[Federal Register Volume 66, Number 187 (Wednesday, September 26, 2001)]
[Notices]
[Pages 49188-49189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24042]


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FEDERAL COMMUNICATIONS COMMISSION

[CC Docket No. 01-138; FCC 01-269]


Application by Verizon Pennsylvania 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 Pennsylvania

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: In this document the Federal Communications Commission grants 
the section 271 application of Verizon Pennsylvania Inc., et al. 
(Verizon) for authority to enter the interLATA telecommunications 
market in the state of Pennsylvania. 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 date September 26, 2001.

FOR FURTHER INFORMATION CONTACT: Robert Tanner, Attorney-Advisor, 
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. 01-138, FCC 01-269, 
released September 19, 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 
duplicating contractor, Qualex International, Portals II, 445 12th 
Street, SW., Room CY-B402, Washington, DC 20554. It is also available 
on the Commission's website at http://www.fcc.gov/ccb/ppp/2001ord.html.

Synopsis of the Order

    1. On June 21, 2001, Verizon filed an application, pursuant to 
section 271 of the Communications Act of 1934, as amended, for 
authority to provide in-region, interLATA service in the state of 
Pennsylvania.
    2. The State Commission's Evaluation. The Pennsylvania Public 
Utilities Commission (Pennsylvania Commission) 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 
Pennsylvania Commission recommended that the Commission approve 
Verizon's in-region, interLATA entry in its June 25, 2001 evaluation of 
the application.
    3. The Department of Justice's Evaluation. The Department of 
Justice does not oppose Verizon's section 271 application for 
Pennsylvania, but states that it is unable fully to endorse it due to 
concerns about Verizon's wholesale billing systems. The Department of 
Justice also states, however, that local markets in Pennsylvania show a 
substantial amount of competitive entry, and does not foreclose the 
possibility that the Commission may be able to approve Verizon's 
application.

Primary Issues in Dispute

    4. Checklist Item 2--Unbundled Network Elements. Based on the 
record, the Commission finds that Verizon has provided 
``[n]ondiscriminatory access to network elements in accordance with the 
requirements of sections 251(c)(3) and 252(d)(1)'' of the Act in 
compliance with checklist item 2. The Commission addresses herein those 
aspects of this checklist item that raised significant issues 
concerning whether Verizon's performance demonstrated compliance with 
the Act: (1) Operations Support Systems (OSS), particularly billing; 
(2) UNE pricing; and (3) provisioning of UNE combinations.
    5. Access to Operations Support Systems (OSS). The Commission 
concludes that Verizon provides nondiscriminatory access to its OSS. 
Our decision focuses only on issues of controversy, particularly 
Verizon's wholesale billing functions. The Commission finds that, 
despite some historical problems in producing a readable, auditable and 
accurate wholesale bill, Verizon provides a wholesale bill that gives 
competitive LECs a meaningful opportunity to compete. Verizon 
demonstrates that recent data show significantly improved performance 
in delivering timely and accurate bills. Similarly, performance data 
indicate that any delay associated with BOS BDT bills was temporary, 
associated with on-going improvements to the billing process and not 
indicative of a larger, systemic problem with delivering timely bills. 
In addition, the Commission finds that third-party studies of Verizon's 
billing systems, processes and performance support Verizon's recent 
commercial data both for retail-formatted bills and BOS BDT

[[Page 49189]]

formatted bills. The Commission therefore ultimately finds that 
Verizon's billing performance is minimally sufficient to demonstrate 
checklist compliance, especially in light of the showing Verizon has 
made for providing timely and accurate service usage information to 
competitive LECs.
    6. Checklist Item 4--Unbundled Local Loops. Verizon has adequately 
demonstrated that it provides unbundled local loops in accordance with 
the requirements of section 271 and our rules. This conclusion is based 
on review of Verizon's performance for all loop types, which include, 
as in past section 271 orders, voice grade loops, hot cuts, xDSL-
capable loops, digital loops, and high capacity loops, and our review 
of Verizon's processes for line sharing and line splitting. Upon 
review, the Commission finds that Verizon provides nondiscriminatory 
access to all loop types. It also finds that Verizon has demonstrated 
that it adequately provisions line-sharing and line-splitting. 
Furthermore, the Commission finds that Verizon provides access to loop 
makeup information in compliance with our rules.
    7. Checklist Item 14--Resale. Section 271(c)(2)(B)(xiv) of the Act 
requires that a BOC make ``telecommunications services * * * available 
for resale in accordance with the requirements of section 251(c)(4) and 
section 252 (d)(3).'' Based on the record in this proceeding, the 
Commission concludes that Verizon satisfies the requirements of this 
checklist item in Pennsylvania. Verizon has a concrete and specific 
legal obligation in its interconnection agreements and tariffs to make 
its retail services available for resale to competing carriers at 
wholesale rates. Also, Verizon demonstrates current compliance with the 
checklist requirements with regard to DSL resale.

