[Federal Register Volume 63, Number 204 (Thursday, October 22, 1998)]
[Notices]
[Pages 56645-56647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28365]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[CC Docket No. 98-121; FCC 98-271]
Application by BellSouth Corporation, et al. to Provide In-
Region, InterLATA Services in Louisiana
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Memorandum Opinion and Order (Order) in CC Docket No. 98-
121 concludes that BellSouth Corporation, et al. (BellSouth) has not
satisfied the requirements of section 271(c)(1) of the Communications
Act of 1934, as amended (Act). The Commission therefore denies
BellSouth's application to provide in-region interLATA services in
Louisiana. The Order declines to grant BellSouth authority to provide
in-region, interLATA services in Louisiana.
EFFECTIVE DATE: October 13, 1998.
FOR FURTHER INFORMATION CONTACT: Claudia Pabo or William Bailey,
Attorneys, Policy and Program Planning Division, Common Carrier Bureau,
(202) 418-1580 or via the Internet at cpabo@fcc.gov or wbailey@fcc.gov,
respectively. Further information may also be obtained by calling the
Common Carrier Bureau's TTY number: 202-418-0484.
SUPPLEMENTARY INFORMATION: This is a brief description of the
Commission's Memorandum Opinion and Order adopted and released October
13, 1998. The full text of this Order is available for inspection and
copying during normal business hours in the FCC Reference Center, 1919
M St., NW., Room 239, Washington, DC. The complete text also may be
obtained through the World Wide Web, at http://www.fcc.gov/Bureaus/
Common Carrier/Orders/fcc98271.wp, or may be purchased from the
Commission's copy contractor, International Transcription Service,
Inc., (202) 857-3800, 1231 20th St., NW., Washington, D.C. 20036.
Synopsis of Order
1. Department of Justice's Evaluation. The Department of Justice
recommends that BellSouth's application for entry into the long
distance market in Louisiana be denied. The Department of Justice
concluded that, despite a number of encouraging improvements since its
earlier applications in South Carolina and Louisiana, the Louisiana
market is not fully and irreversibly open to competition, and that
BellSouth has failed to demonstrate that it is offering access and
interconnection that satisfy the requirements of the competitive
checklist.
2. State Verification of Compliance with Section 271(c). The
Louisiana Commission voted to approve and support BellSouth's second
application to enter the long distance market in Louisiana. Unlike the
process it followed when BellSouth filed its first application, the
Louisiana Commission did not compile an evidentiary record or conduct a
formal proceeding to determine whether BellSouth's revised application
complies with section 271 of the Act. Thus, there is no record evidence
submitted by the state commission to show whether BellSouth has
implemented changes in response to our previous Louisiana order.
3. Track A: Broadband PCS and Wireline. We conclude that the
broadband PCS services at issue here satisfy the statutory definition
of ``telephone exchange service'' for purposes of Track A, and
therefore, may serve as the basis for a qualifying application under
Track A. Based on the facts presented in this application, however,
BellSouth has not shown that broadband PCS is a substitute for the
wireline telephone service offered by BellSouth in Louisiana. We also
discuss whether BellSouth demonstrates that it satisfies the
requirements of Track A based on its implemented agreements with
wireline competitive LECs.
4. Checklist--General. We conclude that, in any future application
for section 271 approval in Louisiana, BellSouth may incorporate by
reference its prior showing on checklist items we deem satisfied in
this Order. BellSouth must also certify that its actions and
performance at the time of any future application are consistent with
the showing it incorporates by reference. We hope this new
certification option will enable BOCs to focus their energies on
quickly satisfying the remaining statutory requirements and thereby
expedite the local market-opening process by which BOCs may obtain
approval to provide in-region long distance service.
