Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of )

) File No. EB-01-IH-0236

Verizon Communications, Inc. ) Acct. No. 200132080058 )

**ORDER**

####  Adopted: September 10, 2001 Released: September 14, 2001

#### By the Chief, Enforcement Bureau:

1.  In this Order, we adopt a Consent Decree terminating an
    investigation into possible violations by Verizon Communications,
    Inc. ("Verizon") of section 51.321(h) of the Commission's rules, in
    connection with Verizon's posting of notice of exhausted collocation
    space on its Internet website.

2.  The Bureau and Verizon have negotiated the terms of a Consent Decree
    that would terminate the staff\'s investigation. A copy of the
    Consent Decree is attached hereto and is incorporated by reference.

3.  We have reviewed the terms of the Consent Decree and evaluated the
    facts before us. In light of Verizon's commitment to be bound by
    various requirements to help ensure its compliance with section
    51.321(h) of the Commission's rules, we believe that the public
    interest would be served by approving the Consent Decree and
    terminating the investigation.

4.  Based on the record before us, and in the absence of material new
    evidence relating to this matter, we conclude that there are no
    substantial and material questions of fact as to whether Verizon
    possesses the basic qualifications, including its character
    qualifications, to hold or obtain any FCC licenses or
    authorizations.

5.  Accordingly, IT IS ORDERED, pursuant to section 4(i) of the
    Communications Act, 47 U.S.C. § 154(i), and the authority delegated
    by sections 0.111 and 0.311 of the Commission's rules, 47 C.F.R. §§
    0.111, 0.311, that the attached Consent Decree IS ADOPTED.

6.  IT IS FURTHER ORDERED that the Commission staff inquiry into the
    matter described here IS TERMINATED.

    FEDERAL COMMUNICATIONS COMMISSION

    David H. Solomon

    Chief, Enforcement Bureau

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of )

) File No. EB-01-IH-0236

Verizon Communications, Inc. ) Acct No. 200132080058

)

# CONSENT DECREE

1.  The Enforcement Bureau of the Federal Communications Commission
    ("FCC" or "Commission") and Verizon Communications, Inc. ("Verizon")
    hereby enter into a Consent Decree terminating an informal Bureau
    investigation into possible violations of section 51.321(h) of the
    Commission's rules. The investigation focused on whether Verizon had
    updated its Internet website listing premises that have exhausted
    collocation space "within ten days of the date at which a premises
    runs out of physical collocation space."[^1]

    **Statement of Facts**

```{=html}
<!-- -->
```
7.  In the *Bell Atlantic/GTE Merger Order*, the Commission approved the
    merger of Bell Atlantic and GTE subject to certain conditions
    designed to mitigate potential public interest harms from the
    merger.[^2] One of those conditions was that Verizon retain an
    independent auditor to develop and implement a comprehensive audit
    of the merged company's compliance with the Commission's collocation
    rules.[^3]

8.  On January 29, 2001, Verizon submitted its audit report to the
    Commission regarding Verizon's compliance with the Commission's
    collocation rules from July 1, 2000 through October 31, 2000.[^4]
    The auditor's report indicated that, in certain instances during the
    audit period, Verizon failed to post exhausted collocation space
    within 10 days of exhaustion.[^5] Additionally, the auditor's report
    noted that, in certain instances during the audit period, Verizon
    denied collocation applications for certain premises due to lack of
    space, yet did not post such premises as being exhausted.[^6]
    Rather, Verizon listed such premises as "Pending Office
    Reevaluation," a term the company defines internally to mean that
    "the premise cannot currently accommodate physical collocation but
    may be considered for reconfiguration to permit additional physical
    collocation space in the future."[^7] Based on the Bureau's review
    of the audit report, the Bureau commenced an investigation into
    whether Verizon may have violated the Commission rule requiring the
    timely posting of exhausted collocation space.[^8]

9.  The posting rule states that an incumbent local exchange carrier
    ("ILEC") must update its Internet website listing of premises that
    have exhausted collocation space "within ten days of the date at
    which a premises runs out of physical collocation space."[^9] The
    purpose of the posting rule is to ensure that competitors do not
    "expend\[\] significant resources in applying for collocation space
    in an incumbent ILEC's premises where no such space exists."[^10]
    Information provided by the auditors and Verizon indicates that
    there may have been a number of instances in which Verizon updated
    its website information more than 10 days after the date that space
    for physical collocation became exhausted in those premises.[^11]
    Information submitted to the Bureau by Verizon indicates that in
    some of these instances, competitive local exchange carriers may
    have submitted collocation applications for space at these premises,
    only to have the applications denied on the ground that no space was
    available.[^12] Verizon does not agree that the information provided
    by the auditors and Verizon prove that it failed to meet the 10-day
    posting requirement.

