BELLSOUTH WITHDRAWS LONG DISTANCE APPLICATIONS FOR LA., GA.
In face of lingering questions from FCC, BellSouth (BS) withdrew its Sec. 271 application to provide long distance in Ga. and La. and said Thurs. it planned to resubmit filing with updated information shortly. New filing will provide Commission with additional information on operations support system (OSS) issues such as preordering and order process integration and service order accuracy, BS said. It “will comply with the FCC’s request for additional information to supplement the record,” said Margaret Greene, pres.- regulatory & external affairs, saying company built “solid case” that it had met Telecom Act requirements for long distance entry. FCC Chmn. Powell said: “The FCC cannot approve such applications by the Bell companies unless they satisfy the requirements of Section 271 of the Communications Act.” Competitors praised what they viewed as signal sent by Commission that it was insisting on complete information in long distance filings that OSS systems worked. BS said it planned to resubmit filing “promptly” to restart review process at FCC.
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When BellSouth submitted its Sec. 271 application for Ga. and La. in Oct., “we believed that we had built a very solid case that presented compelling evidence of BellSouth’s compliance with the Telecommunications Act,” Greene said. “We still believe this is true.” In complying with FCC request for supplemental information, she said company expected that “will result in a timely and decisive approval.” Carrier plans to provide additional information on: (1) Ability of competing carriers to integrate preorder and ordering functionality. BellSouth said in letter sent Thurs. to FCC that Commission staff concerns on that issue appeared to be centered on “timeliness of evidence” that showed competitors have such functionality. (2) BS performance on service order accuracy. (3) Accuracy of certain performance data. (4) Timeliness of evidence on double firm order confirmation (FOC) performance issue. BellSouth spokesman said that in that area, company had computer glitch, since fixed, that centered on FOC date. System would give CLEC confirmation date on day service would be installed and CLEC would receive 2nd confirmation with earlier date. That problem has been fixed but hadn’t been in time for period that Sec. 271 filing in Oct. represented. (5) Timeliness of evidence related to allocation of resources in change control process.
BellSouth said other Bell companies had restarted period of FCC review for Sec. 271 filings in other states, including Verizon’s long distance bid in Mass. and SBC’s application in Mo. In ex parte filing to FCC Thurs., BS said its joint application for Ga. and La. was “the strongest overall application filed with the FCC… We also believe that the application demonstrates that we have fully satisfied the competitive checklist.” On concerns that Commission staff raised, BellSouth said those issues “generally arise from a belief that commenting parties have not had an adequate opportunity to evaluate and respond to evidence that has been submitted on these issues.” FCC faced Dec. 31 deadline for acting on application. In Nov., Dept. of Justice had indicated that its concerns over La. and Ga. applications centered mostly on quality of OSS system for unbundled network element-platforms (UNE-Ps) and DSL loops. But DoJ said in its evaluation it had no “substantial concerns” about ability of resellers and facilities-based competitors to enter BellSouth local markets in Ga. and La. BS has said 2 states have 4 million potential customers for long distance offerings.
Powell said BellSouth application “demonstrated the company’s commitment and ability” to make substantial progress toward meeting statutory requirements for long distance entry. “Yet despite extensive conversation and collaboration with the FCC, questions remain regarding whether BellSouth has satisfied the rigorous requirements of the statute and our precedents, including the adequacy of the company’s operational support systems, the integrity of its performance data and its change management process and related issues.”
Calling BellSouth application “fatally flawed,” AT&T Vp- Federal Govt. Affairs Len Cali said its OSS “systems and processes could not support competition… The FCC is right to insist on operations support systems that work.” CompTel Pres. Russell Frisby said FCC’s request for more information “sends a clear message to the Bell companies that their business tactics to delay and block competitive carriers will not succeed. This action will have a rippling effect in the telecommunications industry.” He said CompTel members had concerns about BellSouth’s data accuracy problems. “While we would have preferred to see an FCC order setting forth specifically where BellSouth’s competitive practices are deficient, we are pleased that the FCC has sent BellSouth a message that its provisioning processes must be improved,” ALTS Pres. John Windhausen said. Covad Asst. Gen. Counsel Jason Oxman said company “strongly encourages BellSouth to actually fix the problems with its OSS and satisfy competitive concerns before refiling these applications.”