5. Checklist Item 1--Interconnection. BellSouth does not satisfy
the requirements of checklist item (i). Pursuant to this checklist
item, BellSouth must allow other carriers to link their networks to its
network for the mutual exchange of traffic. To do so, BellSouth must
permit carriers to use any available method of interconnection at any
available point in BellSouth's network. For the reasons stated in the
BellSouth South Carolina Order, 63 FR 78, January 2, 1998, we find
BellSouth's collocation offering insufficient. Furthermore,
interconnection between networks must be equal in quality whether the
interconnection is between BellSouth and an affiliate, or between
BellSouth and another carrier. BellSouth also does not show that it
provides interconnection that meets this standard.
6. Checklist Item 2--Access to Unbundled Network Elements.
BellSouth does not satisfy the requirements of checklist item (ii). The
telephone network is comprised of individual network elements. In order
to provide ``access'' to an unbundled network element, for purposes of
the checklist, BellSouth must provide a connection to the network
element at any technically feasible point under rates, terms, and
conditions that are just, reasonable, and nondiscriminatory. To fulfill
the nondiscrimination obligation under checklist item (ii), BellSouth
must provide access to its operations support systems, meaning the
information, systems, and personnel necessary to support the elements
and services. This is important because access to BellSouth's
operations support systems provides new entrants with the ability to
order service for their customers and allows new entrants to
communicate effectively with BellSouth regarding such basic activities
as placing orders and providing repair and maintenance service for
customers. BellSouth does not demonstrate that its operation support
systems enable other carriers to connect electronically to its pre-
ordering and ordering functions, thus placing those carriers at a
competitive disadvantage relative to BellSouth's own retail operation.
Although BellSouth has made some progress in addressing deficiencies in
its operations support systems, it has failed to address successfully
other problems
[[Page 56646]]
that we specifically identified in previous orders as critical for
nondiscriminatory access.
7. In addition, BellSouth must provide nondiscriminatory access to
network elements in a manner that allows other carriers to combine such
elements. Other carriers are entitled to request any ``technically
feasible'' method for combining network elements. As we held in the
BellSouth South Carolina Order, BellSouth has failed to demonstrate
that it can provide nondiscriminatory access to unbundled elements
through the one method it identifies for such access, collocation.
8. Checklist Item 3--Access to Poles, Ducts, Conduits, and Rights-
of-Way. BellSouth satisfies the requirements of checklist item (iii).
Telephone company wires must be attached to, or pass through, poles,
ducts, conduits, and rights-of-way. In order to fulfill the
nondiscrimination obligation under checklist item (iii), BellSouth must
show that other carriers can obtain access to its poles, ducts,
conduits, and rights-of-way within reasonable time frames and on
reasonable terms and conditions, with a minimum of administrative
costs, and consistent with fair and efficient practices. Failure by
BellSouth to provide such access may prevent other carriers from
serving certain customers. BellSouth demonstrates that it has
established nondiscriminatory procedures for access to poles, ducts,
conduits, and rights-of-way.
9. Checklist Item 4--Unbundled Local Loops. BellSouth does not
satisfy the requirements of checklist item (iv). Local loops are the
wires, poles, and conduits that connect the telephone company end
office to the customer's home or business. To satisfy the
nondiscrimination requirement under checklist item (iv), BellSouth must
demonstrate that it can efficiently furnish unbundled loops to other
carriers within a reasonable time frame, with a minimum level of
service disruption, and at the same level of service quality it
provides to its own customers. Nondiscriminatory access to unbundled
local loops ensures that new entrants can provide quality telephone
service promptly to new customers without constructing new loops to
each customer's home or business. BellSouth does not provide evidence,
such as meaningful performance data, that it can efficiently furnish
loops to other carriers in a nondiscriminatory manner.
10. Checklist Item 5--Unbundled Local Transport. But for
deficiencies in its operations support systems, BellSouth would satisfy
the requirements of checklist item (v). Transport facilities are the
trunks that connect different switches within BellSouth's network or
those switches with long distance carriers' facilities. This checklist
item requires BellSouth to provide other carriers with transmission
links that are dedicated to the use of that carrier as well as links
that are shared with other carriers, including BellSouth.
