**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of )

)

Petition of SBC Communications Inc. )

for Forbearance of Structural Separation ) WC Docket No. 02-156

Requirements and Request for Immediate )

Interim Relief in Relation to the Provision of )

Nonlocal Directory Assistance Services )

**MEMORANDUM OPINION AND ORDER**

**Adopted: April 28, 2003 Released: April 28, 2003**

By the Senior Deputy Chief, Wireline Competition Bureau:

**I. INTRODUCTION**

1.  SBC Communications Inc. (SBC), on behalf of Nevada Bell, filed a
    petition for forbearance from the enforcement of section 272 of the
    Communications Act of 1934, as amended by the Telecommunications Act
    of 1996 (the Act), in connection with its provision of nonlocal
    directory assistance services in Nevada.[^1] In this Order, we
    conclude that SBC's provision of nonlocal directory assistance
    service to its in-region subscribers constitutes the provision of
    in-region, interLATA service, as defined in section 271(a) of the
    Act. Because we find, however, that these services fall within the
    scope of the exception provided in section 271(g)(4), we conclude
    that SBC may provide nonlocal directory assistance service in Nevada
    without authorization from the Commission to provide in-region,
    interLATA service pursuant to the requirements of section
    271(d).[^2]

2.  Although the incidental, interLATA services described in section
    271(g)(4) must normally be provided through a separate
    affiliate,[^3] we forbear, in part, from applying the requirements
    of section 272 to SBC's nonlocal directory assistance services in
    Nevada.[^4] Pursuant to section 272(c)(1) and our authority under
    sections 4(i), 10, and 303(r) of the Act, we allow SBC to provide
    nonlocal directory assistance on an integrated basis, but we require
    it to make available to unaffiliated entities all of the in-region
    telephone numbers it uses to provide nonlocal directory assistance
    service at the same rates, terms, and conditions it imputes to
    itself.[^5]

    **II. BACKGROUND**

    **A. SBC's Nonlocal Directory Assistance Services**

3.  SBC currently offers nonlocal directory assistance service to
    customers throughout its regions except in Nevada.[^6] These
    services permit SBC to offer both local and nonlocal directory
    assistance service from a single telephone number.[^7]

4.  SBC's nonlocal directory assistance service will be offered in
    Nevada in the same service configuration as in Pacific Bell and
    Southwestern Bell states, using SBC-owned information storage
    facilities that provide nonlocal directory assistance listings.[^8]
    Specifically, when a customer dials the number for local directory
    assistance service, the local central office switch will route the
    call to an operator services switch, which adds a voice response
    unit to the call. The voice response unit will deliver a script
    requesting the city, state, and listing desired and record the
    caller's responses. The operator receiving the call listens to the
    recorded request from the voice response unit and, if the end user's
    response is incomplete or unintelligible, communicates directly with
    the caller to ascertain the desired listing. Upon obtaining this
    information, the operator launches a database query.[^9]

5.  If the requested number is local, the operator launches a query to
    an information storage facility that contains local directory
    listing information. On any such call, the caller, operator, and
    database may be located in different LATAs. SBC typically uses its
    Official Services Networks, which cross LATA boundaries, for the
    provision of local directory assistance service to its own local
    exchange subscribers.[^10]

6.  If the requested number is nonlocal, it will be retrieved from an
    information storage facility that contains either regional or
    nationwide listings.[^11] A regional information storage facility is
    queried when the caller requests the telephone number of a
    subscriber located within one of SBC's in-region states. An
    information storage facility that contains national listings is
    queried when the caller requests the telephone number of a
    subscriber that resides outside the SBC regions. On any nonlocal
    directory assistance call, the end user, operator, and information
    storage facility information may be located in different LATAs.[^12]
    Thus, SBC's nonlocal directory assistance service is provided on an
    interLATA basis.

