[Federal Register Volume 67, Number 123 (Wednesday, June 26, 2002)]
[Notices]
[Pages 43123-43125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16094]


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FEDERAL COMMUNICATONS COMMISSION

[CC Docket No. 02-61; FCC 02-187]


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 Maine

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 Maine. 
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 July 1, 2002.

FOR FURTHER INFORMATION CONTACT: Christine Newcomb, Attorney, Wireline 
Competition Bureau (WCB), at (202) 418-1573 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 Wireline Competition 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. 02-61, FCC 02-187, 
adopted June 18, 2002, and released June 19, 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 website at http://www.fcc.gov/Bureaus/Common_Carrier/ in-
region_applications/verizon_vt/welcome.html.

[[Page 43124]]

Synopsis of the Order

    1. History of the Application. On March 21, 2002, Verizon filed an 
application (Maine Application), pursuant to section 271 of the 
Telecommunications Act of 1996, with the Commission to provide in-
region, interLATA service in the state of Maine.
    2. The Maine Commission's Evaluation. The Maine Public Utilities 
Commission (Maine Commission) conducted a comprehensive evaluation of 
Verizon's compliance with section 271, which included two days of 
evidentiary hearings. The Maine Commission concluded that Verizon met 
the checklist requirements of section 271(c) and has taken the 
appropriate steps to open the local exchange and exchange access 
markets in Maine in accordance with standards set forth in the Act. 
Consequently, the Maine Commission recommended that the Commission 
approve Verizon's in-region, interLATA entry in its (April 10, 2002) 
evaluation of the Maine Application.
    3. The Department of Justice's Evaluation. The Department of 
Justice filed its evaluation of Verizon's Maine Application on April 
25, 2002, and recommended approval of the Maine Application.

Primary Issue in Dispute

    4. Checklist Item 2--Unbundled Network Elements--Pricing. Checklist 
Item 2--Unbundled Network Elements--Pricing. Based on the record, we 
find that Verizon's Maine UNE rates are just, reasonable, and 
nondiscriminatory as required by section 251(c)(3), and are based on 
cost plus a reasonable profit as required by section 252(d)(1). Thus, 
Verizon's Maine UNE rates satisfy checklist item 2. The Commission has 
previously held that it will not conduct a de novo review of a state's 
pricing determinations and will reject an application only if either 
``basic TELRIC principles are violated or the state commission make 
clear errors in the actual findings on matters so substantial that the 
end result falls outside the range that a reasonable application of 
TELRIC principles would produce.'' The Maine Commission concluded that 
Verizon's UNE rates satisfied the requirement of checklist item 2. 
While we have not conducted a de novo review of the Maine Commission's 
pricing determinations, we did receive comments concerning two aspects 
of Verizon's Maine UNE pricing; unbundled local switching rates and the 
Daily Usage File (DUF) rate.
    5. After carefully reviewing these comments, we conclude that, with 
respect to switching rates, the Maine Commission followed basic TELRIC 
principles and that the record does not support a finding that the 
Maine Commission committed clear error in adopting switching rates 
using the default cost allocation contained in the Synthesis Model. We 
also conclude that claims concerning Verizon's DUF rate are without 
merit or premature, and that a DUF rate of zero is an appropriate 
interim rate. For other rates, because the Maine Commission did not 
conduct a TELRIC analysis in all circumstances, we compared Verizon's 
Maine loop and non-loop rates to recently adopted New York rates and 
find that these rates satisfy our benchmark analysis. Thus, we conclude 
that Verizon's Maine UNE rates satisfy the requirements of checklist 
item 2.
    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 stand alone xDSL-capable loops and high-capacity loops. Also, 
Verizon provides voice grade loops, both as new loops and through hot-
cut conversions, 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 Maine 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 Items 1, 3, 5-14. An applicant under section 271 must 
demonstrate that it complies with checklist item 1 (interconnection), 
item 3 (poles, ducts, conduits, and rights of way), item 5 (transport), 
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), item 13 (reciprocal compensation), and item 14 
(resale). 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 Maine. The Maine Commission 
also concluded that Verizon complies with the requirements of each of 
these checklist items.

Other Statutory Requirements

    11. 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 Maine. The record demonstrates that 
competitive LECs serve some business and residential customers using 
predominantly their own facilities.
    12. Section 272 Compliance. Verizon has demonstrated that it 
complies with the requirements of section 272. Significantly, Verizon 
provides evidence that it maintains the same

[[Page 43125]]

structural separation and nondiscrimination safeguards in Maine as it 
does in Pennsylvania, New York, Connecticut, and Massachusetts--states 
in which Verizon has already received section 271 authority.
    13. Public Interest Analysis. The Commission concludes that 
approval of this application is consistent with the public interest. 
The Commission views the public interest requirement as an opportunity 
to review the circumstances presented by the application 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 the applicant's entry into the in-region, interLATA market 
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.
    14. 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. The 
Commission also finds that the performance monitoring and enforcement 
mechanisms developed in Maine, 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.
    15. Section 271(d)(6) Enforcement Authority. Working with the Maine 
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.
Marlene H. Dortch,
Secretary.
[FR Doc. 02-16094 Filed 6-25-02; 8:45 am]
BILLING CODE 6712-01-P