**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of )

) CC Docket No. 99-274

)

Southwestern Bell Telephone Company ) Transmittal No. 2773

Revisions to Tariff F.C.C. No. 73 )

)

Pacific Bell ) Transmittal No. 2067

Revisions to Tariff F.C.C. No. 128 )

)

Nevada Bell ) Transmittal No. 276

Revisions to Tariff F.C.C. No. 1 )

**ORDER TERMINATING INVESTIGATION**

**Adopted: January 12, 2000 Released: January 13, 2000**

By the Commission:

1\. On August 12, 1999, Southwestern Bell Telephone Company (SWBT),
Pacific Bell, and Nevada Bell filed Transmittal Nos. 2773, 2067, and
276, respectively, to revise their tariffs F.C.C. Nos. 73, 128, and 1,
respectively. These Transmittals introduced a new Volume Discount Plan
for SWBT's, Pacific Bell's, and Nevada Bell's ADSL service.

2\. The revised tariff pages submitted under Transmittal Nos. 73, 128,
and 1 contained the following language:

> In addition, the services offered under the ADSL-VDP are provided on a
> wholesale basis to carriers and non-carriers, and are priced on such
> basis. The ADSL-VDP is not offered at retail, and accordingly, the
> Telephone Companies do not believe that the rates therein are subject
> to the rate provisions of Sections 251(c)(4) and 252 (d)(3) of the
> Communications Act, 47 U.S.C. 251 (c)(4), 252 (d)(3), and thus has
> priced them under that belief.[^1]

The Common Carrier Bureau found that this language raised a significant
question of lawfulness, and issued a *Partial* *Suspension* *Order*[^2]
suspending the language set forth *supra*, for five months pending
investigation pursuant to section 204 of the Communications Act of 1934,
as amended.[^3] The Bureau noted in the *Partial* *Suspension* *Order*
that the issue of the applicability of resale discounts to advanced
services offered as exchange access services was being considered in the
*Wireline Advanced Services* *Proceeding*,[^4] and that the *Partial*
*Suspension* *Order* was not intended to prejudge or resolve any matters
at issue in that rulemaking proceeding.

3\. In an order released November 9, 1999 in the *Wireline Advanced
Services Proceeding*, we concluded that an incumbent LEC offering of DSL
services to Internet Service Providers as an input component to the
Internet Service Providers' subsequent high speed Internet service
offerings, is not a retail offering subject to the discount requirements
of Section 251(c)(4).[^5] Since SWBT's, Pacific Bell's, and Nevada
Bell's instant proposed service offering, i.e., a bulk volume and term
discounted sale of DSL services to an Internet Service Provider for the
enhancement of the Internet Service Provider's high speed Internet
access offering, clearly meets the definition above, there is no legal
basis for continuing this investigation. Accordingly, effective today,
we are terminating this investigation.

4\. Accordingly, **IT IS ORDERED** that, pursuant to Sections 201
through 205 of the Communications Act of 1934, as amended, 47 U.S.C.
§§ 201-205, the investigation of SWBT, Transmittal No. 2773, Pacific
Bell Transmittal No. 2067, and Nevada Bell Transmittal No. 276 **IS**
**TERMINATED**.

FEDERAL COMMUNICATIONS COMMISSION

Magalie Roman Salas

Secretary

[^1]: *See* SWBT Transmittal No. 2773, SWBT Tariff F.C.C. No. 73,
    Original Page 14-206.2, Section 14.7.3(D)(1); Pacific Bell
    Transmittal No. 2067, Pacific Bell Tariff F.C.C. No. 128, Third
    Revised Page 687.13, Section 17.5.3(D)(1); and Nevada Bell
    Transmittal No. 276, Nevada Bell Tariff F.C.C. No. 1, Original Page
    389.49.2, Section 16.5.3(D)(1).

[^2]: Southwestern Bell Telephone Company, Revisions to Tariff F.C.C.
    No. 73, Transmittal No. 2773, Pacific Bell, Revisions to Tariff
    F.C.C. No. 128, Transmittal No. 2067, Nevada Bell, Revisions to
    Tariff F.C.C. No. 1, Transmittal No. 276, Partial Suspension Order,
    CC Docket No. 99-274, (rel. August 24, 1999) (*Partial* *Suspension*
    *Order*).

[^3]: 47 U.S.C. § 204(a)(1).

[^4]: *See*, *generally*, *Deployment of Wireline Services Offering
    Advanced Telecommunications Capability*, CC Docket No. 98-147, First
    Report and Order and Further Notice of Proposed Rulemaking, FCC
    99-48, 14 FCC Rcd 4761 (1999) (*Wireline Advanced Services
    Proceeding*).

[^5]: *Deployment of Wireline Services Offering Advanced
    Telecommunications Capability*, CC Docket No. 98-147, Second Report
    and Order, FCC 99-330, at para. 19 (rel. November 9, 1999).