## **B. Statutory Framework** {#b.-statutory-framework .unnumbered}

###  {#section .unnumbered}

### Sections 271 and 272

7.  Sections 271 and 272 establish a comprehensive framework governing
    BOC provision of "interLATA service."[^13] Pursuant to section
    271(a) and (b), neither a BOC nor a BOC affiliate may provide
    in-region, interLATA service prior to receiving authorization from
    the Commission.[^14] Section 271(b)(3) does, however, authorize BOCs
    to engage in the provision of the "incidental interLATA services"
    described in section 271(g) immediately after the date of enactment
    of the 1996 Act.[^15] One such service is defined in section
    271(g)(4) as "the interLATA provision by a \[BOC\] or its affiliate
    . . . of a service that permits a customer that is located in one
    LATA to retrieve stored information from, or file information for
    storage in, information storage facilities of such company that are
    located in another LATA."[^16] There are two limitations to our
    interpretation of this section. First, section 271(g)(4) must be
    "narrowly construed."[^17] Second, we must ensure that the services
    authorized under section 271(g)(4) "will not adversely affect
    telephone exchange service ratepayers or competition in any
    telecommunications market."[^18] BOCs are required to provide the
    services authorized under section 271(g)(4) through a separate
    affiliate.[^19]

###  2. Section 10 {#section-10 .unnumbered}

8.  The 1996 Act requires the Commission to forbear from applying any
    regulation or any provision of the Act to telecommunications
    carriers or telecommunications services, or classes thereof, if the
    Commission determines that the three conditions set forth in section
    10 are satisfied. In particular, section 10 provides that

    the Commission shall forbear from applying any regulation or any
    provision of this Act to a telecommunications carrier or
    telecommunications service, or class of telecommunications carriers
    or telecommunications services, in any or some of its or their
    geographic markets, if the Commission determines that \--

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(1) enforcement of such regulation or provision is not necessary to
    ensure that the charges, practices, classifications or regulations
    by, for, or in connection with that telecommunications carrier or
    telecommunications service are just and reasonable, and are not
    unjustly or unreasonably discriminatory;

(2) enforcement of such regulation or provision is not necessary for the
    protection of consumers; and

(3) forbearance from applying such provision or regulation is consistent
    with the public interest.[^20]

    With regard to the public interest determination required by section
    10(a)(3), section 10(b) states that, "\[i\]f the Commission
    determines that such forbearance will promote competition among
    providers of telecommunications services, that determination may be
    the basis for a Commission finding that forbearance is in the public
    interest."[^21]

# III. DISCUSSION {#iii.-discussion .unnumbered}

## **A. Overview** {#a.-overview .unnumbered}

9.  In the *U S WEST NDA Forbearance Order*, the Commission held that U
    S WEST (now Qwest) could provide the regionwide component of its
    nonlocal directory assistance service without obtaining
    authorization from the Commission to provide in-region, interLATA
    service under section 271(d), because such service fell within the
    scope of the exception provided in section 271(g)(4).[^22] Although
    section 272 requires the services described in section 271(g)(4) to
    be provided through a separate affiliate, the Commission forbore
    from enforcing those requirements with respect to U S WEST's
    provision of the regionwide component of its nonlocal directory
    assistance service, but retained the nondiscrimination requirements
    of section 272(c)(1).[^23] Since the *U S WEST NDA Forbearance
    Order*, the Common Carrier Bureau (now the Wireline Competition
    Bureau) has granted other petitions for forbearance from section 272
    for BOCs' nonlocal directory assistance services on delegated
    authority.[^24]

## **B. Section 271(g)(4)** {#b.-section-271g4 .unnumbered}

10. We conclude that SBC's provision of nonlocal directory assistance
    service in Nevada will constitute the provision of in-region,
    interLATA service.[^25] In providing nonlocal directory assistance
    service to its in-region subscribers, SBC uses interLATA
    transmission to connect end users to directory assistance operators
    and to retrieve directory listing information from the appropriate
    information storage facility.[^26] We further find, however, that
    SBC's nonlocal directory assistance services fall within the scope
    of the exception provided in section 271(g)(4) for incidental,
    interLATA services.

