III. CONCLUSION

Verizon's application for rehearing fails to demonstrate legal error in Commission Decision (D.) 03-03-033.

THEREFORE, IT IS ORDERED:

1. Rehearing of D.03-03-033 is denied.

2. Covad's Motion to Accept Late-Filed Response is granted.

This order is effective today.

Dated August 21, 2003, at San Francisco, California.

MICHAEL R. PEEVEY

President

CARL W. WOOD

LORETTA M. LYNCH

GEOFFREY F. BROWN

SUSAN P. KENNEDY

Commissioners