[Federal Register Volume 68, Number 237 (Wednesday, December 10, 2003)]
[Notices]
[Pages 68922-68924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30541]


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FEDERAL COMMUNICATIONS COMMISSION

[WC Docket No. 03-194; FCC 03-309]


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

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 Qwest Communications 
International Inc. (Qwest) for authorization to provide in-region, 
interLATA services in Arizona. 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 December 15, 2003.

FOR FURTHER INFORMATION CONTACT: Cathy Carpino, Attorney-Advisor,

[[Page 68923]]

Wireline Competition Bureau, at (202) 418-1580 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. 03-194, FCC 03-309, 
adopted December 3, 2003, and released December 3, 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 Web site at http://www.fcc.gov/Bureaus/Common_Carrier/in-region_applications.

Synopsis of the Order

    1. History of the Application. On September 4, 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 Arizona.
    2. The State Commission's Evaluation. The Arizona Corporation 
Commission (Arizona Commission), following an extensive review process, 
determined that Qwest satisfied all 14 of the checklist items contained 
in section 271. Consequently, the Arizona Commission recommended that 
the Commission grant Qwest's application to provide in-region, 
interLATA service in Arizona.
    3. The Department of Justice's Evaluation. The Department of 
Justice filed its evaluation on October 9, 2003, recommending approval 
of the application. The Department of Justice concludes that 
opportunities are available to competing facilities-based carriers 
serving business and residential customers.

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 (OSS). 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, the Commission thus finds that the 
allegations raised about Qwest's change management process (CMP) in 
this record do not warrant a finding of checklist noncompliance. The 
Commission finds that Qwest's CMP and Qwest's pattern of compliance 
with the CMP satisfies checklist item 2.
    6. 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, digital subscriber line-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 
May 31, 2003, competitors have acquired from Qwest and placed into use 
approximately 37,719 stand-alone unbundled loops in Arizona. With 
respect to concerns regarding recent changes in Qwest's policy on 
construction of new facilities related to provisioning of high-capacity 
unbundled loops, the Commission declines to find this allegation 
warrants a finding of checklist noncompliance. Absent additional 
evidence, the Commission is not convinced that Qwest's policy has 
denied competitive LECs a meaningful opportunity to compete to date.

Other Checklist Items

    7. Checklist Item 2--OSS. The Commission finds that Qwest 
demonstrates it provides nondiscriminatory access to its pre-ordering, 
ordering, provisioning, maintenance and repair, and billing functions. 
Regarding specific areas for which commenters or the Commission 
identifies issues with Qwest's OSS performance, the Commission finds 
that these problems do not demonstrate overall discriminatory treatment 
or are not sufficient to warrant a finding of checklist noncompliance.
    8. Pricing of Unbundled Network Elements. The Commission finds, as 
did the Arizona Commission, that Qwest's UNE rates in Arizona are just, 
reasonable, and nondiscriminatory as required by section 252(d)(1). 
Thus, Qwest's UNE rates in Arizona satisfy checklist item 2.
    9. Checklist Items 1, 3, 5-14. An applicant under section 271 must 
demonstrate that it complies with item 1 (interconnection), 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), item 13 (reciprocal compensation), and item 
14 (resale). 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 1, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 
and 14 in Arizona.

Other Statutory Requirements

    10. Compliance with Section 271(c)(1)(A). In order for the 
Commission to approve a BOC's application to provide in-region, 
interLATA services, a BOC must first demonstrate that it satisfies the 
requirements of either section 271(c)(1)(A) (Track A) or section 
271(c)(1)(B) (Track B). The Commission concludes that Qwest satisfies 
the requirements of Track A in Arizona. This decision is based on the 
number of interconnection agreements it has implemented with competing 
carriers in the state of Arizona.
    11. Section 272 Compliance. Qwest provides evidence that for two of 
its affiliates--Qwest LD Corp. and Qwest Communications Corporation--it 
maintains the same structural separation and nondiscrimination 
safeguards in Arizona as it does in the other 13 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.

[[Page 68924]]

    12. 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 Arizona are open to 
competition.
    13. Section 271(d)(6) Enforcement Authority. The Commission 
concludes that, working with the Arizona 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. 03-30541 Filed 12-9-03; 8:45 am]
BILLING CODE 6712-01-P