ALJ/KLM/jt2 Mailed 3/2/2007
Decision 07-03-004 March 1, 2007
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Rulemaking on the Commission's Own Motion to Govern Open Access to Bottleneck Services and Establish a Framework for Network Architecture Development of Dominant Carrier Networks.
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Rulemaking 93-04-003 (Filed April 7, 1993) |
Investigation on the Commission's Own Motion into Open Access and Network Architecture Development of Dominant Carrier Networks. |
Investigation 93-04-002 (Filed April 7, 1993) |
DECISION APPROVING SETTLEMENT AGREEMENT ON AT&T CALIFORNIA COLLOCATION RATES
This order adopts a settlement agreement resolving outstanding issues related to the rates charged by Pacific Bell Telephone Company (dba AT&T California) for collocation services to competitive local exchange carriers (CLECs). The settlement would make permanent the rates previously paid by CLECs for AT&T California's collocation services and would permit CLECs to opt for lower tariffed rates going forward, which would remain in effect for three years. The settlement does not apply to Verizon.
I. Background
The Commission opened this proceeding in 1993 as part of the process to introduce significant competition in the provision of telecommunications services. Its purpose was to address several issues relating to the provision of services by Pacific Bell and Verizon to CLECs Among those issues are the terms and conditions for "collocation" services. In this context, "collocation" means the housing of CLEC facilities in the incumbent local carrier's central office for the purpose of providing competitive services. The Commission proceeded to address the very complex cost and pricing issues during a time of rapid policy and rule changes at the federal level.
On March 31, 1999, the Federal Communications Commission (FCC) issued significant new rules on collocation in its Advanced Services Order1 which the Commission intended to address in this rulemaking. On January 13, 2000, the assigned Commissioner issued a ruling providing that all collocation issues would be adjudicated in this proceeding, including the minimum collocation requirements contained in the Advanced Services Order2 and the development of cost-based prices3 for physical, common, shared, virtual, cageless, adjacent on-site and adjacent off-site collocation arrangements. The ruling set a September 2000 deadline for completing this proceeding.4 Although the Commission subsequently conducted hearings in this matter and submitted the matter for briefing in May 2000, the Commission has not, for a variety of reasons, issued an order on AT&T California's final rates or any possible true-up requirements.
During the intervening period after the issuance of the FCC's Advanced Services Order in 1999 and the Open Access and Network Architecture Development (OANAD) proceeding, AT&T California began billing all CLECs interim rates for collocation. CLECs have been billed under one or more pricing structures stemming from differing tariffs, accessible letters, advice letters or interconnection agreements. Because these rates had not been determined to be final, all of them have been subject to a retroactive adjustment or "true up" to the final rates adopted in this proceeding.
On July 8, 2005, AT&T California filed a motion in this proceeding to set final collocation rates. As a result, the parties began confidential negotiations in an attempt to resolve this proceeding in lieu of litigation. On August 25, 2006, the parties informed ALJ Malcolm that a settlement had been reached and would file a motion for its adoption in the coming weeks.
On November 3, 2006, Pacific Bell Telephone Company dba AT&T California, Arrival Communications, Inc., Qwest Communications Corporation, MCImetro Access Transmission Services LLC, dba Verizon Access Transmission Services, Cbeyond Communications, LLC, Covad Communications Company, XO Communications Services, Inc., Eschelon Telecom, Inc., Advanced TelCom, Inc., CF Communications, LLC dba Telekenex, Navigator Telecommunications, LLC, Mpower Communications Corporation, dba TelePacific Communications, Cox California Telcom, LLC, Level 3 Communications, LLC, Call America, Inc., US TelePacific Corporation, Qwest !nterprise America, Inc., Telscape Communications, Inc., AT&T Communications of California, Inc., and TCG San Francisco, TCG Los Angeles, Inc., and TCG San Diego (collectively, the "parties") filed a motion seeking the Commission's approval of a settlement agreement that resolves all issues involving AT&T California's final collocation rates presented in this proceeding. AT&T California issued written notice to all parties in this proceeding that settlement discussions pertaining to collocation rates and terms would take place via teleconference on June 23, 2006. Settlement discussions took place on that day in accordance with the notice.
No party has protested the settlement or any of its terms.
On November 22, 2006, the assigned ALJ issued a ruling seeking clarification by the settling parties of several settlement terms. The ruling stated that although the parties did not anticipate any objection to the settlement, "the record of this proceeding must include sufficient information to enable the Commission to understand the policy implications of the settlement and its terms." The ruling also presented several questions to Verizon, mainly with regard to how the Commission should resolve any outstanding controversies concerning Verizon's collocation rates. The settling parties and Verizon each filed responses to the ruling on December 15, 2006.
1 In the Matter of Deployment of Wireline Services Offering Advanced Telecommunications Capability, CC Dkt. No. 98-147, First Report and Order and Further Notice of Proposed Rulemaking, 14 FCC Rcd. 4761, FCC 99-48 (rel. Mar. 31, 1999)
2 ACR, p. 3; see also Advanced Services Order, ¶¶ 19-60.
3 ACR, p. 8.
4 Id.
