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 Federal  Communications  Commission  DA  00-  514 
 Before  the 
 Federal  Communications  Commission 
 Washington,  D.  C.  20554 


 In  the  Matter  of  ) 
 ) 
 BellSouth  Petition  for  Forbearance  )  CC  Docket  No.  97-  172 
 for  Nonlocal  Directory  Assistance  ) 
 Service  ) 
 ) 
 Petition  of  SBC  Communications  Inc.  )  CC  Docket  No.  97-  172 
 for  Forbearance  of  Structural  Separation  ) 
 Requirements  and  Request  for  Immediate  ) 
 Interim  Relief  in  Relation  to  the  Provision  of  ) 
 Nonlocal  Directory  Assistance  Services  ) 
 ) 
 Petition  of  Bell  Atlantic  for  Further  )  CC  Docket  No.  97-  172 
 Forbearance  from  Section  272  ) 
 Requirements  in  Connection  with  National  ) 
 Directory  Assistance  Services  ) 


 MEMORANDUM  OPINION  AND  ORDER 
 Adopted:  April  11,  2000  Released:  April  11,  2000 
 By  the  Deputy  Chief,  Common  Carrier  Bureau: 
 I.  INTRODUCTION 
 1.  BellSouth,  1  SBC,  2  and  Bell  Atlantic  3  (  Petitioners)  each  filed  a  petition  for 
 1  BellSouth  Petition  for  Forbearance  for  Nonlocal  Directory  Assistance  Service,  CC  Docket  No.  97-  172 
 (filed  Oct.  8,  1999)  (BellSouth  Petition). 
 2  Petition  of  SBC  Communications  Inc.  for  Forbearance  of  Structural  Separation  Requirements  and  Request 
 for  Immediate  Interim  Relief  in  Relation  to  the  Provision  of  Nonlocal  Directory  Assistance  Services,  CC  Docket 
 No.  97-  172  (filed  Nov.  2,  1999)  (SBC  Petition);  see  also  SBC  Communications  Inc.  s  Clarification  and 
 Supplement  to  its  Petition  for  Forbearance  (filed  Nov.  19,  1999).  SBC  filed  a  petition  on  behalf  of  Ameritech, 
 Southwestern  Bell  Telephone  Company  (SWBT),  Pacific  Bell,  and  Nevada  Bell.  The  forbearance  granted  in  this 
 Order  extends  only  to  Ameritech,  SWBT,  and  Pacific  Bell.  We  do  not  address  in  this  Order  the  petition  filed  on 
 behalf  of  Nevada  Bell  because  Nevada  Bell  does  not  currently  provide  nonlocal  directory  assistance  service. 
 Nevada  Bell  must  demonstrate  that  its  nonlocal  directory  assistance  service  falls  within  the  scope  of  section 
 271(  g)(  4)  at  the  time  it  seeks  to  provide  such  service. 


 3  Petition  of  Bell  Atlantic  for  Further  Forbearance  from  Section  272  Requirements  in  Connection  with 
 National  Directory  Assistance  Services  (filed  Oct.  22,  1999)  (Bell  Atlantic-  South  Petition).  We  granted  Bell 
 Atlantics  petition  for  forbearance  with  respect  to  its  operating  companies  in  New  York  and  New  England  on 
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 forbearance  from  the  enforcement  of  section  272  of  the  Communications  Act  of  1934,  as 
 amended  by  the  Telecommunications  Act  of  1996  (the  Act),  in  connection  with  its  provision  of 
 nonlocal  directory  assistance  services.  4  In  this  Order,  we  conclude  that  the  Petitioners  provision 
 of  nonlocal  directory  assistance  service  to  their  in-  region  subscribers  constitutes  the  provision  of 
 in-  region,  interLATA  service,  as  defined  in  section  271(  a)  of  the  Act.  Because  we  find,  however, 
 that  these  services  fall  within  the  scope  of  the  exception  provided  in  section  271(  g)(  4),  we 
 conclude  that  the  Petitioners  may  continue  to  provide  nonlocal  directory  assistance  service 
 without  obtaining  authorization  from  the  Commission  to  provide  in-  region,  interLATA  service 
 pursuant  to  the  requirements  of  section  271(  d). 


 2.  We  further  conclude  in  this  Order  that,  although  the  incidental,  interLATA 
 services  described  in  section  271(  g)(  4)  must  normally  be  provided  through  a  separate  affiliate,  5  in 
 accordance  with  section  10,  we  forbear,  in  part,  from  applying  the  requirements  of  section  272  to 
 the  Petitioners  nonlocal  directory  assistance  services.  6  We  allow  the  Petitioners  to  provide 
 nonlocal  directory  assistance  on  an  integrated  basis,  but  we  require  them  to  make  available  to 
 unaffiliated  entities  all  of  the  in-  region  telephone  numbers  they  use  to  provide  nonlocal  directory 
 assistance  service  at  the  same  rates,  terms,  and  conditions  they  impute  to  themselves  pursuant  to 
 section  272(  c)(  1)  and  our  authority  under  sections  4(  i),  10,  and  303(  r)  of  the  Act.  7 


 II.  BACKGROUND 
 A.  The  Petitioners  Nonlocal  Directory  Assistance  Services 
 3.  The  Petitioners  offer  nonlocal  directory  assistance  service  to  customers  throughout 
 their  regions.  8  These  services  permit  the  Petitioners  to  offer  both  local  and  nonlocal  directory 


 December  22,  1999.  In  the  Matter  of  Petition  of  Bell  Atlantic  for  Forbearance  from  Section  272  Requirements  in 
 Connection  with  National  Directory  Assistance  Services,  CC  Docket  No.  97-  172,  Memorandum  Opinion  and 
 Order,  DA  99-  2990  (rel.  Dec.  22,  1999)(  Bell  Atlantic-  North  NDA  Forbearance  Order),  recon.  pending.  The 
 forbearance  granted  in  this  Order  extends  to  Bell  Atlantics  operating  companies  in  Delaware,  Maryland,  New 
 Jersey,  Pennsylvania,  Virginia,  Washington,  D.  C.,  and  West  Virginia. 


