Opinion ID: 793196
Heading Depth: 2
Heading Rank: 2

Heading: Rates for High Capacity Loops

Text: 23 Qwest next argues that MPUC improperly adopted the HAI Adjunct Model proposed by AT & T and MCI to calculate the rates for high capacity loops. High capacity loops are larger wires that connect high-volume customers to a telephone company wire center. The FCC requires TELRIC studies to explain with specificity how the associated costs are developed. Local Competition Order ¶ 691. When offered in a spreadsheet, a model should reveal the underlying formulae and should include data or inputs that are easily verifiable. TELRIC NPRM ¶ 41. Qwest objects to the Adjunct Model because it provided only aggregate per line investment figures, rather than specifying the individual cost of the particular components that made up that input. 24 While the ALJ acknowledged the model would have been stronger with more price documentation, the Adjunct Model uses per-line costs based on proprietary information from Qwest's competitors and the vendors that supply the relevant equipment. As a result, the data concerning costs for each particular company was not disclosed. The data collected from the individual competitors and vendors was used to compute an average per line investment for the relevant equipment and operations. The inputs were verified by expert witnesses who sponsored the model, and were independently verified by the Department of Commerce's technical expert. 25 Qwest asserts that there was insufficient documentation to support the conclusion of the experts; however Qwest failed to provide the ALJ with any evidence that the prices used in the Adjunct Model were inadequate. Moreover, the ALJ and MPUC rejected Qwest's proposed model and proffered alternative per-line costs because they relied on the structure of Qwest's existing network, see 47 C.F.R. § 51.505(d)(1); Local Competition Order ¶ 705, and overstated loop costs. MPUC is required by the 1996 Act to resolve the arbitrated issues in a timely manner, using the best information available. See § 252(b)(4). As a result, MPUC must choose the model it feels most accurately reflects an efficient, forward-looking network. See GTE S., Inc., 199 F.3d at 748. In light of the evidence presented to the ALJ, we cannot say MPUC was arbitrary and capricious in choosing the Adjunct Model to calculate high capacity loop rates.