Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C AFFIDAVIT OF DALE KAESHOEFER ON BEHALF OF SOUTHWESTERN BELL TELEPHONE COMPANY

Transcription

1 Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C In the Matter of Application of SBC Communications Inc., Southwestern Bell Telephone Company, and Southwestern Bell Communications Services, Inc., d/b/a Southwestern Bell Long Distance, for Provision of In-Region, InterLATA Services in Oklahoma CC Docket No. AFFIDAVIT OF DALE KAESHOEFER ON BEHALF OF SOUTHWESTERN BELL TELEPHONE COMPANY STATE OF Missouri ) ) CITY OF St. Louis )

2 TABLE OF CONTENTS Page I. PROFESSIONAL EXPERIENCE... 2 II. PURPOSE OF AFFIDAVIT... 3 III. GENERAL PRICING PRINCIPLES... 7 IV. CHECKLIST ITEM (i): INTERCONNECTION V. CHECKLIST ITEM (ii): ACCESS TO UNBUNDLED NETWORK ELEMENTS A. General Unbundling Rules B. Specific Unbundled Network Elements C. Access To Operations Support Systems Functions D. Bona Fide Request Process E. Equal-In-Quality F. Combination Of Network Elements VI. CHECKLIST ITEM (iii): ACCESS TO POLES, DUCTS, CONDUITS AND RIGHTS-OF-WAY VII. CHECKLIST ITEM (iv): LOCAL LOOP TRANSMISSION VIII. CHECKLIST ITEM (v): LOCAL TRANSPORT IX. CHECKLIST ITEM (vi): LOCAL AND TANDEM SWITCHING A. Local Switching B. Tandem Switching X. CHECKLIST ITEM (vii): 911/E911, DIRECTORY ASSISTANCE AND OPERATOR CALL COMPLETION A. 911/E B. Directory Assistance And Operator Call Completion XI. CHECKLIST ITEM (viii): WHITE PAGES LISTINGS XII. CHECKLIST ITEM (ix): NUMBERING ADMINISTRATION i

3 XIII. CHECKLIST ITEM (x): ACCESS TO DATABASES AND ASSOCIATED SIGNALING NECESSARY FOR CALL ROUTING AND COMPLETION XIV. CHECKLIST ITEM (xi): INTERIM NUMBER PORTABILITY XV. CHECKLIST ITEM (xii): LOCAL DIALING PARITY XVI. CHECKLIST ITEM (xiii): RECIPROCAL COMPENSATION XVII. CHECKLIST ITEM (xiv): RESALE XVIII. INTRALATA TOLL DIALING PARITY XIX. CONCLUSION ii

4 Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C In the Matter of Application of SBC Communications Inc., Southwestern Bell Telephone Company, and Southwestern Bell Communications Services, Inc., d/b/a Southwestern Bell Long Distance, for Provision of In-Region, InterLATA Services in Oklahoma CC Docket No. AFFIDAVIT OF DALE KAESHOEFER ON BEHALF OF SOUTHWESTERN BELL TELEPHONE COMPANY STATE OF Missouri ) ) CITY OF St. Louis ) I, DALE KAESHOEFER, being of lawful age and duly sworn upon my oath, do hereby depose and state as follows: 1. My name is Dale Kaeshoefer. My business address is One Bell Center, Room 7-F-7, St. Louis, MO I am the General Manager - Carrier Marketing for Southwestern Bell Telephone Company (hereinafter SWBT ). I m responsible for supervising all aspects of marketing for - 1 -

5 Switched and Special Access, as well as, Billing and Collection products. In October, 1995, I created within this organization, a wholesale marketing group. This group s primary responsibilities were to develop wholesale marketing opportunities which, at the time, were created as a result of the opening of Texas Local Exchange markets to competition by the Texas Legislature. The enactment of the Telecommunications Act of 1996 (hereinafter the Act ) expanded the group s scope to the balance of SWBT s states. I. PROFESSIONAL EXPERIENCE 2. I began my career with SWBT in From that time to 1978, I served in numerous positions and locations dealing with various aspects of business office line operations. Responsibilities included managing offices serving combined business and residence customers and large business customers only. Personnel under my supervision worked with customers in the areas of sales, customer service and collections. From 1978 to 1979, I was responsible for tariff development and pricing of selected products in SWBT s Missouri regulatory organization. In 1979, I moved to Kansas as District Manager responsible for the tariffing and pricing of all Kansas products and services provided by SWBT. In 1985, I was appointed Division Manager-Rate Administration responsible for the development and implementation of regulatory policy as well as the development of pricing, terms and conditions for all SWBT products offered in Missouri. I accepted my current position in

6 II. PURPOSE OF AFFIDAVIT 3. The purpose of my affidavit is to describe how SWBT in Oklahoma has satisfied all fourteen (14) elements of the competitive checklist (hereinafter Checklist ) set forth in 47 U.S.C. 271(c)(2)(B) by providing or making available interconnection, as well as, network elements, products and services described in the Checklist in the manner required. In doing so, I will describe the elements, products and services that SWBT is offering to provide to requesting telecommunications carriers through SWBT s Statement of Generally Available Terms & Conditions (hereinafter STC ). The STC was permitted to go into effect by the Oklahoma Corporation Commission (hereinafter OCC ) on March 17, On December 12, 1996, the OCC issued an arbitration order [Arbitration Order, Cause No. PUD (hereinafter Arbitration Order )] involving SWBT and AT&T which established interim rates for interconnection, unbundled elements, as well as, transport and termination of traffic. SWBT has incorporated provisions set forth in the Arbitration Order in its STC. 4. In addition to its STC and the Arbitration Order, which comply with the provisions of the Act, SWBT has OCC-approved interconnection agreements with Brooks Fiber Communications of Oklahoma, Inc., Brooks Fiber Communications of Tulsa, Inc., (hereinafter Brooks Fiber ), Sprint Communications Company, L.P. (hereinafter Sprint ), ICG Telecom Group Inc.,(hereinafter ICG ) and U.S. Long Distance, Inc., (hereinafter USLD ), and approved resale agreements with Brooks Fiber, Sprint, USLD, Dobson Wireless, and Western Oklahoma - 3-

