**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+----+------------------------------+
| In the Matter of                 | *  | WC Docket No. 06-144         |
|                                  | *) |                              |
| Request by Verizon South Inc.    | ** |                              |
| for Limited                      |    |                              |
|                                  | *  |                              |
| Modification of LATA Boundaries  | *) |                              |
| to Provide Extended Local        | ** |                              |
| Calling Service Between Verizon  |    |                              |
| South Inc.'s Rocky Gap and       | *  |                              |
| United Telephone-Southeast,      | *) |                              |
| Inc.'s Bland Rate Exchanges      | ** |                              |
|                                  |    |                              |
|                                  | *  |                              |
|                                  | *) |                              |
|                                  | ** |                              |
|                                  |    |                              |
|                                  | *  |                              |
|                                  | *) |                              |
|                                  | ** |                              |
|                                  |    |                              |
|                                  | *  |                              |
|                                  | *) |                              |
|                                  | ** |                              |
|                                  |    |                              |
|                                  | *  |                              |
|                                  | *) |                              |
|                                  | ** |                              |
+----------------------------------+----+------------------------------+

**MEMORANDUM OPINION AND ORDER**

**Adopted: September 22, 2006 Released: September 22, 2006**

By the Chief, Competition Policy Division:

# introduction

1.  On June 5, 2006, Verizon South Inc. ("Verizon"), pursuant to section
    3(25) of the Communications Act of 1934, as amended (the Act),[^1]
    filed a petition (Verizon Petition) to provide two-way, flat-rated,
    non-optional, expanded local calling service (ELCS) between certain
    exchanges in Virginia. Verizon requests a limited modification of
    the LATA boundary to provide ELCS between Verizon's Rocky Gap
    exchange, located in Bland County, Virginia, and United
    Telephone-Southeast, Inc.'s ("United") Bland Exchange, also located
    in Bland County, Virginia.[^2] The Virginia State Corporation
    Commission (Virginia Commission) has already approved ELCS between
    these exchanges.[^3] We grant Verizon's Petition for the reasons
    stated below.

# background

2.  Requests for new EAS routes are generally initiated by local
    subscribers.[^4] Although intraLATA EAS routes can be ordered by a
    state commission,[^5] requests for interLATA EAS routes fall within
    the Federal Communications Commission\'s (Commission) exclusive
    jurisdiction pursuant to section 3(25)(B) of the Act.[^6] Applying a
    two-part test, the Commission will grant a request for a LATA
    boundary modification where: (1) the applicant proves that the
    requested LATA modification would provide a significant public
    benefit; and (2) granting the petition would not remove the BOC\'s
    incentive to receive authority to provide in-region, interLATA
    service pursuant to section 271 of the Act.[^7] The Verizon Petition
    proposes to establish two-way, non-optional ELCS, and is accompanied
    by an Order issued by the Virginia Commission approving the ELCS
    between the Rocky Gap and Bland exchanges and directing Verizon to
    petition for a modification of the LATA boundary to implement the
    ELCS route.[^8] No party filed comments opposing Verizon's Petition.

# discussion

3.  We conclude that Verizon's petition satisfies the Commission's
    two-part test. Applying the first prong of the test, we find that
    Verizon has shown that a significant public interest benefit would
    result from the ELCS because a sufficient community of interest
    exists among the affected exchanges to justify treatment as a local
    calling area.[^9] In reaching this finding, we note that Verizon
    proposes to offer traditional, two-way, non-optional ELCS between
    the exchanges,[^10] which is the type of service this Commission has
    determined to be consistent with the public interest.[^11] We also
    find it a persuasive indicator of a community of interest that the
    Virginia Commission found that the polling results of the customers
    in both exchanges demonstrated that a majority of them support the
    proposed ELCS route,[^12] which, as Verizon explains, will enhance
    communications between Rocky Gap and the nearby governmental,
    medical, employment, and retail/commercial center of Bland in Bland
    County.[^13] The Virginia Commission therefore approved the
    service.[^14] We find, accordingly, that the petition is based on a
    significant community of interest, and thus satisfies the first
    prong of the Commission's two-part test.

4.  Verizon also satisfies the second prong of the two-part test because
    it has already opened its market to competition in Virginia, and the
    Commission has thus granted it authority under section 271 to offer
    long distance service in that state.[^15] Thus, granting the
    requested modification has no bearing on Verizon's incentive to
    receive such authority. Moreover, we conclude that the LATA boundary
    modification would have a minimal effect upon Verizon's incentives
    because modification of the LATA boundary would affect only a small
    number of access lines.[^16] As a result, we believe that granting
    Verizon's petition serves the public interest by permitting a minor
    LATA modification where such modification is necessary to meet the
    needs of local subscribers. Accordingly, we approve Verizon's
    petition for a limited LATA boundary modification.

5.  We grant this relief solely for the limited purpose of allowing
    Verizon to provide ELCS between specific exchanges or geographic
    areas identified in this request. The LATA boundary is not modified
    to permit Verizon to offer any other type of service, including
    calls that originate or terminate outside the specified areas. Thus,
    two-way, non-optional ELCS between the specified exchanges will be
    treated as intraLATA service.

# ordering clause

6.  Accordingly, IT IS ORDERED, pursuant to sections 3(25) and 4(i) of
    the Communications Act of 1934, as amended, 47 U.S.C. §§ 153(25),
    154(i), and authority delegated by sections 0.91 and 0.291 of the
    Commission's rules, 47 C.F.R. §§ 0.91, 0.291, that the request of
    Verizon South Inc. for a LATA boundary modification for the limited
    purpose of providing two-way, traditional, non-optional ELCS between
    the specific locations in Virginia, as identified in WC Docket No.
    06-144, IS APPROVED.

