[Federal Register Volume 68, Number 127 (Wednesday, July 2, 2003)]
[Notices]
[Pages 39560-39561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16707]


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

FEDERAL COMMUNICATIONS COMMISSION

[WC Docket No. 03-90; FCC 03-142]


Application by Qwest Communications International, Inc. for 
Authorization To Provide In-Region, InterLATA Services in Minnesota

AGENCY: Federal Communications Commission.

ACTION: Notice.

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

SUMMARY: In the document, the Federal Communications Commission 
(Commission) grants the section 271 application of Qwest Communications 
International, Inc. for authorization to provide in-region, interLATA 
services in Minnesota. The Commission grants Qwest's application based 
on its conclusion that Qwest has satisfied all of the statutory 
requirements for entry, and fully opened its local exchange markets to 
competition.

DATES: Effective July 7, 2003.

FOR FURTHER INFORMATION CONTACT: Gail Cohen, Senior Economist, Wireline 
Competition Bureau, at (202) 418-0939 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. 03-90, FCC 03-142, 
adopted June 25, 2003 and released June 26, 2003. 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 website at http://www.fcc.gov/Bureaus/Wireline_Competition /in-region--applications.

Synopsis of the Order

    1. History of the Application. On March 28, 2003, Qwest filed an 
application with the Commission, pursuant to section 271 of the 
Telecommunications Act of 1996, to provide in-region, interLATA service 
in the state of Minnesota.
    2. The State Commission's Evaluation. The Minnesota Public 
Utilities Commission (Minnesota Commission), following an extensive 
review process, determined that Qwest satisfied 12 of the 14 checklist 
items, but did not reach a collective determination with respect to 
checklist items 2 and 14, pertaining to unbundled network elements 
(UNEs) and resale, respectively, and public interest issues.
    3. The Department of Justice's Evaluation. The Department of 
Justice filed its evaluation on May 2, 2003, recommending approval of 
the application, although deferring to the Commission's prior decision 
regarding the relevance of unfiled interconnection agreements on the 
section 271 process. The Department of Justice concludes opportunities 
are available to competing carriers serving business and residential 
customers, and although only a small portion of residential customers 
are served via the UNE-Platform, the Department of Justice does not 
believe there are any material obstacles to such entry.

Primary Issues in Dispute

    4. Checklist Item 2--Unbundled Network Elements. Section 251(c)(3) 
requires incumbent LECs to provide ``nondiscriminatory access to 
network elements on an unbundled basis at any technically feasible 
point on rates, terms, and conditions that are just, reasonable, and 
nondiscriminatory.'' Based on the evidence in the record, we conclude 
that Qwest has satisfied the requirements of checklist item 2.
    5. Operations Support Systems. The Commission concludes that Qwest 
meets its obligation to provide access to its 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 Qwest regarding basic activities such as placing 
orders and providing maintenance and repair services for customers. The 
Commission finds that Qwest provides access to each of the primary OSS 
functions (pre-ordering, ordering, provisioning, maintenance and 
repair, and billing, as well as change management and technical 
assistance), in order for competitive LECs to compete and in accordance 
with the Act. In particular, although the Minnesota Commission could 
not reach consensus on this checklist item due to billing issues 
related to UNE-Star, the Commission concludes that Qwest does provide 
non-discriminatory access to billing functions in accordance with the 
Act.
    6. UNE Combinations. Pursuant to section 271(c)(2)(B)(ii) a BOC 
must also provide nondiscriminatory access to network elements in a 
manner that allows other carriers to combine such elements, and 
demonstrate that it does not separate already combined elements, except 
at the specific request of a competing carrier. Based on the evidence 
in the record, and upon Qwest's legal obligations under interconnection 
agreements, Qwest demonstrates that it provides to competitors 
combinations of already-combined network elements as well as 
nondiscriminatory access to unbundled network elements in a manner that 
allows competing carriers to combine those elements themselves.
    7. Pricing of Unbundled Network Elements. The Commission finds, as 
did the Minnesota Commission, that Qwest's UNE rates in Minnesota are 
just, reasonable, and nondiscriminatory as required by section 
252(d)(1). Thus, Qwest's UNE rates in Minnesota satisfy checklist item 
2.

[[Page 39561]]

Other Checklist Items.

    8. Checklist Item 1--Interconnection. Based on the evidence in the 
record, the Commission finds that Qwest demonstrates that it 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.
    9. Checklist Item 4--Unbundled Local Loops. The Commission 
concludes that Qwest provides unbundled local loops in accordance with 
the requirements of section 271 and our rules. The Commission's 
conclusion is based on its review of Qwest's performance for all loop 
types--which include voice grade loops, xDSL-capable loops, and high 
capacity loops--as well as hot cut provisioning and our review of 
Qwest's processes for line sharing and line splitting. As of December 
31, 2002, competitors have acquired from Qwest and placed into use 
approximately 106,827 stand-alone unbundled loops in Minnesota.
    10. Checklist Item 14--Resale. Section 271(c)(2)(B)(xiv) of the Act 
requires that a BOC make ``telecommunications services * * * available 
for resale in accordance with the requirements of section 251(c)(4) and 
section 252(d)(3).'' Based on the evidence in the record, we conclude 
that Qwest satisfies the requirements of this checklist item. Qwest has 
demonstrated that it has satisfied its legal obligation to make retail 
telecommunications services available for resale to competitive LECs at 
wholesale rates. Although the Minnesota Commission did not reach 
consensus on this checklist item, the Commission concludes that Qwest 
does provide nondiscriminatory access to this checklist item.
    11. Checklist Items 3, 5-13. An applicant under section 271 must 
demonstrate that it complies with item 3 (poles, ducts, and conduits), 
item 5 (unbundled transport) item 6 (unbundled local switching), item 7 
(E911/operator services/directory assistance), item 8 (white pages), 
item 9 (numbering administration), item 10 (data bases and signaling), 
item 11 (number portability), item 12 (local dialing parity), and item 
13 (reciprocal compensation). 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 Qwest 
demonstrates that it is in compliance with checklist items 3, 5, 6, 7, 
8, 9, 10, 11, 12, and 13 in Minnesota.

Other Statutory Requirements

    12. Section 272 Compliance. Qwest provides evidence that it 
maintains the same structural separation and nondiscrimination 
safeguards in Minnesota as it does in the other twelve states where 
Qwest has already received section 271 authority. Based on the record 
before us, the Commission concludes that Qwest has demonstrated that it 
will comply with the requirements of section 272.
    13. 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 the local exchange markets 
have been removed and the local exchange markets in Minnesota are open 
to competition.
    14. Section 271(d)(6) Enforcement Authority. The Commission also 
finds that the performance monitoring and enforcement mechanisms 
developed in Minnesota along with other factors, provide meaningful 
assurance that Qwest will continue to satisfy the requirements of 
section 271 after entering the long distance market.
    15. Section 271(d)(6) Enforcement Authority. The Commission 
concludes that, working with the State Commission, we will closely 
monitor Qwest's post-approval compliance to ensure that Qwest continues 
to meet the conditions required for section 271 approval. It stands 
ready to exercise its various statutory enforcement powers quickly and 
decisively if there is evidence that market-opening conditions have not 
been sustained.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 03-16707 Filed 7-1-03; 8:45 am]
BILLING CODE 6712-01-P