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Iowa Utilities v. FCC, 120 F.3d at 794. Section 251(d)(1) instructs the Commission that "[w]ithin 6 months of the date of enactment" it "shall complete all action necessary to establish regulations to implement the requirements of this section [251]". 47 USC section 251(d)(1). It has been more than more than two years since the Telecommunications Act of 1996 passed. It is questionable whether we have the authority to proceed with this Rulemaking under Section 251 at this time. xMoreover, even if the Commission had acted within the Statutory time framework of Section 251, it is questionable whether the specific details of this NPRM, national measures, standards, terms, and conditions set by a federal commission, are necessary or consistent with the combined language of Sections 251 and 252. Reading between the lines, I might easily argue that the Commission has the authority to construct national rules for OSS; but other reasonable people might reasonably observe that the phrase "operations support system" is not found in the Act, much less any reference to Commission authority to impose national rules. x Finally, sections 251 and 252 frequently refer to one another. Section 252 establishes a framework for private negotiations with State mediation and arbitration available. Presumably, there is a direct means for States, through the arbitration process, to impose OSS measures, rules, and standards as they see fit. Consequently, OSS may not be an issue in search of statutory jurisdiction.  X- Even If the FCC Has Jurisdiction, this NPRM Is Excessively Regulatory xEven if the FCC had jurisdiction to make national rules for OSS, the approach taken in this NPRM hardly seems deregulatory. There are a total of 30 measures proposed, page upon regulatory page of measures. Is each one of these truly necessary? Do these endless pages of measures add glory or insult to the deregulatory structure of the Telecommunications Act of 1996? Surely the proposed list is a broadranging shopping list of possible ideas rather than a central core of measures. xEven if the list of measures were small and concise, their mere compilation begs the question: for what purpose will they be used? There are but two possible answers: " 4,>(>(II!" standardsetting regulation and litigation. It is not clear which of the two answers would harm competition more, but it is clear that each will have corrosive effect. xUnder the public interest standard, regulations should be economically efficient that is, the ultimate benefits of any Commission regulation should exceed its costs. These costs include the burdens associated with the requisite gathering and maintaining of accurate information, and any accompanying reporting requirements. In almost all circumstances, truly efficient regulation relies on relatively few and very simple measures. I am concerned by both the sheer number and the level of detail contained in the proposed performance measures. xThis NPRM is tedious with detail. Is it really necessary to measure more than nine aspects of average response time for the preordering phase alone? Do we really need to know the average reject notice interval, the average FOC notice interval, the average  Y -jeopardy notice interval, the percentage of orders in jeopardy, and the average completion notice interval for resale residential POTS, resale business POTS, resale specials, unbundled loops (with and without number portability), unbundled switching, unbundled local transport,  Y{-combination of UNEs and interconnection trunks? And all this later information only satisfies one subcategory of the Ordering and Provisioning category. I fear that the proposed 12 page list of measurements and reporting requirements is too costly and far too long to be useful for efficient regulation. xI support the item's request that parties identify the difficulties in obtaining and collecting the information for a particular measurement, and whether such difficulties outweigh the benefits of reporting this information. I would go further, however, and encourage parties to comment on the sheer number of measurements, the extent to which these measures are redundant, and the level of detail proposed. In addition, I specifically ask that parties include the express costs associated with providing each portion of this information. I also encourage all parties to focus their comments on which measures would be most helpful if no more than a few were ultimately adopted in a Commission white paper. Such a focus might be particularly important in light of the fact that, under Section 251, these measures and reporting requirements would apply to all local exchange carriers both large and small. xWhat does the majority indicate about the necessity of these detailed rules? That they are necessary to replicate market forces: "In a competitive environment market forces will tend to ensure that wholesalers provide quality service to their buyers. Here, where competition is largely absent, performance measures and reporting requirements may increase incumbent LECs' incentive to comply with their statutory obligations." NPRM at 9. But any form of regulation no matter how detailed is an imperfect surrogate for full-fledged competition. "U%,>(>(IIp&"Ԍ X-  $K  $K Even if NPRM Were not Excessively Regulatory, Threat of Litigation Will Stifle Competition  Y-  Y-xGiven t $K  $K he questions regarding our authority to regulate in this area raised by the Iowa  Y-Utilities v. FCC decision, I believe the Commission will face significant legal and political opposition as we attempt to define and possibly to establish national OSS standards before the courts have resolved these jurisdictional questions. xThe prospect of legal challenges alone would not be sufficient to dissuade me from a position that otherwise has merit, but the legal challenges in this particular instance will have a debilitating effect on the removal of barriers to entry in telecommunications markets. No one should be so naive as to believe that the national measures proposed in this NPRM will not be the subject of intense litigation. I cannot predict the outcome of that litigation, but I can and do fear the shadow that that litigation will cast over efforts of new entrants to enter telecommunications markets. xThere are tens of thousands of local exchanges in the United States. For each of these local exchanges, each measure proposed today provides the basis for litigation for each interconnection agreement over any arbitrary period of review. The number of combinations is literally uncountable.  