDING TO WHAT COUNSEL SAID, YOUR HONOR.
BUT TO THAT POINT, REGARDLESS OF WHETHER THE NPA-NXX CODES OR THE MAPs ARE
USED, IN MANY, MANY OF THE JURISDICTIONS, THERE IS NO TAX BECAUSE -- VERIZON NO LONGER
HAS 51 PERCENT. FINALLY, YOUR HONOR, IN 1997 WHEN THIS STATUTE WAS ENACTED
THE LEGISLATURE IS PRESUMED TO UNDERSTAND INDUSTRY TERMINOLOGY WHEN IT USES AN INDUSTRY
TERM OF ART IN ITS STATUTE AT THAT TIME VERIZON WAS THE INDUSTRY. IT WAS NEW JERSEY BELL
THEN, BUT THERE WAS A MONOPOLY. VERIZON WAS THE INDUSTRY WHEN THIS STATUTE WAS ENACTED
AND ITS DEFINITION THAT IT HAS USED SINCE THAT TIME THROUGH TODAY IS WHAT LOCAL TELEPHONE
EXCHANGE MEANS. THE COURT: THANK YOU, COUNSEL. THANK YOU TO
BOTH COUNSEL, WE WILL TAKE THE MATTER UN ADVISEMENT.