IV. CONCLUSION

We grant limited rehearing to modify our holding that the FCC's DS1 cap applies on all routes. We have carefully reconsidered this issue and have determined that the DS1 cap applies only on routes where DS3 transport is not available as a UNE. In addition, we correct clerical errors. The rehearing of D.06-02-035, as modified, is denied in all respects.

THEREFORE, IT IS ORDERED:

1. Limited rehearing of D. 06-02-035 is granted for the purpose of making the following modifications:

3. Rehearing of D.06-02-035, as modified, is denied in all respects.

This order is effective today.

Dated February 15, 2007, at San Francisco, California.

MICHAEL R. PEEVEY

President

DIAN M. GRUENEICH

JOHN A. BOHN

RACHELLE B. CHONG

Commissioners

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