CLECs decry 'frivolous' filings: RHCs don't respect open-market guidelines, says ALTS counsel

Competitive local exchange carriers want regulatory agencies to increase pressure on the Bell regional holding companies to open their markets to competitors.

While none of the RHCs' filings for long-distance entry under Section 271 of the Telecommunications Act of 1996 has satisfied the Federal Communications Commission's requirements for proof of open markets, discussions at a recent Association for Local Telecommunications Services conference indicated that the CLECs want regulatory agencies to go a step farther and impose penalties for "frivolous" 271 filings.

The idea stems from the FCC's Aug. 19 ruling against Ameritech's 271 application in Michigan. While the state approved the filing, the FCC said Ameritech had failed to sufficiently prove that it had met three requirements on the 14-point open-market checklist.

The FCC requested more proof that competitors have equal access to Ameritech's operations support system, that the E911 databases for competitors' customers are maintained with the same integrity as those for Ameritech customers and that trunk blocking does not occur more frequently for competitors' customers than for Ameritech's.

ALTS claims that subsequent filings in South Carolina and Louisiana by BellSouth have blatantly ignored the Michigan decision's "road map," and contend that such applications should be subject to penalty, such as a one-year moratorium on new 271 filings for the filing company.

"What we envision is a simple process that shows prima facie compliance with the Ameritech decision," said Richard Metzger, vice president and general counsel at ALTS (see box).

Metzger said applications that don't follow the FCC's recommendations for Ameritech in Michigan show "a complete lack of respect" for the FCC and will further slow the process of expanding competition.

"The question is, 'How can we get [the RHCs'] attention on compliance as opposed to experimentation?' " he said.

Mary McDermott, vice president of legal and regulatory affairs at the United States Telephone Association, said her organization views such penalties as a stall tactic by long-distance carriers that want to prevent new competition in their markets. "It's a self-serving solution," she said.

While none of the RHCs' 271 filings has been approved, "there's been no hint [from regulators] that they shouldn't have been filed or were frivolous," McDermott said.

McDermott believes the RHCs understand what the FCC wants but disagree with its interpretation of the 14-point checklist and are awaiting a ruling from the Eighth Circuit Court of Appeals.

Southwestern Bell made a 271 filing in Oklahoma shortly before the Ameritech decision and has not made another filing.

A spokesman for parent SBC Corp. said the company is "still digesting the implications" of the Michigan ruling.

ALTS claims that RHCs must comply with three points on the 14-point, open-market checklist spelled out in the Telecom Act of 1996 to show "prima facie" compliance with the FCC's Ameritech/Michigan ruling.

1 Proof of competitors' equal access to the incumbent's OSS

2 Proof that E911 databases of competitors' customers are maintained with equal integrity to those of incumbent's customers

3 Proof that trunk blocking does not occur more frequently for competitors' customers than for the incumbent's