WPC< rp鼥Lu4l?'MьA~p鼥. ?`pGmH8-BDʺ\#\<'An*AɆv!\x}V 2gP#vk!J:,W~?r+lKyp\ K`2:5;\?\`Wo.v#k$P^/|F&70üs=l/t.U|f`2yr_T`ӬgA 2f}?Uk/fCn\L\y׉b#bBҝfDdLBG]\}T WNR]vܗ!4qr> gcp\ײ5 ;B=L9@hےUKWvWGy^q!D;P)팼Oן*1Gڈnn# ʶAW6ao\8O􂝝8ϓeY9U. %L 0R 0 0z 0O 0 0ON E  0O U> K 0O 0 CQ 0zV:3R(iC ]W"`"#;&g)hW**]R,,vW1X19%2Z^55 67n7 049 B:#!$:NE;G;U>f<w <4<< m<<6X9`(CourierXPM0HeadingChapter Heading@..    2I.3  Ԁ   Ԉ tZ 4Right ParRight-Aligned Paragraph Numbers..   2I.3  Ԁ  0..R& 8BibliogrphyBibliography0.. ..LH6SubheadingSubheading   2A.3  ..    x?ot2PleadingHeader for numbered pleading paper    /(   nXXXXX?0 '*dE*??0 '*dE*?HH1HH2HH3HH4HH5HH6HH7HH8HH910111213141516171819202122232425262728  .+('2/$ /T!      /'   _@   X>XXXFederalCommunicationsCommissionH(#DA98633   ?0 ' xdEx?  ('2/$ /T!   %\  `&Times New Roman /)   _  iXX i@    1  A  ('2/$ /T!   ($     p4$  iXX iԀ  1    _  See47U.S.C.153(25).(w!2p4$ /T!   iXX iԀ  0   L p4$  iXX iԀ  2    _  _Honaker_ԀisaBellAtlanticVirginiaexchange,andOakwoodisa_GTE_ԀSouthexchange.  p4$  iXX iԀ  3    _  Section3(25)oftheActdefines_LATAs_Ԁasthoseareasestablishedpriortoenactmentofthe1996Actor  establishedormodifiedbyaBellOperatingCompany(_BOC_)aftersuchdateofenactmentandapprovedbytheCommission.  p4$  iXX iԀ  4    _  SeePublicNotice,"RequestsbyBellAtlanticVirginiaforLimitedModificationof_LATA_ԀBoundaryto  provide_ELCS_,"rel.January23,1998.  p4$  iXX iԀ  5      UnitedStatesv.WesternElectricCompany,Inc.,569F.Supp.990,995(D.D.C.1983)."Thedistanceat  whichalocalcallbecomesalongdistancetollcallhasbeen,andwillcontinuetobe,determinedexclusivelybythevariousstateregulatorybodies."Id. p4$  iXX iԀ  6      Pub.L.No.104104,110Stat.56(1996). p4$  iXX iԀ  7      Id.  p4$  iXX iԀ  8      TheConsentDecreerequiredAT&TtodivestitsownershipoftheBOCs.UnitedStatesv.American  TelephoneandTelegraphCo.,552F.Supp.131(D.D.C.1982),aff'dsubnom.Marylandv.UnitedStates,460 x U.S.1001(1983).  p4$  iXX iԀ  9      PetitionsforLimitedModificationofLATABoundariestoProvideExpandedLocalCallingService  (ELCS)atVariousLocations,MemorandumOpinionandOrder,CCDocketNo.96159,FCC97244(rel.July15, x 1997)(July1997Order)atpara.6. y p4$  iXX iԀ  10      SeeUnitedStatesv.WesternElectricCompany,Inc.,No.820192(D.D.C.Feb.6,1984);UnitedStatesv.  WesternElectricCompany,Inc.,No.820192(D.D.C.Mar.15,1984). _ p4$  iXX iԀ  11      SeeUnitedStatesv.WesternElectricCompany,Inc.,No.820192,slipop.at3n.8(D.D.C.July19,  1984)(hereinafterJuly1984Order). 9 p4$  iXX iԀ  12      See,e.g.,UnitedStatesv.WesternElectricCompany,Inc.,No.820192slipop.at2,3n.3(D.D.C.Jan.  31,1985)(hereinafterJan.1985Order);UnitedStatesv.WesternElectricCompany,Inc.,No.820192(D.D.C. x Dec.3,1993);UnitedStatesv.WesternElectricCompany,Inc.,No.820192(D.D.C.Dec.17,1993). S $  ..SeeJuly1984Order,at2n.5. V $  ..SeeJan.1985Order,at23&n.3.  /!     