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SUMMARY OF SBC/AMERITECH CONDITIONS
I. PROMOTING ADVANCED SERVICES
- Separate Affiliate for Advanced Services
- SBC and Ameritech will create, prior to closing the merger, one or more separate affiliates to provide all advanced services in the combined SBC/Ameritech region.
- These separate affiliates will use the same processes as competitors and pay an equivalent price for facilities and services.
- The separate affiliates will be subject to a comprehensive annual audit.
- Surrogate Line Sharing Discount
- SBC/Ameritech will provide data CLECs the economic equivalent of "line sharing" by providing them a second loop at a 50% discount for purposes of providing advances services to consumers.
- This condition will ensure a comparable playing field between the advanced services separate affiliate and its competitors.
- Advanced Services Operations Support Systems (OSS)
- SBC/Ameritech will establish common electronic interfaces to be used by CLECs and its advanced services separate affiliate.
- Until the separate affiliate uses these enhanced interfaces to order 75% of its loops, CLECs will receive a 25% discount off of all loops used for advanced services.
- This condition will lower competitors' costs of providing advanced services.
- Access to Loop Information for Advanced Services
- The separate affiliate will use the same means as CLECs to access the same loop information made available to CLECs.
- SBC/Ameritech will provide CLECs with access to loop make-up information including actual length, gauge, presence and location of bridge taps, load coils, repeaters.
- This condition will promote the rapid deployment of advanced services by ensuring that carriers have access to the information they need to market and sell their advanced services offerings.
- Loop Conditioning Charges and Cost Studies
- SBC/Ameritech will file cost studies that comply with the Commission's UNE pricing methodology for conditioning loops.
- Pending approval of state-specific rates, SBC/Ameritech will make available to CLECs loop conditioning rates (provided they are greater than zero) contained in any effective interconnection agreement to which SBC/Ameritech is a party.
- Also in the interim, SBC/Ameritech will not impose loop conditioning charges on loops less than 12,000 feet.
- This condition will ensure that SBC/Ameritech will not erect a barrier to the competitive deployment of advanced services by charging excessive rates for loop conditioning.
- Nondiscriminatory Rollout of xDSL Services
- This condition provides that at least 10% of all rural/urban wire centers where the separate affiliate provides xDSL service will be low-income rural/urban wire centers.
- SBC/Ameritech will file a quarterly report with the Commission describing the status of its xDSL rollout.
- This condition will ensure that advanced services are available to some of the least competitive market segments and to low-income consumers.
II. OPENING LOCAL MARKETS TO COMPETITION
- Carrier-to-Carrier Performance Plan
- SBC/Ameritech will publicly file performance measurement data, reflecting 20 different categories, for each of its 13 in-region states with the Commission and relevant state commissions on a monthly basis. These data reflect how the firm responds to its rivals' and customers' requests for information and interconnection.
- SBC/Ameritech will meet its performance goals or make voluntary incentive payments to the U.S. Treasury of up to $1.125 billion dollars over three years.
- This condition will ensure that SBC/Ameritech's service to competitors will not deteriorate as a result of the merger.
- Uniform and Enhanced OSS
- SBC/Ameritech will develop and deploy, with CLEC input, uniform application-to-application interfaces, graphical user interfaces, business rules, and change management processes.
- SBC/Ameritech will make voluntary incentive payments of up to $20 million if deployment targets are not met.
- If SBC/Ameritech completes the OSS enhancements prior to its deployment target dates, its potential liability under the Carrier-to Carrier Performance Plan may be reduced by up to $125 million.
- This condition will reduce the costs of providing competing telecommunications services.
- Restructuring OSS Charges
- SBC/Ameritech will restructure OSS charges to eliminate any flat rate, up-front charge for the right to use the company's standard electronic interfaces for accessing OSS.
- This condition will assist smaller competitors and new entrants by requiring the merged firm to recover electronic OSS costs on a strict usage basis rather that through a monthly fee.
- OSS Assistance to Qualifying CLECs
- SBC/Ameritech will provide free training and OSS expert teams for CLECs whose annual revenues are under $300 million.
- This condition will assist smaller competitors by allowing them to enter new markets faster and more efficiently.
- Collocation Compliance
- Before the merger closing, an independent auditor, approved by the Chief of the Common Carrier Bureau will conduct a review to determine whether the companies have in place methods and procedures that comply with the Commission's collocation rules.
- After merger closing, an independent auditor will develop and implement a comprehensive audit of the merged company's compliance with the Commission's collocation rules.
- SBC/Ameritech will waive the nonrecurring charges for collocation projects if a collocation due date is missed by more than 60 days.
- This condition will ensure that SBC/Ameritech provides collocation in a lawful and timely manner.
- Most-Favored Nation Provisions
- SBC/Ameritech will offer telecommunications carriers within its region any new arrangement or unbundled network element (UNE) secured by SBC/Ameritech outside of its region.
- Any interconnection arrangement or UNE negotiated by SBC/Ameritech or its affiliates in one SBC/Ameritech state will be made available in all other states throughout its region.
