[Federal Register Volume 63, Number 204 (Thursday, October 22, 1998)]
[Notices]
[Pages 56645-56647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28365]


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FEDERAL COMMUNICATIONS COMMISSION

[CC Docket No. 98-121; FCC 98-271]


Application by BellSouth Corporation, et al. to Provide In-
Region, InterLATA Services in Louisiana

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Memorandum Opinion and Order (Order) in CC Docket No. 98-
121 concludes that BellSouth Corporation, et al. (BellSouth) has not 
satisfied the requirements of section 271(c)(1) of the Communications 
Act of 1934, as amended (Act). The Commission therefore denies 
BellSouth's application to provide in-region interLATA services in 
Louisiana. The Order declines to grant BellSouth authority to provide 
in-region, interLATA services in Louisiana.

EFFECTIVE DATE: October 13, 1998.

FOR FURTHER INFORMATION CONTACT: Claudia Pabo or William Bailey, 
Attorneys, Policy and Program Planning Division, Common Carrier Bureau, 
(202) 418-1580 or via the Internet at [email protected] or [email protected], 
respectively. Further information may also be obtained by calling the 
Common Carrier Bureau's TTY number: 202-418-0484.

SUPPLEMENTARY INFORMATION: This is a brief description of the 
Commission's Memorandum Opinion and Order adopted and released October 
13, 1998. The full text of this Order is available for inspection and 
copying during normal business hours in the FCC Reference Center, 1919 
M St., NW., Room 239, Washington, DC. The complete text also may be 
obtained through the World Wide Web, at http://www.fcc.gov/Bureaus/
Common Carrier/Orders/fcc98271.wp, or may be purchased from the 
Commission's copy contractor, International Transcription Service, 
Inc., (202) 857-3800, 1231 20th St., NW., Washington, D.C. 20036.

Synopsis of Order

    1. Department of Justice's Evaluation. The Department of Justice 
recommends that BellSouth's application for entry into the long 
distance market in Louisiana be denied. The Department of Justice 
concluded that, despite a number of encouraging improvements since its 
earlier applications in South Carolina and Louisiana, the Louisiana 
market is not fully and irreversibly open to competition, and that 
BellSouth has failed to demonstrate that it is offering access and 
interconnection that satisfy the requirements of the competitive 
checklist.
    2. State Verification of Compliance with Section 271(c). The 
Louisiana Commission voted to approve and support BellSouth's second 
application to enter the long distance market in Louisiana. Unlike the 
process it followed when BellSouth filed its first application, the 
Louisiana Commission did not compile an evidentiary record or conduct a 
formal proceeding to determine whether BellSouth's revised application 
complies with section 271 of the Act. Thus, there is no record evidence 
submitted by the state commission to show whether BellSouth has 
implemented changes in response to our previous Louisiana order.
    3. Track A: Broadband PCS and Wireline. We conclude that the 
broadband PCS services at issue here satisfy the statutory definition 
of ``telephone exchange service'' for purposes of Track A, and 
therefore, may serve as the basis for a qualifying application under 
Track A. Based on the facts presented in this application, however, 
BellSouth has not shown that broadband PCS is a substitute for the 
wireline telephone service offered by BellSouth in Louisiana. We also 
discuss whether BellSouth demonstrates that it satisfies the 
requirements of Track A based on its implemented agreements with 
wireline competitive LECs.
    4. Checklist--General. We conclude that, in any future application 
for section 271 approval in Louisiana, BellSouth may incorporate by 
reference its prior showing on checklist items we deem satisfied in 
this Order. BellSouth must also certify that its actions and 
performance at the time of any future application are consistent with 
the showing it incorporates by reference. We hope this new 
certification option will enable BOCs to focus their energies on 
quickly satisfying the remaining statutory requirements and thereby 
expedite the local market-opening process by which BOCs may obtain 
approval to provide in-region long distance service.
    5. Checklist Item 1--Interconnection. BellSouth does not satisfy 
the requirements of checklist item (i). Pursuant to this checklist 
item, BellSouth must allow other carriers to link their networks to its 
network for the mutual exchange of traffic. To do so, BellSouth must 
permit carriers to use any available method of interconnection at any 
available point in BellSouth's network. For the reasons stated in the 
BellSouth South Carolina Order, 63 FR 78, January 2, 1998, we find 
BellSouth's collocation offering insufficient. Furthermore, 
interconnection between networks must be equal in quality whether the 
interconnection is between BellSouth and an affiliate, or between 
BellSouth and another carrier. BellSouth also does not show that it 
provides interconnection that meets this standard.
    6. Checklist Item 2--Access to Unbundled Network Elements. 
BellSouth does not satisfy the requirements of checklist item (ii). The 
telephone network is comprised of individual network elements. In order 
to provide ``access'' to an unbundled network element, for purposes of 
the checklist, BellSouth must provide a connection to the network 
element at any technically feasible point under rates, terms, and 
conditions that are just, reasonable, and nondiscriminatory. To fulfill 
the nondiscrimination obligation under checklist item (ii), BellSouth 
must provide access to its operations support systems, meaning the 
information, systems, and personnel necessary to support the elements 
and services. This is important because access to BellSouth's 
operations support systems provides new entrants with the ability to 
order service for their customers and allows new entrants to 
communicate effectively with BellSouth regarding such basic activities 
as placing orders and providing repair and maintenance service for 
customers. BellSouth does not demonstrate that its operation support 
systems enable other carriers to connect electronically to its pre-
ordering and ordering functions, thus placing those carriers at a 
competitive disadvantage relative to BellSouth's own retail operation. 
Although BellSouth has made some progress in addressing deficiencies in 
its operations support systems, it has failed to address successfully 
other problems