 4  A  list  of  commenters  on  the  petitions  filed  by  BellSouth,  SBC,  and  Bell  Atlantic-  South,  is  set  forth  in  the 
 Appendix. 
 5  See  47  U.  S.  C.    272(  a)(  2)(  B)(  i). 


 6  See  In  the  Matter  of  Petition  of  U  S  WEST  Communications,  Inc.  for  a  Declaratory  Ruling  Regarding  the 
 Provision  of  National  Directory  Assistance,  CC  Docket  No.  97-  172,  Petition  of  U  S  WEST  Communications,  Inc., 
 for  Forbearance,  CC  Docket  No.  97-  172,  The  Use  of  N11  Codes  and  Other  Abbreviated  Dialing  Arrangements, 
 CC  Docket  No.  92-  105,  Memorandum  Opinion  and  Order,  14  FCC  Rcd  16252  (1999)(  U  S  WEST  NDA 
 Forbearance  Order),  at  paras.  2-  3. 


 7  See  id.  at  para.  3. 


 8  In  the  U  S  WEST  NDA  Forbearance  Order,  the  Commission  noted  that  there  are  two  types  of  directory 
 assistance  services  available  to  customers  throughout  the  United  States:  local  directory  assistance  service  and 
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 assistance  service  from  a  single  telephone  number.  9  By  dialing  the  number  for  local  directory 
 assistance,  the  Petitioners  customers  can  obtain  the  telephone  number  of  a  subscriber  located 
 anywhere  in  the  United  States.  10 


 4.  The  Petitioners  nonlocal  directory  assistance  services  are  similar  in  terms  of 
 service  configuration.  Specifically,  when  a  customer  dials  the  number  for  local  directory 
 assistance  service,  the  local  central  office  switch  will  route  the  call  to  an  operator  services  switch, 
 which  adds  a  voice  response  unit  to  the  call.  11  The  voice  response  unit  will  deliver  a  script 
 requesting  the  city,  state,  and  listing  desired  and  record  the  callers  responses.  12  The  operator 
 receiving  the  call  listens  to  the  recorded  request  from  the  voice  response  unit,  and  if  the  end-users 
 response  is  incomplete  or  unintelligible,  communicates  directly  with  the  caller  to  ascertain 
 the  desired  listing.  13  Upon  obtaining  this  information,  the  operator  launches  a  database  query. 


 5.  If  the  requested  number  is  local,  the  operator  launches  a  query  to  an  information 
 storage  facility  that  contains  local  directory  listing  information.  14  On  any  such  call,  the  caller, 
 operator,  and  database  may  be  located  in  different  LATAs.  15  The  Petitioners  typically  use  their 
 Official  Services  Networks  (OSN),  which  cross  LATA  boundaries,  for  the  provision  of  local 


 nonlocal  directory  assistance  service.  Id.  at  paras.  5-  6.  Directory  assistance  service  is  considered  local  whenever 
 a  customer  requests  the  telephone  number  of  a  subscriber  within  his  or  her  LATA  or  area  code.  Id.  at  para.  5. 
 Customers  typically  access  their  local  exchange  carriers  local  directory  assistance  service  by  dialing  411,  1-  411,  or 
 555-  1212.  Directory  assistance  service  is  considered  nonlocal  whenever  a  customer  requests  the  telephone 
 number  of  a  subscriber  located  outside  his  or  her  LATA  or  area  code.  Id.  at  para.  6.  Under  the  Modified  Final 
 Judgment  (MFJ),  BOCs  were  prohibited  from  providing  nonlocal  directory  assistance  service.  Id.  at  para.  5.  Thus, 
 nonlocal  directory  assistance  service  traditionally  has  been  provided  by  interexchange  carriers. 


 9  Id.  at  para.  7. 


 10  See,  e.  g.,  Bell  Atlantic-  South  Petition  at  1. 
 11  See  Bell  Atlantic-  South  Petition  at  2  (noting  that  its  operating  companies  use  either  an  Automatic 
 Directory  Assistance  Service  (ADAS)  system  or  a  Personal  Audio  Unit  (PAU)  to  deliver  a  script  asking  the  caller 
 for  the  city,  state,  and  listing  desired);  BellSouth  Petition  at  1  (stating  that  an  incoming  call  to  BellSouths 
 directory  assistance  service  is  recognized  as  a  directory  assistance  call  and  routed  within  BellSouths  network  to  a 
 Traffic  Operator  Position  System  (TOPS)  remote  switch,  which  bridges  an  ADAS  platform  onto  the  call);  see  also 
 BellSouth  Supplemental  Description  of  Network  Architecture  for  BellSouths  NDA  Service,  CC  Docket  No.  97-172 
 (filed  Nov.  8,  1999)  (BellSouth  Supplemental  Description)  at  1. 


