SUMMARY OF BELL ATLANTIC/GTE CONDITIONS


I. PROMOTING ADVANCED SERVICES

1.	Separate Affiliate for Advanced Services

? Bell Atlantic/GTE will create, prior to closing the merger, one or more separate 
affiliates to provide all advanced services in the combined Bell Atlantic/GTE 
region. 

? These separate affiliates will use the same processes as competitors and pay an 
equivalent price for facilities and services.

? The separate affiliates will be subject to a comprehensive annual audit.

? This condition will greatly accelerate competition in the advanced services market 
by ensuring a level playing field between Bell Atlantic/GTE and its advanced 
services competitors.

2.	Surrogate Line Sharing Discount

? In the event the Commission’s line sharing rules are overturned in a final, non-
appealable judicial decision, Bell Atlantic/GTE will provide data CLECs the 
economic equivalent of “line sharing” by providing them a second loop at a 50% 
discount for purposes of providing advances services to consumers.

? This condition will ensure a comparable playing field between the advanced 
services separate affiliate and its competitors. 

	3.	Loop Conditioning Charges and Cost Studies

? Bell Atlantic/GTE will file cost studies that comply with the Commission’s 
unbundled network element (UNE) pricing methodology for conditioning loops.

? Pending approval of state-specific rates, Bell Atlantic/GTE will make available to 
CLECs loop conditioning rates (provided they are greater than zero) contained in 
any effective interconnection agreement to which Bell Atlantic/GTE is a party.

? Also in the interim, Bell Atlantic/GTE will not impose loop-conditioning charges 
on loops less than 12,000 feet.

? This condition will ensure that Bell Atlantic/GTE will not erect a barrier to the 
competitive deployment of advanced services by charging excessive rates for loop 
conditioning. 

4.	Nondiscriminatory Rollout of xDSL Services

? This condition provides that at least 10% of all rural/urban wire centers where the 
separate affiliate provides xDSL service will be low-income rural/urban wire 
centers.

? Bell Atlantic/GTE will file a quarterly report with the Commission describing the 
status of its xDSL rollout.

? This condition will ensure that advanced services are available to some of the 
least competitive market segments and to low-income consumers. 

II. OPENING LOCAL MARKETS TO COMPETITION

5.	Carrier-to-Carrier Performance Plan

? Bell Atlantic/GTE will publicly file performance measurement data, reflecting 17 
different categories, for each of its in-region states with the Commission and 
relevant state commissions on a monthly basis.  These data reflect how the 
company responds to competing carriers’ requests for information and 
interconnection.

? Bell Atlantic/GTE will meet its performance goals or make voluntary incentive 
payments to the U.S. Treasury of up to $1.164 billion dollars over three years. 

? This condition will ensure that Bell Atlantic/GTE’s service to competitors will not 
deteriorate as a result of the merger.

6.  	Uniform and Enhanced OSS

? Bell Atlantic/GTE will develop and deploy, with CLEC input, application-to-
application interfaces, graphical user interfaces, and business rules, that are 
uniform in the Bell Atlantic legacy areas, and separately uniform within the GTE 
legacy service areas, and uniform across most of the merged firms' service areas 
in Pennsylvania and Virginia.

? Until the advanced services separate affiliate uses these enhanced interfaces to 
order 75% of its loops, CLECs will receive a 25% discount off of all loops used 
for advanced services.

? Bell Atlantic/GTE will implement across its region a uniform change 
management process based on the change management process developed by the 
New York Commission. 

? Bell Atlantic/GTE will make voluntary incentive payments of up to $20 million if 
deployment targets are not met.

? If Bell Atlantic/GTE completes the OSS commitments prior to its deployment 
target dates, its potential liability under the Carrier-to Carrier Performance Plan 
may be reduced by up to $125 million.

? This condition will reduce the costs of providing competing telecommunications 
services.

7.  	OSS Assistance to Qualifying CLECs

? Bell Atlantic/GTE will provide special OSS assistance, including free training by 
a team of OSS experts, for CLECs whose annual revenues are under $300 million.

? This condition will assist smaller competitors by allowing them to enter new 
markets faster and more efficiently.

8.	Collocation, Unbundled Network Element, and Line-Sharing Compliance

? Before the merger closing, an independent auditor, approved by the Chief of the 
Common Carrier Bureau, will conduct an audit to determine whether the 
companies have in place methods and procedures that comply with the 
Commission’s collocation rules.

? Also after merger closing, an independent auditor will develop and implement a 
comprehensive audit of the merged company’s compliance with the 
Commission’s collocation, UNE, and line-sharing rules.

? This condition will ensure that Bell Atlantic/GTE provides collocation, access to 
UNEs, and line-sharing in a lawful and timely manner.

9.  	Most-Favored Nation Provisions

? Bell Atlantic/GTE will offer CLECs within its region any new arrangement or 
UNE secured by a Bell Atlantic/GTE outside of its region.

? Any interconnection arrangement or UNE negotiated by Bell Atlantic/GTE or its 
affiliates in one Bell Atlantic/GTE state will be made available in all other states 
throughout its region.

? Where a CLEC seeks to adopt an arrangement or UNE arbitrated by Bell 
Atlantic/GTE, either the CLEC or Bell Atlantic/GTE may submit these provisions 
to immediate arbitration in the “importing” state without waiting for the statutory 
negotiation period to expire, provide the relevant state commission consents.

? This condition will facilitate market entry throughout the Bell Atlantic/GTE 
region by spreading best practices.