11. As previously noted, section 271(g)(4) authorizes "the interLATA
    provision by a \[BOC\] or its affiliate . . . of a service that
    permits a customer that is located in one LATA to retrieve stored
    information from, or file information for storage in, information
    storage facilities of such company that are located in another
    LATA."[^27] In the *U S WEST NDA Forbearance Order*, the Commission
    concluded that section 271(g)(4) authorizes BOC provision of the
    capability for customers to access only the BOC\'s *own* centralized
    information storage facilities.[^28] The Commission has recently
    concluded that an ownership interest of greater than 10 percent in
    information storage facilities makes those facilities the
    "information storage facilities of such company" under section
    271(g)(4).[^29] SBC states that it owns the information storage
    facilities it will use in the provision of nonlocal directory
    assistance service in Nevada.[^30] We, therefore, find that SBC's
    nonlocal directory assistance services in Nevada will be configured
    in the same manner as the regionwide component of the nonlocal
    directory assistance services the Commission considered in the *U S
    WEST NDA Forbearance Order*.

12. On the basis of SBC's representations that it owns the information
    storage facilities it will use in the provision of nonlocal
    directory assistance service in Nevada, we conclude that SBC's
    nonlocal directory assistance service is an incidental, interLATA
    service as that term is defined in section 271(g)(4). SBC,
    therefore, may provide nonlocal directory assistance service to
    customers in Nevada without obtaining authorization from the
    Commission under section 271(d) to provide in-region, interLATA
    service.

# Section 10

13. For the reasons set forth below, we forbear from applying the
    separate affiliate requirements of section 272 to SBC's nonlocal
    directory assistance services in Nevada. We allow SBC to provide
    nonlocal directory assistance service on an integrated basis, but
    require it to provide to unaffiliated entities all of the in-region
    directory listing information it uses to provide nonlocal directory
    assistance service at the same rates, terms, and conditions it
    imputes to itself. With respect to the first criterion for
    forbearance,[^31] we find it relevant that SBC is a relatively new
    entrant in the market for nonlocal directory assistance service that
    faces competition from interexchange carriers (such as AT&T, Sprint,
    and WorldCom), Internet service providers, and providers of payphone
    and cellular services.[^32] We also are persuaded by the fact that
    SBC does not exercise monopoly power over the components used to
    provide the telephone numbers of customers outside its regions.[^33]

14. In the *U S WEST NDA Forbearance Order*, the Commission required U S
    WEST to comply with the nondiscrimination requirements set forth in
    section 272(c)(1).[^34] We find that the reasoning set forth in the
    *U S WEST NDA Forbearance Order* is fully applicable to SBC's
    nonlocal directory assistance services in Nevada.[^35] We,
    therefore, impose these same requirements on SBC in Nevada. Thus,
    SBC must: (1) make available to unaffiliated entities all of the
    directory listing information that it uses to provide regionwide
    directory assistance service at the same rates, terms, and
    conditions it imputes to itself; (2) make changes to its cost
    allocation manuals to reflect this accounting change; and (3) update
    and maintain the directory listing information it provides to
    unaffiliated entities in the same manner it updates and maintains
    the directory listing information it uses in the provision of
    nonlocal directory assistance service.[^36] SBC must also comply
    with the nondiscrimination requirements set forth in the *U S WEST
    NDA Forbearance Order*.[^37]

15. In the SBC petition, SBC explains that Nevada Bell's regional
    listings include Sprint listings for Nevada customers that SBC
    purchases for inclusion in its directory assistance database from
    Sprint.[^38] SBC states that it "does not interpret the Commission's
    rules to require Nevada Bell to provide Sprint's DA listings on a
    nondiscriminatory basis."[^39] It notes that SBC and BellSouth have
    filed a petition seeking clarification or reconsideration by the
    Commission of this issue.[^40] SBC, however, states that Nevada Bell
    currently provides Sprint's directory assistance listings on a
    nondiscriminatory basis when requested and affirms that it will
    continue to do so pending the resolution of the SBC/BellSouth
    Petition for Reconsideration.[^41] On the basis of SBC's
    representations and given our expectation that SBC will comply with
    these requirements, we conclude that the first criterion for
    forbearance is satisfied.

16. With respect to the second criterion for forbearance,[^42] we note
    that retention of the section 272(c)(1) nondiscrimination
    requirements with respect to SBC's in-region telephone numbers
    should protect consumers by promoting the development of a fully
    competitive market for nonlocal directory assistance service. It
    should also ensure that no competitor will have an undue advantage
    in the nonlocal directory assistance services market in Nevada.[^43]
    This should stimulate the entry of new providers of nonlocal
    directory assistance service, which, in turn, will encourage the
    providers of these services to compete on the basis of price and
    quality.[^44] Because competition among providers of this type of
    directory assistance service is likely to benefit consumers, we
    conclude that the enforcement of section 272 is not necessary to
    prevent SBC from engaging in conduct that would harm consumers.[^45]
    We, therefore, find that the second criterion for forbearance is
    met.

