OT> But like I said earlier, why should the Bells give up home turf, just to get a piece of sod somewhere else?
CAL. PUC STAFF SAYS PAC BELL STILL FLUNKS MOST OF SEC. 271 CHECKLIST
October 8, 1998 COMMUNICATIONS DAILY via NewsEdge Corporation : After months of work with Pacific Bell and other parties, staff of Cal. PUC late Mon. reported that carrier still hasn't complied with 10 of 14 points on Telecom Act's local competition checklist for long distance entry into state that has nation's biggest telecom market. Pac Bell, unit of SBC, said in response that PUC staff wrongly discounted its many market-opening efforts.
PUC staff said that after series of informational meetings with parties, preliminary assessment issued in July and 5 weeks of collaborative sessions this summer aimed at finding solutions, Pac Bell still had serious problems with ordering and provisioning systems used by competitive local exchange companies (CLECs), with colocation requirements, and with dispute resolution.
PUC staff said 5 main problems seemed to be behind all of Pac Bell's noncompliance with checklist: (1) Local interconnection agreements "are not functioning as commercial contracts but rather as playing fields for constant litigious behavior" between parties with unequal bargaining power. (2) Pac Bell still treats CLECs as adversaries that it has been coerced into serving. (3) Pac Bell hasn't demonstrated ability to handle CLEC service needs on mass-market scale. (4) Pac Bell "designs solutions only to meet perceived legal requirements of Section 271" rather than making sincere effort to meet CLEC needs. (5) Pac Bell is unable to produce incontrovertible performance numbers to prove that its systems and processes are nondiscriminatory and fair to CLECs.
Staff report, which is 175 pages long, includes many suggestions for bringing Pac Bell into full checklist compliance. Among major suggestions, staff said PUC needs to reassert its role as neutral 3rd party with authority to bring about timely settlement of disputes, while Pac Bell needs to stop denying its role as wholesale supplier to CLECs and get on with serving CLECs as co-carriers. Report also recommends Pac Bell determine CLEC needs and requirements before developing any new ordering interfaces, develop multiple cageless colocation alternatives, meet with CLECs to develop solutions to white pages, directory assistance and 911 ordering concerns.
Administrative Law Judge Jaqueline Reed will take staff report, along with comments from Pac Bell and other parties, and recommend final list of Pac Bell 271 compliance actions for adoption by full PUC at Nov. meeting. Staff said that while it can recommend solutions, only Pac Bell can take necessary actions. If Pac Bell wants state endorsement of its long distance entry, PUC staff said, it must demonstrate compliance with Section 271's intent that local markets be open to meaningful competition, "not simply that it has implemented a specific set of corrective actions."
In addition to key conclusions, staff said Pac Bell isn't complying fully with Sec. 272 requirements for structural separation of local exchange and long distance operations because it hasn't separated personnel and reporting relationships sufficiently, and has insufficient safeguards against misuse of proprietary customer information. In July report, staff found Pac Bell in compliance only on nondiscriminatory pole/rights-of-way access, nondiscriminatory number assignment, local dialing parity. In ensuing months, said new report, Pac Bell also has moved into compliance on reciprocal compensation.
Pac Bell said it was "disappointed that the staff report did not reflect today's highly competitive [Cal.] market and the significant progress Pacific Bell has made to open the door to full competition." Company said it has negotiated "hundreds" of interconnection agreements, installed 600 colocation cages for competitors at 150 central offices, faces about 150 local competitors. Telco said it will continue forward with its Sec. 271 application and over coming weeks "we will document and prove we have met the [Telecom Act] requirements."
AT&T lauded staff report for recognizing that Pac Bell still is " woefully short" of meeting its obligations to CLECs and for giving Pac Bell "a clear road map of the many steps it must take to open the local market to real competition." MCI WorldCom said report calls attention to barriers Pac Bell has erected to thwart local competition, its attempts to do bare minimum needed to gain long distance approval, its inability to meet CLEC needs. MCI applauded PUC staff for blazing path that, "if Pac Bell chooses to follow," will bring competition's benefits to all Californians. |