7 Long Distance (hereinafter WOLD ). These agreements were negotiated by the parties and have been approved by the OCC. In its Findings of Fact and Conclusions of Law pertaining to these agreements, the OCC found that the Interconnection Agreements are consistent with the public interest, convenience and necessity, that they do not discriminate against a telecommunications service provider not a party to the Agreements, that the Agreements are consistent with the requirements of the Commission s rules for the approval of interconnection agreements, and that the Agreements are consistent with pro-competitive aims of the Federal Act, and the Commission s rules governing local exchange competition. In addition to approved interconnection agreements, SWBT recently reached an interconnection agreement in Oklahoma with Intermedia Communications, Inc. (hereinafter ICI ). This negotiated interconnection agreement is currently before the OCC for approval. For a complete status of negotiation activity in Oklahoma, see the Affidavit of Mr. Zamora. 5. Where applicable, I will explain how SWBT's STC, in combination with the Arbitration Order and approved interconnection agreements, satisfy SWBT s duties under 47 U.S.C. 251 and 252, the applicable FCC regulations implementing those sections (hereinafter Rules ), the FCC's First Report and Order [FCC (Aug. 8, 1996) (hereinafter FCC Order )], the FCC's Second Report and Order [FCC (Aug. 8, 1996) (hereinafter Second Report and Order )], the FCC's First Report and Order on Reconsideration [FCC (Sept. 27, 1996) (hereinafter First Reconsideration Order )], the FCC's Second Order on - 4-

8 Reconsideration [FCC (Dec. 13, 1996) (hereinafter Second Reconsideration Order )], and the FCC s First Report and Order and Further Proposed Rule Making [FCC (July 2, 1996) (hereinafter Number Portability Order )]. 6. My affidavit, together with the affidavits of others, will indicate SWBT has the ability to provide all Checklist items in a nondiscriminatory manner to any requesting telecommunications carrier in a manner that satisfies the Checklist and 47 U.S.C. 251 and 252. Specifically, SWBT is furnishing service to Brooks Fiber as a facility based carrier and Dobson Wireless as a reseller, at present. Service will be available to ICI, Capital Telecommunications (This company has not filied with the OCC due to its internal priorities), CapRock Communications, Fast Connections, Chickasaw Telecom, TIE Communications (This company has not filed with the OCC due to its internal priorities), Oklahoma Comm South, US Telco, Preferred Carrier Services, and Sterling International Funding (d/b/a Reconex) under the respective carrier s agreement, once approved by the OCC. Additional elements as well as features and functions are also available in SWBT s STC, which became effective March 17, SWBT, through its STC and interconnection agreements, is offering all elements, products and services required by the FCC in the Rules, Order, and Second Report and Order. SWBT believes that some of the requirements set forth in these Rules and Orders exceed the scope of - 5-

9 the Act and it has, therefore, challenged those provisions before the Eighth Circuit Court of Appeals. If the court holds that the challenged provisions indeed exceed the scope of the Act, SWBT s Oklahoma interconnection agreements and its STC will be modified accordingly. 8. Brooks Fiber, a facility based provider, is currently providing local exchange service to customers in Oklahoma over its own facilities. (See Affidavits of Messrs. Montgomery, Wheeler and Butler for facilities based competition.) 9. As can be seen from Mr. Montgomery s affidavit, Brooks Fiber is currently offering, over its own facilities, a competitive alternative to SWBT s exchange access and local exchange services. In fact, a significant quantity of business and residence consumers and associated access lines are within one thousand (1,000) feet of known Brooks Fiber facilities in Oklahoma City and Tulsa. (See Risk Analysis included in Mr. Montgomery s Affidavit.) 10. The STC, Brooks Fiber, USLD, ICG and Sprint Agreements contain Most Favored Nation ( MFN ) clauses that, in accordance with 47 U.S.C. 252(i), entitle other local Oklahoma carriers to obtain interconnection, services or network elements under the same terms and conditions as those provided in SWBT s STC and the interconnection agreements approved by the OCC (STC XXIII), (Brooks Fiber XXIV; USLD XXII; ICG and Sprint 32.0). - 6-

10 11. My affidavit should be read together with affidavits of other SWBT employees to give a full picture of SWBT s Checklist compliance. Specifically, I discuss access and interconnection, including wholesale products, elements, services and prices which SWBT is providing, or will provide, upon request to telecommunications carriers. Other affiants show compliance with other specific requirements for interlata relief. III. GENERAL PRICING PRINCIPLES 12. Standards for interconnection via voluntary negotiations are established in 47 U.S.C. 252(a)(1). That section of the Act specifies that upon receiving a request for interconnection, service, or network elements pursuant to 47 U.S.C. 251, SWBT may negotiate and enter into a binding agreement with the requesting telecommunications carrier or carriers without regard to the standards set forth in subsections (b) and (c) of 47 U.S.C The agreement is to include a detailed schedule of itemized charges for interconnection and each service or network element included in the agreement. The STC, Brooks Fiber, ICG and USLD agreements comply with this provision of the Act (STC Appendix Resale, Exhibits A & B, Appendix Pricing Schedule); (Prices are included throughout the Brooks Fiber, ICG, USLD and Sprint Agreements). - 7-