17. With respect to the third criterion for forbearance,[^46] we
    conclude that allowing SBC to provide nonlocal directory assistance
    service on an integrated basis in Nevada is in the public interest
    because it will allow SBC to be a more effective competitor in the
    nonlocal directory assistance services market.[^47] Conversely, if
    SBC were required to provide nonlocal directory assistance service
    through a separate affiliate, while continuing to provide local
    directory assistance service on an integrated basis, the additional
    cost and adverse competitive consequences for SBC would most likely
    outweigh any slight benefits for consumers from enforcing these
    requirements.[^48] We conclude that the market for nonlocal
    directory assistance service in Nevada should become increasingly
    competitive if SBC is allowed to be an effective competitor in this
    market, which would ultimately benefit consumers because they would
    be able to obtain a convenient, competitively-priced nonlocal
    directory assistance service.[^49] On the basis of these findings,
    we conclude that the third criterion for forbearance is met. Because
    we also find that the first and second criteria for forbearance are
    met, we forbear, in part, from the enforcement of section 272 as to
    SBC's provision of nonlocal directory assistance services in Nevada.

18. AT&T and WorldCom argue that the SBC petition should be denied
    because SBC has violated the condition that it make available to
    unaffiliated entities all of the directory listing information that
    it uses to provide regionwide directory assistance service at the
    same rates, terms, and conditions it imputes to itself in states for
    which SBC has already been granted the requested forbearance.[^50]
    These commenters allege that SBC's provision of in-region directory
    assistance database information is discriminatory and thus in
    violation of this condition because the directory listing
    information is provided at rates that are not cost-based.[^51]
    Moreover, AT&T alleges that "PAC Bell is not likely imputing to
    itself the above-cost rate it charges to third parties."[^52] SBC
    responds that it fully complies with this condition in states in
    which it has already been granted forbearance from section 272 for
    its nonlocal directory assistance services and that it will impute
    to itself the directory assistance listing rates assessed to third
    parties for Nevada directory assistance listings.[^53]

19. Similar to the Commission's findings in the *U S WEST NDA
    Forbearance Order*, we find that the accounting safeguards described
    above should ensure that the rates SBC imputes to itself, and
    therefore charges to unaffiliated entities, will not adversely
    affect competition in the nonlocal directory assistance services
    market.[^54] Moreover, the Commission has affirmed that these
    requirements protect unaffiliated entities.[^55] Accordingly, we
    reject commenters' claims that application of the separate affiliate
    requirements of section 272 to SBC's nonlocal directory assistance
    services in Nevada is necessary to prevent discrimination. We
    further find that any arguments concerning SBC's failure to comply
    with the requirements of section 272(c)(1) or this Order are more
    appropriately addressed in the context of an enforcement
    proceeding.[^56]

    **IV. CONCLUSION**

20. For the reasons set forth above, we conclude that SBC may provide
    nonlocal directory assistance service in Nevada because that service
    falls within the scope of section 271(g)(4). We further conclude
    that, as long as SBC complies with the nondiscrimination
    requirements set forth above with respect to providing unaffiliated
    entities with access to all of the in-region directory listing
    information it uses to provide nonlocal directory assistance
    service, the statutory criteria for forbearance set forth in section
    10 are satisfied. Therefore, we forbear, in part, from applying the
    requirements of section 272 to SBC's provision of nonlocal directory
    assistance service in Nevada. Accordingly, we allow SBC to provide
    nonlocal directory assistance service in Nevada on an integrated
    basis, subject to these nondiscrimination requirements.

**V. ORDERING CLAUSES**

21. Accordingly, IT IS ORDERED, pursuant to sections 4(i), 10, 272,
    303(r), 47 U.S.C. §§ 154(i), 160, 272, and 303(r), of the
    Communications Act of 1934, as amended, and sections 0.91 and 0.291
    of the Commission's rules, 47 C.F.R. §§ 0.91, 0.291, that SBC's
    petition for forbearance with respect to its nonlocal directory
    assistance services in Nevada IS GRANTED to the extent set forth
    herein.

