WPC, 2BJZ Courier3|jx6X@`7X@HP LaserJet 5Si rm 528 lpt 2HPLAS5S0.PRSx  @\$nX@26 ZF)K3|jHP LaserJet 5Si rm 528 lpt 2HPLAS5S0.PRSx  @\$nX@   X Њ"i~'^:DpddȨDDDdp4D48ddddddddddDDpppd|Ld|pȐD8DtdDdpXpXDdp8Dp8pdppXLDpdddXP,PhD4htDDD4DDDDDDdDp8dddddȐXXXXXJ8J8J8J8pddddppppddpddddzpdddXXhXXXXXdddhdptL8LpLDLpphhp8ZDP8pppddƐXXXpLpLpLphfDtppppppȐhXXXpDppLDd4ddC6CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxHjdDdddddd/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN/>/>/>/x]SSSSx]x]x]x2* X-nX X- 8x#XU4  pQ=&X# Federal Communications Commission DA 99512 Tyxdddyn#Xj\  P6G;xXP# 0Before the w Federal Communications Commission  X-Washington, D.C. ă x` `  hh@hpp  xx  Xv-In the Matter of hh@) x` `  hh@)  XH-Bell Atlantic Telephone Companieshh @)hppCCB/CPD 9827  X1-Establishment of New Rate Elements@)  X -to Offer Enterprise SONET Servicehh@) x` `   X - x X -^  MEMORANDUM OPINION AND ORDER TP  X-x` ` Adopted: March 16, 1999 pp Released: March 17, 1999 By the Deputy Chief, Common Carrier Bureau:  I. A. 1. a.(1)(a) i) a) 1. 1. 1. a.(1)(a) i) a)x  X- ` x1. ` ` On April 2, 1998, Bell Atlantic Telephone Companies0 O<ԍ #X\  P6G;vP#The Bell Atlantic telephone companies are Bell AtlanticDelaware, Inc.; Bell AtlanticMaryland, Inc.; Bell AtlanticNew Jersey, Inc.; Bell AtlanticPennsylvania, Inc.; Bell AtlanticVirginia, Inc.; Bell AtlanticWashington, D.C., Inc.; Bell AtlanticWest Virginia, Inc.; New York Telephone Company; and New England Telephone and Telegraph Company. (Bell Atlantic) filed a  X- xpetition pursuant to section 69.4(g)(1)(i) of the Commission's Rules, 47 C.F.R.  69.4(g)(1)(i), Mw<ԍ #X\  P6G;vP#See also Access Charge Reform, Notice of Proposed Rulemaking, Third Report and Order, and Notice  {OM-of Inquiry, 11 FCC Rcd 21354, 21490 (1996).  xto permit them to establish three new rate elements to establish switched access versions of Bell  xAtlantic's existing special access services: Enterprise SONET Service (ESS) and Intellilight Customer Assurance Network service (ICAN).  X- ` $x2. ` ` SONET uses a fiber ring network configuration to provide redundant, reliable,  x<highspeed transmission services. ESS provides SONETbased transport of DS1 and DS3 special  xaccess services from the end user's serving wire center to the customer's Network Access Point  x=in the same Local Access Transport Area (LATA). Bell Atlantic proposes to establish an ESS  xRing Transport Channel rate element for its switched access ESS service. ICAN provides  xSONETbased transport of DS1, DS3, OC3 and OC3c special access services from the end user's  x premises to the customer's point of presence in the same LATA. Bell Atlantic proposes to  xestablish an ICAN PointofPresence (POP) Entrance Ring and an ICAN Transport Channel rate  xelement for its switched access ICAN service. Bell Atlantic states that the highcapacity  xxasynchronous services that are currently available do not provide the survivability of SONET and" (,**"  X- xcannot be connected seamlessly with ESS and ICAN special access networks.lT Oy<ԍ#X\  P6G;vP# Bell Atlantic Petition at 2.l Bell Atlantic  xfurther states that the new rate elements will be offered at the same rates as the comparable rate  X-elements are offered in the ESS and ICAN special access tariffs.YhT O<ԍ #X\  P6G;vP#Id.Y x  X- ` ~x3. ` ` Bell Atlantic contends that its petition is in the public interest for the following  xreasons. First, Bell Atlantic has received customer requests that its special access rate structure  Xv- xbe made available for a switched access version of these services.YvT O/ <ԍ #X\  P6G;vP#Id.Y Second, Bell Atlantic states  x[that these new services will give customers additional competitive choices