11 13. Pricing standards for interconnection and unbundled network elements are established in 47 U.S.C. 252(d)(1). That section of the Act specifies that prices for interconnection and unbundled elements shall be determined by the State Commission based on the cost, determined without reference to rate-of-return or other rate-based proceeding, must be nondiscriminatory and may include a reasonable profit. As noted earlier, SWBT has received an Arbitration Order from the State of Oklahoma pursuant to 47 U.S.C. 252(c), including interim rates for interconnection and network elements, which SWBT believes to be in compliance with the requirements of 47 U.S.C. 252(d) U.S.C. 252(d)(2) requires that to be determined just and reasonable, reciprocal compensation prices must... provide for the mutual and reciprocal recovery by each carrier of costs associated with the transport and termination on each carrier s network facilities of calls that originate on the network facilities of the other carrier... Furthermore, 47 U.S.C. 252(d)(2) requires the costs for reciprocal compensation to be based on a... reasonable approximation of the additional costs of terminating such calls and indicates that arrangements that waive mutual recovery (such as bill and keep) are not precluded. However, that section of the Act does preclude the FCC and state commissions from engaging in any rate regulation proceeding to establish with particularity the additional costs of transporting or terminating calls... The Arbitration Order from the State of Oklahoma, pursuant to 47 U.S.C. 252(c), - 8-

12 includes interim rates for reciprocal compensation, which SWBT believes to be in compliance with the requirements of 47 U.S.C. 252(d). 15. In response to the provisions of 47 U.S.C. 251(d), the FCC, on August 8, 1996, released the FCC Order, establishing regulations to implement the requirements of 47 U.S.C On September 27, 1996, the FCC released its Order on Reconsideration. Among the numerous issues addressed in the FCC Order is its definition of the costing and pricing standards to be used in interconnection arbitration. The FCC Order established the pricing policy for unbundled elements, as well as, transport and termination pricing as being forward-looking economic cost which it defines as the sum of the Total Element Long Run Incremental Cost ("TELRIC") of the element plus a reasonable allocation of common costs. Appendix B-Final Rules of Part 51 of Title 47 of the Code of Federal Regulations (C.F.R.). According to the FCC Order, prices are to be generally set at this level for each element priced. 16. On October 15, 1996, the Eighth Circuit Court of Appeals issued an order staying the operation and effect of the pricing provisions and the "pick and choose" rule contained in the FCC Order (47 U.S.C. 252(i)). With respect to the pricing provisions of the FCC Order, the Eighth Circuit s order stayed the operation and effect of 47 C.F.R (inclusive), (inclusive), (inclusive) and the default proxy range for line ports used in the delivery of basic residential and business exchange services - 9-

13 established in the FCC s Order on Reconsideration, dated September 27, With respect to the "pick and choose" rule, the Eighth Circuit s order stayed the operation and effect of 47 C.F.R The Court s November 1 Order Lifting Stay In Part excluded , , and from the Court s stay. 17. While SWBT does not agree that prices set at forward-looking economic costs are the absolute and proper basis for determining rate levels applicable to unbundled elements or transport and termination of traffic, it nevertheless used the approach in the arbitration proceeding in Oklahoma with the understanding that it reserves the right to seek modifications to the resulting prices based on future developments, including but not limited to the final outcome of the appeal of the FCC Order, the revision and/or completion of cost studies, and the FCC s handling of applications for interlata relief under 47 U.S.C SWBT s Affidavit of Mr. Moore addresses the forward-looking economic cost studies prepared for various unbundled network elements and reciprocal compensation for the transport and termination of traffic. While the details of the cost studies are more fully addressed in Mr. Moore s Affidavit, most of SWBT s prices for unbundled network elements and reciprocal compensation for the transport and termination of traffic in SWBT s STC have been set at levels equal to (subject to rounding) forward-looking economic cost plus an allocation of joint and common cost. Some of these prices are based on existing tariff rates - 10-

14 which are cost based. For example, Interoffice Transport prices are based on existing prices in effect in interstate tariffs, which are based upon the requirements of the FCC Rules. Prices for some elements, such as operator services, have been set at levels SWBT currently charges independent local exchange companies in Oklahoma for providing those same services. Prices for the vast majority of these services are based upon cost studies. Furthermore, because I believe all SWBT pricing decisions historically have taken cost into account, I believe that all of these prices were established based upon costs. Finally, there are some elements for which SWBT does not have cost studies, tariff rates or existing prices in independent local exchange carrier contracts (e.g. Physical Collocation). For those limited elements, SWBT must conduct cost studies on a case-by-case basis. 19. In summary, SWBT used the following general guidelines in developing its STC prices for unbundled network elements and reciprocal compensation for the transport and termination of traffic: For those unbundled network elements where forward-looking economic cost studies had been completed and where SWBT is not currently offering a comparable feature, SWBT s rates were, in most cases, set (subject to rounding) at economic cost plus a reasonable uniform assignment of forward-looking common cost. For those unbundled network elements where forward-looking long-run incremental cost studies were completed and where SWBT is currently offering a comparable - 11-

15 feature, SWBT s rates were, in most cases, set at the existing cost-based rate for the comparable service. For those elements where forward-looking economic cost studies had not been completed, the rates were set at comparable rates for existing tariffed services, which regulators have already determined to have been established based on cost. For those Checklist elements where forward-looking economic cost studies had not been completed and where there was no comparable existing tariffed service, rates were set at rates for similar services in existing contracts with independent local telephone companies, which I believe were established based on SWBT costs. For those elements where forward looking economic cost studies, comparable tariffed services, or independent local telephone company contract rates did not exist, SWBT must develop costs on a case-by-case basis (e.g., physical collocation). 20. As indicated for physical collocation, SWBT will individually price each collocation arrangement on a case-by-case basis in Oklahoma. SWBT must price collocation on an individual contract basis in recognition of the fact that those costs vary by location and according to each LSP's specific requirements. SWBT passes the cost of construction and equipment necessary to provide the collocation request from the vendor or subcontractor on to the collocator. Therefore, the majority of SWBT's physical collocation costs will be non-recurring in nature and thus subject to individual contract pricing