 12  BellSouth  Supplemental  Description  at  1. 


 13  Id.  at  2;  see  also  BellSouth  Petition  at  5.  BellSouth  states  that  there  are  forty-  three  distributed  operator 
 service  centers  in  its  region.  BellSouth  Supplemental  Description  at  1. 
 14  BellSouth  Petition  at  5;  BellSouth  Supplemental  Description  at  2;  Bell  Atlantic-  South  Petition  at  2 
 (stating  that  all  queries  are  sent  over  Bell  Atlantic  official  services  facilities  to  one  of  two  locations  in  Pennsylvania 
 where  Bell  Atlantic  stores  its  local  directory  assistance  information). 


 15  BellSouth  Petition  at  5. 
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 directory  assistance  service  to  their  own  local  exchange  subscribers.  16 
 6.  If  the  requested  number  is  nonlocal,  it  will  be  retrieved  from  an  information 
 storage  facility  that  contains  either  regional  or  nationwide  listings.  17  A  regional  information 
 storage  facility  is  queried  when  the  caller  requests  the  telephone  number  of  a  subscriber  located 
 within  one  of  the  Petitioners  in-  region  states.  18  An  information  storage  facility  that  contains 
 national  listings  is  queried  when  the  caller  requests  the  telephone  number  of  a  subscriber  that 
 resides  outside  the  Petitioners  respective  regions.  19  On  any  nonlocal  directory  assistance  call,  the 
 end-  user,  operator,  and  information  storage  facility  information  may  be  located  in  different 
 LATAs.  Thus,  each  Petitioners  nonlocal  directory  assistance  service  is  provided  on  an 
 interLATA  basis.  Each  Petitioner  states  that  it  owns  the  information  storage  facility  it  uses  in  the 
 provision  of  nonlocal  directory  assistance  service.  20 


 B.  Statutory  Framework 
 1.  Sections  271  and  272 
 7.  Sections  271  and  272  establish  a  comprehensive  framework  governing  BOC 
 provision  of  interLATA  service.  21  Pursuant  to  section  271,  neither  a  BOC  nor  a  BOC  affiliate 


 16  See  Bell  Atlantic-  South  Petition  at  2;  see  also  U  S  WEST  NDA  Forbearance  Order  at  para.  8. 


 17  The  information  storage  facilities  Ameritech  uses  in  the  provision  of  both  regionwide  and  nationwide 
 directory  assistance  service  are  located  in  Milwaukee,  WI  and  Troy,  MI.  See  SBC  Petition  at  2  &  n.  4.  The 
 information  storage  facilities  SWBT  uses  in  the  provision  of  both  local  and  regionwide  directory  assistance  service 
 are  located  in  St.  Louis,  MO,  Oklahoma  City,  OK,  Dallas,  TX,  and  Houston,  TX.  Id.  at  3  &  n.  5.  The  information 
 storage  facilities  Pacific  Bell  uses  in  the  provision  of  both  local  and  regionwide  directory  assistance  service  are 
 located  in  Concord,  CA  and  Buena  Park,  CA.  Id. 


 18  Bell  Atlantic-  South  Petition  at  2;  BellSouth  Supplemental  Description;  SBC  Petition  Attachment  at  3; 
 Letter  from  Christine  Jines,  Director  Federal  Regulatory,  SBC,  to  Magalie  Roman  Salas,  Secretary,  FCC,  CC 
 Docket  No.  97-  172  (dated  Jan.  28,  2000)  (SBC  Jan  28,  2000  Ex  Parte). 


 19  Bell  Atlantic-  South,  SWBT,  and  Pacific  Bell  each  use  an  information  storage  facility  located  in  Illinois,  in 
 the  provision  of  nationwide  directory  assistance  service.  Bell  Atlantic-  South  Petition  at  2;  SBC  Petition  at  2-  3. 
 The  information  storage  facility  BellSouth  uses  in  the  provision  of  nationwide  directory  assistance  service  is 
 located  in  a  LATA  outside  of  BellSouths  region.  BellSouth  Petition  at  5-  6. 


 20  Letter  from  Ben  G.  Almond,  Vice-  President  Federal  Regulatory,  BellSouth,  to  Magalie  Roman  Salas, 
 Secretary,  FCC,  CC  Docket  No.  97-  172  (dated  Feb.  2,  2000)  (BellSouth  Feb.  2,  2000  Ex  Parte);  Letter  from  Marie 
 T.  Breslin,  Director  Federal  Regulatory,  Bell  Atlantic,  to  Magalie  Roman  Salas,  Secretary,  FCC,  CC  Docket  No. 
 97-  172  (dated  Dec.  21,  1999)  (Bell  Atlantic  Dec.  21,  1999  Ex  Parte);  SBC  Jan  28,  2000  Ex  Parte. 


 21  The  term  interLATA  service  is  defined  in  the  Act  as  telecommunications  between  a  point  located  in  a 
 local  access  and  transport  area  and  a  point  located  outside  such  area.  47  U.  S.  C.    153(  21). 
 Telecommunications  is  defined  as  the  transmission,  between  or  among  points  specified  by  the  user,  of 
 information  of  the  users  choosing,  without  change  in  the  form  or  content  of  the  information  as  sent  and  received. 
 Id.    153(  43). 
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 may  provide  in-  region,  interLATA  service  prior  to  receiving  section  271(  d)  authorization  from  the 
 Commission.  22  There  are  two  exceptions  to  this  requirement  in  the  statute:  sections  271(  f)  and 
 271(  b)(  3).  The  first  exception,  section  271(  f),  provides,  in  relevant  part,  that  section  271(  a)  shall 
 not: 