Ӏ    ..SeeJuly1984Order;Jan.1985Order;UnitedStatesv.WesternElectricCompany,Inc.,No.820192,slipop.at2(D.D.C.May18,1993)(hereinafterMay1993Order).TheDistrictCourtgrantedwaiversformorethanahundredflatrated,nonoptionalELCSplansthatallowtheprovisionoftraditionallocaltelephoneservicebetweennearbyexchanges.See,e.g.,WesternElectric,569F.Supp.at1002  n.54;July1984Order;Jan.1985Order.Undersuchplans,subscriberspaynoextrachargeforcallsbeyondtheirestablishedmonthlyservicecharge(theplaninvolvesaflatratedcharge),andallsubscribersintheexchangeareincludedintheplan(theplanisnonoptional).Id. 1 $  ..Section601(a)(1)ofthe1996Actstatesthat"[a]nyconductoractivitythatwas,beforethedateofenactmentofthisAct,subjecttoanyrestrictionorobligationimposedbytheAT&TConsentDecreeshall,onandaftersuchdate,besubjecttotherestrictionsandobligationsimposedbytheCommunicationsActof1934asamendedbythisActandshallnotbesubjecttotherestrictionsandobligationsimposedbysuchConsentDecree."OnApril11,1996,theD.C.DistrictCourtissuedanorderterminatingtheAT&TConsentDecreeanddismissingallpendingmotionsundertheConsentDecreeasmoot,effectiveFebruary8,1996.SeeUnitedStatesv.WesternElectricCompany,Inc.,No.820192,1996WL255904(D.D.C.Apr.11,1996). 󀀀 ] $  ..See47U.S.C.153(25)(B). ^ $  ..July1997Order,citedsupra,n.9.  $  ..IfanexchangewereassignedtoanotherLATAforallpurposes,anyexistinglocalcallingroutesbetweenthatexchangeandtheoriginalLATAwouldbelostbecausesuchtrafficwouldnowbeinterLATAandcouldnolongerbecarriedbytheBOC.Instead,thetrafficwouldgenerallybecarriedbyaninterexchangecarriercharginglongdistancerates. S $  ..July1997Orderatparas.1617.  $  ..Id.atpara.24.TheCommissionalsodelegatedauthoritytoactonpetitionstomodifyLATAboundariestotheCommonCarrierBureau.Id.atpara23.OnAugust6,1997,theCommissionreleasedadecisiongrantingrequeststomodifyLATAboundariestopermitthreeindependenttelephonecompany(ITC)exchangesinTexastochangeLATAassociationforpurposesofimprovingservicetosubscribers.TheCommissionstatedthatacarrierwillbedeemedtohavemadeaprimafaciecasesupportinggrantofaproposedassociationchangeifthepetition:(1)statesthattheassociationchangeisnecessarybecauseofplannedupgradestotheITC'snetworkorservicethatwillrequireroutingtrafficthroughadifferentBOCLATA;(2)involvesalimitednumberofaccesslines;and(3)includesastatementfromtheaffectedBOC(s)requestingaLATAmodification,pursuanttosection3(25)oftheAct,topermitthechangeinassociation.PetitionsforLATAAssociationChangesbyIndependentTelephoneCompanies,MemorandumOpinionandOrder,CCDocketNo.96158,FCC97258(rel.Aug.6,1997)(August1997Order). l $  ..Honakerhas3,289accesslines;Oakwoodhas1,816accesslines. N $  ..July1997Orderatpara.8. / $  ..See,e.g.,UnitedStatesv.WesternElectricCompany,Inc.,No.820192(D.D.C.March25,1993);UnitedStatesv.WesternElectricCompany,Inc.,No.820192(D.D.C.July31,1991);UnitedStatesv.WesternElectricCompany,Inc.,No.820192(D.D.C.July8,1991);UnitedStatesv.WesternElectricCompany,Inc.,No.820192(D.D.C.Nov.17,1994).BellAtlantichasstatedthatatthetimeofthegrantingoftheaboveDistrictCourtdecisions,BAofferedflatrate,measuredrate,messagerate,economymeasuredrate,economymessagerate,andresidentialexchangeservicesineachoftheexchangesforwhichaLATAmodificationwassought.SeeletterfromJosephJ.Mulieri,BellAtlantic,toAllen[sic]Thomas,FCC(Dec.5,1997). P $  ..See47U.S.C.271(b)(1). $  ..TheBOCmayprovideELCSservicewithoutmeetingthesection271requirements,see47U.S.C.271(a),andaseparateaffiliateisnotrequired.See47U.S.C.272(a)(2)(B).  $  ..TheBOCmaynotprovideothertypesofservice(suchasoptionalmeasuredrateortollservice)betweenthespecifiedexchangeswithoutmeetingthesection271requirements.See47U.S.C.271(a).3|n<6X9`(CourierXx6X@`7X@%\  `&Times New RomanXXj\  P6G;XP%\  `&Times New RomanX\  P6G;P( T$   dHP LaserJet IIISi,,,,,,0   /'   _@  4X>XXXFederalCommunicationsCommissionH(#DA98633   ?0 ' xdEx?  %\  `&Times New Roman3~$rtyBar<U /T!   _X 3    iXX iBeforethe '   @FederalCommunicationsCommission@#Washington,D.C.20554 X>X Ԉ  X  (#(#Q(#    `     h     )IntheMatterof    h     ) /    `     h     )BellAtlanticVirginia,Inc.   h     )   PetitionforLimitedModificationof_LATA_Ԁ  )   p    BoundarytoProvideExpandedLocal    ) p   FileNo._NSD_ԄL9804   CallingService(_ELCS_)   h     ) p    l       `     h         MEMORANDUMOPINIONANDORDER  {    pX Adopted: April3,1998 p  +   Released: April3,1998  o[X` hp x (#%'0*,.8135@8:<H?AhoBytheChief,NetworkServicesDivision:    `     h I.  INTRODUCTION p    `      1. ` OnJanuary17,1998,BellAtlanticVirginia,Inc.(BA),pursuanttoSection3(25)of  H theCommunicationsActof1934,asamended,   1      ׀filedapetitiontoprovidetwoway,nonoptional !4 expandedlocalcallingservice(_ELCS_)betweenthe_Honaker_ԀandOakwoodexchangesinVirginia._X   2      _Ԁ "  BA'spetitionrequestsalimitedmodificationoflocalaccesstransportarea(_LATA_)boundary._   3      _ԀThe k#  petitionwasplacedonpublicnotice,_   4      _Ԁandnocommentsorreplycommentswerefiled.Forthe W$  reasonsstatedbelow,wegrantBA'srequest.  /&" _    `     h II.  BACKGROUND 7  @.   2. ` RequestsfornewELCSroutesaregenerallyinitiatedbylocalsubscribers.IntraLATA   ELCSroutescanbeorderedbythestatecommission.   5      ׀ForinterLATAroutes,priortothe   TelecommunicationsActof1996(1996Act),   6      ׀theBellOperatingCompanies(BOCs)wererequired   tosecurestateapprovalandthenobtainawaiverfromtheUnitedStatesDistrictCourtforthe  t DistrictofColumbia(DistrictCourt).x   7      ׀IntheyearsbetweentheConsentDecree   8      ׀andthe1996Act, ` theDistrictCourtreceivedmorethanahundredrequestsforConsentDecreewaiverstopermitnewinterLATAELCSroutes.(    9      ׀Becauseofthelargenumberofrequestsinvolvedandbecausemostof 8  therequestswerenoncontroversial,theDistrictCourtdevelopedastreamlinedprocessforhandlingsuchrequests.H    10       o    3. ` UnderthestreamlinedprocessdevelopedbytheDistrictCourt,theBOCsubmitted G  itswaiverrequesttotheDepartmentofJustice(Department).TheDepartmentreviewedtherequestandthensubmittedtherequest,alongwiththeDepartment'srecommendation,totheDistrictCourt.InevaluatingELCSrequests,theDepartmentandtheDistrictCourtconsideredthenumberof   customersoraccesslinesinvolved   11      ׀aswellaswhetherasufficientlystrongcommunityofinterest  betweentheexchangesjustifiedgrantingawaiveroftheConsentDecree.   