[Federal Register Volume 67, Number 215 (Wednesday, November 6, 2002)]
[Notices]
[Pages 67619-67621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-28163]


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FEDERAL COMMUNICATIONS COMMISSION

[WC Docket No. 02-214; FCC 02-297]


Application by Verizon Virginia Inc., Verizon Long Distance 
Virginia, Inc., Verizon Enterprise Solutions Virginia Inc., Verizon 
Global Networks Inc., and Verizon Select Services of Virginia Inc., 
Pursuant to Section 271 of the Telecommunications Act of 1996, For 
Provision of In-Region, InterLATA Services in the State of Virginia

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 Virginia Inc., et al. (Verizon) 
for authority to enter the interLATA telecommunications market in the 
state of Virginia. 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 November 8, 2002.

FOR FURTHER INFORMATION CONTACT: Uzoma Onyeije, Attorney-Advisor, 
Wireline Competition Bureau, at (202) 418-7827 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 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 WC Docket No. 02-214, FCC 02-
297, adopted October 30, 2002, and released October 30, 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/Wireline--
Competition/in-region--applications.

Synopsis of the Order

    1. History of the Application. On August 1, 2002, Verizon filed an 
application pursuant to section 271 of the Telecommunications Act of 
1996, with the Commission to provide in-region, interLATA service 
originating in the state of Virginia. Interested parties filed comments 
on August 21, 2002, and reply comments on September 12, 2002.
    2. The State Commission's Evaluation. On March 15, 2002, Verizon 
made a compliance filing for section 271 approval with the Virginia 
Commission. On July 12, 2002, the Virginia Hearing Examiner issued a 
report recommending that the Virginia Commission ``advise the FCC that 
this Commission supports granting Verizon authority to provide in-
region interLATA services in Virginia.'' On August 1, 2002, the 
Virginia Commission forwarded the Virginia Hearing Examiner's Report to 
this Commission, reporting on the Virginia Hearing Examiner's section 
271 proceeding and urging the Commission to consider his 
recommendations and findings.
    3. The Department of Justice's Evaluation. The Department of 
Justice filed its evaluation on September 5, 2002, concluding that 
Verizon has generally succeeded in opening its markets to competition 
in most respects. Accordingly, the Department of Justice recommends 
approval of Verizon's application for section 271 authority in 
Virginia.
    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

[[Page 67620]]

implemented with competing carriers in Virginia. The record 
demonstrates that competitive LECs serve business and residential 
customers using predominantly their own facilities and represents an 
``actual commercial alternative'' to Verizon in the state of Virginia.

Primary Issues in Dispute

    5. State Consultation. The Commission finds that the Virginia 
Hearing Examiner's Report constitutes the Virginia Commission's 
consultation pursuant to section 271(d)(2)(B). In previous section 271 
orders, the Commission has noted that the weight assigned to a state's 
consultative report is affected by the procedures that the state 
commission follows to render its report. Consistent with that, the 
Commission will accord some weight to the Virginia Hearing Examiner's 
Report, recognizing that the Virginia Commission established 
evidentiary procedures that provided an opportunity for parties to 
participate in hearings and offer comments.
    6. Virginia Arbitration Proceeding. WorldCom challenges this 
application based, in large part, on issues arising from the Virginia 
Arbitration Order. WorldCom argues that Verizon is in non-compliance 
with section 271 because Verizon does not have interconnection 
agreements in Virginia that fully comply with the Act; Verizon's 
application was not complete when filed because Verizon had not 
memorialized the agreements required by the Virginia Arbitration Order 
prior to its filing of its section 271 application; and Verizon is not 
operationally ready to implement the decisions of the Virginia 
Arbitration Order. The Virginia Arbitration Order was released on July 
17, 2002, and the parties to that proceeding have had the opportunity 
to review the Bureau's decision and to seek reconsideration of any 
items in dispute. Interested parties were also able to review the 
Bureau's decisions and familiarize themselves with the new offerings 
Verizon was required to make available in Virginia. For these reasons, 
the Commission finds that the circumstances present in this instance 
warrant waiver of our procedural requirements, and allow consideration 
of Verizon's finalized interconnection agreements.
    7. Checklist Item 2--Unbundled Network Elements. Based on the 
record, we find that Verizon's Virginia 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 Virginia 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.''
    8. The Commission finds that, while we have serious concerns as to 
whether the recurring rates established by the Virginia Commission in 
its state rate proceeding are TELRIC-compliant, Verizon's current 
recurring UNE rates in Virginia pass a benchmark comparison to New York 
UNE rates. The Commission confirms that it performs its benchmark 
analysis by aggregating non-loop rate elements. Although concerns were 
raised regarding Verizon's switching rate structure, the record does 
not support a finding that the Virginia Commission committed any clear 
error. Further, we reject challenges to Verizon's Virginia non-
recurring charges and conclude that these rates also fall within the 
range of rates that a reasonable application of TELRIC principles would 
produce. Thus, we conclude that Verizon's Virginia UNE rates satisfy 
the requirements of checklist item 2.
    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.
    12. Checklist Item 8--White Pages. Section 271(c)(2)(b)(viii) 
requires a BOC to provide ``white page directory listings for customers 
of the other carrier's telephone exchange service.'' A number of 
parties contend that Verizon does not provide directory listings to 
competing carriers with the same accuracy and reliability that it 
provides its own customers. Specifically, commenters argue that Verizon 
processing errors lead to lost and incorrect directory listings and 
that the listing verification process that Verizon has put in place in 
Virginia is inconsistent with the demands of section 271. The 
Commission concludes that Verizon provides sufficient tools and 
training for competitive LECs to review and correct errors in their 
directory listings prior to publication. In addition, it appears that 
the system modifications and processing changes have substantially 
increased the accuracy of the listings and significantly reduced the 
number of pre-production errors. Accordingly, the Commission finds that 
Verizon satisfies the requirements of checklist item 8.