 [P]  rohibit  a  [BOC]  or  affiliate  from  engaging,  at  any  time  after  the  date  of  enactment  of 
 the  [1996  Act],  in  any  activity  to  the  extent  authorized  by,  and  subject  to  the  terms  and 
 conditions  contained  in,  an  order  entered  by  the  United  States  District  Court  for  the 
 District  of  Columbia  pursuant  to  section  VII  or  VIII(  C)  of  the  AT&  T  Consent  Decree  if 
 such  order  was  entered  on  or  before  such  date  of  enactment,  to  the  extent  such  order  is 
 not  reversed  or  vacated  on  appeal.  23 


 8.  The  second  exception,  section  271(  b)(  3),  authorizes  the  BOCs  to  engage  in  the 
 provision  of  the  incidental  interLATA  services  described  in  section  271(  g)  immediately  after  the 
 date  of  enactment  of  the  1996  Act.  24  One  such  service  is  defined  in  section  271(  g)(  4)  as  the 
 interLATA  provision  by  a  [BOC]  or  its  affiliate  .  .  .  of  a  service  that  permits  a  customer  that  is 
 located  in  one  LATA  to  retrieve  stored  information  from,  or  file  information  for  storage  in, 
 information  storage  facilities  of  such  company  that  are  located  in  another  LATA.  25  There  are 
 two  limitations  to  our  interpretation  of  section  271(  g)(  4).  First,  that  provision  must  be  narrowly 
 construed.  26  Second,  we  must  ensure  that  the  services  authorized  under  section  271(  g)(  4)  will 
 not  adversely  affect  telephone  exchange  service  ratepayers  or  competition  in  any 
 telecommunications  market.  27  BOCs  are  required  to  provide  the  services  authorized  under 
 section  271(  g)(  4)  through  a  separate  affiliate.  28 


 2.  Section  10 
 9.  The  1996  Act  requires  the  Commission  to  forbear  from  applying  any  regulation  or 
 any  provision  of  the  Act  to  telecommunications  carriers  or  telecommunications  services,  or 
 classes  thereof,  if  the  Commission  determines  that  the  three  conditions  set  forth  in  section  10  are 
 satisfied.  In  particular,  section  10  provides  that: 


 22  Id.    271(  b)(  1). 
 23  Id.    271(  f). 
 24  Id.    271(  b)(  3). 
 25  Id.    271(  g)(  4). 
 26  Id.    271(  h). 
 27  Id. 
 28  Id.    271(  a)(  2)(  B)(  iii). 
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 [T]  he  Commission  shall  forbear  from  applying  any  regulation  or  any  provision  of  this  Act 
 to  a  telecommunications  carrier  or  telecommunications  service,  or  class  of 
 telecommunications  carriers  or  telecommunications  services,  in  any  or  some  of  its  or  their 
 geographic  markets,  if  the  Commission  determines  that  -- 


 (1)  enforcement  of  such  regulation  or  provision  is  not  necessary  to 
 ensure  that  the  charges,  practices,  classifications  or  regulations  by,  for,  or  in 
 connection  with  that  telecommunications  carrier  or  telecommunications  service  are 
 just  and  reasonable,  and  are  not  unjustly  or  unreasonably  discriminatory; 


 (2)  enforcement  of  such  regulation  or  provision  is  not  necessary  for  the 
 protection  of  consumers;  and 


 (3)  forbearance  from  applying  such  provision  or  regulation  is  consistent 
 with  the  public  interest.  29 


 With  regard  to  the  public  interest  determination  required  by  section  10(  a)(  3),  section  10(  b)  states 
 that,  [  I]  f  the  Commission  determines  that  such  forbearance  will  promote  competition  among 
 providers  of  telecommunications  services,  that  determination  may  be  the  basis  for  a  Commission 
 finding  that  forbearance  is  in  the  public  interest.  30 


 III.  DISCUSSION 
 A.  Overview 


 10.  As  a  threshold  matter,  we  note  that  in  the  U  S  WEST  NDA  Forbearance  Order, 
 the  Commission  held  that  U  S  WEST  may  provide  the  regionwide  component  of  its  nonlocal 
 directory  assistance  service  without  obtaining  authorization  from  the  Commission  to  provide  in-region, 
 interLATA  service  under  section  271(  d),  because  such  service  fell  within  the  scope  of  the 
 exception  provided  in  section  271(  g)(  4).  31  Although  section  272  requires  the  services  described 
 in  section  271(  g)(  4)  to  be  provided  through  a  separate  affiliate,  in  the  U  S  WEST  NDA 
 Forbearance  Order,  the  Commission  forbore  from  enforcing  those  requirements  with  respect  to 
 U  S  WESTs  provision  of  the  regionwide  component  of  its  nonlocal  directory  assistance  service, 
 but  decided  to  retain  the  nondiscrimination  requirements  of  section  272(  c)(  1).  32 


 29  Id.    160(  a). 
 30  Id.    160  (b).  Section  10(  d)  specifies  that  [  e]  xcept  as  provided  in  section  251(  f),  the  Commission  may 
 not  forbear  from  applying  the  requirements  of  section  251(  c)  or  271  under  [section  10(  a)]  until  it  determines  that 
 those  requirements  have  been  fully  implemented.  Id.    160  (d). 