[[Page 56646]]

that we specifically identified in previous orders as critical for 
nondiscriminatory access.
    7. In addition, BellSouth must provide nondiscriminatory access to 
network elements in a manner that allows other carriers to combine such 
elements. Other carriers are entitled to request any ``technically 
feasible'' method for combining network elements. As we held in the 
BellSouth South Carolina Order, BellSouth has failed to demonstrate 
that it can provide nondiscriminatory access to unbundled elements 
through the one method it identifies for such access, collocation.
    8. Checklist Item 3--Access to Poles, Ducts, Conduits, and Rights-
of-Way. BellSouth satisfies the requirements of checklist item (iii). 
Telephone company wires must be attached to, or pass through, poles, 
ducts, conduits, and rights-of-way. In order to fulfill the 
nondiscrimination obligation under checklist item (iii), BellSouth must 
show that other carriers can obtain access to its poles, ducts, 
conduits, and rights-of-way within reasonable time frames and on 
reasonable terms and conditions, with a minimum of administrative 
costs, and consistent with fair and efficient practices. Failure by 
BellSouth to provide such access may prevent other carriers from 
serving certain customers. BellSouth demonstrates that it has 
established nondiscriminatory procedures for access to poles, ducts, 
conduits, and rights-of-way.
    9. Checklist Item 4--Unbundled Local Loops. BellSouth does not 
satisfy the requirements of checklist item (iv). Local loops are the 
wires, poles, and conduits that connect the telephone company end 
office to the customer's home or business. To satisfy the 
nondiscrimination requirement under checklist item (iv), BellSouth must 
demonstrate that it can efficiently furnish unbundled loops to other 
carriers within a reasonable time frame, with a minimum level of 
service disruption, and at the same level of service quality it 
provides to its own customers. Nondiscriminatory access to unbundled 
local loops ensures that new entrants can provide quality telephone 
service promptly to new customers without constructing new loops to 
each customer's home or business. BellSouth does not provide evidence, 
such as meaningful performance data, that it can efficiently furnish 
loops to other carriers in a nondiscriminatory manner.
    10. Checklist Item 5--Unbundled Local Transport. But for 
deficiencies in its operations support systems, BellSouth would satisfy 
the requirements of checklist item (v). Transport facilities are the 
trunks that connect different switches within BellSouth's network or 
those switches with long distance carriers' facilities. This checklist 
item requires BellSouth to provide other carriers with transmission 
links that are dedicated to the use of that carrier as well as links 
that are shared with other carriers, including BellSouth. 
Nondiscriminatory access to transport ensures that consumer calls 
travelling over other carriers' lines are completed properly. Although 
BellSouth demonstrates that it provides transport on terms and 
conditions consistent with our regulations, it does not provide 
evidence, such as meaningful performance data, that it provides 
nondiscriminatory access to operations support systems for the purpose 
of providing transport facilities.
    11. Checklist Item 6--Unbundled Local Switching. BellSouth does not 
satisfy the requirements of checklist item (vi). A switch connects end 
user lines to other end user lines, and connects end user lines to 
trunks used for transporting a call to another central office or to a 
long-distance carrier. Switches can also provide end users with 
``vertical features'' such as call waiting, call forwarding, and caller 
ID, and can direct a call to a specific trunk, such as to a competing 
carrier's operator services. We find that BellSouth does not satisfy 