Other Checklist Items

    8. Checklist Item 1--Interconnection. Section 271(c)(2)(B)(i) 
requires the BOC to provide equal-in-quality interconnection on terms 
and conditions that are just, reasonable and nondiscriminatory in 
accordance with the requirements of sections 251 and 252. Based on 
evidence in the record, the Commission concludes that Verizon 
demonstrates that it is in compliance with the requirements of this 
checklist item. The Commission also notes that the Pennsylvania 
Commission found that Verizon satisfied this checklist item and that no 
commenters raised any issues concerning Verizon's performance for the 
provisioning of interconnection.
    9. Pricing. The Commission's pricing rules require, among other 
things, that in order to comply with its collocation obligations, an 
incumbent LEC provide collocation based on TELRIC. Based on the record, 
the Commission finds that Verizon offers interconnection in 
Pennsylvania to other telecommunications carriers at just, reasonable 
and nondiscriminatory rates and is therefore in compliance with 
checklist item
    10. Checklist Item 8--White Pages Directory Listings. Section 
271(c)(2)(B)(viii) of the competitive checklist requires a BOC to 
provide ``[w]hite page directory listings for customers of the other 
carrier's telephone exchange service.'' Based on the evidence in the 
record, we conclude that Verizon satisfies the requirements of 
checklist item 8.
    11. Checklist Item 13--Reciprocal Compensation. Section 
271(c)(2)(B)(xiii) of the Act requires that a BOC enter into 
``[r]eciprocal compensation arrangements in accordance with the 
requirements of section 252(d)(2).'' In turn, section 252(d)(2)(A) 
specifies when a state commission may consider the terms and conditions 
for reciprocal compensation to be just and reasonable. Based on the 
record, we conclude that Verizon demonstrates that it provides 
reciprocal compensation as required by checklist item 13.
    12. Remaining Checklist Items (3, 6, 7, and 9-12). An applicant 
under section 271 must demonstrate that it complies with checklist item 
3 (access to poles, ducts, and conduits), item 6 (unbundled local 
switching), item 7 (911/E911 access and directory assistance/operator 
services), 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, the Commission 
concludes that Verizon demonstrates that it is in compliance with 
checklist items 3, 6, 7, 9, 10, 11, and 12 in Pennsylvania. The 
Commission also notes that the Pennsylvania Commission concluded that 
Verizon complies with the requirements of each of these checklist 
items.
    13. Compliance with Section 271(c)(1)(A). In order for the 
Commission to approve a BOC's application to provide in-region, 
interLATA services, a BOC must first demonstrate that it satisfies the 
requirements of either section 271(c)(1)(A) (Track A) or section 
271(c)(1)(B) (Track B). To qualify for Track A, a BOC must have 
interconnection agreements with one or more competing providers of 
``telephone exchange service * * * to residential and business 
subscribers.'' We conclude, as the Pennsylvania Commission did, that 
Verizon demonstrates that it satisfies the requirements of Track A 
based on the interconnection agreements it has implemented with 
competing carriers in Pennsylvania.
    14. Section 272 Compliance. Based on the record, the Commission 
concludes that Verizon has demonstrated that it will comply with the 
requirements of section 272. Significantly, Verizon provides evidence 
that it maintains the same structural separation and nondiscrimination 
safeguards in Pennsylvania, as it does in Connecticut, New York and 
Massachusetts, states in which Verizon has already received section 271 
authority.
    15. Public Interest Analysis. The Commission concludes that 
approval of this application is consistent with the public interest. 
From extensive review of the competitive checklist, which embodies the 
critical elements of market entry under the Act, we find that barriers 
to competitive entry in the local exchange markets have been removed 
and the local exchange markets today are open to competition. The 
Commission further finds that the record confirms our view, as noted in 
prior section 271 orders, that BOC 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. The Commission also finds that the existing performance 
assurance plan (``PAP'') currently in place for Pennsylvania, in 
combination with other factors, provides assurance that the local 
market will remain open after Verizon receives section 271 
authorization.
    16. Section 271(d)(6) Enforcement Authority. The Commission has a 
responsibility not only to ensure that Verizon is in compliance with 
section 271 today, but also that it remains in compliance in the 
future. Working with the Pennsylvania Commission, 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.
Magalie Roman Salas,
Secretary.
[FR Doc. 01-24042 Filed 9-25-01; 8:45 am]
BILLING CODE 6712-01-P