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                           Before the
                Federal Communications Commission
                     Washington, D.C. 20554

In the Matter of                 )
                                )    File No. EB-00-IH-0113
                                )    Acct. No. X32080012
GTE Service Corporation          )

                         CONSENT DECREE


      1.  The Federal Communications  Commission (the ``FCC''  or 
the ``Commission'') and GTE  Service Corporation (``GTE'' or  the 
``Company'') hereby  enter  into  this  Consent  Decree  for  the 
purpose of terminating  an informal  investigation by  Commission 
staff  into  whether  GTE  violated  section  251(c)(6)  of   the 
Communications Act of 1934, as amended, and section 51.323(k)  of 
the Commission's rules.  The investigation focused on whether GTE 
had failed to offer cageless collocation arrangements as part  of 
its physical collocation offering during the period June 1,  1999 
through August 1, 1999.


      2.  Section 251 of the  Communications Act imposes on  GTE, 
as  an  incumbent  local  exchange  carrier  (``ILEC''),  several 
obligations designed to  promote competition  in local  telephone 
markets.   Among  these  obligations  is  the  duty,  in  Section 
251(c)(6), to provide, ``on rates, terms, and conditions that are 
just, reasonable, and nondiscriminatory, for physical collocation 
of equipment necessary for interconnection or access to unbundled 
network elements.''1   The  Commission  first  adopted  rules  to 
implement Section 251(c)(6) in the Local Competition Order issued 
on  August  8,  1996.2   On   March  31,  1999,  the   Commission 
strengthened these  collocation rules  in the  Advanced  Services 
First Report and Order.3

      3.  The Advanced  Services Order  required ILECs  to  offer 
three alternative physical collocation arrangements, in  addition 
to the arrangements  described in the  Local Competition  Order.4  
These  alternative  arrangements  include,  among  other  things, 
cageless  collocation,  whereby  a  competitive  local   exchange 
carrier (``CLEC'') obtains physical  collocation space without  a 
cage.   The  Commission  codified  the  alternative   collocation 
requirements  at  Section  51.323(k)   of  its  rules.    Section 
51.323(k) became effective on June 1, 1999.5

      4.  Following the release of  the Advanced Services  Order, 
CLECs applied for  cageless collocation  arrangements in  various 
GTE central offices  nationwide.  In late  1999, the  Enforcement 
Bureau (``Bureau'') received information that GTE had denied  and 
placed in a  hold status until  August 1, 1999  requests made  by 
CLECs to collocate using  a cageless arrangement, asserting  that 
it could not implement the requirements of the Advanced  Services 
Order until that time.

      5.  The   Enforcement   Bureau   commenced   an    informal 
investigation into  these  matters  on  February  25,  2000.   In 
responses submitted to  the Enforcement Bureau,  GTE stated  that 
from June 1, 1999 to August 1, 1999, it had denied and placed  in 
a ``hold status,'' 51 cageless collocation requests submitted  by 
CLECs.  Thus,  implementation  of  the  requirements  of  Section 
51.323(k) did not occur  until August 1,  1999, two months  after 
the June 1, 1999 effective date of these rules. GTE asserts  that 
it took  that long  to develop  the operational  requirements  to 
implement the order  and takes  the position  that it  reasonably 
construed the  ``as  soon  as possible''  language  contained  in 
paragraph  40  of   the  Advanced  Services   Order,  to   permit 
implementation after the effective date of the rules.

      6.  On June 16, 2000,  the Commission adopted and  released 
the  Merger  Order  granting  applications  seeking  approval  to 
transfer  control  of  certain  licenses  and  authorizations  in 
connection with a proposed merger  between GTE and Bell  Atlantic 
Corporation.6  The conditions in the Merger Order require,  among 
other things, that GTE provision collocation arrangements subject 
to a  95%  on-time  performance  standard.     The  Merger  Order 
provides that, in  the event  GTE fails to  meet the  performance 
requirements  during  specified  time  periods  after  270   days 
following the merger closing  date, it will  be required to  make 
voluntary payments to the United States Treasury.