the requirements of checklist item (vi), because BellSouth does not 
show that it provides all of the features, functions, and capabilities 
of the switch.
    12. Checklist Item 7--911 and E911 Services, Operator Services, and 
Directory Assistance. BellSouth satisfies the requirements of checklist 
item (vii)(I), regarding 911 and E911 services. 911 and E911 services 
transmit calls from end users to emergency personnel. It is critical 
that BellSouth provide competing carriers with accurate and 
nondiscriminatory access to 911/E911 services so that these carriers' 
customers are able to reach emergency assistance. We previously 
concluded in the BellSouth South Carolina Order that BellSouth met the 
requirements of this checklist item. BellSouth demonstrates that it 
continues to meet the statutory requirements as described in the 
BellSouth South Carolina Order.
    13. BellSouth does not satisfy the requirements of checklist item 
(vii)(II) and (vii)(III), regarding provision of nondiscriminatory 
access to directory assistance and operator services. Customers use 
directory assistance and operator services to obtain customer listing 
information and other call completion services. BellSouth does not 
demonstrate that it provides other carriers with the same access to 
these services that it provides to itself.
    14. Checklist Item 8--White Pages Directory Listings. BellSouth 
satisfies the requirements of checklist item (viii). White pages are 
the directory listings of telephone numbers of residences and 
businesses in a particular area. This checklist item ensures that white 
pages listings for customers of different carriers are comparable, in 
terms of accuracy and reliability, notwithstanding the identity of the 
customer's telephone service provider. BellSouth demonstrates that its 
provision of white page listings to customers of competitive LECs is 
nondiscriminatory in terms of their appearance and integration, and 
that it provides white page listings for competing carriers' customers 
with the same accuracy and reliability that it provides to its own 
customers.
    15. Checklist Item 9--Numbering Administration. BellSouth satisfies 
the requirements of checklist item (ix). Telephone numbers are 
currently assigned to telecommunications carriers based on the first 
three digits of the local number known as ``NXX'' codes. To fulfill the 
nondiscrimination obligation in checklist item (ix), BellSouth must 
provide other carriers with the same access to new NXX codes within an 
area code that BellSouth enjoys. This checklist item ensures that other 
carriers have the same access to new telephone numbers as BellSouth. 
BellSouth demonstrates that, in acting as the code administrator, it 
has adhered to industry guidelines and the Commission's requirements 
under section 251(b)(3).
    16. Checklist Item 10--Databases and Associated Signaling. 
BellSouth satisfies the requirements of checklist item (x). Databases 
and associated signaling refer to the call-related databases and 
signaling systems that are used for billing and collection or the 
transmission, routing, or other provision of a telecommunications 
service. To fulfill the nondiscrimination obligation in checklist item 
(x), BellSouth must demonstrate that it provides new entrants with the 
same access to these call-related databases and associated signaling 
that it provides itself. This checklist item ensures that other 
carriers have the same ability to transmit, route, complete and bill 
for telephone calls as BellSouth. BellSouth demonstrates that it 
provides other carriers nondiscriminatory access to its: (1) signaling 
networks, including signaling links and signaling transfer points; (2) 
certain call-related databases necessary for call routing and 
completion, or in the alternative, a means of physical