Nondiscriminatory access to transport ensures that consumer calls
travelling over other carriers' lines are completed properly. Although
BellSouth demonstrates that it provides transport on terms and
conditions consistent with our regulations, it does not provide
evidence, such as meaningful performance data, that it provides
nondiscriminatory access to operations support systems for the purpose
of providing transport facilities.
11. Checklist Item 6--Unbundled Local Switching. BellSouth does not
satisfy the requirements of checklist item (vi). A switch connects end
user lines to other end user lines, and connects end user lines to
trunks used for transporting a call to another central office or to a
long-distance carrier. Switches can also provide end users with
``vertical features'' such as call waiting, call forwarding, and caller
ID, and can direct a call to a specific trunk, such as to a competing
carrier's operator services. We find that BellSouth does not satisfy
the requirements of checklist item (vi), because BellSouth does not
show that it provides all of the features, functions, and capabilities
of the switch.
12. Checklist Item 7--911 and E911 Services, Operator Services, and
Directory Assistance. BellSouth satisfies the requirements of checklist
item (vii)(I), regarding 911 and E911 services. 911 and E911 services
transmit calls from end users to emergency personnel. It is critical
that BellSouth provide competing carriers with accurate and
nondiscriminatory access to 911/E911 services so that these carriers'
customers are able to reach emergency assistance. We previously
concluded in the BellSouth South Carolina Order that BellSouth met the
requirements of this checklist item. BellSouth demonstrates that it
continues to meet the statutory requirements as described in the
BellSouth South Carolina Order.
13. BellSouth does not satisfy the requirements of checklist item
(vii)(II) and (vii)(III), regarding provision of nondiscriminatory
access to directory assistance and operator services. Customers use
directory assistance and operator services to obtain customer listing
information and other call completion services. BellSouth does not
demonstrate that it provides other carriers with the same access to
these services that it provides to itself.
14. Checklist Item 8--White Pages Directory Listings. BellSouth
satisfies the requirements of checklist item (viii). White pages are
the directory listings of telephone numbers of residences and
businesses in a particular area. This checklist item ensures that white
pages listings for customers of different carriers are comparable, in
terms of accuracy and reliability, notwithstanding the identity of the
customer's telephone service provider. BellSouth demonstrates that its
provision of white page listings to customers of competitive LECs is
nondiscriminatory in terms of their appearance and integration, and
that it provides white page listings for competing carriers' customers
with the same accuracy and reliability that it provides to its own
customers.
15. Checklist Item 9--Numbering Administration. BellSouth satisfies
the requirements of checklist item (ix). Telephone numbers are
currently assigned to telecommunications carriers based on the first
three digits of the local number known as ``NXX'' codes. To fulfill the
nondiscrimination obligation in checklist item (ix), BellSouth must
provide other carriers with the same access to new NXX codes within an
area code that BellSouth enjoys. This checklist item ensures that other
carriers have the same access to new telephone numbers as BellSouth.
BellSouth demonstrates that, in acting as the code administrator, it
has adhered to industry guidelines and the Commission's requirements
under section 251(b)(3).
16. Checklist Item 10--Databases and Associated Signaling.
BellSouth satisfies the requirements of checklist item (x). Databases
and associated signaling refer to the call-related databases and
signaling systems that are used for billing and collection or the
transmission, routing, or other provision of a telecommunications
service. To fulfill the nondiscrimination obligation in checklist item
(x), BellSouth must demonstrate that it provides new entrants with the
same access to these call-related databases and associated signaling
that it provides itself. This checklist item ensures that other
carriers have the same ability to transmit, route, complete and bill
for telephone calls as BellSouth. BellSouth demonstrates that it
provides other carriers nondiscriminatory access to its: (1) signaling
networks, including signaling links and signaling transfer points; (2)
certain call-related databases necessary for call routing and
completion, or in the alternative, a means of physical
[[Page 56647]]
access to the signaling transfer point linked to the unbundled
database; and (3) Service Management Systems.
17. Checklist Item 11--Number Portability. BellSouth does not
satisfy the requirements of checklist item (xi). Number portability
enables consumers to take their phone number with them when they change
local telephone companies. BellSouth does not sufficiently demonstrate
that it provides number portability to competing carriers in a
reasonable timeframe. A failure to provide timely number portability
prevents a customer from receiving incoming calls for a period of time
after switching from BellSouth to a competing carrier.
