**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In re Application of )

)

GTE CORPORATION, )

Transferor, )

)

And ) CC Docket No. 98-184

)

BELL ATLANTIC CORPORATION, )

Transferee )

)

For Consent to Transfer Control of Domestic )

And International Section 214 and 310 )

Authorizations and Applications to Transfer )

Control of a Submarine Cable Landing License )

### Order {#order .unnumbered}

**Adopted: July 19, 2001 Released: July 19, 2001**

By the Chief, Policy and Program Planning Division:

#  {#section .unnumbered}

## Introduction

1.  On July 6, 2001, Verizon requested the Commission's consent to allow
    Verizon New York, Inc. (Verizon) and Verizon Advanced Data, Inc.
    (VADI) to cooperate to provide resale of DSL service over resold
    voice lines in Connecticut before the scheduled sunset of the
    advanced services affiliate requirement in the *Bell Atlantic-GTE
    Merger Order*.[^1] For the reasons explained below, we grant
    Verizon's request to the extent described herein.

    **II. Background**

2.  As an initial matter, we note that as a result of the *ASCENT v.
    FCC* ruling, Verizon may elect, at the end of a nine-month
    period,[^2] to reintegrate its separate advanced services affiliate
    into the BOC.[^3] Verizon has submitted a letter requesting
    permission to reintegrate its advanced services subsidiary prior to
    the end of the nine-month period. The Commission is currently
    considering this request.[^4] The instant Special Temporary
    Authority (STA) only governs until the Commission rules on Verizon's
    request to waive the nine-month period or otherwise modifies the
    terms of this STA.

    **III. Discussion**

3.  The standard for granting an STA is whether the proposed action
    "will serve the public interest, convenience and necessity."[^5] In
    the instant case, Verizon plans to broaden its resale DSL offering
    in its Connecticut service area, offering a service that will allow
    a competitive local exchange carrier (competitive LEC) to resell
    VADI's DSL service over lines on which the competitive LEC currently
    resells Verizon's voice service.[^6] The new service will be
    provided pursuant to an amendment to VADI's federal tariff.[^7]
    Verizon states that this is an interim arrangement until a more
    permanent arrangement can be developed through collaboratives and
    the change management processes.[^8]

4.  Verizon states that in order to provision a competitive LEC's order
    to resell VADI's DSL over lines on which the competitive LEC
    currently resells Verizon's voice service, VADI and Verizon will
    need access to each other's systems and data. In order to coordinate
    the provision of voice service and DSL for resale over the same
    line, Verizon and VADI will also need to interact in ways that
    Verizon acknowledges are arguably prohibited by the *Bell
    Atlantic-GTE Merger Order*.[^9] Verizon, therefore seeks both a
    permanent waiver of the Merger Conditions and an STA in order to
    provide this service. The STA would allow Verizon to immediately
    take any and all steps that may be necessary in order to
    successfully process orders for and provide the proposed resale DSL
    service.

5.  We do not address Verizon's request for permanent waiver of the
    merger conditions in this order. We do, however, conclude that
    granting Verizon's request for an STA is in the public interest for
    two reasons. First, granting the STA will enable competitive LECs to
    provide resold voice and DSL service to their end-user customers
    over the same local loop. This should benefit consumers by expanding
    competition in the provision of advanced services. Second, granting
    the STA will allow Verizon and competitive LECs an opportunity to
    gain experience with the ordering and provisioning of resold DSL
    service in conjunction with resold voice service as part of an
    interim arrangement.

6.  In granting Verizon's STA request, we emphasize again that the
    authority granted by this action is limited, and effective only to
    the extent necessary to allow Verizon and VADI to coordinate so that
    a competitive LEC can resell VADI's DSL over lines on which the
    competitive LEC resells Verizon's voice services in Connecticut. Any
    "cooperative" activities not pertaining to the resale product
    offering described above are not covered by this STA and will
    subject Verizon to appropriate enforcement action.

    **IV. Ordering Clause**

7.  Accordingly, IT IS ORDERED that, pursuant to 47 C.F.R. §§ 63.01,
    63.04, Verizon IS GRANTED Special Temporary Authority as described
    above to the extent necessary to permit resale of DSL service by a
    competitive LEC on a line on which the competitive LEC resells
    Verizon's voice service in Verizon's Connecticut service area*.*
    This authority is given without prejudice to any Commission or
    Common Carrier Bureau action that may be taken in the future.

> FEDERAL COMMUNICATIONS COMMISSION

Michelle M. Carey

> Chief, Policy and Program Planning Division
>
> Common Carrier Bureau

[^1]: *See* Letter from Dee May, Executive Director, Federal Regulatory,
    Verizon to Dorothy Attwood, Chief, Common Carrier Bureau, CC Docket
    No. 98-184 (filed July 6, 2001) (*STA Request*); *See also* *In re
    Application of GTE Corporation and Bell Atlantic Corporation 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*, 15 FCC Rcd 14032, App. D (2000)
    (*Bell Atlantic-GTE Merger Order*).

[^2]: In the *Bell Atlantic-GTE Merger Order,* the Commission determined
    that the automatic expiration date for the separate subsidiary
    requirement would be nine months after a final non-appealable
    judicial decision determining that the separate affiliate is a
    successor or assign of the incumbent LEC. *Bell Atlantic- GTE Merger
    Order* 15 FCC Rcd at 14288, para. 11c. By our calculations, the
    advanced services affiliate requirement will automatically sunset on
    January 9, 2002.

[^3]: *See Association of Communications Enterprises v. FCC*, 235 F.3d
    662 (2001) (*ASCENT v. FCC*). As applied to Verizon, this ruling
    holds that its separate advanced services affiliate is a successor
    or assign of the BOC.

[^4]: *See* Pleading Cycle Established for Comments on Verizon's May
    1^st^ Letter Concerning Relief from Bell Atlantic/GTE Merger
    Conditions, Public Notice, DA 01-1325 (May 31, 2001). *See also*
    Letter from Gordon R. Evans, Vice President, Federal Regulatory,
    Verizon to Dorothy Attwood, Chief, Common Carrier Bureau, CC Docket
    No. 98-184 (filed April 27, 2001).

[^5]: 47 C.F.R. §§ 63.01, 63.04. *See also Telephone Company-Cable
    Television Cross-Ownership Rules*, 7 FCC Rcd 5781, 5836 para. 105
    (1992).

[^6]: *STA Request* at 1.

[^7]: *Id.*

[^8]: *Id.*

[^9]: *See* Letter from Dee May, Executive Director, Federal Regulatory,
    Verizon to Dorothy Attwood, Chief, Common Carrier Bureau, CC Docket
    No. 01-100 (filed July 6, 2001) (including an illustrative tariff).