🚀 go-pugleaf

Bell Atlantic was kind enough to provide me with a copy of the NY PSC's
press release on Today's action on Bell Atlantic's entry into long
distance.  The press release suggests people call the Consumer
Federation of America's Marc Cooper for additional comments.  CPT is
very unhappy about the decision, because it excludes data services from
unbundling requirements, and because of the sunset of unbundling
requirements, among other issues.   

  Jamie Love
  love@cptech.org
  202.387.8030


--------------
STATE OF NEW YORK
Public Service Commission
John F. OMara, Chairman

Three Empire State Plaza, Albany, NY  12223

Further Details: (518) 474-7080
http://www.dps.state.ny.us
FOR RELEASE: IMMEDIATELY                   98025

PSC Chairman Supports Conditions for Bell Atlantics Entry into Long
Distance and Irreversible Opening of the Local Telephone Market

Albany, April 6 -- In a letter released at a press conference today,
Chairman John F. OMara outlined a series of rigorous tests and
conditions that Bell Atlantic New York has agreed to meet prior to
seeking approval from the Federal Communications Commission (FCC) under
section 271 of the Telecommunications Act for the ability to provide
long distance service in New York State. The details of the agreement on
how Bell Atlantic will further open the local telephone market, are
contained in a prefiling statement made today with the New York State
Public Service Commission.

During the past two years, the staff of the Commission has gone to great
lengths to seek input from interested parties on how to fashion
prefiling conditions to open the local market, said OMara. After a
two-year process on section 271 in general and weeks of conferences and
meetings with the Department of Justice (DOJ) and competitive local
exchange carriers, todays prefiling by Bell Atlantic represents a sound
plan that has broad support.  Therefore, if Bell Atlantic New York meets
all of the steps outlined in its prefiling, with the PSC and DOJ signing
off on each one, I have informed the company that, in my opinion,  the
local telecommunications market in New York will be fully and
irreversibly opened to competition and I would recommend that Bell
Atlantic then be permitted to enter into the long distance market.

New York State Attorney General Dennis C. Vacco voiced his support,
stating, Competition is the hallmark of lower prices and higher service
quality.  The agreement that Chairman OMara has constructed takes us a
long way towards achieving these goals on behalf of New York consumers. 
I applaud Chairman OMara, and remain committed, as I have in the past,
to being a vigilant and aggressive advocate to ensure that Bell Atlantic
keeps its commitment to opening up its service territory to competition
and improving quality.

New York State Consumer Protection Board Director Tim Carey, said, The
statement filed by Bell Atlantic today represents the culmination of a
truly historic effort that will benefit consumers, not just in New York
State, but across the country. At Governor Patakis direction, the CPB
has consistently advocated policies to open monopolistic markets to
competition. Todays filing  sets the stage for competition in local
telephone service which will help achieve the goals of better service,
lower prices and innovation.

The prefiling establishes a series of extremely detailed and exhaustive
steps that Bell Atlantic must take and conditions the company has agreed
to take in order to assure timely and responsible wholesale service to
competitors.  Specific issues addressed include:

         The packaging of elements of Bell Atlantics 
         telephone network, including the full
         platform of unbundled network elements platform 
         (UNE-P), for resale to competitive
         local exchange carriers (CLECS).

         Terms and conditions under which the CLECS 
         will be able to connect their facilities
         with those of Bell Atlantic.

         Third party testing, supervised by the PSC 
         and DOJ, of Bell Atlantics Operations
         Support System (OSS) to ensure the company 
         has made the necessary changes to
         accommodate ordering, billing, customer migration, 
         order changes and maintenance
         and repair.

         Establishment of a system, to be supervised by the 
         PSC,  that will provide significant
         incentives for Bell Atlantic to maintain an open 
         market and prevent backsliding. The
         system involves a series of price discounts, 
         penalties and automatic extensions of
         unbundled network elements platform (UNE- P) 
         availability to competitors if service
         falls below certain levels.

The prefiling agreement achieved some laudable goals in establishing
what we believe is a clear roadmap for Bell Atlantics entry into the
long distance business and for irreversibly opening the local market to
competition, noted OMara.  Especially significant is the fact that the
agreement gives potential competitors the benefit of the unbundled
network elements platform even though the Eighth Circuit Court of
Appeals struck down an FCC regulation requiring the Regional Bell
Operating Companies to offer this service. The UNE- P provision will
enhance competition in the local market while the provisions to prevent
backsliding will keep the local market open long after Bell Atlantics
entry into long distance. The real beneficiaries of these actions will
be the consumers of New York who will have real choices and lower prices
for local service, together with lower prices for long distance.

Editors notes: For further consumer views on todays filing, please
contact Mark Cooper of the Consumer Federation of America at
301-384-2204. Attached for your convenience are copies of the Chairmans
letter, definitions of key words and phrases, and a list of milestones.

