[Federal Register Volume 66, Number 144 (Thursday, July 26, 2001)]
[Notices]
[Pages 39042-39044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18696]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[CC Docket No. 01-100; FCC 01-208]


Application by Verizon New York Inc., Verizon Long Distance, 
Verizon Enterprise Solutions, Verizon Global Networks Inc., and Verizon 
Select Services Inc., Pursuant to Section 271 of the Telecommunications 
Act of 1996, For Authorization To Provide In-Region, InterLATA Services 
in Connecticut

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In this document the Federal Communications Commission grants 
the section 271 application of Verizon New York Inc., et al. (Verizon) 
for authority to enter the interLATA telecommunications market in the 
state of Connecticut. The Commission grants Verizon's application based 
on our conclusion that Verizon has satisfied all of the statutory 
requirements for entry, and opened its local exchange markets to full 
competition.

DATES: Effective July 26, 2001.

FOR FURTHER INFORMATION CONTACT: Claudia Pabo or Alexis Johns, 
Attorney-Advisors, Policy and Program Planning Division, Common Carrier 
Bureau, (202) 418-1580.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Memorandum Opinion and Order in CC Docket No. 01-100 released July 20, 
2001. The complete text of this document is available for inspection 
and copying during normal business hours in the FCC Reference 
Information Center, Courtyard Level, 445 12th Street, SW., Washington, 
DC, and also may be purchased from the Commission's copy contractor, 
International Transcription Services (ITS, Inc.), CY-B400, 445 12th 
Street, SW., Washington, DC. It is also available on the Commission's 
website at http://www.fcc.gov/ccb/ppb/2001ord.html.

Synopsis of the Order

    1. On April 23, 2001, Verizon filed an application, pursuant to 
section 271 of the Communications Act of 1996, with the Commission to 
provide in-region, interLATA service in the state of Connecticut.
    2. The State Commission's Evaluation. The Connecticut Department of 
Public Utility Control (Connecticut Department) advised the Commission, 
following months of extensive review, that Verizon met the checklist 
requirements of section 271(c) and has taken the statutorily required 
steps to open its local markets to competition. Consequently, the 
Connecticut Department recommended that the Commission approve 
Verizon's in-region, interLATA entry in its May 14, 2001 evaluation of 
the application.
    3. The Department of Justice's Evaluation. The Department of 
Justice (DOJ) filed its evaluation of Verizon's Connecticut application 
on May 25, 2001. It does not oppose Verizon's 271 application for 
Connecticut in light of the unique circumstances involved. The DOJ 
cites the limited extent of Connecticut's service area and the fact 
that it serves competitive LECs in Connecticut through New York-based 
systems and operations, which the Commission reviewed in the successful 
New York 271 application.

Primary Issues in Dispute

    4. Checklist Item 4--Unbundled Local Loops. Verizon has adequately 
demonstrated that it provides unbundled local loops as required by 
section 271 and our rules. More specifically, Verizon provides 
nondiscriminatory access to stand alone xDSL-capable loops and digital 
loops and has demonstrated that it has a line-sharing provisioning 
process that affords competitors nondiscriminatory access to these 
facilities. Since Verizon's order volumes for unbundled loops in 
Connecticut are extremely low, it relies mainly on New York performance 
data to support its application in Connecticut, therefore the 
Commission's analysis is based primarily on that data.
    5. DSL Stand-Alone Loops. Verizon demonstrates that it is providing 
stand-alone DSL-capable loops in accordance with the requirements of 
checklist item 4. The Commission's review of the New York performance 
data for Verizon's stand-alone loops demonstrates that it installs such 
loops Connecticut in the same time and manner that it installs such 
loops for its own retail operations. New York maintenance and repair 
performance data for DSL loops also show comparable performance for 
competitors and Verizon retail customers. Also, as of April 2001, 
Verizon had provisioned only 22 digital loops to competitive LECs in 
Connecticut. The Commission therefore looks at New York data, which 
indicates

