Summary of Bell atlantic/GTE Conditions

# PROMOTING ADVANCED SERVICES

1\. **Separate Affiliate for Advanced Services**

-   Bell Atlantic/GTE will create, prior to closing the merger, one or
    more separate affiliates to provide all advanced services in the
    combined Bell Atlantic/GTE region.

-   These separate affiliates will use the same processes as competitors
    and pay an equivalent price for facilities and services.

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-   The separate affiliates will be subject to a comprehensive annual
    audit.

-   This condition will greatly accelerate competition in the advanced
    services market by ensuring a level playing field between Bell
    Atlantic/GTE and its advanced services competitors.

2\. **Surrogate Line Sharing Discount**

-   In the event the Commission's line sharing rules are overturned in a
    final, non-appealable judicial decision, Bell Atlantic/GTE will
    provide data CLECs the economic equivalent of "line sharing" by
    providing them a second loop at a 50% discount for purposes of
    providing advances services to consumers.

-   This condition will ensure a comparable playing field between the
    advanced services separate affiliate and its competitors.

#  3. Loop Conditioning Charges and Cost Studies {#loop-conditioning-charges-and-cost-studies .unnumbered}

# Bell Atlantic/GTE will file cost studies that comply with the Commission's unbundled network element (UNE) pricing methodology for conditioning loops.

# Pending approval of state-specific rates, Bell Atlantic/GTE will make available to CLECs loop conditioning rates (provided they are greater than zero) contained in any effective interconnection agreement to which Bell Atlantic/GTE is a party.

#  {#section .unnumbered}

# Also in the interim, Bell Atlantic/GTE will not impose loop-conditioning charges on loops less than 12,000 feet.

# This condition will ensure that Bell Atlantic/GTE will not erect a barrier to the competitive deployment of advanced services by charging excessive rates for loop conditioning. 

4\. **Nondiscriminatory Rollout of xDSL Services**

-   This condition provides that at least 10% of all rural/urban wire
    centers where the separate affiliate provides xDSL service will be
    [low-income]{.underline} rural/urban wire centers.

-   Bell Atlantic/GTE will file a quarterly report with the Commission
    describing the status of its xDSL rollout.

-   This condition will ensure that advanced services are available to
    some of the least competitive market segments and to low-income
    consumers.

# OPENING LOCAL MARKETS TO COMPETITION

> 5\. **Carrier-to-Carrier Performance Plan**

-   Bell Atlantic/GTE will publicly file performance measurement data,
    reflecting 17 different categories, for each of its in-region states
    with the Commission and relevant state commissions on a monthly
    basis. These data reflect how the company responds to competing
    carriers' requests for information and interconnection.

-   Bell Atlantic/GTE will meet its performance goals or make voluntary
    incentive payments to the U.S. Treasury of up to \$1.164 billion
    dollars over three years.

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-   This condition will ensure that Bell Atlantic/GTE's service to
    competitors will not deteriorate as a result of the merger.

> 6\. **Uniform and Enhanced OSS**

-   Bell Atlantic/GTE will develop and deploy, with CLEC input,
    application-to-application interfaces, graphical user interfaces,
    and business rules, that are uniform in the Bell Atlantic legacy
    areas, and separately uniform within the GTE legacy service areas,
    and uniform across most of the merged firms\' service areas in
    Pennsylvania and Virginia.

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-   Until the advanced services separate affiliate uses these enhanced
    interfaces to order 75% of its loops, CLECs will receive a 25%
    discount off of all loops used for advanced services.

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-   Bell Atlantic/GTE will implement across its region a uniform change
    management process based on the change management process developed
    by the New York Commission.

-   Bell Atlantic/GTE will make voluntary incentive payments of up to
    \$20 million if deployment targets are not met.

-   If Bell Atlantic/GTE completes the OSS commitments prior to its
    deployment target dates, its potential liability under the
    Carrier-to Carrier Performance Plan may be reduced by up to \$125
    million.

-   This condition will reduce the costs of providing competing
    telecommunications services.

> 7\. **OSS Assistance to Qualifying CLECs**

-   Bell Atlantic/GTE will provide special OSS assistance, including
    free training by a team of OSS experts, for CLECs whose annual
    revenues are under \$300 million.

-   This condition will assist smaller competitors by allowing them to
    enter new markets faster and more efficiently.

> 8\. **Collocation, Unbundled Network Element, and Line-Sharing
> Compliance**

-   Before the merger closing, an independent auditor, approved by the
    Chief of the Common Carrier Bureau, will conduct an audit to
    determine whether the companies have in place methods and procedures
    that comply with the Commission's collocation rules.

-   Also after merger closing, an independent auditor will develop and
    implement a comprehensive audit of the merged company's compliance
    with the Commission's collocation, UNE, and line-sharing rules.

-   This condition will ensure that Bell Atlantic/GTE provides
    collocation, access to UNEs, and line-sharing in a lawful and timely
    manner.

> 9\. **Most-Favored Nation Provisions**

-   Bell Atlantic/GTE will offer CLECs within its region any new
    arrangement or UNE secured by a Bell Atlantic/GTE outside of its
    region.

-   Any interconnection arrangement or UNE negotiated by Bell
    Atlantic/GTE or its affiliates in one Bell Atlantic/GTE state will
    be made available in all other states throughout its region.

-   Where a CLEC seeks to adopt an arrangement or UNE arbitrated by Bell
    Atlantic/GTE, either the CLEC or Bell Atlantic/GTE may submit these
    provisions to immediate arbitration in the "importing" state without
    waiting for the statutory negotiation period to expire, provide the
    relevant state commission consents.

-   This condition will facilitate market entry throughout the Bell
    Atlantic/GTE region by spreading best practices.