            -30-


          STATE OF NEW YORK DEPARTMENT OF PUBLIC SERVICE
          THREE EMPIRE STATE PLAZA, ALBANY, NY 12223-1350
           Internet Address: http://www.dps.state.ny.us

PUBLIC SERVICE COMMISSION

JOHN F. O'MARA                         LAWRENCE G. MALONE
      Chairman                         General Counsel
MAUREEN O. HELMER
 Deputy Chairman                       

THOMAS J. DUNLEAVY		 	JOHN C. CRARY
JAMES D. BENNETT			Secretary




April 6, 1998



Hon. Maureen O. Helmer
Deputy Chairman
New York State Public Service Commission
3 Empire State Plaza
Albany, New York   12223

Dear Deputy Chairman Helmer:

I would like to share with you a few thoughts on a series of commitments
that Bell Atlantic-New York (BA-NY) has made to open its local network
to competition.  If BA-NY meets all of the steps outlined in its
Statement -- with the New York State Department of Public Service and
the Department of Justice signing off on each condition -- I would
recommend, for the reasons discussed below, that BA-NY be permitted to
enter into the long distance market.

Assuming BA-NY meets the milestones described therein, BA-NY's Prefiling
Statement demonstrates that it will comply with each element of  271's
checklist for entry into long distance.  Most importantly, the
commitments and deterrents to backsliding found in the document (coupled
with the commitments in its initial filing) will ensure a competitive
local exchange market that is fully and irreversibly open.

           Bell Atlantic Interaction With Competitors

Reliability of telephone service in a competitive marketplace will
depend, to a large extent, on the service that BA-NY, which controls
bottleneck facilities, provides to competitive local exchange companies
(CLECs).  Part 1 of the Draft Prefiling establishes a series of
procedural and substantive steps that BA-NY has agreed to take in order
to facilitate interaction with CLECs.  Action outlined in the Prefiling
should improve the manner in which BA-NY manages accounts, operates its
wholesale centers, and treats complaints by CLECs.  Further, it commits
BA-NY to encourage employees in its wholesale center to provide timely
service to CLECs. Part 1 (coupled with the terms against backsliding
found in Part 5) should assure timely and responsive wholesale service.

UNE Combinations and UNE-P

Until we have full facilities-based competition, the unbundled network
element platform (UNE-P) offers some competitors the most economic means
to compete.  In October 1997, the Eighth Circuit Court of Appeals struck
down an FCC regulation that had required incumbent local exchange
companies (ILECs) to combine unbundled network elements in a platform. 
The Court appears to have held that the Telecommunications Act only
requires incumbent LECs to provide access to the elements of its network
on an unbundled (not combined) basis.

While the Eighth Circuit's holding arguably undermines the right of
competitors to the UNE-P (under federal law), the BA-NY prefiling
restores that capability with no "GLUE" charge for residential service
and only $6.00 and $2.00 charges for business service in metropolitan
and rural areas, respectively.

The agreement requires BA-NY to provide the UNE-P platform for CLECs
serving business customers in New York City, except in central offices
that have two competitors of BA-NY collocated to provide local service. 
Moreover, the draft statement provides access to lesser combinations of
UNEs everywhere in New York State, in a manner that is both practically
and legally acceptable.  Finally, it calls for a non-discriminatory
means of access by the CLECs to combine the elements, if they so choose,
throughout the State.  The Commission will ultimately determine what
constitutes non-discriminatory access.

                         Interconnection

In order for CLECs to compete with BA-NY, they must be able to join
their facilities with those of BA-NY.  Part 3 of the Draft Prefiling
sets forth a series of commitments by BA-NY concerning its provision of
interconnection trunks, the routing of calls and other wholesale service
features.

While the Commission recently issued an order specifying the terms and
conditions by which CLECs could collocate with BA-NY, Part 3 not only
assures BA-NY's compliance with the Commission's order but supplements
the rights and duties of the parties on this issue.  These commitments
establish that BA-NY will comply with the interconnection and
collocation requirements of the Telecommunications Act.

Part 3 also details BA-NY's commitment to provide access to UNEs in
accordance with the Act.  In particular, the Draft Prefiling addresses
BA-NY's provisioning of loops (both standard and premium), switching
and  databases.

Operations Support Systems

No retailer can successfully compete unless it is able to process its
customers' applications to obtain (or change) service, to bill customers
and to make all repairs necessary to maintain quality service. Section 4
requires BA-NY to demonstrate, by passing a test supervised by the PSC
and Department of Justice, and administered by an independent third
party, that it has made necessary changes in its system to accommodate
ordering, billing, customer migration, order changes and maintenance and
repair.

In recognition of the fact that development and operation of suitable
operations support systems requires cooperation between BA-NY and the
CLECs, the New York Commission has overseen a lengthy, and at times,
exhaustive, collaborative process wherein BA-NY and CLECs have worked
together to resolve the numerous technical issues underlying operations
support systems.  The Draft Prefiling Statement recognizes that BA-NY
must continue its participation in the collaborative effort.