Other Checklist Items

    13. 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.
    14. Checklist Item 5--Unbundled Local Transport. A BOC must 
demonstrate that it provides nondiscriminatory access to network 
elements in a manner that allows requesting carriers to combine such 
elements and that the BOC does not separate already-combined elements, 
except at the specific request of the competitive carrier. Based upon 
the evidence in the record, the Commission concludes that Verizon has 
demonstrated that it provides nondiscriminatory access to network 
element combinations as required by the Act and its rules.
    15. Checklist Item 6--Unbundled Local Switching. Section 
271(c)(2)(B)(vi) of the Act requires that a BOC provide ``[l]ocal 
switching unbundled from transport, local loop transmission, or other 
services.'' Based on the record in this proceeding, the Commission 
concludes that Verizon has demonstrated that it satisfies the 
requirements of this checklist item in Virginia.

[[Page 67621]]

    16. Checklist Item 7--911/E911 Access Services. Section 
271(c)(2)(B)(vii) of the Act requires a BOC to provide ``[n]on-
discriminatory access to * * * E911 services.'' Based on the record 
before it, the Commission concludes that Verizon has demonstrated that 
it provides nondiscriminatory access to E911 services and databases 
using the same checklist-compliant processes and procedures that it 
uses in its section 271-approved states.
    17. Checklist Item 11--Number Portability. Section 271(c)(2)(B) of 
the Act requires a BOC to comply with the number portability 
regulations adopted by the Commission pursuant to section 251. 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, it concludes 
that Verizon complies with the requirements of checklist item 11.
    18. Remaining Checklist Items--3, 9, 10, 12, 13, and 14. In 
addition to showing that it is in compliance with the requirements 
discussed above, an applicant under section 271 must demonstrate that 
it complies with checklist item 3 (access to poles, ducts, and 
conduits), 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, 9, 10, 12, 13, and 14, in 
Virginia.
    19. Section 272 Compliance. Based on the record, Verizon provides 
evidence that it maintains the same structural separation and 
nondiscrimination safeguards in Virginia as it does in New Jersey, 
Connecticut, Maine, Pennsylvania, Rhode Island, Vermont, New York, 
Connecticut, and Massachusetts--where 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.
    20. 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, the Commission 
finds that barriers to competitive entry in Virginia's local exchange 
market have been removed, and that the local exchange market is open to 
competition. It further finds that the record confirms the Commission's 
view 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.
    21. Section 271(d)(6) Enforcement Authority. Working with Virginia 
Commission, 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. 02-28163 Filed 11-5-02; 8:45 am]
BILLING CODE 6712-01-P