AT&T and McLeodUSA reached a long-term agreement in principle whereby AT&T would begin an orderly transition of lines off the Bells' UNE-P platform in selected states and onto McLeodUSA's UNE-L network. The companies said finalization of the agreement requires regulatory clarity in support of facilities-based competition. The companies are jointly proposing to the FCC a set of principles to meet their concerns.
McLeodUSA is a facilities-based telecommunications provider active in 25 Western, mid-Western and Rocky Mountain states. It has 38 ATM switches, 40 voice switches, 667 collocations and 435 DSLAMs actvie in its network.
The proposed principles, which the companies said must be part of any new rules the FCC proposes in its Triennial Review Order, include an orderly transition from UNE-P to UNE-L and continued access to unbundled elements necessary to provide UNE-L, including full functionality of DS0/DS1/DS3 loops and transport under fair terms and stable (TELRIC) pricing.
Highlights of the key principles the companies have proposed are:
- Continuation of competitors' current access to the Bells' DS0, DS1 and DS3 loops at stable, forward-looking cost-based rates should be encouraged and protected by the FCC.
- High Capacity Transport should continue to be made available at stable, forward-looking cost based rates.
- Competitors must have access to loop and transport combinations, without anti-competitive restrictions at cost-based rates, and, among other things, the ability to provide both voice and data functionality over these loops and transport.
- Competitors who currently use the Bells' UNE-P platforms must have the opportunity for an orderly transition to UNE-L. UNE-P prices should remain fixed through 12/31/04 with a time-phased, gradual increase going forward.
- The batch hot cuts that are required to install UNE-L must be affordable, operationally efficient and supported by federal standards to ensure consistency across markets. In the area of operational performance, the Bells must be able to switch large volumes of customers from their own service to competitive providers in a way that is timely, thorough and error-free.
- Competitors should continue to have access to the full loop functionality without restrictions resulting from actions such as the Bells replacement or decommissioning of copper loops or the installation of non-copper material such as fiber.
