FCC 96-325

FCC 96-325

Before the
Federal Communications Commission
Washington, DC 20554

I. INTRODUCTION, OVERVIEW AND EXECUTIVE SUMMARY

A. The Telecommunications Act of 1996 - A New Direction

B. The Competition Trilogy: Section 251, Universal Service Reform and Access Charge Reform

C. Economic Barriers

D. Operational Barriers

E. Transition

F. Executive Summary

II. SCOPE OF THE COMMISSION'S RULES

A. Advantages and Disadvantages of National Rules

B. Suggested Approaches for FCC Rules

C. Legal Authority of the Commission to Establish Regulations Applicable to Intrastate Aspects of Interconnection, Resale of Services, and Unbundled Network Elements

D. Legal Authority and the Adoption of National Pricing Rules

E. Authority to Take Enforcement Action 121

F. Regulations of BOC Statements of Generally Available Terms

G. States' Role in Fostering Local Competition Under Sections 251 and 252

III. DUTY TO NEGOTIATE IN GOOD FAITH

A. Background

B. Advantages and Disadvantages of National Rules

C. Specific Practices that May Constitute a Failure to Negotiate in Good Faith

D. Applicability of Section 252 to Preexisting Agreements

IV. INTERCONNECTION

A. Relationship Between Interconnection and Transport and Termination

B. National Interconnection Rules 177

C. Interconnection for the Transmission and Routing of Telephone Exchange Service and Exchange Access

D. Interexchange Service is not Telephone Exchange Service or Exchange Access

E. Definition of "Technically Feasible"

F. Technically Feasible Points of Interconnection

G. Just, Reasonable, and Nondiscriminatory Rates, Terms, and Conditions of Interconnection

H. Interconnection that is Equal in Quality

V. ACCESS TO UNBUNDLED NETWORK ELEMENTS

A. Commission Authority to Identify Unbundled Network Elements

B. National Requirements for Unbundled Network Elements

C. Network Elements

D. Access to Network Elements

E. Standards Necessary to Identify Unbundled Network Elements

F. Provision of a Telecommunications Service Using Unbundled Network Elements

G. Nondiscriminatory Access to Unbundled Network Elements and Just, Reasonable, and Nondiscriminatory Terms and Conditions for the Provision of Unbundled Network Elements

H. The Relationship Between Sections 251(c)(3) and 251(c)(4)

I. Provision of Interexchange Services through the Use of Unbundled Network Elements

J. Specific Unbundling Requirements

1. Local Loops

2. Switching Capability

3. Interoffice Transmission Facilities

4. Databases and Signaling Systems

5. Operations Support Systems

6. Other Network Elements

VI. METHODS OF OBTAINING INTERCONNECTION AND ACCESS TO UNBUNDLED NETWORK ELEMENTS

A. Overview

B. Collocation

1. Collocation Standards

a. Adoption of National Standards

b. Adoption of Expanded Interconnection Terms and Conditions for Physical and Virtual Collocation under Section 251

c. The Meaning of the Term "Premises"

d. Collocation Equipment

e. Allocation of Space

f. Leasing Transport Facilities

g. Co-Carrier Cross-connect

h. Security Arrangements

i. Allowing Virtual Collocation in Lieu of Physical

2. Legal Issues

a. Relationship between Expanded Interconnection Tariffs and Section 251

b. Takings Issues

VII. PRICING OF INTERCONNECTION AND UNBUNDLED ELEMENTS

A. Overview

B. Cost-Based Pricing Methodology

1. Application of the Statutory Pricing Standard

2. Rate Levels

a. Pricing Based on Economic Cost

(1) Background

(2) Comments

(3) Discussion

(a) Total Element Long Run Incremental Cost

(b) Cost Measures Not Included in Forward-Looking Cost Methodology

(c) Fifth Amendment Issues

3. Rate Structure Rules

a. General Rate Structure Rules

b. Additional Rate Structure Rules for Shared Facilities

c. Geographic/Class-of-Service Averaging

C. Default Proxy Ceilings and Ranges

1. Use of Proxies Generally

2. Proxies for Specific Elements

a. Overview

b. Discussion

(1) Loops

(2) Local Switching

(3) Other Elements

3. Forward-Looking Cost Model Proxies

D. Other Issues

1. Future Adjustments to Interconnection and Unbundled Element Rate Levels

2. Imputation

3. Discrimination

VIII. RESALE

A. Scope of Section 251(c)(4)

B. Wholesale Pricing

C. Conditions and Limitations

1. Restrictions, Generally, and Burden of Proof

2. Promotions and Discounts

3. Below-Cost and Residential Service

5. Incumbent LEC Withdrawal of Services

6. Provisioning

D. Resale Obligations of LECs Under Section 251(b)(1)

E. Application of Access Charges

IX. DUTIES IMPOSED ON "TELECOMMUNICATIONS CARRIERS" BY SECTION 251(a)

X. COMMERCIAL MOBILE RADIO SERVICE INTERCONNECTION A. CMRS Providers and Obligations of Local Exchange Carriers Under Section 251(b) and Incumbent Local Exchange Carriers Under Section 251(c) B. Reciprocal Compensation Arrangements Under Section 251(b)(5) C. Interconnection Under Section 251(c)(2). D. Jurisdictional Authority for Regulation of LEC-CMRS Interconnection Rates

XI. OBLIGATIONS IMPOSED ON LECS BY 251(b)

A. Reciprocal Compensation for Transport and Termination of Telecommunications

1. Statutory Language

2. Definition of Transport and Termination of Telecommunications

3. Pricing Methodology

4. Symmetry

5. Bill and Keep

B. Access to Rights of Way

1. Overview

2. Section 224(f): Non-discriminatory access

a. Background

b. Comment

c. Discussion

(1) Generally

(2) Specific Rules

(3) Guidelines Governing Certain Issues

(a) Capacity Expansions

(b) Reservation of space by utility

(c) Definition of "Utility"

(d) Application of Section 224(f)(2) to Non-Electric Utilities

(e) Third Party Property Owners

(f) Other Matters

3. Constitutional Takings

4. Modifications

5. Dispute Resolution

6. Reverse preemption

C. Imposing Additional Obligations on LECS

XII. EXEMPTIONS, SUSPENSIONS AND MODIFICATIONS OF SECTION 251 REQUIREMENTS

A. Background

B. Need for National Rules

C. Application of Section 251(f)

XIII. ADVANCED TELECOMMUNICATIONS CAPABILITIES

XIV. PROVISIONS OF SECTION 252

A. Section 252(e)(5)

B. Requirements of Section 252(i)

XV. FINAL REGULATORY FLEXIBILITY ANALYSIS

A. Need for and Objectives of this Report and Order and the Rules Adopted Herein

B. Analysis of Significant Issues Raised in Response to the IRFA

1. Treatment of Small LECs

2. Other Issues

C. Description and Estimates of the Number of Small Entities Affected by this Report and Order

1. Telephone Companies (SIC 481)

2. Cable System Operators (SIC 4841)

D. Summary Analysis of the Projected Reporting, Recordkeeping, and Other Compliance Requirements and Steps Taken to Minimize the Significant Economic Impact of this Report and Order on Small Entities and Small Incumbent LECs, Including the Significant Alternatives Considered and Rejected

E. Report to Congress

XVI. ORDERING CLAUSES

 

APPENDIX A List of Commenters

APPENDIX B Final Rules

APPENDIX C Network Diagram

APPENDIX D State Proxy Ceilings for the Local Loop