10.  	Multi-State Interconnection and Resale Agreements

? Bell Atlantic/GTE will offer CLECs an interconnection and/or resale agreement 
covering multiple Bell Atlantic and/or GTE states. 

? This condition will prevent unnecessary negotiation costs and delays from being 
imposed on competitors.

11-12.  Carrier-to-Carrier Promotions

? Subject to state-specific quantity limits, Bell Atlantic/GTE will offer two 
promotions to CLECs serving residential customers:

-    Loop Discount – 25% discount off of the lowest monthly recurring charges 
for unbundled local loops 
-    Resale Discount – 32% discount off of retail rates

? These conditions will encourage rapid development of local competition in 
residential markets.

13. 	Offering of Unbundled Network Elements

? Bell Atlantic/GTE will continue to make UNEs available until the Commission’s 
UNE Remand and Line-Sharing Orders become final and non-appealable.

? This condition will reduce uncertainty for competitors arising from litigation over 
the Commission’s rules.

14.	Alternative Dispute Resolution through Mediation

? Bell Atlantic/GTE will offer CLECs a state-supervised alternative dispute  
resolution process for addressing interconnection agreement disputes.

? This condition will streamline and expedite the resolution of carrier-to-carrier 
disputes.

15.	Access to Cabling in Multi-Unit Properties

? Bell Atlantic/GTE will conduct a trial that will provide CLECs with access at a 
single point of interconnection to cabling owned or controlled by Bell 
Atlantic/GTE in multi-tenant residential and business properties.

? Bell Atlantic/GTE will design and install new cabling owned or controlled by Bell 
Atlantic/GTE so that it can be accessed at single point of interconnection at a 
minimum point of entry.

? This condition will provide additional competition in the provision of local 
service to multi-unit properties.

III. FOSTERING OUT-OF-REGION COMPETITION

16.	Out-of-Territory Competitive Entry 

? Within 36 months from merger closing, Bell Atlantic/GTE will spend a minimum 
of $500 million to provide competitive local service, including traditional local 
telecommunications services and advanced services, outside of its service areas or 
will provide competitive local service to at least 250,000 out-of-region customer 
lines. 

? Bell Atlantic/GTE is liable for voluntary incentive payments up to $750 million 
dollars if it does not satisfy either of these out-of-region competition 
commitments.

? This condition will ensure that residential consumers and business customers 
outside of Bell Atlantic/GTE’s region benefit from increased facilities-based 
competitive service.

IV. IMPROVING RESIDENTIAL SERVICE

17.	Pricing of Long Distance Service

? Bell Atlantic/GTE will not charge residential consumers a minimum monthly flat 
charge for long distance service.

? This condition will benefit low-income consumers and low-volume long distance 
callers. 

18.	Enhanced Lifeline Plans

? Bell Atlantic/GTE will offer a low-income Lifeline universal service plan to low-
income residential subscribers in each of its states.

? This condition will ensure that benefits of the merger extend to low-income 
residential customers throughout Bell Atlantic/GTE’s region.

	19.	Additional Service Quality Reporting

? Bell Atlantic/GTE will report, on a quarterly basis, the quality of service that it 
provides its customers in accordance with the NARUC Technology Policy 
Subgroup’s “Service Quality White Paper.” 

? Each month Bell Atlantic/GTE will report, on a disaggregated, company-specific 
basis, certain of the ARMIS service quality data to show that the service levels it 
provides Genuity as compared to other companies purchasing its high-speed 
special access and regular special access services.

? Bell Atlantic/GTE will develop and file reports showing the service quality 
provided to interexchange carriers.

? This condition will safeguard against potential deterioration in the merged 
company’s quality of service as a result of the merger and ensure that any 
attempted discrimination in favor of Genuity in the provision of special access 
circuits will be readily detectable. 

20.	Network Reliability and Interoperability Council (NRIC)

? Bell Atlantic/GTE will continue participation in the NRIC.

? This condition will ensure that Bell Atlantic/GTE will maintain reliable, high-
quality networks and services.

V. COMPLIANCE AND ENFORCEMENT

21.	Internal Compliance Program

? Prior to merger close, Bell Atlantic/GTE will appoint an internal corporate 
Compliance Officer who will prepare and publicly file with the Commission an 
annual report addressing the company’s compliance with the merger conditions.

? This condition will ensure that the Bell Atlantic/GTE has internal controls in 
place to maintain full and timely compliance with the conditions.

	22.	Independent Auditor

? Bell Atlantic/GTE will retain an independent auditor, approved by the 
Commission, to provide a thorough and systematic evaluation of its compliance 
with the conditions and determine the sufficiency of its internal controls. The 
auditor will issue reports that will be publicly available.

? This condition establishes an efficient and cost-effective mechanism for detecting 
potential noncompliance with the conditions.

	23.	Enforcement Mechanisms

? The enforcement and compliance programs established by the conditions in no 
way supercede or replace the Commission’s enforcement and investigative 
powers.

? Commission may extend or toll the conditions for a period commensurate with 
any noncompliance.

24. 	Sunset

? Each of the conditions will generate a full three-year period of benefit.

25.	Effect of Conditions

? These conditions are intended to be a floor, not a ceiling.  They do not limit the 
authority or jurisdiction of state commissions to impose or enforce additional 
requirements stemming from a state’s review of the merger.  Nor do they alter or 
preempt any other federal statutes, such as the antitrust laws.
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