12      ׀Acommunityofinterest  couldbedemonstratedbysuchevidenceas:(1)pollresultsshowingthatcustomersintheaffectedexchangewerewillingtopayhigherratestobeincludedinanexpandedlocalcallingarea;    ׀(2)usagedatademonstratingahighlevelofcallingbetweentheexchanges;and(3)narrativestatementsdescribinghowthetwoexchangeswerepartofonecommunityandhowthelackoflocalcallingbetweentheexchangescausedproblemsforcommunityresidents.    ׀Inaddition,theDepartmentandtheDistrictCourtgavedeferencetothestate'scommunityofinterestfinding.TheDistrictCourtalsoconsideredthecompetitiveeffectsofgrantingaproposedELCSwaiver.    ̀󀀀       ..4.` ..` MatterspreviouslysubjecttotheConsentDecreearenowgovernedbytheAct. !   ׀Undersection3(25)(B)oftheAct,BOCsmaymodifyLATAboundaries,ifsuchmodificationsareapprovedbytheCommission. "   ׀OnJuly15,1997,theCommissionreleasedadecisiongranting23requestsforlimitedboundarymodificationtopermitELCS. #   ׀AlthoughcallsbetweentheELCSexchangeswouldnowbetreatedasintraLATA,eachELCSexchangewouldremainassignedtothesameLATAforpurposesofclassifyingallothercalls. $   ׀TheCommissionstatedthatitwouldgrantrequestsforsuchlimitedmodificationsonlywhereapetitioningBOCshowedthattheELCSwasaflatrated,nonoptionalservice,asignificantcommunityofinterestexistedamongtheaffectedexchanges,andgrantoftherequestedwaiverwouldnothaveanyanticompetitiveeffects. %   ׀TheCommissionstatedfurtherthatacarrierwouldbedeemedtohavemadeaprimafaciecasesupportinggrantoftheproposedmodificationiftheELCSpetition:(1)hasbeenapprovedbythestatecommission;(2)proposesonlytraditionallocalservice(i.e.,flatrated,nonoptionalELCS);(3)indicatesthatthestatecommissionfoundasufficientcommunityofinteresttowarrantsuchservice;(4)documentsthiscommunityofinterestthroughsuchevidenceaspollresults,usagedata,anddescriptionsofthecommunitiesinvolved;and(5)involvesalimitednumberofcustomersoraccesslines. &   ׀ ..` ..`  .. ..h..hIII.DISCUSSION ..5.` ..` Thepetitionproposestoestablishtwoway,nonoptionalELCS,andisaccompaniedby:(1)astatementthatonlytraditionallocalserviceisproposed;(2)anorderissuedbytheVirginiaStateCorporationCommissionapprovingELCSbetweenthespecifiedexchanges;(3)resultsfromsubscriberpollsdocumentingacommunityofinterest;(4)astatementofthenumberofaccesslinesinvolved; '   ׀and(5)therateincreasesthatwillresult.Thepetitionprovidesusagedataintheformofanaveragenumberofcallsperaccesslinepermonthbetweentherespectiveexchanges,butnotthepercentageofsubscribersmakingsuchcalls.ThebriefdescriptionsofthecommunityinterestrevealthatmanyHonakerresidentsworkincoalrelatedindustriesinOakwood,andthatmakinginterLATAtollcallsforsuchservicesgeneratessignificantexpensesforresidents...6.` ..` ThepetitionalsoshowsthatBApresentlyoffersseveralclassesofservicemeasuredrate,messagerate,economy,andexchangerateinadditiontoflatratedservice.WenotethatintheJuly1997Order,theCommissionstatedthattheDistrictCourtrefusedtograntwaiverswhereoptionalormeasuredrateELCSrequestswereconsidered. (   ׀Thisrefusal,however,wasbasedupontheDistrictCourt'soppositiontoELCSrequeststhatwouldintroducemeasuredrateoroptionalplansintotheexpandedlocalcallingareaascontrastedwithELCSrequeststhatentailedexistinglevelsofserviceotherthanflatrated.WebelievethatthisdistinctionisborneoutbytheDistrictCourt'sapprovalofseveralELCSrequestsinvolvingexchangesinVirginiawheremeasuredrate,messagerate,economy,andexchangerateserviceswerepartoftheexistingserviceofferings. )   ..7.