      7.  As a matter of corporate policy, GTE represents that it 
is  committed   to   full  compliance   with   the   Commission's 
interconnection and  collocation  requirements as  effective  and 
further represents that  the Company  opposes noncompliance  with 
such competitive provisions by any telecommunications carrier.


      8.  For purposes  of  this Consent  Decree,  the  following 
definitions shall apply:

          (a)  The  ``FCC''  or  the  ``Commission''  means   the 
      Federal Communications Commission and all divisions of  the 
      Commission, including the Enforcement Bureau.
          (b)  ``GTE''  or  ``the  Company''  means  GTE  Service 
      Corporation, its ILEC operating telephone companies in  the 
      GTE States,  as defined  in subsection (j)  below, and  any 
      successors or  assigns of  GTE Service  Corporation or  its 
      ILEC operating telephone companies.

          (c)  ``Parties'' means GTE and the Commission.

          (d)  ``Order'' or ``Adopting Order'' means an order  of 
      the Commission adopting this Consent Decree.

          (e)  ``Final Order'' means an  order that is no  longer 
      subject  to  administrative  or  judicial  reconsideration, 
      review, appeal or stay.

          (f)  ``Merger  Order''  means   the  Commission   order 
      consenting  to the  transfer of  control of  authorizations 
      and licenses,  in connection  with the  merger between  GTE 
      Service Corporation  and Bell Atlantic Corporation  adopted 
      and released by the Commission on June 16, 2000 (CC  Docket 
      No. 98-184).

          (g)  ``Relevant Period'' means the period from June  1, 
      1999 through August 1, 1999.

          (h)  ``Collocation  Inquiry''  means  the   enforcement 
      action initiated by  the Bureau's February 25, 2000  letter 
      of  inquiry   regarding  GTE's   response  to   collocation 

          (i)  ``Effective Date''  means the  date on  which  the 
      Commission releases the Adopting Order.

          (j)  The  term  ``GTE  States''  shall  mean   Alabama, 
      California,  the  Commonwealth  of  the  Northern  Marianas 
      Islands,   Florida,  Hawaii,   Idaho,  Illinois,   Indiana, 
      Kentucky,  Michigan,  Missouri,  Nevada,  North   Carolina, 
      Ohio,   Oregon,  Pennsylvania,   South   Carolina,   Texas, 
      Virginia, Washington, and Wisconsin, but shall not  include 
      the  service areas  of Bell  Atlantic-Delaware, Inc.,  Bell 
      Atlantic-Washington,  D.C., Inc.,  Bell  Atlantic-Maryland, 
      Inc.,  Bell  Atlantic-New  Jersey,  Inc.,  Bell   Atlantic-
      Pennsylvania,  Inc.,  Bell  Atlantic-Virginia,  Inc.,  Bell 
      Atlantic-West Virginia,  Inc., New York Telephone  Company, 
      New  England Telephone  and Telegraph  Company where  those 
      companies operated as ILECs as of January 27, 2000.


      9.  GTE and the Commission  agree that this Consent  Decree 
does not constitute  either an  adjudication of the  merits or  a 
factual  or  legal   finding  or   determination  regarding   any 
compliance or noncompliance by GTE  with the requirements of  the 
Communications  Act,  including  Section  251  thereof,  and  the 
Commission's implementing  rules,  arising  out  of  any  alleged 
actions or  failures with  respect  to requests  for  collocation 
during the Relevant Period.  The Parties agree that this  Consent 
Decree is for settlement  purposes only and  that by agreeing  to 
this  Consent   Decree,   the   Company  does   not   admit   any 
noncompliance, violation or liability associated with or  arising 
from such actions or failures, including any actions or  failures 
described in  the February  25, 2000  letters, in  any  follow-up 
correspondence and meetings  between GTE and  the FCC  concerning 
GTE's response  to  collocation requests,  or  in any  formal  or 
informal complaints, ex parte communications or other information 
received by the Commission on or before the effective date of the 
Consent  Decree.    Indeed,  GTE   expressly  denies   any   such 
noncompliance, violation or liability.

