**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

**Adopted: August 31, 2001 Released: August 31, 2001**

By the Chief, Policy and Program Planning Division

# I. INTRODUCTION

1.  On July 10, 2001, Verizon requested the Commission's permission to
    allow Verizon Pennsylvania Inc. (Verizon) and Verizon Advanced Data
    Inc. (VADI) to cooperate to provide digital subscriber loop (xDSL)
    service for resale over resold voice lines in Pennsylvania prior to
    the scheduled sunset of the advanced services affiliate requirement
    contained 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,[^2] Verizon may elect, at the end of a nine-month
    period, to reintegrate its separate advanced services affiliate into
    the Bell Operating Company (BOC). [^3] Verizon has submitted a
    letter requesting permission to reintegrate its advanced services
    subsidiary prior to the end of the nine-month period. [^4] Pending
    the Commission\'s action on this request, Verizon seeks Special
    Temporary Authority (STA) to offer for resale xDSL service over
    resold lines in Pennsylvania. We granted Verizon a STA to provide
    its resold xDSL offering in Connecticut. [^5]

# III. DISCUSSION

3.  In determining whether to grant Verizon a STA, we look at whether
    the proposed action will serve the public interest, convenience and
    necessity.[^6] Like in Connecticut, Verizon argues that should it
    receive a STA, it would broaden its resale xDSL offering in the
    former Bell Atlantic service areas in Pennsylvania to include a
    service that will allow a competitor to resell VADI's xDSL service
    over lines on which the competitor currently resells Verizon's voice
    service.[^7] The new service will be provided pursuant to an
    amendment to VADI's federal tariff.[^8] Verizon states that this is
    an interim arrangement until a more permanent arrangement can be
    developed through collaboratives and the change management
    process.[^9]

4.  Verizon states that in order to provision a competitor\'s order to
    resell VADI's xDSL service over lines on which the competitor
    currently resells Verizon's voice service, VADI and Verizon will
    need to access each other's systems and data, and interact in ways
    that Verizon acknowledges are arguably prohibited by the *Bell
    Atlantic-GTE Merger Order*.[^10] Verizon, therefore, seeks both a
    permanent waiver of certain Merger Conditions[^11] and a STA so that
    it may immediately take any and all steps necessary to process
    orders for and provide this resale xDSL offering.[^12]

5.  We do not address Verizon's request for a permanent waiver of the
    Merger Conditions in this Order.[^13] However, we do conclude, as we
    did in the *Connecticut STA Order*, that granting Verizon's STA
    request for this limited purpose is in the public interest for
    several reasons. Granting the STA will enable competitors to provide
    resold voice and xDSL service to their end-user customers over the
    same local loop. This should benefit consumers by expanding
    competition in the provision of advanced services. Moreover,
    granting the STA will allow Verizon and its competitors an
    opportunity to gain experience with the ordering and provisioning of
    resold xDSL service in conjunction with resold voice service,
    experience that will facilitate the transition to a permanent
    arrangement for this offering.

6.  As is the situation in Connecticut, in granting Verizon's STA
    request, we emphasize 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 competitor can resell VADI's xDSL
    service over lines on which the competitor resells Verizon's voice
    services in Pennsylvania. This authority governs only until the
    Commission rules on Verizon\'s request to waive the nine-month
    sunset period or otherwise modifies the terms of this STA. 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 sections 4(i), 214(a)
    and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.
    §§ 154(i), 214(a), 303(r), Verizon IS GRANTED Special Temporary
    Authority as described above to the extent necessary to permit
    resale of xDSL service by a competitive carrier on a line on which
    the competitor resells Verizon's voice service in Verizon's
    Pennsylvania 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 10, 2001) (*PA STA Request*); *see also*
    *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 at 14153, para. 265
    (2000) (*Bell Atlantic-GTE Merger Order*).

[^2]: *Assn. of Communs. Enterprises v. FCC*, 235 F.3d 662 (D.C. Cir.
    2001) (*ASCENT v. FCC*).

[^3]: In the *Bell Atlantic-GTE Merger Order,* the Commission stated
    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 BOC. *Bell Atlantic-GTE Merger Order* at
    para. 265. As applied to Verizon, the *ASCENT v. FCC* ruling holds
    that VADI is a successor or assign of the BOC and, by our
    calculations, the advanced services affiliate requirement will
    sunset automatically on January 9, 2002.

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

[^5]: *See* *Application of GTE Corporation, Tranferor, 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 No. 98-184, Order, DA 01-1717 (rel. July 19,
    2001) (*Connecticut STA Order*).

[^6]: *See, e.g.,* 47 U.S.C. §§ 154(i), 214(a), 303(r). *See also
    Telephone Company-Cable Television Cross-Ownership Rules*, 7 FCC Rcd
    at 5836, para. 105 (1992).

[^7]: *PA STA Request* at 1.

[^8]: *Id.*

[^9]: *Id.*

[^10]: *Id.* at 1-2.

[^11]: *See Bell Atlantic-GTE Merger Order* at Appendix D, 15 FCC Rcd at
    14265-89, paras. 1-12, for conditions applicable to Verizon\'s
    advanced services affiliate.

[^12]: *PA STA Request* at 2.

[^13]: The Commission recently sought comment on this Verizon request.
    *See* Pleading Cycle Established for Comments on Verizon Ex Parte
    Filings Concerning Merger Conditions to be Waived for Verizon\'s
    xDSL over Resold Lines Service, CC Docket No. 98-184, *Public
    Notice*, DA 01-1987 (rel. August 23, 2001).