22. IT IS HEREBY FURTHER ORDERED, pursuant to section 1.103(a) of the
    Commission's rules, 47 C.F.R. § 1.103(a), that this Memorandum
    Opinion and Order SHALL BE EFFECTIVE upon release.

FEDERAL COMMUNICATIONS COMMISSION

> Jeffrey J. Carlisle
>
> Senior Deputy Chief
>
> Wireline Competition Bureau

[^1]: Petition of SBC Communications Inc. for Forbearance of Structural
    Separation Requirements and Request for Immediate Interim Relief in
    Relation to the Provision of Nonlocal Directory Assistance Services,
    WC Docket No. 02-156 (filed May 24, 2002) (SBC Petition). Comments
    were filed on July 12, 2002, by AT&T Corp., WorldCom, and the United
    States Telecom Association. Reply comments were filed on July 22,
    2002, by SBC Communications.

[^2]: We note that SBC was granted authority pursuant to section 271(d)
    to provide in-region, interLATA services in Nevada on April 14,
    2003. *Application by SBC Communications Inc., Nevada Bell Telephone
    Company, and Southwestern Bell Communications Services, Inc., for
    Authorization to Provide In-Region, InterLATA Services in Nevada*,
    WC Docket No. 03-10, Memorandum Opinion and Order, FCC 03-80 (rel.
    Apr. 14, 2003).

[^3]: *See* 47 U.S.C. § 272(a)(2)(B)(i).

[^4]: *See Petition of U S WEST Communications, Inc. for a Declaratory
    Ruling Regarding the Provision of National Directory Assistance,* CC
    Docket No. 97-172, *Petition of U S WEST Communications, Inc., for
    Forbearance,* CC Docket No. 97-172, *The Use of N11 Codes and Other
    Abbreviated Dialing Arrangements,* CC Docket No. 92-105, Memorandum
    Opinion and Order, 14 FCC Rcd 16252, 16254, paras. 2-3 (1999) (*U S
    WEST NDA Forbearance Order*).

[^5]: *See U S WEST NDA Forbearance Order,* 14 FCC Rcd at 16254, para.
    3.

[^6]: *See BellSouth Petition for Forbearance for Nonlocal Directory
    Assistance Service, Petition of SBC Communications Inc. for
    Forbearance of Structural Separation Requirements and Request for
    Immediate Interim Relief in Relation to the Provision of Nonlocal
    Directory Assistance Services, Petition of Bell Atlantic for Further
    Forbearance from Section 272 Requirements in Connection with
    National Directory Assistance Services*, CC Docket No. 97-172,
    Memorandum Opinion and Order, 15 FCC Rcd 6053 (Com. Car. Bur. 2000)
    (*SBC NDA Forbearance Order*). The forbearance granted in the *SBC
    NDA Forbearance Order* extended only to Ameritech, Southwestern
    Bell, and Pacific Bell. It did not address the petition filed on
    behalf of Nevada Bell because Nevada Bell did not provide nonlocal
    directory assistance service at that time. Instead, it concluded
    that Nevada Bell would be required to demonstrate that its nonlocal
    directory assistance service falls within the scope of section
    271(g)(4) at the time it sought to provide such service*. See id.,*
    at 6053, para. 1 n.2. SBC now seeks to provide nonlocal directory
    assistance service in Nevada. *See* SBC Petition at 2.

[^7]: *See* *U S WEST NDA Forbearance Order*, 14 FCC Rcd at 16254-55,
    paras. 5-7*.* In the *U S WEST NDA Forbearance Order*, the
    Commission noted that there are two types of directory assistance
    services available to customers throughout the United States: local
    directory assistance service and nonlocal directory assistance
    service. *See id.,* at 16254-55, paras. 5-6. Directory assistance
    service is considered "local" whenever a customer requests the
    telephone number of a subscriber within his or her LATA or area
    code. *See id.,* at 16254-55, para. 5. Customers typically access
    their local exchange carrier's local directory assistance service by
    dialing 411, 1-411, or 555-1212. Directory assistance service is
    considered "nonlocal" whenever a customer requests the telephone
    number of a domestic subscriber located outside his or her LATA or
    area code. *See id.,* at 16254-55, para. 6. Under the Modification
    of Final Judgment (MFJ), Bell Operating Companies (BOCs) were
    prohibited from providing nonlocal directory assistance service.
    *See id.,* at 16255, para. 6. Thus, nonlocal directory assistance
    service traditionally has been provided by interexchange carriers.
    *See id*.