 31  See  U  S  WEST  NDA  Forbearance  Order  at  paras.  23-  24;  see  also  Bell  Atlantic-  North  NDA  Forbearance 
 Order  at  paras.  10-  11. 
 32  U  S  WEST  NDA  Forbearance  Order  at  paras.  33-  38. 
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 B.  Section  271(  g)(  4) 
 11.  We  conclude  that  the  Petitioners  provision  of  nonlocal  directory  assistance  service 
 constitutes  the  provision  of  in-  region,  interLATA  service.  In  providing  nonlocal  directory 
 assistance  service  to  their  in-  region  subscribers,  Petitioners  use  interLATA  transmission  to 
 connect  end-  users  to  directory  assistance  operators  and  to  retrieve  directory  listing  information 
 from  the  appropriate  information  storage  facility.  33  We  further  find,  however,  that  Petitioners 
 nonlocal  directory  assistance  services  fall  within  the  scope  of  the  exception  provided  in  section 
 271(  g)(  4)  for  incidental,  interLATA  services. 


 12.  As  previously  noted,  section  271(  g)(  4)  authorizes  "the  interLATA  provision  by  a 
 [BOC]  or  its  affiliate  .  .  .  of  a  service  that  permits  a  customer  that  is  located  in  one  LATA  to 
 retrieve  stored  information  from,  or  file  information  for  storage  in,  information  storage  facilities  of 
 such  company  that  are  located  in  another  LATA."  34  In  the  U  S  WEST  NDA  Forbearance  Order, 
 the  Commission  concluded  that  section  271(  g)(  4)  authorizes  BOC  provision  of  the  capability  for 
 customers  to  access  only  the  BOC's  own  centralized  information  storage  facilities.  35  Each 
 Petitioner  states  that  it  owns  the  information  storage  facility  it  uses  in  the  provision  of  nonlocal 
 directory  assistance  service.  36  We,  therefore,  find  that  the  Petitioners  nonlocal  directory 
 assistance  services  are  configured  in  the  same  manner  as  the  regionwide  component  of  the 
 nonlocal  directory  assistance  services  the  Commission  considered  in  the  U  S  WEST  NDA 
 Forbearance  Order. 


 13.  On  the  basis  of  the  Petitioners  representations  that  they  own  the  information 
 storage  facilities  they  use  in  the  provision  of  nonlocal  directory  assistance  service,  we  conclude 
 that  each  Petitioners  nonlocal  directory  assistance  service  is  an  incidental,  interLATA  service  as 
 that  term  is  defined  in  section  271(  g)(  4).  37  The  Petitioners,  therefore,  may  provide  nonlocal 


 33  BellSouth  Supplemental  Description  at  3;  SBC  Petition  at  3;  Bell  Atlantic  South-  Petition  at  2-  3;  see  also 
 Attachment  to  BellSouth  Supplemental  Description;  Attachment  to  SBC  Petition;  Attachment  to  Bell  Atlantic-South 
 Petition  (providing  diagrams  explaining  how  nonlocal  directory  assistance  service  calls  are  routed  through 
 the  Petitioners  networks). 


 34  47  U.  S.  C.    271(  g)(  4). 


 35  The  Commission  found  that  such  a  construction  of  the  statute  is  apparent  from  Congress'  use  of  the  term 
 "such  company"  in  setting  forth  the  types  of  services  authorized  by  section  271(  g)(  4).  The  Commission  further 
 noted  that  such  a  construction  of  section  271(  g)(  4)  is  consistent  with  Congress'  directive  that  the  provisions  of 
 section  271(  g)  are  to  be  narrowly  construed.  U  S  WEST  NDA  Forbearance  Order  at  para.  23;  see  also  Bell 
 Atlantic-  North  NDA  Forbearance  Order  at  para.  11. 


 36  See  supra  note  20  and  accompanying  text. 


 37  We  thus  reject  the  arguments  raised  by  some  commenters  that  Petitioners  do  not  satisfy  the  requirement 
 set  forth  in  section  271(  g)(  4)  that  a  BOC  must  own  the  information  storage  facility  it  uses  in  the  provision  of  the 
 data  storage  and  retrieval  services  described  therein.  See  AT&  T  Comments  at  5-  6;  Excell  Comments  at  6-  8;  MCI 
 Reply  Comments  at  3-  5;  Teltrust  Comments  at  6-  7. 
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 directory  assistance  service  to  customers  throughout  their  respective  regions  without  obtaining 
 authorization  from  the  Commission  under  section  271(  d)  to  provide  in-  region,  interLATA  service. 


 C.  Section  10 
 14.  For  the  reasons  set  forth  below,  we  forbear  from  applying  the  separate  affiliate 
 requirements  of  section  272  to  Petitioners  nonlocal  directory  assistance  services.  We  allow  the 
 Petitioners  to  provide  nonlocal  directory  assistance  service  on  an  integrated  basis,  but  require 
 them  to  provide  to  unaffiliated  entities  all  of  the  in-  region  directory  listing  information  they  use  to 
 provide  nonlocal  directory  assistance  service  at  the  same  rates,  terms,  and  conditions  they  impute 
 to  themselves.  With  respect  to  the  first  criterion  for  forbearance,  38  we  find  it  relevant  that 
 Petitioners  are  relatively  new  entrants  in  the  market  for  nonlocal  directory  assistance  service  that 
 face  competition  from  interexchange  carriers  (such  as  AT&  T,  Sprint,  and  MCI),  Internet  service 
 providers,  and  providers  of  payphone  and  cellular  services.  39  We  also  are  persuaded  by  the  fact 
 that  the  Petitioners  do  not  exercise  monopoly  power  over  the  components  used  to  provide  the 
 telephone  numbers  of  customers  outside  their  regions.  40 


 15.  In  the  U  S  WEST  NDA  Forbearance  Order,  the  Commission  required  U  S  WEST 
 to  comply  with  the  nondiscrimination  requirements  set  forth  in  section  272(  c)(  1).  41  We  find  that 
 the  reasoning  set  forth  in  the  U  S  WEST  NDA  Forbearance  Order  is  fully  applicable  to  the 
 Petitioners  nonlocal  directory  assistance  services.  42  We,  therefore,  impose  these  same 


 38  The  first  criterion  requires  the  Commission  to  forbear  if  it  determines  tat  enforcement  of  such  regulation 
 or  provision  is  not  necessary  to  ensure  that  the  charges,  practices,  classifications  or  regulations  by,  for,  or  in 
 connection  with  that  telecommunications  carrier  or  telecommunications  service  are  just  and  reasonable,  and  are  not 
 unjustly  or  unreasonably  discriminatory.  47  U.  S.  C.    160(  a). 


