Opinion ID: 1874673
Heading Depth: 1
Heading Rank: 9

Heading: Verizon's ICM-FL Model

Text: AT & T challenges the ICM-FL model designed by Verizon and largely adopted by the Commission for calculating Verizon's UNE rates. The appropriate methodology for establishing UNE rates is set forth at 47 C.F.R. § 51.505 (2003). This regulation sets forth the Total Element Long-Run Incremental Cost, or TELRIC methodology. The TELRIC methodology computes the cost of a UNE by adding up an ILEC's long-term forward-looking costs of providing the network element. See 47 C.F.R. § 51.505(b). [3] AT & T contends that Verizon's ICM-FL study is not TELRIC compliant for two reasons: (1) the study utilizes GTD-5 switches rather than what AT & T perceives as the more efficient ATM switches, and (2) the study improperly includes inputs for digital loop carrier (DLC) technology, which allows for Verizon's recoupment of embedded costs, in violation of § 51.505(d)(1), which expressly prohibits a cost model from incorporating embedded costs. In reviewing the ICM-FL model for TELRIC compliance, we note that the assessment of TELRIC compliance is not a legal determination, but a factual determination made by weighing the evidence. Illinois Bell Tel. Co. v. Wright, 245 F. Supp 2d. 900, 908 (N.D.Ill.2003).