[[Page 56647]]

access to the signaling transfer point linked to the unbundled 
database; and (3) Service Management Systems.
    17. Checklist Item 11--Number Portability. BellSouth does not 
satisfy the requirements of checklist item (xi). Number portability 
enables consumers to take their phone number with them when they change 
local telephone companies. BellSouth does not sufficiently demonstrate 
that it provides number portability to competing carriers in a 
reasonable timeframe. A failure to provide timely number portability 
prevents a customer from receiving incoming calls for a period of time 
after switching from BellSouth to a competing carrier.
    18. Checklist Item 12--Local Dialing Parity. BellSouth satisfies 
the requirements of checklist item (xii). Local dialing parity permits 
customers to make local calls in the same manner regardless of the 
identity of their carrier. To fulfill the nondiscrimination obligation 
in checklist item (xii), BellSouth must establish that customers of 
another carrier are able to dial the same number of digits to make a 
local telephone call. In addition, the dialing delay experienced by the 
customers of another carrier should not be greater than that 
experienced by customers of BellSouth. This checklist item ensures that 
consumers are not inconvenienced in how they make calls simply because 
they subscribe to a carrier other than BellSouth for local telephone 
service. BellSouth demonstrates that customers of other carriers are 
able to dial the same number of digits that BellSouth's customers dial 
to complete a local telephone call, and that these customers do not 
otherwise suffer inferior quality such as unreasonable dialing delays 
compared to BellSouth customers.
    19. Checklist Item 13--Reciprocal Compensation. BellSouth satisfies 
the requirements of checklist item (xiii). Pursuant to this checklist 
item, BellSouth must compensate other carriers for the cost of 
transporting and terminating a local call from BellSouth. 
Alternatively, BellSouth and the other carrier may enter into an 
arrangement whereby neither of the two carriers charges the other for 
terminating local traffic that originates on the other carrier's 
network. This checklist item is important to ensuring that all carriers 
that originate calls bear the cost of terminating such calls. BellSouth 
demonstrates that it has reciprocal compensation arrangements in 
accordance with section 252(d)(2) in place, and that it is making all 
required payments in a timely fashion. Louisiana has not reached a 
final determination on the issue of a BOC's obligation to pay 
reciprocal compensation for traffic delivered to Internet service 
providers (ISPs). We do not, at this time, consider BellSouth's 
unwillingness to pay reciprocal compensation for traffic that is 
delivered to ISPs located within the same local calling area as the 
originating BellSouth end user in assessing whether BellSouth satisfies 
this checklist item. Any future grant of in-region interLATA authority 
under section 271 will be conditioned on compliance with decisions 
relating to Internet traffic in Louisiana.
    20. Checklist Item 14--Resale. BellSouth does not satisfy the 
requirements of checklist item (xiv). This checklist item requires 
BellSouth to offer other carriers all of its retail services at 
wholesale rates without unreasonable or discriminatory conditions or 
limitations such that other carriers may resell those services to an 
end user. This checklist item ensures a mode of entry into the local 
market for carriers that have not deployed their own facilities. 
BellSouth demonstrates that it offers all of its retail services for 
resale at wholesale rates without unreasonable or discriminatory 
conditions or limitations. BellSouth, however, does not show that it 
provides nondiscriminatory access to operations support systems for the 
resale of its retail telecommunications services.
    21. Section 272 Compliance. Although BellSouth has undertaken 
significant efforts to institute policies and procedures to ensure 
compliance with section 272, it does not meet all section 272 
requirements. In particular, it does not disclose all transactions with 
its section 272 affiliate, which means its affiliate has superior 
access to information about these transactions than unaffiliated 
entities. In addition, it does not provide nondiscriminatory access to 
its operations support systems, and thereby discriminates in its 
provision of information to unaffiliated entities.
    22. Public Interest Standard. We reaffirm the Commission's prior 
conclusion that it has broad discretion to identify and to weigh all 
relevant factors in determining whether BOC entry into a particular in-
region, interLATA market is consistent with the public interest. We 
reaffirm the Commission's prior conclusion that we consider as part of 
our public interest inquiry whether approval of a section 271 
application will foster competition in all relevant markets, including 
the local exchange market, not just the in-region, interLATA market.
    23. In assessing whether the public interest will be served by 
granting a particular application, we will consider and balance a 
variety of factors in each case. For example, we would consider a BOC's 
agreement to submit to enforcement mechanisms in the event it falls out 
of compliance with agreed upon performance standards.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-28365 Filed 10-21-98; 8:45 am]
BILLING CODE 6712-01-P