16 21. For virtual collocation, SWBT will use it s Interstate Virtual Collocation Tariff. These tariffed rates would serve as a proxy ceiling for virtual collocation prices as allowed in 826 of the FCC Order. Additionally, SWBT offers Sonet Based Interconnection (SBI) found in its Interstate Access Tariff. Additionally, as agreed upon in the Brooks Oklahoma Interconnection Agreement, certain services not provided via the Interstate Collocation Tariff will be provided via the ICB process. 22. With respect to resale pricing, 47 U.S.C. 252(d)(3) indicates wholesale prices should be set... on the basis of retail rates charged to subscribers for the telecommunications service requested, excluding the portion thereof attributable to any marketing, billing, collection, and other costs that will be avoided by the local exchange carrier. SWBT calculated costs avoided following its view of the methodology contained in the FCC Order. This approach resulted in an avoided cost of 17.5% across all required resale services. Finally, as a result of arbitration with AT&T, the OCC established the resale discount at 19.8% for all telecommunications services required for resale. SWBT s STC reflects a discount of 19.8% and this discount is not interim. 23. On the basis of the preceding, the cost support affidavit of Mr. Moore, and the fact that the OCC has either allowed to go into effect or approved all of SWBT s prices for interconnection, - 13-

17 unbundled elements, as well as, transport and termination of local traffic, based on costs which have been determined without reference to a rate-of-return or other rate-based proceeding, SWBT believes it has met these requirements for interlata relief. Again, the pricing provisions of the FCC s Order have been stayed and therefore, the company reserves the right to seek modifications of these prices once the final outcome of the appeal is known. IV. CHECKLIST ITEM (i): INTERCONNECTION 24. SWBT may satisfy the access and interconnection requirements of the Checklist by providing [I]nterconnection in accordance with the requirements of sections 251(c)(2) and 252(d)(1) (47 U.S.C. 271(c)(2)(B)(i)). SWBT s STC and OCC-approved Interconnection Agreements fully satisfy the requirements of 47 U.S.C. 271(c)(2)(B)(i). As addressed in considerable detail by Mr. Deere, SWBT provides for interconnection with its network for the transmission and routing of telephone exchange service and exchange access service, consistent with the Act and the FCC's Rules (47 U.S.C. 251(c)(2)(A)), (47 C.F.R (a)(1)), (Order 184), (Brooks Fiber and USLD II and Appendix NIM), (STC II, Appendix ITR and Appendix NIM). SWBT will provide interconnection at any technically feasible point within its network via physical or virtual collocation, a "Mid-Span Fiber Meet" arrangement, or by any other requested interconnection method that is consistent with the Act and to which the parties agree (47 U.S.C. 251(c)(2)(B), (c)(6)); (47 C.F.R (a), (b)); (Brooks Fiber and USLD II.B); (STC, II, B)

18 25. With respect to collocation, as of March 31, 1997, SWBT has one (1) competitive Local Service Provider (LSP) connected using virtually collocated facilities in two (2) SWBT Oklahoma wire centers. There are three (3) pending requests for virtual collocation. SWBT has three (3) physical collocation requests pending in several Oklahoma wire centers and eleven (11) additional requests are scheduled for completion in April/May of (To date, five (5) distinct carriers have requested virtual and physical collocation in Oklahoma.) V. CHECKLIST ITEM (ii): ACCESS TO UNBUNDLED NETWORK ELEMENTS A. General Unbundling Rules 26. The Checklist requires that SWBT provide [N]ondiscriminatory access to network elements in accordance with the requirements of sections 251(c)(3) and 252(d)(1) (47 U.S.C. 271(c)(2)(B)(ii)). The Checklist also specifies certain network elements that must be unbundled from other elements. These network elements are: (1) local loop transmission from the central office to the customer's premises [subsection (iv)]; (2) local transport from the trunk side of a wireline local exchange carrier (LEC) switch [subsection (v)]; (3) local switching [subsection (vi)]; and (4) call-related databases and associated signaling necessary for call routing and completion [subsection (x)]. SWBT must unbundle and provide nondiscriminatory access to directory assistance and operator call completion facilities [subsection (vii)]. (See the Affidavit of Mr. Keener.) As discussed in the affidavit of Mr. Deere, SWBT makes available, - 15-

19 or will make available upon request, nondiscriminatory and equal-in-quality access to the full range of unbundled network elements. Upon request, SWBT will provide other technically feasible network elements as required by the Act and Rules and will allow requesting carriers to combine such elements to the extent required by law (STC Appendix UNE-2.1), (Sprint Attachment 6: UNE 2.1, 2.4, 2.13 and 2.17). 27. As illustrated by the separate prices for each network element in SWBT s STC and the OCCapproved agreements, SWBT provides access to the network elements separately from access to other such elements and for a separate charge (47 C.F.R (d)), (STC Appendix UNE and Appendix Pricing Schedule), (Sprint Attachment 6: UNE). 28. SWBT does not impose any limitations, restrictions or requirements inconsistent with the Act on requests for, or use of, an element that would impair a requesting carrier's ability to provide a telecommunications service, provided that the service does not compromise the integrity of SWBT s network ((47 U.S.C. 251(c)(3)), (47 C.F.R (a)), (Sprint Attachment 6 UNE 2.4). 29. SWBT s STC and approved agreements are consistent with the FCC s principles that requesting carriers are entitled to exclusive use of an unbundled network facility, and to use of features, functions or capabilities of that facility, for a set period of time 47 C.F.R (c)