[^8]: *See* SBC Petition at 2; *see also* Petition of SBC Communications
    Inc. for Forbearance of Structural Separation Requirements and
    Request for Immediate Interim Relief in Relation to the Provision of
    Nonlocal Directory Assistance Services, CC Docket No. 97-172 (filed
    Nov. 2, 1999); SBC Communications Inc.'s Clarification and
    Supplement to its Petition for Forbearance, CC Docket No. 97-172
    (filed Nov. 19, 1999); *Petition of U S WEST Communications, Inc.
    for a Declaratory Ruling Regarding the Provision of National
    Directory Assistance*, CC Docket No. 97-172, Order on
    Reconsideration, 17 FCC Rcd 17030, 17034, para. 8 (2002) (*U S WEST
    NDA Forbearance Order on Reconsideration*) (concluding that an
    ownership interest of greater than 10 percent in information storage
    facilities makes those facilities the "information storage
    facilities of such company" under section 271(g)(4)).

[^9]: *See* *SBC NDA Forbearance Order*, 15 FCC Rcd at 6055, para. 4;
    Letter from Toni R. Acton, Associate Director -- Federal Regulatory,
    SBC, to Marlene H. Dortch, Secretary, Federal Communications
    Commission, WC Docket No. 02-156, Attach. at 1 (filed Mar. 18, 2003)
    (SBC Mar. 18 *Ex Parte* Letter).

[^10]: *See* *SBC NDA Forbearance Order*, 15 FCC Rcd at 6055-56, para.
    5; SBC Mar. 18 *Ex Parte* Letter, Attach. at 1; *see also* *U S WEST
    NDA Forbearance Order*, 14 FCC Rcd at 16256, para. 8.

[^11]: *See* *SBC NDA Forbearance Order*, 15 FCC Rcd at 6056, para. 6.
    SBC states that Nevada Bell will query an SBC-owned information
    storage facility in Concord, California for California and Nevada
    listings and will query an SBC-owned information storage facility in
    Rochester, New York for all other nonlocal listings. *See* SBC
    Petition at 2; SBC Mar. 18 *Ex Parte* Letter, Attach. at 1

[^12]: *See* *SBC NDA Forbearance Order*, 15 FCC Rcd at 6056, para. 6;
    SBC Mar. 18 *Ex Parte* Letter, Attach. at 1.

[^13]: The term "interLATA service" is defined in the Act as
    "telecommunications between a point located in a local access and
    transport area and a point located outside such area." 47 U.S.C. §
    153(21). "Telecommunications" is defined as "the transmission,
    between or among points specified by the user, of information of the
    user's choosing, without change in the form or content of the
    information as sent and received." 47 U.S.C. § 153(43).

[^14]: 47 U.S.C. § 271(a), (b).

[^15]: 47 U.S.C. § 271(b)(3).

[^16]: 47 U.S.C. § 271(g)(4).

[^17]: 47 U.S.C. § 271(h).

[^18]: 47 U.S.C. § 271(h).

[^19]: 47 U.S.C. § 272(a)(2)(B)(i).

[^20]: 47 U.S.C. § 160(a).

[^21]: 47 U.S.C. § 160 (b). Section 10(d) specifies that "\[e\]xcept as
    provided in section 251(f), the Commission may not forbear from
    applying the requirements of section 251(c) or 271 under \[section
    10(a)\] until it determines that those requirements have been fully
    implemented." 47 U.S.C. § 160(d).

[^22]: *See U S WEST NDA Forbearance Order*, 14 FCC Rcd at 16265-66,
    paras. 23-24.

[^23]: *See id.* at 16271-74, paras. 33-38.