[[Page 39043]]

that Verizon meets the requirements of checklist item 4.
    6. Other Unbundled Loops. As with stand-alone xDSL loops, the data 
demonstrate that Verizon's performance for digital loop ordering is at 
parity. Verizon's performance for other maintenance and repair 
functions for digital loops is comparable for Verizon retail customers 
and competitive LECs. Also, the Commission finds that Verizon 
demonstrates nondiscriminatory access to the high-frequency portion of 
the loop. It offers line sharing in Connecticut under its 
interconnection agreements and the terms of its tariff, in accordance 
with the requirements of the Line Sharing Order (64 FR 29598) and Line 
Sharing Reconsideration Order (66 FR 9035). Moreover, given the lack of 
orders for high capacity loops in Connecticut and the small percentage 
of such orders in New York, the Commission finds that Verizon's 
performance for high capacity loops complies with checklist item 4.
    7. Checklist Item 14--Resale. The Commission concludes that Verizon 
demonstrates that it satisfies the requirements of this checklist item 
in Connecticut. The Commission waives its section 271 procedural 
``freeze frame'' requirements to the extent necessary to allow us to 
consider Verizon's expanded resale offering of DSL services through its 
advanced services affiliate, Verizon Advanced Data, Inc. (VADI). In an 
ex parte letter dated July 6, 2001, Verizon stated that VADI would 
expand its DSL resale offering in Connecticut, allowing a competitive 
LEC to resell DSL service over a line on which the competitive carrier 
resells Verizon's voice service. Verizon's July 6 ex parte letter also 
contains illustrative tariff pages for its expanded resale offering of 
DSL. VADI implemented these changes through revisions to its F.C.C. 
Tariff No. 1, which became effective on July 20, 2001. Verizon and 
VADI, which are subject to the same resale obligations, currently 
provide local exchange and DSL services to retail customers over the 
same line. Therefore, the Commission finds that, because Verzon and 
VADI offer these services on a retail basis, these services are 
eligible for a wholesale discount under section 521(c)(4). Accordingly 
the Commission concludes that Verizon must make available to resellers, 
at a wholesale discount, the same package of voice and DSL services 
that it provides to its own retail end-user customers.
    8. Non-pricing Issues. The Commission concludes that Verizon 
demonstrates that it makes telecommunications services available for 
resale in Connecticut in accordance with section 251(c)(4) and 
252(d)(3), thus satisfying the requirements of checklist item 14. 
Verizon states that it commits in its interconnection agreements and 
tariffs to making its retail services available to competing carriers 
at wholesale rates.
    9. Pricing. The Commission relies on the resale discount and rates 
in the currently effective tariff in concluding that Verizon is in 
compliance with the pricing requirements of checklist item 14. Verizon 
stated in this proceeding that it will modify wholesale and resale 
rates in Connecticut ``contemporaneously'' with the modification of 
these rates in New York. This is part of Verizon's overall commitment 
to continue to mirror New York wholesale rates, as required by the 
Connecticut Department.The Commission concludes that Verizon