20 Nevertheless, SWBT retains the obligation to maintain, repair or replace unbundled network elements for the term of the negotiated agreement. (47 C.F.R (c)), (STC Appendix UNE 2.5), (Sprint Attachment 8 UNE 2.7 and Attachment 8: Maintenance-UNE 1.1, 1.2 and 2.1). B. Specific Unbundled Network Elements 30. As required by the Act, Orders, and Rules, SWBT makes available nondiscriminatory access to the following unbundled network elements: Local Loop* Network Interface Device (NID) Local Switching* Tandem Switching Interoffice Transport* Signaling Links and Call-Related Databases Operations Support Systems (OSS) Functions Operator Services and Directory Assistance Facilities *(Brooks Fiber, USLD, ICG - Appendix UNC) (All Others - STC Appendix UNE Sprint Attachment 6 UNE) The FCC also recognized the need for cross connects but did not identify these facilities as separate network elements. Nonetheless, SWBT will offer cross connects in accordance with its STC (STC Appendix UNE 11). 31. Some of the required network elements are specified in the Checklist, while others are specified in the FCC Rules. (47 U.S.C. 271(c)(2)(B)(ii), (iv-vii), (x)); (47 C.F.R ) Some of those elements required by the Checklist are discussed in separate sections of this affidavit

21 The core elements, not specified in the Checklist but rather in the FCC Rules, which are discussed in this section, are NIDs and access to OSS functions. The FCC also requires the unbundling of operator call completion and directory assistance. SWBT's unbundling of these elements is discussed below under Checklist item (vii). For specifics see Affidavits of Mr. Deere, Ms. Ham, Ms. Lowrance, Ms. Kramer and Mr. Keener. C. Access To Operations Support Systems Functions C.F.R (f) requires SWBT to provide unbundled, nondiscriminatory access to OSS functions equivalent to the access provided by SWBT to itself These are functions supported by SWBT's databases that cover pre-ordering, ordering, provisioning, maintenance and repair, and billing of unbundled elements and resold services. As required by the FCC, SWBT offers, upon request, access to these functions via electronic interfaces where SWBT customer contact personnel use electronic interfaces and via manual interfaces where they do not. Such access is at least equivalent to that SWBT provides to itself, its affiliates or other carriers, which enables competing carriers to perform these functions in substantially the same time and manner as SWBT (STC Appendix OSS), (Sprint Attachment 6-UNE 10.1, 10.2 and Attachment 2-Resale). These interfaces are available consistent with the requirements of the FCC's Rules as clarified in the Second Reconsideration Order (FCC through 9). Specifically, SWBT offers sufficient information regarding the interfaces and standards used to provide access to its SWBT s OSS functions to enable requesting carriers to develop and - 18-

22 maintain their systems and procedures to make effective use of those interfaces. SWBT also offers requesting telecommunications carriers access to the functionality of any internal gateway system it uses in accessing OSS functions for its own customers (Order 523), (STC Appendix OSS), (Sprint Attachment 6-UNE 10.1, 10.2 and Attachment 2-Resale). A complete and thorough discussion of SWBT s access to OSS functions is provided in the Affidavit of Ms. Ham. D. Bona Fide Request Process 33. SWBT s Bona Fide Request ( BFR )Process addresses instances where a requesting carrier desires to: (1) interconnect to SWBT's network at a new point or to purchase new or different unbundled elements; (2) achieve interconnection or access to a network element that is different in quality from what SWBT provides itself; or (3) receive a customized service (STC Appendix UNE 2.2 and 2.4.), (Sprint Attachment ), (ICG Exhibit A). 34. Under SWBT s BFR process in Oklahoma, requesting carriers may request the network arrangement or services they want via a written BFR, specifying their requirements. SWBT is committed to process BFRs promptly, and not to exceed the timeframes specified in its process description. SWBT has a maximum of thirty (30) days from receipt of the BFR in which to - 19-

23 conduct a preliminary analysis of the technical feasibility of the request. During this timeframe, SWBT will prepare a preliminary report for the requesting carrier. If the carrier authorizes further development, SWBT will, within a maximum of ninety (90) days from receipt of authorization, analyze the request and conduct further price and cost analyses. SWBT will then provide a final BFR quote which will include proposed price and implementation terms. A requesting carrier may cancel the BFR at any time but remains responsible for SWBT's reasonable development costs incurred up to cancellation (STC Appendix UNE ), (Sprint Attachment ), (ICG Exhibit A 3). 35. If SWBT concludes that, for technical reasons, it cannot satisfy a BFR, it will specify the reasons to the requesting carrier within the time frames specified above and will be prepared to demonstrate to the OCC that such interconnection, access or method is not technically feasible (STC Appendix UNE ), (Sprint Attachment 6 UNE, ), (ICG Exhibit A, 5). See Mr. Deere s affidavit for additional details. E. Equal-In-Quality 36. The FCC's Rules require that, to the extent feasible, the quality of an unbundled network element, as well as, the quality of the access to such unbundled element, provided to a requesting telecommunications carrier is at least "equal-in-quality," or at parity, with what the incumbent LEC provides to itself 47 C.F.R (a) and (b). Each network element - 20-

24 provided by SWBT to a LSP will meet applicable regulatory performance standards and be at least equal-in-quality and performance to that which SWBT provides to itself. Each network element will be provided in accordance with SWBT Technical Publications or other readily available written descriptions. A LSP may request via the BFR process, and SWBT will provide, to the extent technically feasible, Network Elements that are greater or lesser in quality than SWBT provides to itself. (STC Appendix UNE ), (Sprint Attachment 6- UNE ). See also the affidavits of Mr. Deere, Ms. Ham, Ms. Lowrance and Ms. Kramer for specifics. F. Combination of Network Elements 37. SWBT's Oklahoma agreements meet each of the FCC's requirements regarding combining network elements 47 C.F.R SWBT makes available unbundled network elements in a way that enables requesting telecommunications carriers to combine them to provide a telecommunications service to their customers (STC Appendix UNE 2.2), (Sprint Attachment O&P-UNE- 1.4 and 2.4). This may be accomplished through the use of crossconnects or standard interfaces, specifications, facilities, procedures and practices that facilitate a requesting telecommunications carrier's ability to combine network elements provided by SWBT with other network elements or with the requesting telecommunications carrier's own - 21-

