[Federal Register Volume 67, Number 187 (Thursday, September 26, 2002)]
[Notices]
[Pages 60682-60683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24420]


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FEDERAL COMMUNICATIONS COMMISSION

[WC Docket No. 02-150; FCC 02-260]


Joint Application by BellSouth Corporation, BellSouth 
Telecommunications, Inc., and BellSouth Long Distance, Inc. for 
Provision of In-Region, InterLATA Services in Alabama, Kentucky, 
Mississippi, North Carolina, and South Carolina

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: In the document, the Federal Communications Commission 
(Commission) grants the section 271 application of BellSouth 
Corporation, et al. (BellSouth) for authority to enter the interLATA 
telecommunications market in the states of Alabama, Kentucky, 
Mississippi, North Carolina, and South Carolina. The Commission grants 
BellSouth's application based on its conclusion that BellSouth has 
satisfied all of the statutory requirements for entry, and opened its 
local exchange markets to full competition.

DATES: Effective September 27, 2002.

FOR FURTHER INFORMATION CONTACT: Aaron Goldberger, Attorney-Advisor, 
Wireline Competition Bureau, at (202) 418-1591 or via the Internet at 
[email protected]. The complete text of this Memorandum Opinion and 
Order 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 in WC Docket No. 02-150, FCC 02-260, 
adopted September 18, 2002, and released September 18, 2002. The full 
text of this order 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/ Wireline--
Competition/in-region--applications.

Synopsis of the Order

    1. History of the Application. On June 20, 2002, BellSouth filed an 
application, pursuant to section 271 of the Telecommunications Act of 
1996, with the Commission to provide in-region, interLATA service in 
the states of Alabama, Kentucky, Mississippi, North Carolina, and South 
Carolina.
    2. The State Commissions' Evaluations. The Alabama Public Service 
Commission (Alabama Commission), the Kentucky Public Service Commission 
(Kentucky Commission), the Mississippi Public Service Commission 
(Mississippi Commission), the North Carolina Utilities Commission 
(North Carolina Commission), and the South Carolina Public Service 
Commission (South Carolina Commission) (collectively, state 
commissions), following an extensive review process over a number of 
years, advised the Commission that BellSouth had met the checklist 
requirements of section 271 and has taken the statutorily required 
steps to open its local markets in each state to competition. 
Consequently, the state commissions recommended that the Commission 
approve BellSouth's in-region, interLATA entry in their evaluations and 
comments in this proceeding.
    3. The Department of Justice's Evaluation. The Department of 
Justice filed its evaluation of BellSouth's application on July 30, 
2002. It recommended approval of the application subject to the 
Commission's review of, among other things, BellSouth's change 
management process for operations support systems (OSS). The Department 
of Justice stated that BellSouth had made substantial progress in 
addressing issues that it had previously identified.

Primary Issues in Dispute

    4. Compliance with Section 271 (c) (1) (A). The Commission 
concludes that BellSouth demonstrates that it satisfies the 
requirements of section 271 (c)(1)(A) based on the interconnection 
agreements it has implemented with competing carriers in Alabama, 
Kentucky, Mississippi, North Carolina, and South Carolina. The record 
demonstrates that competitive LECs serve some business and residential 
customers using predominantly their own facilities in each of the 
states.
    5. Checklist Item 2--Unbundled Network Elements. Based on the 
record, the Commission finds that BellSouth has provided 
``nondiscriminatory 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.
    6. The Commission finds that BellSouth's UNE rates in each of the 
five states are just, reasonable, and nondiscriminatory, and are based 
on cost plus a reasonable profit as required by section 252(d)(1). 
Thus, BellSouth's UNE rates in Alabama, Kentucky, Mississippi, North 
Carolina, and South Carolina satisfy checklist item 2. The Commission 
has previously noted that different states may reach different results 
that are each within the range of what a reasonable application of 
TELRIC would produce. After reviewing commenters criticism of loop rate 
issues, switching rate issues, Daily Usage File (DUF) rates, and 
BellSouth's non-recurring OSS charge, the Commission concludes that the 
state commissions followed basis TELRIC principles and there is 
insufficient evidence to demonstrate that the state commissions 
committed clear error.
    7. Pursuant to this checklist item, the Commission finds that 
BellSouth also provides nondiscriminatory access to network elements in 
a manner that allows other carriers to combine such elements 
themselves. In addition, BellSouth demonstrates that it provides to 
competitors combinations of already-combined network elements. 
Accordingly, BellSouth provides UNEs, including UNE combinations, in 
the five states in the same manner as the Commission approved in 
Georgia and Louisiana.
    8. The Commission also concludes that BellSouth meets its 
obligation to provide access to its OSS--the systems, databases and 
personnel necessary to support network elements or services. Based on 
the evidence presented in the record, the Commission finds that 
BellSouth provides nondiscriminatory access to each of the primary OSS

