# Attachment to triennial review press release

**Order on Remand**

-   Local Circuit Switching -- The Commission finds that switching - a
    key UNE-P element - for business customers served by high-capacity
    loops such as DS-1 will no longer be unbundled based on a
    presumptive finding of no impairment. Under this framework, states
    will have 90 days to rebut the national finding. For mass market
    customers, the Commission sets out specific criteria that states
    shall apply to determine, on a granular basis, whether economic and
    operational impairment exists in a particular market. State
    Commissions must complete such proceedings (including the approval
    of an incumbent LEC batch hot cut process) within 9 months. Upon a
    state finding of no impairment, the Commission sets forth a 3 year
    period for carriers to transition off of UNE-P.

-   Packet Switching **--** Incumbent LECs are not required to unbundle
    packet switching, including routers and DSLAMs, as a stand-alone
    network element. The order eliminates the current limited
    requirement for unbundling of packet switching.

-   Signaling Networks -- Incumbent LECs are only required to offer
    unbundled access to their signaling network when a carrier is
    purchasing unbundled switching. The signaling network element, when
    available, includes, but is not limited to, signaling links and
    signaling transfer points.

-   Call-Related Databases -- When a requesting carrier purchases
    unbundled access to the incumbent LEC's switching, the incumbent LEC
    must also offer unbundled access to their call-related databases.
    When a carrier utilizes its own switches, with the exception of 911
    and E911 databases, incumbent LECs are not required to offer
    unbundled access to call-related databases, including, but not
    limited to, the Line Information database (LIDB), Toll Free Calling
    database, Number Portability database, Calling Name (CNAM) database,
    Operator Services/Directory Assistance databases, and the Advanced
    Intelligent Network (AIN) database.

-   OSS Functions -- Incumbent LECs must offer unbundled access to their
    operations support systems for qualifying services. OSS consists of
    pre-ordering, ordering, provisioning, maintenance and repair, and
    billing functions supported by an incumbent LEC's databases and
    information. The OSS element also includes access to all loop
    qualification information contained in any of the incumbent LEC's
    databases or other records.

-   Loops

    -   Mass Market Loops

> \* Copper Loops -- Incumbent LECs must continue to provide unbundled
> access to copper loops and copper subloops. Incumbent LECs may not
> retire any copper loops or subloops without first receiving approval
> from the relevant state commission.
>
> \* Line Sharing -- The high frequency portion of the loop (HFPL) is
> not an unbundled network element. Although the Order finds general
> impairment in providing broadband services without access to local
> loops, access to the entire stand-alone copper loop is sufficient to
> overcome impairment. During a three-year period, competitive LECs must
> transition their existing customer base served via the HFPL to new
> arrangements. New customers may be acquired only during the first year
> of this transition. In addition, during each year of the transition,
> the price for the high-frequency portion of the loop will increase
> incrementally towards the cost of a loop in the relevant market.
>
> \* Hybrid Loops -- There are no unbundling requirements for the
> packet-switching features, functions, and capabilities of incumbent
> LEC loops. Thus, incumbent LECs will *not* have to provide unbundled
> access to a transmission path over hybrid loops utilizing the
> packet-switching capabilities of their DLC systems in remote
> terminals. Incumbent LECs must provide, however, unbundled access to a
> voice-grade equivalent channel and high capacity loops utilizing TDM
> technology, such as DS1s and DS3s.
>
> \* Fiber-to-the-Home (FTTH) Loops -- There is no unbundling
> requirement for new build/greenfield FTTH loops for both broadband and
> narrowband services. There is no unbundling requirement for
> overbuild/brownfield FTTH loops for broadband services. Incumbent LECs
> must continue to provide access to a transmission path suitable for
> providing narrowband service if the copper loop is retired.

-   Enterprise Market Loops

> \* The Commission makes a national finding of no impairment for OCn
> capacity loops.
>
> \* The Commission makes a national finding of impairment for DS1, DS3,
> and dark fiber loops, except where triggers are met as applied in
> state proceedings. States can remove DS1, DS3, and dark fiber loops
> based on a customer location-specific analysis applying a wholesale
> competitive alternatives trigger.
>
> \* Dark fiber and DS3 loops also each are subject to a customer
> location-specific review by the states to identify where loop
> facilities have been self-deployed.

-   Subloops

> \* See the copper loops summary above. In addition, incumbent LECs
> must offer unbundled access to subloops necessary for access to wiring
> at or near a multiunit customer premises, including the Inside Wire
> Subloop, regardless of the capacity level or type of loop the
> requesting carrier will provision to its customer.

-   Network Interface Devices (NID) -- Incumbent LECs must offer
    unbundled access to the NID, which is defined as any means of
    interconnecting the incumbent LEC's loop distribution plant to the
    wiring at the customer premises.

