[Federal Register Volume 67, Number 249 (Friday, December 27, 2002)]
[Notices]
[Pages 79098-79099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32651]


-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[WC Docket No. 02-307; FCC 02-331]


Joint Application by BellSouth Corporation, BellSouth 
Telecommunications, Inc., and BellSouth Long Distance, Inc. for 
Provision of In-Region, InterLATA Services in Florida and Tennessee

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

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 Florida and Tennessee. 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 December 30, 2002.

FOR FURTHER INFORMATION CONTACT: Christine Newcomb, Attorney-Advisor, 
Wireline Competition Bureau, at (202) 418-1573 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. 02-307, FCC 02-331, 
adopted December 18, 2002, and released December 19, 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 September 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 Florida and Tennessee.
    2. The State Commissions' Evaluations. The Florida Public Service 
Commission (Florida Commission), and the Tennessee Regulatory Authority 
(Tennessee Authority) (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 October 10, 
2002. It recommended approval of the application subject to the 
Commission's resolving certain concerns expressed by the Department of 
Justice, specifically, BellSouth's change management process for 
operations support systems (OSS), and its policy on restating 
erroneously reported performance data.
    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 Florida and Tennessee. The 
record demonstrates that competitive LECs serve some business and 
residential customers using predominantly their own facilities in each 
of the states.

Primary Issues in Dispute

    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 Florida and 
Tennessee 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 Florida and Tennessee satisfy checklist item 
2. The

[[Page 79099]]

Commission has previously noted that different states may reach 
different results that are each within the range of what a reasonable 
application of TELRIC principles would produce. After reviewing 
commenters' criticisms of BellSouth's hot cut charges for SL-2 loops, 
expedite order charge, promotional tariffs, inflation recovery 
methodology, and loading factors, the Commission concludes that Florida 
and Tennessee 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 two 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 
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 and Multistate Section 271 
Orders, 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 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.
    11. 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.
    12. Checklist Item 13--Reciprocal Compensation. Based on the 
evidence in the record, the Commission concludes that BellSouth has in 
place reciprocal compensation arrangements in accordance with the 
requirements of section 252(d)(2) of the Act in compliance with 
checklist item 13.
    13. Checklist Items 1, 3, 5, 6, 7, 8, 9, 10, 12, and 14. An 
applicant under section 271 must demonstrate that it complies with 
checklist item 1 (interconnection), item 3 (access to poles, ducts, and 
conduits), item 5 (unbundled 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), 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 1, 3, 5, 6, 7, 8, 9, 10, 12, 
and 14 in the two states.
    14. Section 272 Compliance. BellSouth provides evidence that it 
maintains the same structural separation and nondiscrimination 
safeguards in Florida and Tennessee as it does in Alabama, Kentucky, 
Mississippi, North Carolina, South Carolina, 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.
    15. 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.
    16. 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.
William F. Caton,
Deputy Secretary.
[FR Doc. 02-32651 Filed 12-26-02; 8:45 am]
BILLING CODE 6712-01-P