- This condition will facilitate market entry throughout the SBC/Ameritech region by spreading best practices.
- Multi-State Interconnection and Resale Agreements
- SBC/Ameritech will offer telecommunications carriers an interconnection and/or resale agreement covering multiple SBC and/or Ameritech states.
- This condition will prevent unnecessary negotiation costs and delays from being imposed on competitors.
- - 16. Carrier-to-Carrier Promotions
- Subject to state-specific quantity limits, SBC/Ameritech will offer three promotions to telecommunications carriers serving residential customers:
- Loop Discount - 25% discount off of the lowest monthly recurring charges for unbundled local loops
- Resale Discount - 32% discount off of retail rates
- UNE-Platform - end-to-end combinations of network elements
- These conditions will encourage rapid development of local competition in residential markets.
- Offering of Unbundled Network Elements (UNEs)
- SBC/Ameritech will make UNEs available until the Commission's new UNE rules are completely final and non-appealable.
- This condition will reduce uncertainty for competitors arising from litigation over the Commission's rules.
- Alternative Dispute Resolution through Mediation
- SBC/Ameritech will offer interested telecommunications carriers a state-supervised mediation dispute resolution process for resolving interconnection agreement disputes.
- This condition will streamline and expedite the resolution of carrier-to-carrier disputes.
- Shared Transport in Ameritech States
- No later than merger-closing date, Ameritech will file tariffs to provide shared transport to telecommunications carriers.
- This condition will reduce uncertainty for competitors arising from litigation over the Commission's rules.
- Access to Cabling in Multi-Unit Properties
- SBC/Ameritech will conduct a trial in five cities that will provide telecommunications carriers access to a single point of interconnection to cable owned or controlled by SBC/Ameritech in multi-tenant residential and business properties.
- SBC/Ameritech will design and install new cabling owned or controlled by SBC/Ameritech so that it can be accessed at single point of interconnection at a minimum point of entry.
- This condition will provide additional competition in the provision of local service to multi-unit properties.
III. FOSTERING OUT-OF-REGION COMPETITION
Out-of-Territory Competitive Entry (National-Local Strategy)
- Within 30 months from the merger closing, SBC/Ameritech will enter at least 30 major markets outside of its region as a facilities-based competitive provider of local services to business and residential customers.
- SBC/Ameritech is liable for voluntary incentive payments of nearly $1.2 billion dollars if it misses the entry requirements in all 30 markets.
- This condition will ensure that residential consumers and business customers outside of SBC/Ameritech's region benefit from increased facilities-based local competition.
IV. IMPROVING RESIDENTIAL SERVICE
- Pricing of Long Distance Service
- SBC/Ameritech will not charge residential consumers a minimum monthly flat charge for long distance service.
- This condition will benefit low-income consumers and low-volume long distance callers.
- Enhanced Lifeline Plans
- SBC/Ameritech will offer a low-income Lifeline universal service plan to low-income residential subscribers in each of its states.
- This condition will ensure that benefits of the merger extend to low-income residential customers throughout SBC/Ameritech's region.
- Additional Service Quality Reporting
- SBC/Ameritech will report, on a quarterly basis, the quality of service that it provides its customers in accordance with the NARUC Technology Policy Subgroup's November 1998 "Service Quality White Paper."
- SBC will develop and file reports showing the service quality provided to interexchange carriers.
- SBC/Ameritech will continue reporting ARMIS data on an operating-company basis.
- This condition will safeguard against potential deterioration in SBC's or Ameritech's quality of service as a result of the merger and promote affirmative service quality improvements.
- Network Reliability and Interoperability Council (NRIC)
- SBC/Ameritech will continue participation in the NRIC.
- This condition will ensure that SBC/Ameritech will maintain reliable, high-quality networks and services.
V. COMPLIANCE AND ENFORCEMENT
- Internal Compliance Program
- Prior to merger close, SBC/Ameritech will appoint an internal corporate Compliance Officer who will prepare and publicly file with the Commission an annual report addressing the company's compliance with the merger conditions.
- This condition will ensure that the SBC/Ameritech has internal controls in place to maintain full and timely compliance with the conditions.
- Independent Auditor
- SBC/Ameritech will retain an independent auditor, approved by the Commission, to provide a thorough and systematic evaluation of its compliance with the conditions and determine the sufficiency of its internal controls. The auditor will issue reports that will be publicly available.
- This condition establishes an efficient and cost-effective mechanism for detecting potential noncompliance with the conditions.
- Enforcement Mechanisms
- The enforcement and compliance programs established by the conditions in no way supercede or replace the Commission's enforcement and investigative powers.
- Commission may extend or toll the conditions for a period commensurate with any noncompliance.
- Sunset
- Each of the conditions will generate a full three-year period of benefit.
- Effect of Conditions
- These conditions are intended to be a floor, not a ceiling. They do not limit the authority or jurisdiction of state commissions to impose or enforce additional requirements stemming from a state's review of the merger. Nor do they alter or preempt any other federal statutes, such as the antitrust laws.