[Federal Register Volume 67, Number 191 (Wednesday, October 2, 2002)]
[Notices]
[Pages 61882-61883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25062]


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FEDERAL COMMUNICATIONS COMMISSION

[WC Docket No. 02-157; FCC 02-262]


Application by Verizon New England Inc., Verizon Delaware 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., for 
Authorization To Provide In-Region, InterLATA Services in New Hampshire 
and Delaware

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 Verizon New England, 
Inc. Verizon Delaware 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. (Verizon), for authority to enter the interLATA 
telecommunications market in the states of New Hampshire and Delaware. 
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 October 4, 2002.

FOR FURTHER INFORMATION CONTACT: Henry Thaggert, Attorney-Advisor, 
Wireline Competition Bureau, at (202) 418-7941 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. 02-157, FCC 02-262, 
adopted September 25, 2002, and released September 25, 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 27, 2002, Verizon 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 New Hampshire and Delaware.
    2. The State Commissions' Evaluations. The New Hampshire Public 
Utilities Commission (New Hampshire Commission) and the Delaware Public 
Services Commission (Delaware Commission), following an extensive 
review process, advised the Commission that Verizon 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 Verizon'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 on August 1, 2002, concluding that Verizon 
has generally succeeded in opening its local markets in New Hampshire 
and Delaware to competition. Accordingly, the Department of Justice 
recommends approval of Verizon's application for section 271 authority 
in New Hampshire and Delaware.

Primary Issues in Dispute

    4. 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 New Hampshire and Delaware. The 
record demonstrates that competitive LECs serve 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 Verizon 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 further finds that, while substantial questions 
were raised regarding whether New Hampshire UNE rates were adopted 
through a proceeding that correctly applied TELRIC principles in all 
instances, Verizon's current New Hampshire UNE rates pass a benchmark 
comparison to New York UNE rates. Therefore, New Hampshire UNE rates 
satisfy checklist item 2. The Commission performs its benchmark 
analysis by aggregating non loop rate elements.
    7. In Delaware, Verizon reduced its switching rates during the 
pendency of this proceeding in response to claims that the data 
underlying cost inputs to the rates had become outdated. Verizon's 
reduced switching rates caused Verizon's non loop rates to satisfy a 
benchmark comparison to New York non loop rates. Delaware loop rates 
also satisfied a benchmark comparison to New York rates. Thus, 
Verizon's Delaware UNE rates also satisfy checklist item 2.
    8. OSS. The Commission also concludes that Verizon provides 
nondiscriminatory access to its OSS--the systems, databases, and 
personnel necessary to support network elements or services. Verizon 
provides access to its OSS in a manner that enables competing carriers 
to perform the functions in substantially the same time and manner as 
Verizon does or, if no

[[Page 61883]]

appropriate retail analogue exists within Verizon's systems, in a 
manner that permits competitors a meaningful opportunity to compete. In 
addition, regarding specific areas where the Commission identifies 
relatively minor issues with Verizon's OSS performance in New 
Hampshire--order processing notifiers, flow-through, and billing 
accuracy--these problems are not sufficient to warrant a finding of 
checklist noncompliance.
    9. Checklist Item 4--Unbundled Local Loops. Verizon 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, 
Verizon 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, 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.

Other Checklist Items

    10. Checklist Item 1--Interconnection. Based on the evidence in the 
record, the Commission concludes that Verizon provides access and 
interconnection on terms and conditions that are just, reasonable and 
nondiscriminatory, 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. Verizon's 
performance generally satisfies the applicable benchmark or retail 
comparison standards for this checklist item.
    11. Checklist Item 11--Local 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, the Commission finds 
that Verizon complies with the requirements of checklist item 11. As 
noted elsewhere in the order, Verizon uses the same processes and 
procedures relating to unbundled loops in Delaware as it does in 
Pennsylvania. Therefore, because there is insufficient data in 
Delaware, we look to Verizon's performance in Pennsylvania as a basis 
for our evaluation, and it has met the benchmark standard for this 
measurement in Pennsylvania in each relevant month.
    12. Checklist Items 3, 5, 6, 7, 8, 9, 10, 12, 13 and 14. An 
applicant under section 271 must demonstrate that it complies with 
checklist item 3 (access to poles, ducts, and conduits), item 5 
(unbundled local transport), item 6 (unbundled local switching), item 7 
(911/E911 access and directory assistance/operator services), item 8 
(white pages directory listings), item 9 (numbering administration), 
item 10 (databases and associated signaling), item 12 (local dialing 
parity), item 13 (reciprocal compensation), and item 14 (resale). Based 
on the evidence in the record, the Commission concludes that Verizon 
demonstrates that it is in compliance with checklist items 3, 5, 6, 7, 
8, 9, 10, 12, 13 and 14 in New Hampshire and Delaware.
    13. Section 272 Compliance. Based on the record, Verizon provides 
evidence that it maintains the same structural separation and 
nondiscrimination safeguards in Delaware and New Hampshire as it does 
in Pennsylvania, New York, Connecticut, and Massachusetts--states in 
which Verizon has already received section 271 authority. Therefore, 
the Commission concludes that Verizon has demonstrated that it is in 
compliance with the requirements of section 272.
    14. Public Interest Analysis. The Commission concludes that 
approval of this application is consistent with the public interest. 
From its 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 in New Hampshire and Delaware 
are open to competition. The Commission further finds that, as noted in 
prior section 271 orders, 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. 
Verizon demonstrates that there is significant local competition in 
Delaware and New Hampshire, that Verizon's local market will remain 
open to competition, and that section 271 approval would enhance local 
and long distance competition in Delaware and New Hampshire.
    15. Section 271(d)(6) Enforcement Authority. Working with each of 
the state commissions, the Commission intends to closely monitor 
Verizon's post-approval compliance to ensure that Verizon 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. 02-25062 Filed 10-1-02; 8:45 am]
BILLING CODE 6712-01-P