      10.      In  express   reliance   on  the   covenants   and 
representations  contained  herein,  the  Commission  agrees   to 
terminate the Collocation Inquiry at such time as the  Commission 
releases an Order adopting this Consent Decree.

      11.      The  parties  agree  and  acknowledge  that   this 
Consent Decree shall  constitute a final  settlement between  GTE 
and the Commission of the Collocation Inquiry.  In  consideration 
of the termination of this  Inquiry in accordance with the  terms 
of this Consent Decree, GTE  agrees to the terms, conditions  and 
procedures contained herein.

      12.      GTE admits the jurisdiction  of the Commission  to 
adopt this Consent Decree.

      13.      Notwithstanding any provision in the Merger  Order 
(or any of its appendices) pertaining to GTE's obligation to make 
voluntary payments thereunder, GTE shall be obligated under  this 
Consent Decree to make voluntary payments for failure to meet, in 
the GTE States, the  collocation performance standards set  forth 
in Metrics No. NP-2-01 and NP-2-05 of Attachment A-2b to Appendix 
D of the Merger Order consistent  in all other respects with  the 
provisions of the Merger Order (and its appendices), except  that 
(a) the beginning date on  which GTE's performance shall be  used 
to determine its obligation to make voluntary payments under this 
Consent Decree shall commence 180  days after the merger  closing 
date, and  (b)  for  purposes  of this  Consent  Decree  only,  a 
``Performance Plan  Year''  is  the first  twelve  full  calendar 
months that begin after  the 180th day  after the merger  closing 
date.  In light of GTE's continuing obligation to make  voluntary 
payments under the Merger  Order, GTE shall  not be obligated  to 
make voluntary payments under this Consent Decree for failure  to 
meet the collocation  performance standards for  the same  months 
for which it becomes obligated  to make voluntary payments  under 
the Merger Order, and GTE's obligation to make voluntary payments 
under this Consent  Decree shall terminate  at the conclusion  of 
the first Performance Plan Year  (as defined in this  Paragraph).  
Any voluntary payments made pursuant to this Consent Decree shall 
not be counted toward the annual caps set forth in Attachment A-6 
to Appendix  D  of the  Merger  Order.  Voluntary  payments  made 
pursuant to this paragraph of the Consent Decree shall be subject 
to total caps of one-fourth of the annual caps for year 1 for the 
GTE States, as set forth in  Attachment A-6, and to monthly  caps 
of one-twelfth of the annual caps for year 1 for the GTE  States.  
Nothing in this Consent Decree is intended to have any effect  on 
GTE's obligation  to make  voluntary  payments under  the  Merger 

      14.      GTE agrees to make a voluntary contribution to the 
United States  Treasury  in  the amount  of  two  million,  seven 
hundred thousand  dollars ($2,700,000)  within 10  calendar  days 
after the  Order adopting  this Consent  Decree becomes  a  Final 
Order.  Payment should be made by  check or money order drawn  to 
the order of  the Federal  Communications Commission.   Reference 
should be  made  on  the  check or  money  order  to  ``Acct  No. 
X32080012.''  Such  remittances  must be  mailed  to:  Forfeiture 
Collection  Section,  Finance   Branch,  Federal   Communications 
Commission, P.O. Box 73482, Chicago, IL  60673-7482.

      15.      The Commission  agrees that,  based on  the  facts 
developed in  the  Collocation  Inquiry and  in  the  absence  of 
material new evidence related to this matter, it will not use the 
facts developed in this Inquiry  through the date of the  Consent 
Decree or the existence of  this Consent Decree to institute,  on 
its own motion, any new  proceeding, formal or informal, or  take 
any action on its own  motion against GTE concerning the  matters 
that were the subject of the Collocation Inquiry.  The Commission 
also agrees that, based on the facts developed in the Collocation 
Inquiry, and in the absence  of material new evidence related  to 
this matter, it will not use the facts developed in this  Inquiry 
through the date of this Consent Decree or the existence of  this 
Consent Decree to  institute on  its own  motion any  proceeding, 
formal or informal, or take any action on its own motion  against 
GTE with  respect  to  its basic  qualifications,  including  its 
character qualifications,  to be  a Commission  licensee or  with 
respect to compliance with  the Commission's rules and  policies.  
Consistent with  the foregoing,  nothing in  this Consent  Decree 
limits the Commission's authority to consider any complaint  that 
may be filed pursuant to section 208 or 251 of the Communications 
Act, as amended, 47 U.S.C.  208, 251, and to take any action in 
response to such complaint.