with no harm to the  XH- xcompetitive market._HT O<ԍ #X\  P6G;vP#Id. at 4._ Third, Bell Atlantic states that its switched access ESS and ICAN services  xzwill enable Bell Atlantic to compete with other providers that already offer both SONET and  X - xasynchronous transport of switched access services.Z HT O<ԍ #X\  P6G;vP#Id. Z Fourth, Bell Atlantic states that its petition  X - x.is consistent with the Communications Act of 1934, as amended, and the Commission's policy  X - xto introduce new technologies and services to the public and to promote competition.f T O<ԍ #X\  P6G;vP#Id. at 3. f On April  xl6, 1998, the Commission released a Public Notice requesting comments on Bell Atlantic's  X -Petition.  T O<ԍ #X\  P6G;vP#See Public Notice, Bell Atlantic Establishment of New Rate Elements to Offer Enterprise SONET service, DA 98653 (rel. April 6, 1998). No comments were filed.  X - x  X- ` ~x4. ` ` Under section 69.4(g) of the Commission's rules, local exchange carriers (LECs)  xL"may establish one or more switched access rate elements for a new service . . . upon approval  xMof a petition demonstrating that . . . the new rate element or elements would be in the public  XM- xinterest.m M T O<ԍ #X\  P6G;vP#47 C.F.R.  69.4(g)(1)(i).m A new service is any service which adds to the range of options already available to  X6- xcustomers. 6T Ow"<ԍ #X\  P6G;vP#Policy and Rules Concerning Rates for Dominant Carriers, CC Docket No. 87313, 5 FCC Rcd  {OO#-6786, 6824 (1990) (LEC Price Cap Order). A new service may, but need not, include a new technology or functional  X- x.capability.Y T O%<ԍ #X\  P6G;vP#Id.Y Prior to the adoption of section 69.4(g), the Commission required carriers seeking  xMto obtain new switched access rate elements to demonstrate good cause, under the general" ,))))"  X- xstandard for waiver of the Commission's rules.N 6T Oy<ԍ #X\  P6G;vP#47 U.S.C. C.F.R.  1.3. See, e.g., Petitions for Waiver of Part 69 of the Commission's Rules to  {OQ-Establish Switched Access Rate Elements for SONETBased Service, 11 FCC Rcd 21010 (1996) (SONET Waiver  {O-Order), and U S West Communications, Inc. Petition for Waiver of Part 69 of the Commission's rules to Provide  {O-Additional SONETBased Switched Access Services, 13 FCC Rcd 3129 (1998) (U S West SONET Waiver Order).N As interpreted by the courts, this required that  xZa petitioner demonstrate that "special circumstances warrant a deviation from the general rule and  X- xthat such a deviation will serve the public interest."T OI<ԍ #X\  P6G;vP#Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164 (D.C. Cir. 1990); Wait Radio v. FCC, 418 F.2d 1153, 1158 (D.C. Cir. 1969), cert. denied, 409 U.S. 1027 (1972). The Common Carrier Bureau (Bureau) has  xpreviously granted Part 69 waivers to enable carriers to establish new rate elements "that are  xtailored precisely to their respective services" stating that "the creation of new rate elements  x[would advance the goals of the Commission's access charge regime by enabling the carriers to  xbetter match relevant costs and rate elements," thus allowing recovery of costs from the customers  X_- xusing those services.8_.T O><ԍ #X\  P6G;vP#See, e.g., Bell Atlantic Telephone Companies and Southwestern Bell Telephone Company, Petitions  {O-for Waiver of Section 69.4(b) of the Commission's Rules, 9 FCC Rcd 7868, 7870 (para. 16) (Com. Car. Bur.  {O-1994). (Call Completion Services Waiver Order); see also Petitions for Waiver of Part 69 of the Commission's  {O-Rules to Establish Switched Access Rate Elements for SONET Based Service, 11 FCC Rcd 21010, 21020 (para.  {Ot-25) (Com. Car. Bur. 1996) and US West Communications, Inc., Petitions for Waiver of Section 69.4(b) of the  {O>-Commission's Rules, 12 FCC Rcd 17539, 17540 (para. 4) (Com. Car. Bur. 1997). 8 Indeed, the Bureau has granted Part 69 waivers allowing certain carriers,  xincluding Bell Atlantic, to establish new rate elements to recover the costs of their SONETbased  X1- xswitched transport services.1 T O<ԍ #X\  P6G;vP#See SONET Waiver Order, 11 FCC Rcd 21010 (1996). ę Based on detailed descriptions of SONET technology, the Bureau  xzhas found that the existing transport rules do not reflect the manner in which SONETbased  xiswitched transport costs are incurred and that precluding LECs from recovering costs in a manner  xthat reflects the way those costs are incurred may result in one group of transport customers  X - xpaying costs incurred to serve other transport customers.Y `T O<ԍ #X\  P6G;vP#Id.Y Accordingly, the Bureau has  xconcluded, in several cases, that special circumstances existed and that it would serve the public  X - xinterest to grant a waiver to create new SONETbased transport rate elements.Y T OX<ԍ #X\  P6G;vP#Id.Y The Bureau has  X-also granted similar public interest petitions under section 69.4 (g)."T O!<ԍ #X\  P6G;vP#See, e.g., BellSouth Telecommunications, Inc. Part 69.4(g)(1) Public Interest Petition to Establish New Rate Elements for Switched Access Versions of BellSouth's SMARTGate Service and BellSouth SPA  {O#-Managed Shared Network, DA 982271 (Com. Car. Bur., released November 8, 1998) and GTE Telephone Operating Companies and GTE System Telephone Companies Part 69.4(g)(1) Public Interest Petition to Provide Additional SONETBased Switched Access Services or, In the Alternative, Petition for Expedited Waiver of Part  {O%-69 of the Commission's Rules to Provide Additional SONETBased Switched Access Services, DA 99328 (Com. Car. Bur., released February 17, 1999). " x"y,))))"Ԍx  X- ` nx5.` ` For the same reasons, we conclude that it would be in the public interest to permit  xBell Atlantic to establish rate elements for its switched access ESS and ICAN. Based on our  xreview of Bell Atlantic's petition, we find that Bell Atlantic's proposed switched access versions  x=of its ESS and ICAN constitute new services pursuant to section 61.42(g) of the Commission's  x-rules. Bell Atlantic's proposed services add to the range of options already available to switched  xaccess customers. Our existing Part 69 transport rate elements do not include rate elements that  x reflect the costs of Bell Atlantic's SONETbased transport service. Granting Bell Atlantic's  x>petition to establish the ESS Ring Transport Channel, ICAN POP Entrance Ring, and ICAN  xLTransport Channel rate elements will allow Bell Atlantic to respond to its competitors' SONET x[based offerings, its customers' requests to route switched access services over ESS and ICAN  xfacilities, and provide more efficient and reliable service. Allowing Bell Atlantic to use a rate  xstructure that more accurately reflects the way in which the costs of providing these services are  xincurred, will result in more efficient use of Bell Atlantic's existing network resources and the  xintroduction of new services to customers. Accordingly, we grant Bell Atlantic's petition to  xestablish its ESS Ring Transport Channel, ICAN POP Entrance Ring, and ICAN Transport Channel switched access rate elements for its SONETbased transport services. x Xb- `  x6.` ` Accordingly, IT IS ORDERED, pursuant to section 69.4(g)(1)(i) of the Commission's rules, 47 C.F.R.  69.4(g)(1)(i), the petition filed by Bell Atlantic IS GRANTED. x x` `  hhFEDERAL COMMUNICATIONS COMMISSION x x` `  hhYog R. Varma x` `  hhDeputy Chief  X7-x` `  hhCommon Carrier Bureau