    FEDERAL COMMUNICATIONS COMMISSION

    Renee C. Crittendon

    Chief, Competition Policy Division

    Wireline Competition Bureau

[^1]: *See* 47 U.S.C. § 153(25). Section 3(25) of the Act defines a
    Local Access and Transport Area (LATA) as a contiguous geographic
    area (1) established prior to enactment of the 1996 Act by a Bell
    Operating Company (BOC) such that no exchange area includes points
    within more than one metropolitan statistical area, consolidated
    metropolitan statistical area, or state, except as expressly
    permitted under the AT&T Consent Decree; or (2) established or
    modified by a BOC after such date of enactment and approved by the
    Commission. *Id*.

[^2]: *See* Request of Verizon South Inc. for Limited Modification of
    the LATA Boundaries to Provide ELCS Between Verizon South Inc.'s
    Rocky Gap and United Telephone Southeast, Inc.'s Bland Rate
    Exchanges, WC Docket No. 06-144 (filed June 5, 2006). *See Pleading
    Cycle Established for Comments on Verizon's Request for Limited
    Modification of the LATA Boundaries to Provide ELCS Between Verizon
    South Inc.'s Rocky Gap Exchange and United Telephone Southeast,
    Inc.'s Bland Rate Exchange*, WC Docket No. 06-144 (rel. July 27,
    2006). We note that both exchanges are in Virginia, but that
    Verizon's Rocky Gap exchange is in the Bluefield, West Virginia
    Independent Market Area and United's Bland exchange is in the
    Bristol-Johnson City, Tennessee Independent Marketing Area. ELCS
    (also known as extended area service (EAS)) allows local telephone
    service rates to apply to nearby telephone exchanges, thus providing
    an expanded local calling area.

[^3]: *See* Verizon Petition at 1 and Attachment (Virginia State
    Corporation Commission, *Petitions of United Telephone-Southeast,
    Inc. Bland Exchange Customers and Verizon South Inc. Rocky Gap
    Exchange Customers For Extended Local Service between United
    Telephone's Bland Exchange and Verizon South's Rocky Gap Exchange*,
    Case No. PUC-2005-00054, Final Order (rel. Feb. 13, 2006 (*Virginia
    Order*)). The total number of network access lines in Verizon's
    Rocky Gap exchange is 1,886. The total number of network access
    lines in United's Bland exchange is 1,879. Verizon Petition at 1.

[^4]: Verizon states that, on April 18, 2005, its Rocky Gap exchange
    subscribers petitioned the Virginia Commission for ELCS to United's
    Bland exchange. Verizon Petition at 3.

[^5]: *United States v. Western Electric Company, Inc.*, 569 F. Supp.
    990, 995 (D.D.C. 1983) (\"The distance at which a local call becomes
    a long distance toll call has been, and will continue to be,
    determined exclusively by the various state regulatory bodies.\").

[^6]: *Application for Review and Petition for Reconsideration or
    Clarification of Declaratory Ruling Regarding U S WEST Petitions to
    Consolidate LATAs in Minnesota and Arizona*, File No. NSD-L-97-6,
    Memorandum Opinion and Order, [14 FCC Rcd 14392, 14393-143402,
    paras. 4-20
    (1999)](http://www.westlaw.com/Find/Default.wl?rs=dfa1.0&vr=2.0&DB=4493&FindType=Y&ReferencePositionType=S&SerialNum=1999288624&ReferencePosition=14392).

[^7]: *See SBC Telecom, Inc. Petition for Modification of Certain LATA
    Boundaries in Ohio*, File No. NSD-L-00-25, Memorandum Opinion and
    Order, [18 FCC Rcd 26398, 26399-263402, paras. 2, 6-8
    (2003)](http://www.westlaw.com/Find/Default.wl?rs=dfa1.0&vr=2.0&DB=4493&FindType=Y&SerialNum=2004256291).

[^8]: *Virginia Order* at 2-3.

[^9]: *See Petitions for Limited Modification of LATA Boundaries to
    Provide Expanded Local Calling Service (ELCS) at Various Locations*,
    CC Docket No. 96-159, Memorandum Opinion and Order, 12 FCC Rcd
    10646, 10653, para. 14 (1997) (*July 1997 LATA Order*).

[^10]: Verizon Petition at 1.

[^11]: *See July 1997 LATA Order*, 12 FCC Rcd at 10654-56, paras. 18-19.

[^12]: *Virginia Order* at 1-2.

[^13]: Verizon Petition at 3.

[^14]: *Virginia Order* at 2-3; Verizon Petition at 1.

[^15]: *Application by Verizon Virginia, Inc., Verizon Long Distance
    Virginia, Inc., Verizon Enterprise Solutions Virginia, Inc., Verizon
    Global Networks Inc., and Verizon Select Services of Virginia, Inc.
    for Authorization to Provide In-Region, InterLATA Services in
    Virginia*, WC Docket No. 02-214, Memorandum Opinion and Order, 17
    FCC Rcd 21880 (2002).

[^16]: For the purposes of EAS petitions, we generally consider the
    number of access lines from customers in the smaller exchange who
    seek to reach businesses and services in the other exchange because
    the smaller exchange usually generates the majority of calls.
    *Southwestern Bell Petitions for Limited Modifications of LATA
    Boundaries to Provide Expanded Local Calling Service (ELCS)*, WC
    Docket No. 02-134, Memorandum Opinion and Order, 17 FCC Rcd 25540
    (2002). In this case, while the number of access lines in both the
    Rocky Gap and Bland exchanges are approximately equal in number, it
    is clear that the LATA boundary modification will affect only a
    small number of access lines. *See supra* note 3.