[^24]: *See, e.g.,* *SBC NDA Forbearance Order* (granting forbearance
    for BellSouth, SBC (except Nevada), and Bell Atlantic-South)*;
    Petition of Bell Atlantic for Forbearance from Section 272
    Requirements in Connection with National Directory Assistance
    Services*, CC Docket No. 97-172, Memorandum Opinion and Order, 14
    FCC Rcd 21484 (Com. Car. Bur. 1999) (granting forbearance for Bell
    Atlantic-North).

[^25]: *See* *SBC NDA Forbearance Order*, 15 FCC Rcd at 6059, para. 11.

[^26]: *See* SBC Petition at 3.

[^27]: 47 U.S.C. § 271(g)(4).

[^28]: The Commission found that such a construction of the statute is
    apparent from Congress\' use of the term \"such company\" in setting
    forth the types of services authorized by section 271(g)(4). The
    Commission further noted that such a construction of section
    271(g)(4) is consistent with Congress\' directive that the
    provisions of section 271(g) are to be narrowly construed. *See U S
    WEST NDA Forbearance Order*, 14 FCC Rcd at 16265, para. 23; *SBC NDA
    Forbearance Order*, 15 FCC Rcd at 6059, para. 12.

[^29]: *See U S WEST NDA Forbearance Order on Reconsideration*, 17 FCC
    Rcd at 17034, para. 8.

[^30]: *See* SBC Petition at 2.

[^31]: The first criterion requires the Commission to forbear if it
    determines that "enforcement of such regulation or provision is not
    necessary to ensure that the charges, practices, classifications or
    regulations by, for, or in connection with that telecommunications
    carrier or telecommunications service are just and reasonable and
    are not unjustly or unreasonably discriminatory." 47 U.S.C. §
    160(a).

[^32]: *See SBC NDA Forbearance Order*, 15 FCC Rcd at 6060, para. 14.

[^33]: In the *U S WEST NDA Forbearance Order*, we noted that, like
    competing providers of nonlocal directory assistance service, U S
    WEST must obtain the telephone numbers of subscribers outside its
    region from unaffiliated entities that compile national listings or
    from other local exchange carriers. *See U S WEST NDA Forbearance
    Order*, 14 FCC Rcd at 16271, para. 33; *see also SBC NDA Forbearance
    Order*, 15 FCC Rcd at 6060, para. 14.

[^34]: *See U S WEST NDA Forbearance Order*, 14 FCC Rcd at 16273-74,
    paras. 37-38.

[^35]: In the *U S WEST NDA Forbearance Order*, the Commission found
    that the competitive advantages U S WEST enjoyed with respect to the
    provision of directory assistance service throughout its region
    stemmed from its dominant position in the local exchange and
    exchange access markets. Specifically, the Commission found that,
    because of its dominance in these markets, U S WEST had access to a
    more complete, accurate, and reliable database than its competitors.
    Given that U S WEST's competitive advantages in the provision of
    regionwide directory assistance service stemmed from its local
    exchange and exchange access monopolies, the Commission found that U
    S WEST must comply with the nondiscrimination requirements set forth
    in section 272 with respect to the in-region telephone numbers it
    uses in the provision of nonlocal directory assistance service. *See
    U S WEST NDA Forbearance Order*, 14 FCC Rcd at 16272-73, para. 35.
    SBC has been the dominant provider of local exchange and exchange
    access services in its regions for many years. Like U S WEST, the
    competitive advantages SBC possesses in the provision of the
    telephone numbers of customers inside its regions stem from its
    dominance in these markets.

[^36]: *See* *U S WEST NDA Forbearance Order*, 14 FCC Rcd at 16273-74,
    para. 37; *SBC NDA Forbearance Order*, 15 FCC Rcd at 6060-61, para.
    15.

[^37]: To the extent that any BOC cannot make available to unaffiliated
    entities the directory listing information it uses in the provision
    of nonlocal directory assistance, it must cease using these listings
    in its own provision of nonlocal directory assistance service. *See
    U S WEST NDA Forbearance Order,* 14 FCC Rcd at 16273-74, para. 37;
    *SBC NDA Forbearance Order*, 15 FCC Rcd at 6060-61, para. 15 n.44.

[^38]: *See* SBC Petition at 6 n.14.

