V. Conclusions

Pacific is anxious to complete this component of their quest into the long distance market, we are anxious to bring enhanced competition to California, and a performance incentives plan is an essential part of that effort. We adopt a plan that is generally based on Pacific's plan because we find it to be more stable and functionally appropriate. We have made many significant modifications to the plan to better follow the criteria we have discussed in this decision. We offer this plan for Pacific's OSS performance to the parties so that they may get on with the business of providing competitive phone services to California residents.

We believe this plan is sufficient and appropriate to give Pacific incentives to provide non-discriminatory OSS access. We anticipate enhancements and refinements to this plan as a result of the experience and insights gained during and beyond the six-month initial implementation. In fact, we expect that the first review after the six-month initial implementation will be followed by regular periodic reviews and modifications. While this plan likely can be improved, as any state plan now in existence can be improved, it is more important to recognize that the plan is sufficient and that any instant improvements are not as important as bringing the benefits of a more competitive market to California's citizens.

We consider this Performance Incentive plan to be an integral part of Pacific's request for long distance authorization in California pursuant to Section 271. As Pacific concedes in its comments on the DD, the plan we adopt today provides a public interest showing that the FCC will give significant weight to in determining whether a sufficient anti-backsliding mechanism exists to support a Section 271 application. In offering this plan to the CLECs as part of its showing that it is in the public interest, Pacific will need to agree that the Commission retains jurisdiction over the plan, including the authority to modify any provision, and that the plan will continue in effect until terminated by the Commission.