                  Measures to Avoid Backsliding

Perhaps the most important part of the Draft Prefiling is BA-NY's
commitment to a system, supervised by the Public Service Commission,
that will provide a significant incentive to BA-NY to keep its local
market open to competition.  The system involves a series of BA-NY price
discounts to the CLECs should the company fail to provide adequate
service.  The company's service performance is evaluated through two
tracks.  The first involves several critical measures that analyze
performance in the areas most important to CLECS, while the second
measures overall performance in each of the methods the CLECs will use
to enter the market (resale; interconnection; and UNE-P).  In addition
to the price discounts, Part 5 subjects the company to automatic
extensions of the UNE-P if service falls below certain levels.  The plan
should keep New York State's local market indefinitely open to
competition.

Finally, a provider of long distance service and reseller of local
service requested that I establish a formal evidentiary proceeding (and
hear oral argument) before expressing a position on this matter.  As
pointed out in Attachment A, the Department Staff has gone to great
lengths to seek input from interested parties.  Indeed, after a two-year
process on 271 in general and weeks of conferences and meetings with
Department of Justice and CLECs on how to fashion "prefiling" conditions
to open the market, the Staff developed and sought input on a "Draft
Prefiling Statement" to test preliminary thoughts on these issues. 
Summaries of written comments on the draft are also attached (Attachment
B).  At this juncture, additional comments, hearings or arguments are
neither necessary nor justified.  Having said that, I do envision some
form of additional proceeding on compliance (alternative access).

Very truly yours,


John F. O'Mara
Chairman

Attachments
New York State
Public Service Commission


TERMS AND DEFINITIONS USED IN THE FCCS 271 PROCEEDING

Section 271 - Section 271 of the Telecommunications Act of 1996 defines
the conditions the Bell Operating
Companies must meet before they are permitted to provide long distance
service to customers in their own
territories.

ILECs ("Incumbent" Local Exchange Carriers) - Companies such as Bell
Atlantic that have served for many
years as sole (or "monopoly") providers of local telephone service in
their territories.  These incumbents will
now compete with new entrants in providing consumers with local
telephone service.

CLECs (Competitive Local Exchange Carriers) - The new entrants that will
compete with Bell Atlantic (and
other "incumbent" telephone companies) in providing local telephone
service.  Some CLECs will provide
service using some or all of their own network facilities, while others
will resell the facilities of Bell Atlantic
in order to serve customers.

"Unbundled" Network Elements - The individual components of the local
telephone network (e.g., the
wires going to your home) that, when combined together, are used to
provide telephone service.  Bell Atlantic
will lease these elements individually, (and in various combinations) to
competitors to enable them to serve
their own customers.

UNE-P/Platform (Unbundled Network Elements Platform) - This term
describes the case when Bell Atlantic
leases to another telephone company, on a pre-assembled or "bundled"
basis, all of the network elements
necessary to provide local telephone service.

Glue" Charges - Charges that competitors will pay Bell Atlantic (in some
cases) to compensate it for
combining together all of the network elements into the "platform".

Interconnection - The physical connection of the networks of a competing
local exchange carrier and the
incumbent local exchange carrier for the purpose of transmitting and
routing calls between the two networks.

Collocation - Allows one local exchange carrier to place its equipment
at the premises of another local
exchange carrier for the purposes of connecting the two networks to
exchange telephone traffic between them,
or for the purpose of providing one carrier access to the unbundled
network elements of a second carrier.

OSS (Operational Support Systems) -The various "back office" systems and
processes used by local telephone
companies to process customer orders, bill customers, record and track
service maintenance problems, and
so forth.  CLECs will receive access to these systems to enable them to
serve their own customers.

Third Party Test - A test designed and performed by a consulting firm,
in conjunction with PSC and U.S.
Department of Justice staff, which will evaluate the ability of
competing local exchange companies to transmit
electronic orders for service and repair to the incumbent local exchange
company, and receive service and
billing information electronically from the incumbent company.


                                        APPENDIX 1
List of Milestones


I.    Account Servicing

April 15:Account Managers will receive laptop computers, pagers and cell
phones.

April 15:Bell Atlantic will provide to both CLECs and the Public Service
Commission, and will
      post on the Website, the list of central offices that have known
physical collocation space
      constraints, as well as those that have only unconditioned space
remaining.

April 30:Additional technical support staff in place.

April 30:Bell Atlantic-NY will facilitate sponsorship in a users group
for facilities-based CLECs.

April 30:Bell Atlantic-NY will implement a Single Point of Contact
program for the CATC.

May 31:Bell Atlantic-NY will have completed all end office switch
upgrades in current round.

II.   Combination of Elements

Demonstration that CLECs have reasonable and non-discriminatory access
to unbundled elements.


III.  Interconnection, Collocation and UNEs

July 1:Bell Atlantic-NY must demonstrate that it is able to provision
virtual collocation within the
      prescribed 105 day time interval, and that the installations will
function as intended.

August 31:Bell Atlantic-NY will have a general service offering of
two-way trunks, to both end
      offices and tandems, on a measured-use basis.


IV.   OSS

RFP Milestones for OSS Test, consistent with this Pre-Filing Statement.


V.    Ensuring Continued Performance After InterLATA Entry

July 31:  Data and methodology evaluation.