[Federal Register Volume 67, Number 41 (Friday, March 1, 2002)]
[Notices]
[Pages 9451-9452]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4977]



[[Page 9451]]

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FEDERAL COMMUNICATONS COMMISSION

[CC Docket No. 01-324; FCC 02-63]


Application by Verizon New England Inc., Bell Atlantic 
Communications, Inc. (d/b/a Verizon Long Distance), NYNEX Long Distance 
Company (d/b/a 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 Service in the State of Rhode Island and Providence 
Plantations

AGENCY: Federal Communications Commission.

ACTION: Notice.

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

DATES: Effective March 4, 2002.

FOR FURTHER INFORMATION CONTACT: Julie Veach, Attorney Advisor, Common 
Carrier Bureau, at (202) 418-1580 or via the Internet at 
[email protected]. The complete text of this MO&O is available for 
inspection and copying during normal business hours in the FCC 
Reference Information Center, Portals II, 445 12th Street, SW, Room CY-
A257, Washington, DC 20554. Further information may also be obtained by 
calling the Common Carrier Bureau's TTY number: (202) 418-0484.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Memorandum Opinion and Order (MO&O) in CC Docket No. 01-324, FCC 02-63, 
adopted February 22, 2002, and released February 22, 2002. This full 
text may be purchased from the Commission's duplicating contractor, 
Qualex International, Portals II, 445 12th Street, SW, Room CY-B402, 
Washington, DC 20554, telephone 202-863-2893, facsimile 202-863-2898, 
or via e-mail [email protected]. It is also available on the 
Commission's Web site at http://www.fcc.gov/Bureaus/Common_Carrier/in-region_applications/verizon_ri/welcome.html.

Synopsis of the Order

    1. History of the Application. On November 26, 2001, Verizon filed 
an application (Rhode Island Application), pursuant to section 271 of 
the Telecommunications Act of 1996, with the Commission to provide in-
region, interLATA service in Rhode Island.
    2. The Rhode Island Commission's Evaluation. The Rhode Island 
Public Utilities Commission (Rhode Island Commission) advised the 
Commission, following a nearly four month review process, 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 Rhode Island Commission recommended that the 
Commission approve Verizon's in-region, interLATA entry in its December 
14, 2001 evaluation of the Rhode Island Application.
    3. The Department of Justice's Evaluation. The Department of 
Justice filed its evaluation of Verizon's Rhode Island Application on 
January 4, 2002. It recommended approval of the Rhode Island 
Application subject to the Commission satisfying itself as to pricing 
issues raised by commenters.

Primary Issues in Dispute

    4. Checklist Item 2--Unbundled Network Elements. Based on the 
record, the Commission finds that Verizon provides 
``[n]ondiscriminatory access to network elements in accordance with the 
requirements of sections 251(c)(3) and 251(d)(1)'' of the Act in 
compliance with checklist item 2.
    5. The Commission finds that Verizon's charges for unbundled 
network elements (UNEs) are just, reasonable, and nondiscriminatory in 
compliance with checklist item 2. Verizon relied in its Rhode Island 
Application not only on a Rhode Island Commission proceeding adopting 
Verizon's switching rates, but also on a benchmark comparison to New 
York switching rates and Massachusetts rates based on the New York 
rates. During the pendency of this proceeding, however, on January 28, 
2002, the New York Public Service Commission adopted new switching 
rates, which are more than 50 percent lower than Verizon's previous New 
York switching rates. In response to this change in circumstances, 
Verizon filed with this Commission reduced Rhode Island switching rates 
upon which it then relied as evidence to demonstrate compliance with 
checklist item two. Under these unique circumstances, the Commission 
waives its ``complete-as-filed'' rule to take into consideration this 
late-filed evidence. The Rhode Island Commission adopted these 
discounted switching rates on February 21, 2002. The Commission finds 
Verizon's voluntarily reduced switching rates are within a reasonable 
TELRIC (total element long-run incremental costs) range. In addition, 
the Commission finds the Rhode Island loop rates to be within the range 
that the reasonable application of TELRIC principles would produce.
    6. The Commission also concludes that Verizon meets its obligation 
to provide access to its operations support systems (OSS)--the systems, 
databases, and personnel necessary to support the network elements or 
services. Nondiscriminatory access to OSS ensures that new entrants 
have the ability to order service for their customers and communicate 
effectively with Verizon regarding basic activities such as placing 
orders and providing maintenance and repair services for customers. The 
Commission finds that, for each of the primary OSS functions (pre-
ordering, ordering, provisioning, maintenance and repair, and billing, 
as well as change management and technical assistance), Verizon 
provides access that enables competing carriers to perform the 
functions in substantially the same time and manner as Verizon or, if 
there is not an appropriate retail analogue in Verizon's systems, in a 
manner that permits an efficient competitor a meaningful opportunity to 
compete.
    7. Pursuant to this checklist item, Verizon must also provide 
nondiscriminatory access to network elements in a manner that allows 
other carriers to combine such elements. Based on the evidence in the 
record, and upon Verizon's legal obligations under interconnection 
agreements, Verizon demonstrates that it provides to competitors 
combinations of already-combined network element as well as 
nondiscriminatory access to unbundled network elements in a manner that 
allows competing carriers to combine those elements themselves