[^39]: SBC Petition at 6 n.14; *see* *also Provision of Directory
    Listing Information under the Telecommunications Act of 1934, as
    Amended*, CC Docket No. 99-273, First Report and Order, 16 FCC Rcd
    2736, 2750-51, para. 32 (2001).

[^40]: *See* SBC Petition at 6 n.14; *see also* SBC Communications Inc.
    and BellSouth Corporation Petition for Clarification or, in the
    Alternative, Reconsideration, CC Docket No. 99-273 (filed Mar. 23,
    2001) (SBC/BellSouth Petition for Reconsideration).

[^41]: *See* Letter from Toni R. Acton, Associate Director -- Federal
    Regulatory, SBC, to Marlene H. Dortch, Secretary, Federal
    Communications Commission, WC Docket No. 02-156 (filed Sept. 16,
    2002).

[^42]: The second criterion requires the Commission to forbear if it
    determines that "enforcement of such regulation or provision is not
    necessary for the protection of consumers." 47 U.S.C. § 160(a).

[^43]: *See U S WEST NDA Forbearance Order,* 14 FCC Rcd at 16278, para.
    47; *SBC NDA Forbearance Order*, 15 FCC Rcd at 6061, para. 16.

[^44]: *See U S WEST NDA Forbearance Order,* 14 FCC Rcd at 16278, para.
    47; *SBC NDA Forbearance Order*, 15 FCC Rcd at 6061, para. 16.

[^45]: *See U S WEST NDA Forbearance Order,* 14 FCC Rcd at 16278, para.
    47; *SBC NDA Forbearance Order*, 15 FCC Rcd at 6061, para. 16.

[^46]: The third criterion requires the Commission to forbear if it
    determines that "forbearance from applying such provision or
    regulation is consistent with the public interest." 47 U.S.C.
    §160(a).

[^47]: *See U S WEST NDA Forbearance Order,* 14 FCC Rcd at 16278-80,
    paras. 48-51; *SBC NDA Forbearance Order*, 15 FCC Rcd at 6061-62,
    para. 17.

[^48]: *See U S WEST NDA Forbearance Order,* 14 FCC Rcd at 16278-79,
    para. 49; *SBC NDA Forbearance Order*, 15 FCC Rcd at 6061-62, para.
    17.

[^49]: *See U S WEST NDA Forbearance Order,* 14 FCC Rcd at 16279-80,
    paras. 50-51; *SBC NDA Forbearance Order*, 15 FCC Rcd at 6061-62,
    para. 17.

[^50]: *See* AT&T Comments at 1; WorldCom Comments at 4-5; *see also*
    *SBC NDA Forbearance Order*, 15 FCC Rcd at 6060-61, para. 15.

[^51]: *See* AT&T Comments at 1; WorldCom Comments at 4-5.

[^52]: *See* AT&T Comments at 2.

[^53]: *See* SBC Reply Comments at 1-2.

[^54]: *See U S WEST NDA Forbearance Order*, 14 FCC Rcd at 16266-67,
    para. 25 & n.72; *see also* *SBC* *NDA Forbearance Order*, 15 FCC
    Rcd at 6063, para. 20; *Implementation of the Telecommunications Act
    of 1996: Accounting Safeguards Under the Telecommunications Act of
    1996*, CC Docket No. 96-150, Report and Order, 11 FCC Rcd 17539,
    17567-73, paras. 61-76 (1996) (concluding that the accounting
    safeguards ensure that the BOCs' provision of incidental interLATA
    services on an integrated basis will not adversely affect telephone
    exchange ratepayers or competition in any telecommunications
    market).

[^55]: *See* *Petition of Bell Atlantic for Forbearance from Section 272
    Requirements in Connection with National Directory Assistance
    Services*, CC Docket No. 97-172, Memorandum Opinion and Order, 15
    FCC Rcd 13154, 13156, para. 4 (2000) (*Bell Atlantic-North NDA
    Forbearance Order on Review*).

[^56]: *See SBC NDA Forbearance Order*, 15 FCC Rcd at 6063, para. 21;
    *see also* *Bell Atlantic-North NDA Forbearance Order on Review*, 15
    FCC Rcd at 13156, para. 4.