25 facilities. (See Mr. Deere s Affidavit.) SWBT also offers access to OSS functions necessary for requesting telecommunications carriers to purchase and combine network elements (STC Appendix UNE Section 10). (See Affidavits of Ms. Ham, Ms. Lowrance and Ms. Kramer.) 38. SWBT makes available to requesting telecommunications carriers the option to combine unbundled network elements with other unbundled network elements by specifying the network elements or facilities they seek to have combined, and offers a number of crossconnect options to facilitate this process. Requests for combinations that are not already being provided by SWBT will be addressed through the BFR Process discussed earlier (STC Appendix UNE & 11.0), (Sprint Attachment 6 UNE, 2.4 and 11.0; and Attachment 7-O&P 1.4). VI. CHECKLIST ITEM (iii): ACCESS TO POLES, DUCTS, CONDUITS AND RIGHTS-OF-WAY U.S.C. 271(c)(2)(B)(iii) requires SWBT to provide nondiscriminatory access to its poles, ducts, conduits, and rights-of-way at just and reasonable rates in accordance with the requirements of section 224. SWBT makes its poles, ducts, conduits and rights-of-way ( Structure ) available for the placement of requesting telecommunications carriers' wires, cables and related facilities to the extent it may lawfully do so. SWBT s contracts satisfy 47 U.S.C. 271 and 224 by not favoring SWBT or its subsidiaries or affiliates over requesting - 22-

26 telecommunications carriers or any other third party. The specifics are discussed in the Affidavit of Mr. Hearst. VII. CHECKLIST ITEM (iv): LOCAL LOOP TRANSMISSION 40. SWBT makes available "local loop transmission from the central office to the customer's premises, unbundled from local switching or other services," as required by 47 U.S.C. 271(c)(2)(B)(iv). As discussed in the Affidavit of Mr. Deere, an unbundled loop is a transmission path between a distribution frame, or its equivalent, in a SWBT central office and the network interface device at the customer premises (STC Appendix UNE Section 4.0), (Brooks Fiber and USLD Appendix UNC), (Sprint Attachment 6-UNE 4), (ICG 9). This definition complies with the definition in the FCC s Rules (47 C.F.R (a) and (b)). 41. SWBT makes available to requesting telecommunications carriers standard unbundled loops, including 2-wire and 4-wire loops supporting analog and digital loop types. (STC Appendix UNE 4.2), (Sprint Attachment 6 UNE 4.2), (ICG 9). SWBT will consider specific requests for unbundling of other loop types through the BFR Process (STC Appendix UNE 4.3), (Sprint Appendix UNE 4.3), (ICG ). SWBT will provide access to its unbundled loops at each of SWBT's wire centers via collocation or will connect unbundled loops to other SWBT network elements, (e.g., switch ports, local switching and transport, dedicated - 23-

27 transport, etc.), for the LSP s use in providing telephone exchange services (Brooks Fiber and USLD Appendix UNC), (STC Appendix UNE), (ICG 9), Sprint Appendix UNE). 42. SWBT satisfies the FCC's Rules by making available unbundled access to all standard loop types. The Rules do not require any further unbundling of local loop transmission (except for NIDs, as discussed above). VIII. CHECKLIST ITEM (v): LOCAL TRANSPORT 43. Checklist Item (v) requires SWBT to unbundle local transport facilities, also called interoffice transmission facilities, that are dedicated to a particular customer or carrier or shared by more than one customer or carrier (47 U.S.C. 271(c)(2)(B)(v)); (47 C.F.R (d)). These are facilities that provide telecommunications between wire centers or switches owned by incumbent LECs or requesting telecommunications carriers (47 C.F.R (d)(1)), (47 U.S.C. 271(c)(2)(B)(v)), (STC Appendix UNE 8.0), (Sprint UNE 8). Specifics are addressed in the Affidavit of Mr. Deere. 44. SWBT will offer to requesting carriers access to unbundled dedicated interoffice transport and entrance facilities and shared transport facilities as described in Section 8 of Appendix UNE of both the STC and the Sprint Agreement. SWBT will consider requests to provide unbundled - 24-

28 access to other interoffice transmission facilities not listed in the STC Appendix UNE through the BFR process. 45. Consistent with 47 C.F.R (d)(2) SWBT will make available to requesting carriers access to unbundled shared interoffice transport (common transport) in exactly the same manner that SWBT provides such transport to itself and others (STC Appendix UNE 2.14), (Sprint UNE 2.17). IX. CHECKLIST ITEM (vi): LOCAL AND TANDEM SWITCHING 46. The Checklist (47 U.S.C. 271(c)(2)(B)(vi)) and the FCC's Rules (47 C.F.R (c)) require SWBT to unbundle local switching from transport, local loop transmission or other services. The Rules also require unbundling of local and tandem switching capabilities, including trunk-connect facilities; the basic switching function of connecting trunks to trunks; and the functions centralized in tandem switches (as opposed to end office switches) 47 C.F.R (c)(2). SWBT offers unbundled access to unbundled local and tandem switching elements in a manner which satisfies these requirements (STC Appendix UNE, 5 and 6), (Sprint Appendix UNE 5 and 6). Refer to Mr. Deere s Affidavit for details. A. Local Switching - 25-