-   Dedicated Interoffice Transmission Facilities -- The Commission
    redefines dedicated transport to include only those transmission
    facilities connecting incumbent LEC switches or wire centers.

> \* The Commission finds that requesting carriers are not impaired
> without access to unbundled OCn level transport.
>
> \* The Commission finds that requesting carriers are impaired without
> access to dark fiber, DS3, and DS1 transport, except where wholesale
> facilities triggers are met as applied in state proceedings using
> route-specific review.
>
> \* Dark fiber and DS3 transport also each are subject to a granular
> route-specific review by the states to identify where transport
> facilities have been self-deployed.

-   Shared Transport -- Incumbent LECs are required to provide shared
    transport to the extent that they are required to provide unbundled
    local circuit switching

-   Combinations of Network Elements -- Competitive LECs may order new
    combinations of UNEs, including the loop-transport
    combination (enhanced extended link, or EEL), to the extent that the
    requested network element is unbundled.

-   Commingling -- Competitive LECs are permitted to commingle UNEs and
    UNE combinations with other wholesale services, such as tariffed
    interstate special access services.

-   Service Eligibility -- Service eligibility criteria apply to all
    requests for newly‑provisioned high-capacity EELs and for all
    requests to convert existing circuits of combinations of
    high-capacity special access channel termination and transport
    services. These criteria include architectural safeguards to prevent
    gaming.

    -   Certification -- Each carrier must certify in writing to the
        incumbent LEC that it satisfies the qualifying service
        eligibility criteria for each high-capacity EEL circuit.

    -   Auditing -- Incumbent LECs may obtain and pay for an independent
        auditor to audit compliance with the qualifying service
        eligibility criteria for high-capacity EELs. The incumbent LEC
        may not initiate more than one audit annually.

-   Modification of Existing Network/"No Facilities" Issues -- Incumbent
    LECs are required to make routine network modifications to UNEs used
    by requesting carriers where the requested facility has already been
    constructed. These routine modifications include deploying
    mutliplexers to existing loop facilities and undertaking the other
    activities that incumbent LECs make for their own retail customers.
    The Commission also requires incumbent LECs to condition loops for
    the provision of xDSL services. The Commission does not require
    incumbent LECs to trench new cable or otherwise to construct
    transmission facilities so that requesting carriers can access them
    as UNEs at cost-based rates, but it clarifies that the incumbent
    LEC's unbundling obligation includes all transmission facilities
    deployed in its network.

-   Section 271 Issues -- The requirements of section 271(c)(2)(B)
    establish an independent obligation for BOCs to provide access to
    loops, switching, transport, and signaling**,** under checklist
    items 4-6 and 10, regardless of any unbundling analysis under
    section 251. Where a checklist item is no longer subject to section
    251 unbundling, section 252(d)(1) does not operate as the pricing
    standard. Rather, the pricing of such items is governed by the "just
    and reasonable" standard established under sections 201 and 202 of
    the Act.

-   Clarification of TELRIC Rules -- The order clarifies two key
    components of its TELRIC pricing rules to ensure that UNE prices
    send appropriate economic signals to incumbent LECs and competitive
    LECs. First, the order clarifies that the risk-adjusted cost of
    capital used in calculating UNE prices should reflect the risks
    associated with a competitive market. The order also reiterates the
    Commission's finding from the *Local Competition Order* that the
    cost of capital may be different for different UNEs. Second, the
    Order declines to mandate the use of any particular set of asset
    lives for depreciation, but clarifies that the use of an accelerated
    depreciation mechanism may present a more accurate method of
    calculating economic depreciation.

-   Fresh Look -- The Commission will retain its prior determination
    that it will not permit competitive LECs to avoid any liability
    under contractual early termination clauses in the event that it
    converts a special access circuit to an UNE.

-   Transition Period -- The Commission will not intervene in the
    contract modification process to establish a specific transition
    period for each of the rules established in this Order. Instead, as
    contemplated in the Act, individual carriers will have the
    opportunity to negotiate specific terms and conditions necessary to
    translate the Commission's rules into the commercial environment,
    and to resolve disputes over any new contract language arising from
    differing interpretations of the Commission's rules.

-   Periodic Review of National Unbundling Rules -- The Commission will
    evaluate these rules consistent with the biennial review mechanism
    established in section 11 of the Act. These reviews, however, will
    not be performed *de novo* but according to the standards of the
    biennial review process.

**Further Notice of Proposed Rulemaking**

-   The Commission opens a further notice of proposed rulemaking to seek
    comment on whether to modify the Commission's interpretation of
    section 252(i) -- the Commission's so-called pick-and-choose rule.
    The Commission tentatively concludes that a modified approach would
    better serve the goals embodied in section 252(i), and sections
    251-252 generally, by promoting more meaningful commercial
    negotiations between incumbent LECs and competitive LECs.