3. Outline of the Agreements

The Lease Agreement sets forth a process for Sprint or its affiliates¹ to use available capacity on SCE's fiber optic network. It also sets forth Sprint's standards and specifications for the configuration of leased fiber rings. The Lease Agreement specifies SCE's obligation to maintain and repair the leased cables and provides penalties in the form of outage credits and termination rights if the fiber does not meet agreed-upon operating parameters.

The Lease Agreement provides that no product order constitutes a lease until the Commission approves both the Lease Agreement and the relevant product order. Until Commission approval is given, Sprint cannot connect to the fibers or otherwise make use of them.

The term of each of the five product orders is for a fixed period of years. Sprint must pay monthly charges for each product order, beginning after the Commission approves the product order and Sprint has accepted the fiber. In addition, Sprint is to pay monthly maintenance fees and one-time building entrance charges. The five product orders that are part of this application are for dark fiber. They are designated as product orders for Ring No. 1, Ring No. 2, Ring No. 5, Ring No. 6, and Ring No. 7, with the assigned ring numbers corresponding to Sprint's ring numbering system for the Los Angeles market. Each of the product orders identifies the number of optical fibers on an existing fiber optic cable, the location and length of the fiber lease, and the term of the lease and the monthly fee for use of the fiber.