29 47. As 47 U.S.C. 271(c)(2)(B)(vi) requires, SWBT makes available local switching unbundled from transport, local loop transmission and other elements. The requesting telecommunications carrier separately subscribes to or provides sufficient local loops, transport and other elements or facilities to handle traffic to and from the unbundled line-side and trunkside ports to which it subscribes. 48. The unbundled local switching network element includes the standard switching functions of connecting lines to lines, lines to trunks, trunks to lines, and trunks to trunks (47 C.F.R (c)(1)(i)(C)(1)), (STC Appendix UNE 5.1), (Sprint Appendix UNE 5.1). As required, the unbundled switching network element provides, on a standard basis, electronic access to all features, functions and capabilities of the switch available to SWBT's customers from that switch for the type of port connection, typically an analog line port (STC Appendix UNE 5.1), including: dial tone a telephone number one White Pages directory listing standard local routing and signaling access to 911 access to SWBT's operator services access to SWBT's directory assistance B. Tandem Switching - 26-

30 49. As with local switching, SWBT will provide access to tandem switching unbundled from loops, transport and other elements. Unbundled tandem switching provides requesting telecommunications carriers with access to all available basic tandem switching functions (STC Appendix UNE 6), (Sprint Appendix UNE 6). As verified by the Affidavit of Mr. Deere, we are capable of providing access to SWBT s unbundled tandem switching elements. X. CHECKLIST ITEM (vii): 911/E911, DIRECTORY ASSISTANCE AND OPERATOR CALL COMPLETION A. 911/E Checklist Item (vii) requires that SWBT provide "[N]ondiscriminatory access to 911 and E911 Services." 47 U.S.C. 271(c)(2)(B)(vii)(I). SWBT provides customers of competitive local exchange carriers with access to the type of 911 service selected by the municipality in which they reside in a manner identical to the 911 service supplied to SWBT's customers. SWBT is furnishing access to 911 and E911 to Brooks Fiber. SWBT's 911 and E911 services are defined in the Brooks Fiber, USLD, ICG and Sprint Agreements Appendix 911. As of December 31, 1996, there were four (4) 911 trunks installed in Oklahoma from the switches owned and operated by Brooks Fiber. SWBT is currently working with other LSPs in Oklahoma on implementation plans to provide 911 trunks from their switches to applicable control offices. SWBT complies with the requirements of 47 U.S.C. 271(c)(2)(B)(vii)(I). (See Affidavit of Mr. Deere for details.) - 27-

31 B. Directory Assistance And Operator Call Completion 51. SWBT provides nondiscriminatory access to operator call completion services and directory assistance services ("OS/DA") in several different ways, as required by the Checklist, the FCC's Order and Second Report and Order, and the Rules. In addition, SWBT provides OS and DA as unbundled network elements pursuant to 47 C.F.R (g) and 47 U.S.C. 271(c)(2)(B)(vii)(II) and (III). For details refer to the Affidavit of Mr. Keener. XI. CHECKLIST ITEM (viii): WHITE PAGES LISTINGS 52. Section 271(c)(2)(B)(viii) of the Act requires SWBT to provide "[W]hite pages directory listings for customers of the other carrier's telephone exchange service." SWBT satisfies this requirement by ensuring that its directory publishing affiliate will publish the primary listing of the LSP s customer located within the geographic scope of SWBT s White Pages directories. These listings will be inter-filed with the listings of SWBT customers. In addition to providing listings, SWBT has agreed to provide initial and secondary delivery of White Pages directories to customers of resellers on the same basis as its own customers. SWBT has also agreed to deliver White Page directories to customers of facility-based carriers, or upon a carrier s request, SWBT will deliver directories in bulk to a single address designated by the requesting carriers. Finally, SWBT will provide access to its White Pages directory listings in readily accessible magnetic tape or electronic format as required by 47 C.F.R (c)(3)(ii). Ms

32 Baker-Oliver addresses, in further detail in her affidavit, how SWBT has complied with the Act and FCC Rules pertaining to access to White Pages. XII. CHECKLIST ITEM (ix): NUMBERING ADMINISTRATION 53. Checklist Item (ix) requires that SWBT provide, "[U]ntil the date by which telecommunications numbering administration guidelines, plans, or rules are established, nondiscriminatory access to telephone numbers for assignment to the other carrier's telephone exchange service customers." 47 U.S.C. 271(c)(2)(B)(ix) The Rules ( (e)(i)), in turn, require that a LEC permit competing providers to have access to telephone numbers that is identical to the access the LEC provides to itself. 54. SWBT makes available nondiscriminatory access to telephone numbers for assignment to other carriers' telephone exchange service customers. Until a new numbering administration process is in place, SWBT is continuing to act as the Central Office Code Administrator in Oklahoma in accordance with the Central Office Code Assignment Guidelines and the NPA Code Relief Planning Guidelines or their successors under the oversight and complaint jurisdiction of the FCC and the OCC (47 C.F.R (a)(2)). In the meantime, SWBT continues to support efforts to transfer its number administration responsibilities to a neutral third party. Refer to the Affidavit of Mr. Adair for more details