 39  See  BellSouth  Petition  at  7;  Bell  Atlantic-  South  Petition  at  3-  4. 


 40  In  the  U  S  WEST  NDA  Forbearance  Order,  we  noted  that,  like  competing  providers  of  nonlocal  directory 
 assistance  service,  U  S  WEST  must  obtain  the  telephone  numbers  of  subscribers  outside  its  region  from  unaffiliated 
 entities  that  compile  national  listings,  or  from  other  LECs.  U  S  WEST  NDA  Forbearance  Order  at  para.  33. 


 41  See  U  S  WEST  NDA  Forbearance  Order  at  paras.  37-  38. 


 42  In  the  U  S  WEST  NDA  Forbearance  Order,  the  Commission  found  that  the  competitive  advantages  U  S 
 WEST  enjoyed  with  respect  to  the  provision  of  directory  assistance  service  throughout  its  region  stemmed  from  its 
 dominant  position  in  the  local  exchange  and  exchange  access  markets.  Specifically,  the  Commission  found  that, 
 because  of  its  dominance  in  these  markets,  U  S  WEST  had  access  to  a  more  complete,  accurate,  and  reliable 
 database  than  its  competitors.  Given  that  U  S  WESTs  competitive  advantages  in  the  provision  of  regionwide 
 directory  assistance  service  stemmed  from  its  local  exchange  and  exchange  access  monopolies,  the  Commission 
 found  that  U  S  WEST  must  comply  with  the  nondiscrimination  requirements  set  forth  in  section  272  with  respect 
 to  the  in-  region  telephone  numbers  it  uses  in  the  provision  of  nonlocal  directory  assistance  service.  U  S  WEST 
 NDA  Forbearance  Order  at  para.  35.  Petitioners  have  been  the  dominant  providers  of  local  exchange  and 
 exchange  access  services  in  their  respective  regions  for  many  years.  Like  U  S  WEST,  the  competitive  advantages 
 Petitioners  possess  in  the  provision  of  the  telephone  numbers  of  customers  inside  their  regions  stem  from  their 
 dominance  in  these  markets. 
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 requirements  on  the  Petitioners.  Thus,  Petitioners  must:  (1)  make  available  to  unaffiliated  entities 
 all  of  the  directory  listing  information  that  they  use  to  provide  regionwide  directory  assistance 
 service  at  the  same  rates,  terms,  and  conditions  they  impute  to  themselves;  (2)  make  changes  to 
 their  cost  allocation  manuals  to  reflect  this  accounting  change;  and  (3)  update  and  maintain  the 
 directory  listing  information  they  provide  to  unaffiliated  entities  in  the  same  manner  they  update 
 and  maintain  the  directory  listing  information  they  use  in  the  provision  of  nonlocal  directory 
 assistance  service.  43  The  Petitioners  must  also  comply  with  the  nondiscrimination  requirements 
 set  forth  in  the  U  S  WEST  NDA  Forbearance  Order.  44  Given  our  expectation  that  the  Petitioners 
 will  comply  with  these  requirements,  we  conclude  that  the  first  criterion  for  forbearance  is 
 satisfied. 


 16.  With  respect  to  the  second  criterion  for  forbearance,  45  we  note  that  retention  of 
 the  section  272(  c)(  1)  nondiscrimination  requirements  with  respect  to  the  Petitioners  in-  region 
 telephone  numbers  should  protect  consumers  by  promoting  the  development  of  a  fully 
 competitive  market  for  nonlocal  directory  assistance  service,  and  by  ensuring  that  no  competitor 
 will  have  an  undue  advantage  in  the  nonlocal  directory  assistance  services  market.  46  This  should 
 stimulate  the  entry  of  new  providers  of  nonlocal  directory  assistance  service,  which,  in  turn,  will 
 encourage  the  providers  of  these  services  to  compete  on  the  basis  of  price  and  quality.  47  Because 
 competition  will  ultimately  benefit  consumers,  we  conclude  that  the  enforcement  of  section  272  is 
 not  necessary  to  prevent  the  Petitioners  from  engaging  in  conduct  that  would  impede  competition 
 in  the  market  for  nonlocal  directory  assistance  service,  and  thereby  harm  consumers.  48  We, 
 therefore,  find  that  the  second  criterion  for  forbearance  is  met. 


 17.  With  respect  to  the  third  criterion  for  forbearance,  49  we  conclude  that  allowing  the 
 Petitioners  to  provide  nonlocal  directory  assistance  service  on  an  integrated  basis  is  in  the  public 
 interest  because  it  will  allow  the  Petitioners  to  be  more  effective  competitors  in  the  nonlocal 


 43  See  U  S  WEST  NDA  Forbearance  Order  at  para.  37. 
 44  To  the  extent  that  any  BOC  cannot  make  available  to  unaffiliated  entities  the  directory  listing  information 
 it  uses  in  the  provision  of  nonlocal  directory  assistance,  it  must  cease  using  these  listings  in  its  own  provision  of 
 nonlocal  directory  assistance  service.  See  U  S  WEST  NDA  Forbearance  Order  at  para.  37. 