    **Terms of Settlement**

10. For the purposes of this Consent Decree the following definitions
    shall apply:

```{=html}
<!-- -->
```
(a) "Commission" or "FCC" means the Federal Communications Commission;

(b) "Bureau" means the Enforcement Bureau of the Federal Communications
    Commission;

(c) "Verizon" means Verizon Communications, Inc. and any subsidiaries,
    including its incumbent LEC operating telephone companies, and any
    successors or assigns of Verizon Communications, Inc. or its
    incumbent LEC operating telephone companies;

(d) "Parties" means Verizon Communications, Inc., and the Bureau;

(e) "Adopting Order" means an Order of the Bureau adopting the terms and
    conditions of this Consent Decree;

(f) "Effective Date" means the date on which the Bureau releases the
    Adopting Order; and,

(g) "Inquiry" means the investigation initiated by the Bureau's April 5,
    2001 letter of inquiry regarding Verizon's compliance with 47 C.F.R.
    § 51.321(h).

```{=html}
<!-- -->
```
11. The Parties agree that the provisions of this Consent Decree shall
    be subject to final approval by the Bureau by incorporation of such
    provisions by reference in an Adopting Order of the Bureau.

12. The Parties agree that this Consent Decree shall become effective on
    the date on which the Bureau releases the Adopting Order. Upon
    release, the Adopting Order and this Consent Decree shall have the
    same force and effect as any other Order of the Commission and any
    violation of the terms of this Consent Decree shall constitute a
    violation of a Commission Order entitling the Commission to exercise
    any and all rights and to seek any and all remedies authorized by
    law for the enforcement of a Commission Order.

13. Verizon admits the jurisdiction of the Commission for purposes of
    this Consent Decree and the Adopting Order.

14. The parties agree and acknowledge that this Consent Decree shall
    constitute a final settlement between Verizon and the Bureau of the
    Inquiry. In consideration for the termination by the Bureau of its
    investigation into whether Verizon has violated section 51.321(h) of
    the Commission's rules, 47 C.F.R. § 51.321(h), and in accordance
    with the terms of this Consent Decree, Verizon agrees to the terms
    set forth herein.

15. Verizon agrees to initiate the following remedial actions, no later
    than 30 days from the effective date of this Consent Decree, to help
    ensure its compliance with section 51.321(h) of the Commission's
    rules: (1) adopt new methods and procedures to clearly indicate that
    a grant of an application for collocation space, or any other event
    that makes unavailable the last remaining usable physical
    collocation space, triggers the ten-day time period within which
    Verizon must post notice of exhaustion of space for physical
    collocation; (2) establish a centralized point of control to monitor
    and record Verizon's compliance with the posting requirements of
    section 51.321(h); and (3) eliminate the use of the phrase "Pending
    Office Reevaluation" on Verizon's Internet site that lists
    facilities with exhausted physical collocation space. Verizon agrees
    to continue to comply with each of these remedial actions for the
    entire time period in which the Internet posting requirement in
    section 51.321(h) of the Commission's rules remains in effect in its
    current form. Additionally, Verizon agrees to provide remedial
    refresher training on the posting requirements of section 51.321(h)
    to all personnel responsible for Internet posting regarding
    collocation space exhaustion, such training to take place within 12
    months from the effective date of this Consent Decree.

16. Verizon shall make a voluntary contribution to the United States
    Treasury in the total amount of \$77,000 (seventy-seven thousand
    dollars). This amount shall be paid within 30 days of the date on
    which the order adopting this Consent Decree becomes final. Such
    contribution shall be made, without further protest or recourse, by
    certified check, cashiers check, or money order drawn to the order
    of the Federal Communications Commission, and shall be mailed to the
    Forfeiture Collection Section, Finance Branch, Federal
    Communications Commission, P.O. Box 73482, Chicago, Illinois
    60673-7482. Reference should be made on the check or money order to
    "Acct. No. 200132080058."

17. While this Consent Decree is in effect, Verizon agrees to maintain
    and make available to the Bureau within 21 days of the receipt of a
    specific written request from the Bureau, business records
    demonstrating compliance with the terms and provisions of this
    Consent Decree. This requirement will begin forty-five 45 days after
    the effective date of this Consent Decree and will expire
    twenty-four (24) months later.

18. In express reliance on the covenants and representations in this
    Consent Decree, the Bureau agrees to terminate the inquiry without
    any finding of liability on the part of Verizon.

19. The Bureau agrees that, based on the facts developed in the Inquiry
    and in the absence of material new evidence related to this matter,
    it will not use the facts developed in this Inquiry through the date
    of the Consent Decree or the existence of this Consent Decree to
    institute, on its own motion, any new proceeding, formal or
    informal, or take any action on its own motion against Verizon
    concerning the matters that were the subject of the Inquiry. The
    Bureau also agrees that, based on the facts developed in the
    Inquiry, and in the absence of material new evidence related to this
    matter, it will not use the facts developed in this Inquiry through
    the date of this Consent Decree or the existence of this Consent
    Decree to institute on its own motion any proceeding, formal or
    informal, or take any action on its own motion against Verizon with
    respect to its basic qualifications, including its character
    qualifications, to be a Commission licensee or with respect to
    compliance with the Commission's rules and policies.