      16.      GTE waives any and all rights it may have to  seek 
administrative or  judicial  reconsideration, review,  appeal  or 
stay, or to otherwise challenge  or contest the validity of  this 
Consent Decree  and  the  Order  adopting  this  Consent  Decree, 
provided the  Order adopts  the  Consent Decree  without  change, 
addition, or modification.

      17.      GTE   and   the   Commission   agree   that    the 
effectiveness of this Consent Decree is expressly contingent upon 
issuance of an Order that  is consistent with the Consent  Decree 
and which adopts the Consent Decree without change, addition,  or 

      18.      In the event that this Consent Decree is  rendered 
invalid by any court of  competent jurisdiction, it shall  become 
null and void  and may not  be used  in any manner  in any  legal 

      19.      If the Commission, or the United States on  behalf 
of the Commission, brings a judicial action to enforce the  terms 
of the Order adopting  this Consent Decree,  neither GTE nor  the 
Commission shall contest  the validity of  the Consent Decree  or 
Order,  and  the  Company  and  the  Commission  will  waive  any 
statutory right to  a trial de  novo with respect  to any  matter 
upon which the Order  is based, and shall  consent to a  judgment 
incorporating the terms of this Consent Decree.

      20.      GTE waives any claims it may otherwise have  under 
the Equal Access  to Justice  Act, Title 5  U.S.C.   504 and  47 
C.F.R.  1.1501, et seq.

      21.      Any violation of the  Consent Decree or the  Order 
adopting this Consent Decree will constitute a separate violation 
of a Commission order, entitling  the Commission to exercise  any 
rights and remedies attendant to the enforcement of a  Commission 

      22.      The Parties also agree  that any provision of  the 
Consent Decree that would require the Company to act in violation 
of a rule or order adopted  by the Commission will be  superseded 
by such Commission rule or order.

      23.      This Consent Decree may be signed in counterparts.


By: ______________________________________

     Magalie Roman Salas, Secretary


By:  _____________________________________

           Geoffrey C. Gould, Senior Vice President-State 
Government Relations

1    47 U.S.C.  251(c)(6).

2    Implementation of the Local  Competition Provisions in  the 
Telecommunications Act  of  1996,  CC Docket  No.  96-98,  First 
Report and  Order, 11  FCC Rcd  15499, 15782   555-617  (1996) 
(``Local Competition Order'') (subsequent history omitted).

3    Deployment   of   Wireline   Services   Offering   Advanced 
Telecommunications  Capability,  CC  Docket  No.  98-147,  First 
Report and Order and Further  Notice of Proposed Rulemaking,  14 
FCC Rcd 4761 (1999)  (``Advanced Services Order'' or  ``Order'') 
(subsequent history omitted).

4    See Advanced Services Order   41, 42,  44.  Prior to  the 
Advanced Services Order, ILECs were required to permit CLECs  to 
collocate  using  caged  physical  collocation  arrangements  or 
virtual  collocation   arrangements.    In  a   caged   physical 
arrangement, a  CLEC leases,  and has  direct access  to,  caged 
space at  an ILEC  premises  for its  equipment.  In  a  virtual 
collocation arrangement, a CLEC designates the type of equipment 
to be placed at an ILEC  premises, which the ILEC then  installs 
and maintains for the CLEC.   See Advanced Services Order   19, 

5    See 64 Fed. Reg. 23229 (1999).  GTE does not agree that the 
date by  which it  was required  to comply  is the  same as  the 
effective date.  

6    Application of  GTE  Corp.  and  Bell  Atlantic  Corp.  for 
Consent  to  Transfer  Control  of  Domestic  and  International 
Sections 214 and 310 Authorizations and Application to  Transfer 
Control of a Submarine Cable Landing License, CC Docket No.  98-
184 (rel. June 16, 2000).