 45  The  second  criterion  requires  the  Commission  to  forbear  if  it  determines  that  enforcement  of  such 
 regulation  or  provision  is  not  necessary  for  the  protection  of  consumers.  47  U.  S.  C.    160(  a). 
 46  See  U  S  WEST  NDA  Forbearance  Order  at  para.  47. 


 47  Id. 
 48  Id. 
 49  The  third  criterion  requires  the  Commission  to  forbear  if  it  determines  that  forbearance  from  applying 
 such  provision  or  regulation  is  consistent  with  the  public  interest.  47  U.  S.  C.  160(  a). 
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 directory  assistance  services  market.  50  Conversely,  if  the  Petitioners  were  required  to  provide 
 nonlocal  directory  assistance  service  through  a  separate  affiliate,  while  continuing  to  provide  local 
 directory  assistance  service  on  an  integrated  basis,  the  section  272  safeguards  would  pose 
 significant  adverse  competitive  consequences  for  the  Petitioners,  without  positive  benefits  for 
 consumers.  51  We  conclude  that  the  market  for  nonlocal  directory  assistance  service  should 
 become  increasingly  competitive  if  the  Petitioners  are  allowed  to  remain  effective  competitors  in 
 the  market  for  nonlocal  directory  assistance  service,  which  would  ultimately  benefit  consumers 
 because  they  would  be  able  to  obtain  a  convenient,  competitively  priced  service.  52  On  the  basis  of 
 these  findings,  we  conclude  that  the  third  criterion  for  forbearance  is  met.  Because  we  also  find 
 that  the  first  and  second  criteria  for  forbearance  are  met,  we  forbear,  in  part,  from  the 
 enforcement  of  section  272  as  to  the  Petitioners  provision  of  nonlocal  directory  assistance 
 services. 


 18.  Excell  and  INFONXX  maintain  that  SBCs  petition  for  forbearance  must  be  denied 
 because  SBC  refuses  to  provide  directory  listing  information  to  providers  of  directory  assistance 
 that  are  not  also  local  exchange  carriers.  53  We  note  that  the  Commission  recently  issued  a  Notice 
 of  Proposed  Rulemaking  with  respect  with  this  issue.  54  We,  therefore,  do  not  decide  in  this 
 proceeding  whether,  pursuant  to  section  272(  c)(  1),  a  BOC  must  provide  directory  listing 
 information  to  providers  of  directory  assistance  service  that  are  not  also  local  exchange  carriers. 


 19.  Some  commenters  state  that  the  section  272(  c)(  1)  nondiscrimination  requirements 
 are  not  sufficient  to  ensure  that  Petitioners  will  treat  unaffiliated  entities  in  a  nondiscriminatory 
 fashion.  55  Excell  maintains,  for  example,  that,  under  the  nondiscrimination  requirement,  the 
 BOCs  are  able  to  charge  any  rate,  no  matter  how  unreasonable,  to  unaffiliated  entities  as  long  as 
 they  impute  those  same  rates  to  themselves.  56  According  to  these  commenters,  the 
 Commission  should  require  BOCs  to  provide  directory  listing  information  at  rates  that  are  based 


 50  Id.  at  paras.  48-  51. 
 51  Id.  at  para.  49. 
 52  Id.  at  paras.  50-  51. 
 53  See  Excell  Comments  at  13-  14;  INFONXX  Comments  at  5-  7;  see  also  MCI  WorldCom  Comments  at  5-  6; 
 Teltrust  Comments  at  9-  11.  But  see  SBC  Petition  at  4;  SBC  Reply  at  2-  3  (stating  that  the  term  unaffiliated 
 entities,  as  used  in  section  272(  c)(  1),  does  not  include  non-  carriers). 


 54  Provision  of  Directory  Listings  Information  Under  the  Telecommunications  Act  of  1934,  as  amended,  CC 
 Docket  No.  99-  273,  FCC  99-  227,  Notice  of  Proposed  Rulemaking  (rel.  Sept.  9,  1999). 
 55  Excell  Comments  at  3,  10-  12;  MCI  WorldCom  Comments  at  9-  11;  Teltrust  Comments  at  12-  16;  see  also 
 Letter  from  Karen  M.  Johnson,  Associate  Counsel  Regulatory  Affairs,  MCI  WorldCom,  to  Magalie  Roman  Salas, 
 Secretary,  FCC,  CC  Docket  No.  97-  172  (filed  Feb.  2,  2000)  (MCI  Feb.  2,  2000  Ex  Parte). 


 56  Excell  Comments  at  10;  see  also  MCI  WorldCom  Comments  at  9-  11. 
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 on  cost.  57 
 20.  Similar  to  the  Commissions  finding  in  the  U  S  WEST  NDA  Forbearance  Order, 
 we  find  that  the  accounting  safeguards  described  above  should  ensure  that  the  rates  the 
 Petitioners  impute  to  themselves,  and  therefore  charge  to  unaffiliated  entities,  will  not  adversely 
 affect  competition  in  the  nonlocal  directory  assistance  services  market.  58  Accordingly,  we  reject 
 commenters  claims  that,  before  we  may  grant  the  Petitioners  forbearance  petitions,  additional 
 procompetitive  safeguards  are  necessary  to  prevent  the  Petitioners  from  charging  exorbitant 
 rates.  59 


 21.  We  also  reject  these  commenters  claims  that,  before  we  may  grant  Petitioners 
 forbearance  petitions,  we  must  first  ascertain  specific  facts  as  to  how  and  when  Petitioners  will 
 implement  the  section  272(  c)(  1)  nondiscrimination  requirements.  We  further  find  that  any 
 arguments  concerning  the  Petitioners  failure  to  comply  with  the  requirements  set  forth  in  section 
 272(  c)(  1)  or  this  Order  are  more  appropriately  addressed  in  the  context  of  an  enforcement 
 proceeding. 