` ..` AswenotedintheJuly1997Order,grantinganELCSpetitionremovestheproposedroutefromthecompetitiveinterexchangemarket,andsomeLATAmodificationscouldreducetheBOCs'incentivetoopentheirownmarketstocompetitionpursuanttosection271oftheAct. *   ׀Given,however,thesmallnumberofaccesslinesandthesmallvolumeoftrafficinvolvedfortheproposedELCSareainthispetition,aswellasthetypesofservicetobeoffered(e.g.,flatrated,nonoptionallocalservice),itishighlyunlikelythatprovisionofELCSservicewouldreduceBA'smotivationtoopenitsownmarkettocompetition.Duetothelimitedamountoftrafficandthetypeofserviceinvolved,theDivisionfindsthattheproposedLATAmodificationswillnothaveasignificantanticompetitiveeffectontheinterexchangemarketoronBA'sincentivetoopenitsownmarkettocompetition... @.. VI.CONCLUSION ..8.` ..` Weconcludethat,inthisrequest,thecommunity'sneedfortheproposedELCSrouteoutweighstheriskofpotentialanticompetitiveeffects.GrantingBA'spetitionservesthepublicinterestbypermittingaminorLATAmodificationwheresuchmodificationisnecessarytomeettheneedsoflocalsubscribersandwillnothaveanysignificanteffectoncompetition.Accordingly,weapproveBA'spetitionforlimitedLATAmodificationinordertoprovidenonoptionalELCS.TheLATAismodifiedsolelyforthelimitedpurposeofallowingBAtoprovidenonoptionallocalcallingservicebetweenthespecificexchangesorgeographicareasidentifiedintherequests.TheLATAisnotmodifiedtopermittheBOCtoofferanyothertypeofservice,includingcallsthatoriginateorterminateoutsidethespecifiedareas.Thus,nonoptionalELCSbetweenthespecifiedexchangeswillbetreatedasintraLATA,andtheprovisionsoftheActgoverningintraLATAservicewillapply. +   ׀OthertypesofservicebetweenthespecifiedexchangeswillremaininterLATA,andtheprovisionsoftheActgoverninginterLATAservicewillapply. ,   @..d VII.ORDERINGCLAUSES ..9.` ..` Accordingly,ITISORDERED,pursuanttosections3(25)and4(i)oftheCommunicationsActof1934,asamended,47U.S.C.153(25),154(i),and47C.F.R.0.91and0.291oftheCommission'srules,thattherequestofBellAtlanticVirginia,Inc.forLATAmodificationforthelimitedpurposeofprovidingnonoptionalELCSatspecificlocations,identifiedinFileNo.NSDL9804ISAPPROVED.ThisLATAboundaryismodifiedsolelyforthepurposeofprovidingnonoptionalELCSbetweenpointsinthespecificexchangesorgeographicareasindicatedintherequest.TheLATAboundaryforallotherservicesshallremainunchanged...10.` ..` ITISFURTHERORDEREDthatpursuanttosection416(a)oftheAct,47U.S.C.416(a),theSecretarySHALLSERVEacopyofthisorderuponthepetitioner,BellAtlanticVirginia,Inc...` ..`  .. ..h..hFEDERALCOMMUNICATIONSCOMMISSION..` ..`  .. ..h..hGeraldineA.Matise..` ..`  .. ..h..hChief,NetworkServicesDivision..` ..`  .. ..h..hCommonCarrierBureau