Other Checklist Items

    10. Checklist Item 1--Interconnection and Collocation. Based on the 
evidence in the record, the Commission concludes that Verizon 
demonstrates that it provides interconnection in accordance with the 
requirements of section 251(c)(2) and as specified in section 271 and 
applied in the Commission's prior orders. Pursuant to this checklist 
item, Verizon must allow other carriers to interconnect their networks 
to its network for the mutual exchange of traffic, using any available 
method of interconnection at any available point in Verizon's network. 
The Commission finds that Verizon makes interconnection available at 
any technically feasible point, including the option interconnect at 
only one technically feasible point within a LATA.
    11. Verizon demonstrates that its collocation offerings in 
Connecticut satisfy the requirements of sections 251 and 271 of the 
Act. Verizon provides physical and virtual collocation through state-
approved tariffs. Verizon's Connecticut physical and virtual 
collocation tariffs are virtually identical to the New York physical 
and virtual collocation tariffs, which we found to satisfy checklist 
item 1 in our Bell Atlantic New York Order. Verizon demonstrates that 
it offers interconnection in Connecticut to other telecommunications 
carriers at just, reasonable, and nondiscriminatory rates, in 
compliance with checklist item 1.
    12. Checklist Item 2--Unbundled Network Elements. The Commission 
finds that charges for UNEs made available in Connecticut to other 
telecommunications carriers are just, reasonable, and nondiscriminatory 
in compliance with checklist item 2. Verizon uses its New York systems 
and processes to serve its Connecticut subscribers and the Connecticut 
Department has ordered Verizon to continue to make available to 
competitive LECs in Connecticut all UNE combinations Verizon offers in 
New York. Based on the present record, the Commission finds that 
Verizon demonstrates that it provides nondiscriminatory access to its 
OSS.
    13. Checklist Item 5--Unbundled Local Transport. Section 
271(c)(2)(B)(v) of the competitive checklist requires a BOC to provide 
``local transport from the trunk side of a wireline local exchange 
carrier switch unbundled from switching or other services.'' The 
Commission concludes, based upon the evidence in the record, that 
Verizon demonstrates that it provides both shared and dedicated 
transport in compliance with the requirements of checklist item 5.
    14. Checklist Item 13--Reciprocal Compensation. Based on the 
evidence in the record, the Commission concludes that Verizon 
demonstrates that it has entered into reciprocal compensation 
arrangements in accordance with the requirements of section 252(d)(2) 
and is making all required payments in a timely fashion. Verizon thus 
satisfies the requirements of checklist item 13.
    15. Remaining Checklist Items (3, 6-12.). An applicant under 
section 271 must demonstrate that it complies with checklist item 3 
(access to poles, ducts, and conduits), checklist item 6 (unbundled 
local switching), item 7 (911/E911 access and directory assistance/
operator services), item 8 (white page directory listings), item 9 
(numbering administration), item 10 (databases and associated 
signaling), item 11 (number portability), and item 12 (local dialing 
parity). Based on the evidence in the record, and in accordance with 
Commission rules and orders concerning compliance with section 271 of 
the Act, the Commission concludes that Verizon demonstrates that it is 
in compliance with checklist items 3, 6, 7, 8, 9, 10, 11 and 12 in 
Connecticut. The Connecticut Department also concludes that Verizon 
complies with the requirements of each of these checklist items.
    16. Compliance with Section 271(c)(1)(A). The Commission concludes 
that Verizon demonstrates that it satisfies the requirements of section 
271(c)(1)(A) based on the interconnection agreements it has implemented 
with competing carriers in Connecticut. The record demonstrates

[[Page 39044]]

that competing LECs serve a sufficient number of business and 
residential customers using predominantly their own facilities in its 
very limited service area in Connecticut. The Connecticut Department 
likewise concluded that Verizon satisfies the requirements of section 
271(c)(1)(A).
    17. Section 272 Compliance. Verizon has demonstrated that it 
complies with the requirements of section 272. Significantly, Verizon 
provides evidence that it maintains the same structural separation and 
nondiscrimination safeguards in Connecticut as it does in New York and 
Massachusetts, states in which Verizon has already received section 271 
authority.
    18. Public Interest Analysis. The Commission concludes that 
approval of this application is consistent with the public interest. It 
views the public interest requirement as an opportunity to review the 
circumstances presented by the applications to ensure that no other 
relevant factors exist that would frustrate the congressional intent 
that markets be open, as required by the competitive checklist, and 
that entry will therefore serve the public interest as Congress 
expected. While no one factor is dispositive in this analysis, the 
Commission's overriding goal is to ensure that nothing undermines its 
conclusion that markets are open to competition.
    19. Among other factors, the Commission may review the local and 
long distance markets to ensure that there are not unusual 
circumstances that would make entry contrary to the public interest 
under the particular circumstances of this Application. The Commission 
finds that, consistent with its extensive review of the competitive 
checklist, barriers to competitive entry in the local market have been 
removed and the local exchange market today is open to competition. The 
Commission also finds that the record confirms our view that a BOC's 
entry into the long distance market will benefit consumers and 
competition if the relevant local exchange market is open to 
competition consistent with the competitive checklist.
    20. The Commission also finds that the performance monitoring and 
enforcement mechanisms developed in Connecticut, in combination with 
other factors, provide meaningful assurance that Verizon will continue 
to satisfy the requirements of section 271 after entering the long 
distance market.
    21. Section 271(d)(6) Enforcement Authority. Working with the 
Connecticut Department, the Commission intends to monitor closely post-
entry compliance and to enforce the provisions of section 271 using the 
various enforcement tools Congress provided us in the Communications 
Act.

Federal Communications Commission.
William F. Caton,
Deputy Secretary.
[FR Doc. 01-18696 Filed 7-25-01; 8:45 am]
BILLING CODE 6712-01-P