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 Statement  of  Chairman  Michael  K.  Powell 
 Re:  Review  of  the  Section  251  Unbundling  Obligations  of  Incumbent  Local  Exchange  Carriers  (CC  Docket  No.  01-  338)  Second  Report  and  Order 


 One  of  the  Commission’s  most  important  goals  is  to  advance  competition  that  is  meaningful  and  sustainable,  and  that  will  eventually  achieve  Congress’  goal  of  reducing 
 regulation  and  promoting  facilities-  based  competition.  As  carriers  continue  their  migration  away  from  unbundled  network  elements  and  toward  increased  reliance  upon 
 network  elements  they  own  and  control,  they  will  require  more  specialized  interconnection  agreements  with  incumbent  LECs.  Today’s  decision  removes  a  rule  that 
 has  thwarted  those  individualized  agreements. 
 Specifically,  we  adopt  an  “all-  or-  nothing”  rule,  in  place  of  the  current  pick-  and-choose  interpretation  of  section  252(  i).  Through  this  action,  the  Commission  advances 
 the  cause  of  facilities-  based  competition  by  permitting  carriers  to  negotiate  individually  tailored  interconnection  agreements  designed  to  fit  their  business  needs  more  precisely. 
 Consistent  with  the  purpose  of  section  252(  i),  it  also  continues  to  safeguard  against  discrimination.  Specifically,  nothing  in  our  decision  diminishes  the  ability  of  a 
 requesting  carrier  to  avail  itself  of  the  arbitration  process  clearly  set  forth  in  section  252  of  the  Act. 


 Preserving  parties’  ability  to  contract  freely,  and  indeed  encouraging  transactions,  is  not  simply  an  oft-  cited  legal  policy  –  the  1996  Act  makes  it  our  statutory  mandate.  Our 
 decision  today  ensures  that  facilities-  based  competitors  are  given  a  fighting  chance  to  participate  in  local  markets. 
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