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 NEWS  News  media  Information  202  /  418-  0500  TTY  202  /  418-  2555  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 FOR  IMMEDIATE  RELEASE:  NEWS  MEDIA  CONTACT: 
 December  22,  1999  Mike  Balmoris  at  (202)  418-  0253 
 Email:  mbalmori@  fcc.  gov 


 COMMON  CARRIER  ACTION 
 FEDERAL  COMMUNICATIONS  COMMISSION  AUTHORIZES  BELL  ATLANTIC  TO  PROVIDE  LONG  DISTANCE  SERVICE  IN  NEW  YORK 


 Approval  of  Bell  Atlantic  Entry  into  Long  Distance  Market  Realizes  Vision  of 
 Telecommunications  Act  of  1996  and  Represents  Culmination  of  Federal  and  State 
 Efforts  to  Open  Local  Phone  Markets  to  Competition 


 Washington,  D.  C.  –  Today  the  Federal  Communications  Commission  (FCC)  for 
 the  first  time  approved,  5-  0,  a  Regional  Bell  Operating  Company’s  (BOC)  application  to 
 provide  long  distance  telephone  service.  The  decision  to  authorize  Bell  Atlantic’s 
 operation  in  New  York  State  fulfills  one  of  the  key  pro-  competitive  goals  of  the  1996 
 Telecommunications  Act,  and  promises  substantial  benefits  for  consumers  in  the  form  of 
 new  service  providers,  lower  prices,  tailored  and  bundled  service  packages,  and  better 
 customer  service.  The  Commission’s  approval  of  Bell  Atlantic’s  application  follows  and 
 expands  upon  the  roadmap  set  forth  in  past  section  271  decisions.  Moreover,  it  builds  on 
 the  crucial  efforts  of  the  New  York  Public  Service  Commission,  which  has  worked  with 
 Bell  At  lant  ic  and  compet  it  ive  local  exchange  companies  (LECs)  to  ensure  that  local 
 markets  in  New  York  are  open  to  competition. 


 In  the  1996  Act,  Congress  envisioned  fundamental  pro-  competitive  changes  in  the 
 telecommunications  environment  by  making  a  BOC’s  entry  into  long  distance  contingent 
 on  the  BOC  first  opening  its  local  service  monopoly  to  compet  it  ion.  A  BOC  sat  isfies  this 
 contingency  by  demonstrating  compliance  with  section  271  of  the  Act  (see  attached 
 chronology  of  key  dates). 


 In  granting  Bell  Atlantic’s  application  to  enter  the  long  distance  market  in  New 
 York  State,  the  Commission  found  that  Bell  Atlantic  has  taken  the  statutorily  required 
 steps  to  open  its  local  telecommunications  markets  to  competition,  including  compliance 
 with  the  14-  point  checklist.  Congress  specified  that  unless  the  Commission  finds  the 
 checklist  has  been  satisfied  by  the  BOC  that  the  Commission  “shall  not  approve”  the 
 requested  authorization  (see  attached  summary  of  competitive  checklist).  Since  the 
 passage  of  the  1996  Act,  the  FCC  has  denied  five  section  271  applications  finding  that 
 each  contained  serious  deficiencies. 
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 The  Commission  reviewed  a  wide  variety  of  factors  and  determined  that,  for  each 
 checklist  item,  the  totality  of  the  circumstances  indicates  that  Bell  Atlantic  is  providing 
 the  item  in  "substantially  the  same  time  and  manner"  or  is  giving  competing  carriers  a 
 "meaningful  opportunity  to  compete.” 


 The  section  271  process  in  New  York  exemplifies  the  way  in  which  rigorous  state 
 proceedings  can  contribute  to  the  success  of  a  section  271  application  (see  attached  key 
 facts  regarding  New  York).  There  are  a  number  of  elements  that  were  particularly 
 important  to  the  success  of  this  process  in  opening  local  markets  to  competition 
 consistent  with  the  terms  of  the  1996  Act.  These  include: 


 (1)  full  and  open  participation  by  all  interested  parties; 
 (2)  extensive  independent  third  party  testing  of  Bell  Atlantic’s  operations  support  systems 
 (OSS)  offering; 
 (3)  development  of  clearly  defined  performance  measures  and  standards;  and, 
 (4)  adoption  of  performance  assurance  measures  with  substantial  penalties  that  create  a 
 strong  financial  incentive  for  post-  entry  compliance  with  the  section  271checklist  by  Bell 
 At  lant  ic. 


 The  Commission  emphasizes  that  grant  of  this  application  may  close  this 
 chapter  of  the  proceeding,  but  it  is  not  the  end  of  the  story.  Bell  Atlantic  must 
 continue  to  comply  with  the  checklist  requirements,  and  the  Commission  has  a 
 number  of  enforcement  tools  at  its  disposable,  including  imposing  penalties  or 
 suspension  of  approval. 


 Action  by  the  Commission  December  22,  1999  by  Memorandum  Opinion  and 
 Order.  Chairman  Kennard,  Commissioners  Ness,  Powell  and  Tristani  approving; 
 Commissioner  Furchtgott-  Roth  concurring. 


 Report  No.  CC  99-  60 
 CC  Docket  No.  99-  295 


 -FCC-Common 
 Carrier  Bureau  contacts: 
 Eric  Einhorn  (418-  1587)  and  Jessica  Rosenworcel  (418-  2764) 


 A  copy  of  the  Order  and  related  press  materials  can  be  found  on  the 
 Commission’s  web  site  www.  fcc.  gov. 
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