20. Nothing in this Consent Decree shall prevent the Commission from
    adjudicating complaints filed pursuant to section 208 of the
    Communications Act, as amended, 47 U.S.C. § 208, against Verizon or
    its affiliates for alleged violations of section 51.321(h) of the
    Commission's rules, or for any other type of alleged misconduct,
    regardless of when such misconduct took place. If any such complaint
    is made, the Commission\'s adjudication of that complaint will be
    based solely on the record developed in that proceeding. Nothing in
    this Consent Decree shall prevent the Commission from instituting
    new investigations or enforcement proceedings against Verizon
    pursuant to sections 4(i), 403 and 503 of the Communications Act in
    the event of any alleged future misconduct.

21. Verizon waives any and all rights it may have to seek administrative
    or judicial reconsideration, review, appeal or stay, or to otherwise
    challenge or contest the validity of this Consent Decree and the
    Order adopting this Consent Decree, provided the Order adopts the
    Consent Decree without change, addition, or modification.

22. Verizon waives any rights it may have under any provision of the
    Equal Access to Justice Act, 5 U.S.C. § 504.

23. In the event that this Consent Decree is rendered invalid by any
    court of competent jurisdiction, this Consent Decree shall become
    null and void and may not be used in any manner in any legal
    proceeding.

24. If either Party (or the United States on behalf of the Commission)
    brings a judicial action to enforce the terms of the Order adopting
    this Consent Decree, neither Verizon nor the Commission shall
    contest the validity of the Consent Decree or Order, and Verizon and
    the Commission will waive any statutory right to a trial *de novo*
    with respect to any matter upon which the Order is based, and shall
    consent to a judgment incorporating the terms of this Consent
    Decree.

25. The Bureau and Verizon agree that this Consent Decree does not
    constitute either an adjudication on the merits or a factual or
    legal finding or determination regarding any compliance or
    noncompliance with the requirements of the Communications Act,
    including section 251 thereof, and the Commission\'s implementing
    rules, including section 51.321(h). The parties agree that this
    Consent Decree is for settlement purposes only and that by agreeing
    to this Consent Decree, Verizon does not admit any liability for
    violating Commission rules in connection with the matters that are
    the subject of this Consent Decree. Indeed, Verizon expressly denies
    any such noncompliance, violation, or liability.

26. The Parties agree that any provision of the Consent Decree that
    would require Verizon to act in violation of a rule or order adopted
    by the Commission will be superseded by such Commission rule or
    order.

27. This Consent Decree may be signed in counterparts.

For the Enforcement Bureau, For Verizon Communications, Inc.

Federal Communications Commission

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

David H. Solomon Virginia Ruesterholz

Chief Senior Vice President, Wholesale Services

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date Date

[^1]: 47 C.F.R. § 51.321(h).

[^2]: *See Application of GTE Corporation, Transferor, and Bell Atlantic
    Corporation, Transferee, 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*, CC Docket 98-184, Memorandum Opinion and Order, 15 FCC Rcd
    14032, 14143 (2000) ("*Bell Atlantic/GTE Merger Order"*).

[^3]: *Id.* at 14170; *see also* *Bell Atlantic/GTE Merger Order*,
    Appendix D at ¶ 27. The audit covered the period from July 1, 2000
    through October 31, 2000.

[^4]: *See* January 29, 2001 letter from Mark E. Gaumond, Arthur
    Anderson, LLP, to Magalie Roman Salas, Secretary, Federal
    Communications Commission; *see also* January 29, 2001 Report of
    Independent Accountants ("Auditor's Report on Compliance"); *see
    also* January 29, 2001 Report of Management on Compliance with the
    FCC's Collocation Rules.

[^5]: *See* Auditor's Report on Compliance at 2.

[^6]: *Id.*

[^7]: *Id.*

[^8]: 47 C.F.R. § 51.321(h); *see also* *Bell Atlantic/GTE Merger
    Order*, Appendix D at ¶ 27.

[^9]: 47 C.F.R. § 51.321(h).

[^10]: *See* *In the Matter of Deployment of Wireline Services Offering
    Advanced Telecommunications Capability*, CC Docket 98-147, First
    Report and Order and Further Notice of Proposed Rulemaking, 14 FCC
    Rcd 4761, 4793 (1999) ("*Advanced Services Order"*).

[^11]: *See* Auditor's Report on Compliance at 2; *see also* May 7, 2001
    letter from Joseph DiBella, Regulatory Counsel, Verizon
    Communications, Inc., to Elizabeth H. Valinoti, Attorney, Federal
    Communications Commission, Enforcement Bureau, Attachments A, B
    ("May 7, 2001 DiBella Letter").

[^12]: *See* May 7, 2001 DiBella Letter, Response to FCC Questions at 1,
    3.