18. Checklist Item 12--Local Dialing Parity. BellSouth satisfies
the requirements of checklist item (xii). Local dialing parity permits
customers to make local calls in the same manner regardless of the
identity of their carrier. To fulfill the nondiscrimination obligation
in checklist item (xii), BellSouth must establish that customers of
another carrier are able to dial the same number of digits to make a
local telephone call. In addition, the dialing delay experienced by the
customers of another carrier should not be greater than that
experienced by customers of BellSouth. This checklist item ensures that
consumers are not inconvenienced in how they make calls simply because
they subscribe to a carrier other than BellSouth for local telephone
service. BellSouth demonstrates that customers of other carriers are
able to dial the same number of digits that BellSouth's customers dial
to complete a local telephone call, and that these customers do not
otherwise suffer inferior quality such as unreasonable dialing delays
compared to BellSouth customers.
19. Checklist Item 13--Reciprocal Compensation. BellSouth satisfies
the requirements of checklist item (xiii). Pursuant to this checklist
item, BellSouth must compensate other carriers for the cost of
transporting and terminating a local call from BellSouth.
Alternatively, BellSouth and the other carrier may enter into an
arrangement whereby neither of the two carriers charges the other for
terminating local traffic that originates on the other carrier's
network. This checklist item is important to ensuring that all carriers
that originate calls bear the cost of terminating such calls. BellSouth
demonstrates that it has reciprocal compensation arrangements in
accordance with section 252(d)(2) in place, and that it is making all
required payments in a timely fashion. Louisiana has not reached a
final determination on the issue of a BOC's obligation to pay
reciprocal compensation for traffic delivered to Internet service
providers (ISPs). We do not, at this time, consider BellSouth's
unwillingness to pay reciprocal compensation for traffic that is
delivered to ISPs located within the same local calling area as the
originating BellSouth end user in assessing whether BellSouth satisfies
this checklist item. Any future grant of in-region interLATA authority
under section 271 will be conditioned on compliance with decisions
relating to Internet traffic in Louisiana.
20. Checklist Item 14--Resale. BellSouth does not satisfy the
requirements of checklist item (xiv). This checklist item requires
BellSouth to offer other carriers all of its retail services at
wholesale rates without unreasonable or discriminatory conditions or
limitations such that other carriers may resell those services to an
end user. This checklist item ensures a mode of entry into the local
market for carriers that have not deployed their own facilities.
BellSouth demonstrates that it offers all of its retail services for
resale at wholesale rates without unreasonable or discriminatory
conditions or limitations. BellSouth, however, does not show that it
provides nondiscriminatory access to operations support systems for the
resale of its retail telecommunications services.
21. Section 272 Compliance. Although BellSouth has undertaken
significant efforts to institute policies and procedures to ensure
compliance with section 272, it does not meet all section 272
requirements. In particular, it does not disclose all transactions with
its section 272 affiliate, which means its affiliate has superior
access to information about these transactions than unaffiliated
entities. In addition, it does not provide nondiscriminatory access to
its operations support systems, and thereby discriminates in its
provision of information to unaffiliated entities.
22. Public Interest Standard. We reaffirm the Commission's prior
conclusion that it has broad discretion to identify and to weigh all
relevant factors in determining whether BOC entry into a particular in-
region, interLATA market is consistent with the public interest. We
reaffirm the Commission's prior conclusion that we consider as part of
our public interest inquiry whether approval of a section 271
application will foster competition in all relevant markets, including
the local exchange market, not just the in-region, interLATA market.
23. In assessing whether the public interest will be served by
granting a particular application, we will consider and balance a
variety of factors in each case. For example, we would consider a BOC's
agreement to submit to enforcement mechanisms in the event it falls out
of compliance with agreed upon performance standards.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-28365 Filed 10-21-98; 8:45 am]
BILLING CODE 6712-01-P