[[Page 60683]]

functions (pre-ordering, ordering, provisioning, maintenance and 
repair, billing, and change management and technical assistance). 
BellSouth provides access to its OSS in a manner that enables competing 
carriers to perform the functions in substantially the same time and 
manner as BellSouth or, if there is not an appropriate retail analogue 
in BellSouth's systems, in a manner that permits an efficient 
competitor a meaningful opportunity to compete.
    9. Specifically, regarding change management, the Commission finds 
that, since the BellSouth Georgia/Louisiana Section 271 Order, 
BellSouth has continued to improve the adequacy of its plan by 
broadening its scope and by increasing the role of competitive LECs in 
the process. While the Commission finds that problems still exist with 
respect to BellSouth's adherence to the change management process, the 
Commission finds those problems--generally, the quality of software 
releases and the number of change requests awaiting implementation--are 
not sufficient to warrant a finding of checklist noncompliance.

Other Checklist Items.

    10. Checklist Item 1--Interconnection. Based on the evidence in the 
record, the Commission finds that BellSouth 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, BellSouth 
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 BellSouth's network. 
BellSouth's performance generally satisfies the applicable benchmark or 
retail comparison standards for this checklist item.
    11. Checklist Item 4--Unbundled Local Loops. BellSouth demonstrates 
that it provides unbundled local loops in accordance with the 
requirements of section 271 and our rules in that it provides ``local 
loop transmission from the central office to the customer's premises, 
unbundled from local switching or other services.'' More specifically, 
BellSouth establishes that it provides access to loop make-up 
information in compliance with the UNE Remand Order and 
nondiscriminatory access to stand alone xDSL-capable loops and high-
capacity loops. Also, BellSouth provides voice grade loops, both as new 
loops and through hot-cut conversions, in a nondiscriminatory manner. 
Finally, BellSouth has demonstrated that it has a line-sharing and 
line-splitting provisioning process that affords competitors 
nondiscriminatory access to these facilities.
    12. Checklist Item 5--Unbundled 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 BellSouth 
demonstrates that it provides unbundled local transport, in compliance 
with the requirements of checklist item 5.
    13. Checklist Item 8--White Pages Directory Listings. Based on the 
record, the Commission finds that BellSouth provides white page 
directory listings for customers of the other carrier's telephone 
exchange service and permits competitive providers of telephone 
exchange service and toll service to have access to directory listings 
in compliance with checklist item 8.
    14. Checklist Item 10--Databases and Associated Signaling. 
BellSouth has demonstrated that it provides ``nondiscriminatory access 
to databases and associated signaling necessary for call routing and 
completion'' in compliance with the requirements of checklist item 10.
    15. Checklist Item 11--Number Portability. Section 251(b)(2) 
requires all LECs ``to provide, to the extent technically feasible, 
number portability in accordance with requirements prescribed by the 
Commission.'' Based on the evidence in the record, we find that 
BellSouth complies with the requirements of checklist item 11.
    16. Checklist Item 12--Local Dialing Parity. Based on the evidence 
in the record, the Commission concludes that BellSouth provides 
nondiscriminatory access to such services or information as are 
necessary to allow the requesting carrier to implement local dialing 
parity in accordance with the requirements of section 251(b)(3) of the 
Act in compliance with checklist item 12.
    17. Checklist Items 3, 6, 7, 9, 13 and 14. 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 13 (reciprocal 
compensation), and item 14 (resale). Based on the evidence in the 
record, the Commission concludes that BellSouth demonstrates that it is 
in compliance with checklist items 3, 6, 7, 9, 13, and 14 in the five 
states.
    18. Section 272 Compliance. BellSouth provides evidence that it 
maintains the same structural separation and nondiscrimination 
safeguards in Alabama, Kentucky, Mississippi, North Carolina, and South 
Carolina as it does in Georgia and Louisiana, states in which BellSouth 
has already received section 271 authority. Therefore, the Commission 
concludes that BellSouth has demonstrated that it is in compliance with 
the requirements of section 272.
    19. 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. The Commission finds that barriers to competitive entry in 
the local exchange markets have been removed and that the local 
exchange markets in each state are open to competition. The Commission 
also finds that the performance monitoring and enforcement mechanisms 
developed in each state, in combination with other factors, provide 
meaningful assurance that BellSouth will continue to satisfy the 
requirements of section 271 after entering the long distance market.
    20. Section 271(d)(6) Enforcement Authority. Working with each of 
the state commissions, the Commission intends to closely monitor 
BellSouth's post-approval compliance to ensure that BellSouth continues 
to meet the conditions required for section 271 approval. It stands 
ready to exercise its various statutory enforcement powers quickly and 
decisively in appropriate circumstances to ensure that the local market 
remains open in each of the states.

    Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 02-24420 Filed 9-25-02; 8:45 am]
BILLING CODE 6712-01-P