 57  Excell  Comments  at  4  (arguing  that  such  information  should  be  provided  at  cost-  based  rates);  see  also 
 INFONXX  Comments  at  7  (stating  that  the  Commission  should  require  BOCs  to  provide  directory  listing 
 information  at  costs  that  make  it  economical  for  competing  providers  to  access  the  data);  MCI  WorldCom 
 Comments  at  9-  11;  Teltrust  Comments  at  11-  16. 


 58  See  U  S  WEST  NDA  Forbearance  Order  at  para.  25  &  n.  72;  see  also  Implementation  of  the 
 Telecommunications  Act  of  1996:  Accounting  Safeguards  Under  the  Telecommunications  Act  of  1996,  CC  Docket 
 No.  96-  150,  Report  and  Order,  12  FCC  Rcd.  17539,  17567-  73,  paras.  61-  76  (1996)  (concluding  that  the 
 accounting  safeguards  ensure  that  the  BOCs  provision  of  incidental  interLATA  services  on  an  integrated  basis  will 
 not  adversely  affect  telephone  exchange  ratepayers  or  competition  in  any  telecommunications  market). 


 59  See  Excell  Comments  at  11.  We  further  note  that,  in  the  context  of  these  forbearance  petitions,  we  are 
 required  to  determine  whether  enforcement  of  section  272  is  necessary  to  ensure  that  the  rates,  terms,  and 
 conditions  for  and  in  connection  with  the  Petitioners  nonlocal  directory  assistance  services  are  just  and  reasonable 
 and  not  unjustly  or  unreasonably  nondiscriminatory.  In  this  regard,  we  note  that,  if  forbearance  were  denied,  each 
 Petitioner  would  be  required  to  provide  nonlocal  directory  assistance  service  through  a  separate  affiliate  pursuant  to 
 the  requirements  of  section  272,  including  the  nondiscrimination  requirements  set  forth  in  section  272(  c)(  1).  As 
 noted  above,  we  decline  to  forbear  from  the  nondiscrimination  requirements  set  forth  in  section  271(  c)(  1)  with 
 respect  to  the  Petitioners  nonlocal  directory  assistance  services.  Thus,  the  rates  that  the  Petitioners  charge  for 
 access  to  in-  region  directory  listing  information  are  governed  by  section  272(  c)(  1)  irrespective  of  whether  we  grant 
 or  deny  their  forbearance  petitions. 
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 IV.  CONCLUSION 
 22.  For  the  reasons  set  forth  above,  we  conclude  that  the  Petitioners  may  continue 
 providing  nonlocal  directory  assistance  service  because  and  so  long  as  that  service  falls  within  the 
 scope  of  section  271(  g)(  4).  We  further  conclude  that,  as  long  as  the  Petitioners  comply  with  the 
 nondiscrimination  requirements  set  forth  above  with  respect  to  providing  unaffiliated  entities  with 
 access  to  all  of  the  in-  region  directory  listing  information  they  use  to  provide  nonlocal  directory 
 assistance  service,  the  statutory  criteria  for  forbearance  set  forth  in  section  10  are  satisfied  so  that 
 we  forbear,  in  part,  from  applying  the  requirements  of  section  272.  Thus,  we  allow  the 
 Petitioners  to  provide  nonlocal  directory  assistance  service  on  an  integrated  basis,  subject  to  these 
 nondiscrimination  requirements. 


 V.  ORDERING  CLAUSES 


 23.  Accordingly,  IT  IS  ORDERED,  pursuant  to  sections  4(  i),  10,  272,  303(  r),  47 
 U.  S.  C.    154(  i),  160,  272,  and  303(  r)  of  the  Communications  Act  of  1934,  as  amended,  and 
 section  0.291  of  the  Commissions  rules,  47  C.  F.  R.    0.291,  that  BellSouths,  SBCs  and  Bell 
 Atlantic's  petitions  for  forbearance  with  respect  to  their  nonlocal  directory  assistance  services 
 ARE  GRANTED. 


 24.  IT  IS  HEREBY  FURTHER  ORDERED,  pursuant  to  section  1.103(  a)  of  the 
 Commissions  rules,  47  C.  F.  R.    1.103(  a),  that  this  Memorandum  Opinion  and  Order  SHALL  BE 
 EFFECTIVE  upon  release. 


 FEDERAL  COMMUNICATIONS  COMMISSION 


 Robert  C.  Atkinson 
 Deputy  Chief 
 Common  Carrier  Bureau 
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 APPENDIX 
 Comments  --  November  29,  1999 
 AT&  T  Corp.  (AT&  T) 
 Excell  Agent  Services,  L.  L.  C.  (Excell) 
 INFONXX,  Inc. 
 MCI  WorldCom,  Inc.  (MCI) 
 TelTrust,  Inc. 


 Reply  Comments    December  8,  1999 
 Bell  Atlantic 
 BellSouth 
 MCI 
 SBC 


 Comments  on  SBC  Supplemental  Description  --  December  17,  1999 
 Excell 
13