> 10\. **Multi-State Interconnection and Resale Agreements**

-   Bell Atlantic/GTE will offer CLECs an interconnection and/or resale
    agreement covering multiple Bell Atlantic and/or GTE states.

-   This condition will prevent unnecessary negotiation costs and delays
    from being imposed on competitors.

> 11-12. **Carrier-to-Carrier Promotions**

-   Subject to state-specific quantity limits, Bell Atlantic/GTE will
    offer two promotions to CLECs serving residential customers:

> \- [Loop Discount]{.underline} -- 25% discount off of the lowest
> monthly recurring charges for unbundled local loops
>
> \- [Resale Discount]{.underline} -- 32% discount off of retail rates

-   These conditions will encourage rapid development of local
    competition in residential markets.

> 13\. **Offering of Unbundled Network Elements**

-   Bell Atlantic/GTE will continue to make UNEs available until the
    Commission's UNE Remand and Line-Sharing Orders become final and
    non-appealable.

-   This condition will reduce uncertainty for competitors arising from
    litigation over the Commission's rules.

> 14\. **Alternative Dispute Resolution through Mediation**

-   Bell Atlantic/GTE will offer CLECs a state-supervised alternative
    dispute resolution process for addressing interconnection agreement
    disputes.

-   This condition will streamline and expedite the resolution of
    carrier-to-carrier disputes.

> 15\. **Access to Cabling in Multi-Unit Properties**

-   Bell Atlantic/GTE will conduct a trial that will provide CLECs with
    access at a single point of interconnection to cabling owned or
    controlled by Bell Atlantic/GTE in multi-tenant residential and
    business properties.

-   Bell Atlantic/GTE will design and install new cabling owned or
    controlled by Bell Atlantic/GTE so that it can be accessed at single
    point of interconnection at a minimum point of entry.

-   This condition will provide additional competition in the provision
    of local service to multi-unit properties.

# FOSTERING OUT-OF-REGION COMPETITION

#  {#section-1 .unnumbered}

# 16. Out-of-Territory Competitive Entry  {#out-of-territory-competitive-entry .unnumbered}

-   Within 36 months from merger closing, Bell Atlantic/GTE will spend a
    minimum of \$500 million to provide competitive local service,
    including traditional local telecommunications services and advanced
    services, outside of its service areas or will provide competitive
    local service to at least 250,000 out-of-region customer lines.

-   Bell Atlantic/GTE is liable for voluntary incentive payments up to
    \$750 million dollars if it does not satisfy either of these
    out-of-region competition commitments.

-   This condition will ensure that residential consumers and business
    customers outside of Bell Atlantic/GTE's region benefit from
    increased facilities-based competitive service.

# IMPROVING RESIDENTIAL SERVICE

> 17\. **Pricing of** **Long Distance Service**

-   Bell Atlantic/GTE will not charge residential consumers a minimum
    monthly flat charge for long distance service.

-   This condition will benefit low-income consumers and low-volume long
    distance callers.

18\. **Enhanced** **Lifeline Plans**

-   Bell Atlantic/GTE will offer a low-income Lifeline universal service
    plan to low-income residential subscribers in each of its states.

-   This condition will ensure that benefits of the merger extend to
    low-income residential customers throughout Bell Atlantic/GTE's
    region.

19\. **Additional Service Quality Reporting**

-   Bell Atlantic/GTE will report, on a quarterly basis, the quality of
    service that it provides its customers in accordance with the NARUC
    Technology Policy Subgroup's "Service Quality White Paper."

-   Each month Bell Atlantic/GTE will report, on a disaggregated,
    company-specific basis, certain of the ARMIS service quality data to
    show that the service levels it provides Genuity as compared to
    other companies purchasing its high-speed special access and regular
    special access services.

-   Bell Atlantic/GTE will develop and file reports showing the service
    quality provided to interexchange carriers.

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-   This condition will safeguard against potential deterioration in the
    merged company's quality of service as a result of the merger and
    ensure that any attempted discrimination in favor of Genuity in the
    provision of special access circuits will be readily detectable.

> 20\. **Network Reliability and Interoperability Council (NRIC)**

-   Bell Atlantic/GTE will continue participation in the NRIC.

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-   This condition will ensure that Bell Atlantic/GTE will maintain
    reliable, high-quality networks and services.

# COMPLIANCE AND ENFORCEMENT

> 21\. **Internal Compliance Program**

-   Prior to merger close, Bell Atlantic/GTE will appoint an internal
    corporate Compliance Officer who will prepare and publicly file with
    the Commission an annual report addressing the company's compliance
    with the merger conditions.

-   This condition will ensure that the Bell Atlantic/GTE has internal
    controls in place to maintain full and timely compliance with the
    conditions.

22\. **Independent Auditor**

-   Bell Atlantic/GTE will retain an independent auditor, approved by
    the Commission, to provide a thorough and systematic evaluation of
    its compliance with the conditions and determine the sufficiency of
    its internal controls. The auditor will issue reports that will be
    publicly available.

-   This condition establishes an efficient and cost-effective mechanism
    for detecting potential noncompliance with the conditions.

23\. **Enforcement Mechanisms**

-   The enforcement and compliance programs established by the
    conditions in no way supercede or replace the Commission's
    enforcement and investigative powers.

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-   Commission may extend or toll the conditions for a period
    commensurate with any noncompliance.

> 24\. **Sunset**

-   Each of the conditions will generate a full three-year period of
    benefit.

> 25\. **Effect of Conditions**

-   These conditions are intended to be a floor, not a ceiling. They do
    not limit the authority or jurisdiction of state commissions to
    impose or enforce additional requirements stemming from a state's
    review of the merger. Nor do they alter or preempt any other federal
    statutes, such as the antitrust laws.