2. Background

On January 8, 2001, Pacific filed an application for arbitration of an ICA with MCIm pursuant to Section 252(b) of the Telecommunications Act of 1996 (Act or TA96). Pacific's previous three-year ICA with MCIm expired on February 3, 2000.

The parties had an enormous number of disputed issues. Due to this fact, the parties twice agreed to extend the window for arbitration, and during that period the parties continued their negotiations. The last of those agreements provided that the notice to commence negotiations would be deemed to have been sent by MCIm and received by Pacific on August 11, 2000. Consequently, pursuant to 252(b) of TA96, the window for petitioning the Commission to arbitrate unresolved issues commenced on December 14, 2000 and remained open through January 8, 2001. Therefore Pacific's application and request for arbitration was timely filed.

On February 2, 2001, MCIm filed its Response to Pacific's application. In its Response, MCIm summarized its position on the issues previously raised by Pacific, and also raised a number of additional contract issues in dispute. Parties ultimately identified 347 disputed issues to be decided, but subsequently settled 247. The arbitrator was left with 100 issues to decide.

An initial Arbitrator Meeting (IAM) was held on February 6, 2001 to set the schedule for the case and to address various procedural issues.

Arbitration hearings were held on March 12-15, 2001 and March 20-27, 2001, and concurrent briefs were filed and served on April 24, 2001. The Draft Arbitrator's Report (DAR) was filed on June 4, 2001 disposing of the contested issues. Comments on the DAR were filed on June 14, 2001 by MCIm and on June 20, 2001 by Pacific. The comments were taken into account as appropriate in finalizing the FAR, and the FAR was filed and served on July 16, 2001. The conformed agreement was filed with the Commission on August 15, 2001, along with statements by both parties concerning the outcomes in the FAR.