33 XIII. CHECKLIST ITEM (x): ACCESS TO DATABASES AND ASSOCIATED SIGNALING NECESSARY FOR CALL ROUTING AND COMPLETION 55. Both the Checklist (47 U.S.C. 271(c)(2)(B)(x)) and Rules ( (e)) require SWBT to provide nondiscriminatory access to signaling networks and call-related databases. SWBT s interconnection agreements provide for nondiscriminatory access to its signaling networks and call-related databases used for call routing and completion (Brooks Fiber and USLD Appendix SS7); (STC, Appendices CNAM, SS7, LIDB, LIDB-V, 800, AIN), (Sprint Appendix UNE 9), (ICG Appendix SS7). Refer to the Affidavit of Mr. Deere for details. Effective March 11, 1997, the SWBT interstate Access Tariff was modified to additionally provide the transport of SS7 messages throughout the SWBT signaling network SWBT has agreed to provide access to call-related databases and signaling to several carriers, including Brooks Fiber, Sprint, ICG and USLD, and currently makes this available through its Access Tariffs. XIV. CHECKLIST ITEM (xi): INTERIM NUMBER PORTABILITY 57. Checklist Item (xi) requires that "[U]ntil the date by which the Commission issues regulations pursuant to section 251 to require number portability," SWBT must provide "interim telecommunications number portability through remote call forwarding, direct inward dialing - 30-

34 trunks, or other comparable arrangements, with as little impairment of functioning, quality, reliability, and convenience as possible." 47 U.S.C. 271(c)(2)(B)(xi). SWBT also must fully comply with regulations issued by the FCC under 47 U.S.C SWBT meets this requirement. Refer to the Affidavit of Mr. Deere for details. 58. As required by the FCC, SWBT will recover the costs of providing interim number portability in a competitively neutral manner established by the OCC (STC Appendix PORT). In the meantime, SWBT has entered into agreements to defer collection of charges from all requesting telecommunications carriers for the incremental costs of interim number portability and has requested proceedings before the OCC to determine a method of cost recovery for interim number portability. SWBT also proposes that all incumbent and new LECs keep track of their costs of providing such number portability. When the OCC approves interim recovery measures, SWBT will comply with those measures. 59. SWBT has made available to Brooks Fiber, USLD, ICG and Sprint interim number portability ( INP ) via Remote Call Forwarding and Direct Inward Dialing. These INP provisions are available to all other requesting telecommunications carriers under the same nondiscriminatory terms, conditions and prices. (See Affidavit of Ms. Baker-Oliver for details). Implementation of long-term number portability is scheduled to begin in Oklahoma in the third quarter of 1998, - 31-

35 pursuant to the requirements of the FCC s Number Portability Order CC-Docket released on March 11, XV. CHECKLIST ITEM (xii): LOCAL DIALING PARITY 60. Checklist Item (xii) requires that SWBT provide [N]ondiscriminatory access to such services or information as are necessary to allow the requesting carrier to implement local dialing parity in accordance with the requirements of Section 251(b)(3) 47 U.S.C. 271(c)(2)(B)(xii). Whereas 47 U.S.C. 251(b)(3), in turn, imposes on SWBT the duty to offer all other providers of telephone exchange service and telephone toll service nondiscriminatory access to telephone numbers, operator services, directory assistance, and directory listings, with no unreasonable dialing delays." SWBT meets all these requirements. (See to the Affidavit of Mr. Deere for additional details.) 61. Compliance with local dialing parity requirements can best be assessed from the perspective of a customer of a competing provider of local exchange service. As a result of the integration arrangements between SWBT and, for example, Brooks Fiber, a customer who has subscribed to local exchange service from Brooks Fiber in Tulsa can make a local call to a local exchange customer of SWBT within the same exchange without dialing any extra digits or access codes, and without any additional perceivable delay, the same as a call made between two similarly located Brooks Fiber end users or between two SWBT users. In other words, as a result of the - 32-

36 services and information provided by SWBT and, correspondingly, the services and information provided by Brooks Fiber, the same seven-digit dialing pattern and dialing times for local calls applies between customers of the respective companies in the same manner as it applies between customers of the same company. 62. SWBT s local dialing parity arrangement is outlined in the Brooks Fiber, USLD and ICG agreements, as well as, the STC. Specifics are addressed in Mr. Deere s Affidavit. XVI. CHECKLIST ITEM (xiii): RECIPROCAL COMPENSATION 63. Reciprocal Compensation refers to the billing and payment arrangement that recovers costs incurred for the transport and termination of calls originating on one party s network and terminating on the other party s network. The Act and Rules require SWBT and interconnecting telecommunications carriers to establish arrangements for reciprocal compensation. SWBT s reciprocal compensation terms comply with 47 U.S.C. 271(c)(2)(B)(xiii), 251(b)(5), 252(d)(2) and the FCC s Rules and thereby satisfy the Checklist. (See the Affidavit of Mr. Moore for additional costing details.) - 33-

37 64. SWBT offers mutual and reciprocal compensation rates for both tandem office-based and end office-based transport and termination of local traffic originating on the other carrier's network (STC Section III) and (Sprint Attachment 12: Compensation 3.0). XVII. CHECKLIST ITEM (xiv): RESALE 65. The Checklist requires SWBT to demonstrate that its retail telecommunications services are... available for resale in accordance with the requirements of sections 251(c)(4) and 252(d)(3) 47 U.S.C. 271(c)(2)(B)(xiv). Whereas 47 U.S.C. 251(c)(4), in turn, requires incumbent LECs to offer for resale at wholesale rates any telecommunications service that the carrier provides at retail to subscribers who are not telecommunications carriers, and not to prohibit such resale nor impose unreasonable or discriminatory conditions on resale of such services. SWBT's agreements fully satisfy these requirements by making available to resellers the Resale Services. These services include retail telecommunications services provided by SWBT that are subject to the resale obligation under the FCC's Rules. In addition, SWBT has made several other services available for resale, beyond the requirements of the Act and the Rules (e.g. Additional directory listings, suspension of services, and Bill plus). The services provided for resale are equal-in-quality, provided within the same provisioning intervals (see Affidavit of Ms. Ham) and subject to the same terms and conditions applicable to retail customers. The agreements approved by the OCC include existing retail use limitations for wholesale application. Furthermore, the Arbitrator recommended that existing retail use - 34-