3. Issue in Arbitration

The issue before the Commission is whether SureWest should be responsible for 100% of the costs of the interconnection facilities that are located on SureWest's side of the POI. SureWest proposes that Pac-West pay 50% of the cost of those facilities, while Pac-West believes that SureWest should pay 100% of the costs of the interconnection facilities. The parties have cited a number of CPUC orders, FCC orders, and court decisions in support of their positions.

This is the first time the Commission has been confronted with this particular issue. Prior rulemakings and arbitrations have dealt with compensation for the traffic carried over a company's facilities, rather than payment for the facilities themselves, but in the instant arbitration, the parties have resolved the issue of compensation for the traffic exchanged between their networks, and the Commission is not being asked to arbitrate that issue.