Y!-xThe measures proposed today provide endless fields for future litigation. Any  Y -economist or statistician in the world can approach a telecommunications carrier and its eager lawyers and propose to find a deficiency in the OSS measures (interpreted as standards) of a  Y-carrier to which it is interconnected. The likelihood of finding such a deficiency is practically 100 percent. In the unlikely event that all measures are satisfactory today, one only needs to wait until tomorrow or next week or the week after to find a deficiency. xI count among my friends many economists, statisticians, and lawyers. Each has enormous opportunities for employment today without the FCC substantially expanding those prospects through this NPRM. xMake no mistake: both the threat and the reality of litigation will stifle entry into all telecommunications markets. Intense and longlasting litigation will surround this rulemaking. That litigation will cast a shadow over all past interconnection agreements, over interconnection agreements made between now and any final court resolution of the  Y -Commission's rulemaking, and over all Section 271 applications in the same time period. S YA#<ԍ #Xw PE37|XP#Although the Commission bases its authority to issue OSS performance measures on section 251 not section 271 of the Act, the adoption of such measures inevitably will affect proceedings under section 271 and, in my view, would be inconsistent with the  Y%-statute's limitation on the Commission's authority to expand the checklist. See 47 U.S.C.  271(d)(4). " ,>(>(II!" Even the threat of such litigation could cause potential entrants in many markets to pause and wonder whether the increased uncertainty created by such potential litigation raises the cost of entry too much. xMoreover, agreementspecific litigation will surround each and every interconnection agreement that fall outside of the specific measures proposed in this NPRM; similar litigation will cloud those interconnection agreements that follow the proposed measures but which inevitably have specific measures that are deemed unsatisfactory. xAll of these prospects may be good for economists, statisticians, and lawyers, but are they good for businesses and consumers? xIn the end, under this NPRM, it will be courts rather than consumers or even regulators who will be the final arbiters of who may enter and survive in a telecommunications market, and who may not. I have complete confidence in the courts, but they should not be burdened with making daytoday decisions about matters that the market through competition and contracts can handle flawlessly and costlessly.  Xb- An Informal Paper Would Be Preferable to an NPRM xTo the extent that the Commission ultimately adopts a white paper that outlines purely voluntary standards, some but not all of my concerns would be allayed. While still too regulatory in approach, at least no State would be compelled to adopt all of the national performance measures and reporting requirements outlined here. Thus, to the extent that they were voluntary, states could follow as much or as little of these regulations as they see fit. Nor would the Commission be bound by these proposed measures or reporting requirements. Presumably, the risk of litigation with a white paper would be substantially reduced. xBut if the goal of this proceeding is merely the adoption of model guidelines that States may choose to follow as they wish, then why has the Commission proceeded with an NPRM as opposed to a Notice of Inquiry? Because the Commission may use the experience and record in this proceeding to "adopt nationally, legally binding rules in this area." NPRM, at 13. xMeasures that are mere suggestions, although not binding, might be helpful particularly to some states that have not initiated their own proceeding. These guidelines may also be helpful to both the CLECs and the ILECs as common measures to use in the negotiation and arbitration process. To the extent that we can provide such suggestions and guidance, I am supportive. As recent events regarding the free airtime issue demonstrate, however, the legal distinction between an NPRM and an NOI is meaningful both politically and legally. Indeed, the benefit of proceeding with an NOI, instead of an NPRM, would be that the Commission could not adopt binding performance measures and reporting requirements as a result of that process. I remain concerned, however, that in initiating this"#',>(>(IIP(" NPRM we have expressly reserved the possibility of implementing national regulations; an action that may lead to further protracted legal challenges that will only overshadow subsequent Commission decisions.  X- Conclusion xFor all of the above reasons, I cannot support this NPRM. I share my colleagues' commitment to competition and to the Act. I believe the Act has robust language that can accommodate a wide range of unforeseen circumstances without requiring the Commission to rush in to pass new rules at every moment. This NPRM is too regulatory. It is not necessary. It will lead to endless litigation. It will not help consumers. For OSS, I believe that we should let the Act, the States, and private parties resolve the issues without having the Commission leap in with a regulatory rulemaking. #Xw PE37|XP#