Other Checklist Items

    8. Checklist Item 4--Unbundled Local Loops. Verizon has adequately 
demonstrated that it provides unbundled local loops as required by 
section 271. More specifically, Verizon establishes that it provides 
access to loop make-up information in compliance with the Commission's 
rules and nondiscriminatory access to stand alone xDSL-capable loops 
and high-capacity loops. Also, Verizon provides voice grade loops, both 
as new loops and through hot-cut conversions,

[[Page 9452]]

in a nondiscriminatory manner. Finally, Verizon has demonstrated that 
it has a line-sharing and line-splitting provisioning process that 
affords competitors nondiscriminatory access to these facilities.
    9. In the Commission's overview of Verizon's performance data, it 
relies primarily on Rhode Island performance data (supplemented with 
Massachusetts data) collected and submitted by Verizon under the state-
adopted carrier-to-carrier standards. Verizon provides evidence and 
performance data establishing that it can efficiently furnish unbundled 
loops, for the provision of both traditional voice services and various 
advanced services, to other carriers in a nondiscriminatory manner.
    10. Checklist Item 1--Interconnection. 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.
    11. Verizon also demonstrates that its collocation offerings in 
Rhode Island satisfy the requirements of sections 251 and 271 of the 
Act and are in compliance with the Commission's recent Collocation 
Remand Order. Verizon demonstrates that it offers interconnection in 
Rhode Island to other telecommunications carriers at just, reasonable, 
and nondiscriminatory rates, in compliance with checklist item 1.
    12. 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, including dark fiber, in compliance with the requirements of 
checklist item 5.
    13. Checklist Item 14--Resale. Based on the evidence in the record, 
the Commission concludes that Verizon demonstrates that it makes 
telecommunications services, including its DSL-based telecommunications 
service, available in Rhode Island for resale, in accordance with 
sections 251(c)(4) and 252(d)(3), and thus satisfies the requirements 
for checklist item 14.
    14. Checklist Items 3, 6-13. An applicant under section 271 must 
demonstrate that it complies with checklist item 3 (poles, ducts, 
conduits, and rights of way), 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), item 12 (local dialing parity), and item 13 (reciprocal 
compensation). 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 these checklist items in Rhode Island. The Rhode 
Island Commission also concluded that Verizon complies with the 
requirements of each of these checklist items.

Other Statutory Requirements

    15. 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 Rhode Island. The record demonstrates that 
competitive LECs serve some business and residential customers using 
predominantly their own facilities.
    16. 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 Rhode Island as it does in 
Pennsylvania, New York, Connecticut, and Massachusetts--states in which 
Verizon has already received section 271 authority.
    17. 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.
    18. 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 
its 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.
    19. The Commission also finds that the performance monitoring and 
enforcement mechanisms developed in Rhode Island, 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. Commenters urge the Commission to perform a price 
squeeze analysis. The Commission has reviewed their evidence, however, 
and determined that even if it accepts their assertions that a price 
squeeze analysis is mandated by the section 271's public interest 
requirement, there is no price squeeze in Rhode Island.
    20. Section 271(d)(6) Enforcement Authority. Working with the Rhode 
Island 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 in the Communications Act.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 02-4977 Filed 2-28-02; 8:45 am]
BILLING CODE 6712-01-P