DE 97-229 BELL ATLANTIC Arbitration Regarding Request for Recognition of Dark Fiber as an Unbundled Network Element Order Further Clarifying Order No. 22,942 O R D E R N O. 23,176 March 29, 1999 Order No. 22,942, issued by the New Hampshire Public Utilities Commission (Commission) on May 19, 1998, resolved a dispute between New England Telephone & Telegraph Company (Bell Atlantic) and Vitts Corporation (Vitts) as to whether Dark Fiber is a network element which must be unbundled by Bell Atlantic. The Commission decided in the affirmative. Responding to a request from Bell Atlantic, the Commission clarified a portion of the Order. The Commission's clarification, issued as Order No. 22,990, did not alter the Commission's affirmative conclusion that Dark Fiber is a network element. Order No. 22,990 merely corrected a misstatement of an aspect of the application of the impairment standard. The impairment standard involves consideration of whether a failure to provide access to a network element would impair the ability of a new entrant to provide a service it seeks to offer. The impairment standard, as clarified, does not require the Commission to consider alternative sources for the network element other than the incumbent local exchange company (ILEC) but the Commission must compare the quality or costs of the service as provided over the network element requested compared with providing that service over other unbundled elements in the ILEC's network. By letter dated July 31, 1998, Vitts Corporation (Vitts) informed the Commission that Vitts had not received a copy of Bell Atlantic's request for clarification and therefore had no knowledge of or opportunity to respond to the request until receiving Order No. 22,990. Vitts requested further clarification of the point raised by Bell Atlantic, taking exception to language used by the Commission in Order No. 22,990. Vitts expressed concern that the language used in Order No. 22,990 could have the unintended result of raising the level of the demonstration of "impairment" required of a competitive local exchange carrier (CLEC) which seeks an additional unbundled network element. At page 4, Order No. 22,990 recites that "an investigation of other sources within the ILEC is appropriate when applying the impairment standard." Vitts points out that Bell Atlantic's clarification request dealt with the Federal Communications Commission's (FCC's) First Report and Order at 285, CC Docket 96-08 (August 8, 1996). The FCC's application of the impairment standard of 47 U.S.C.252(d)(2)(A) requires consideration of the quality and costs of a CLEC's proposed service using the requested unbundled network element "compared with providing that service over other unbundled elements in the incumbent LEC's network." Vitts therefore requests that the Commission further clarify Order 22,990 so as to make it consistent with the FCC's articulation of the application of the impairment standard. To the extent that our language in Order 22,990 can be interpreted to require investigation of sources within an ILEC other than other unbundled elements, we clarify that language. Our intent is to apply the impairment standard consistent with the FCC's interpretation at 285 of the First Report and Order. Based upon the foregoing, it is hereby BELL ATLANTIC ORDERED, that Order No. 22,942, as clarified by Order No. 22,990, is further clarified to the effect that an analysis of whether a network element must be unbundled shall include consideration of the quality and cost of a CLEC's proposed service using the requested unbundled network element as compared with providing that service over other unbundled elements in the ILEC's network. By order of the Public Utilities Commission of New Hampshire this twenty-ninth day of March, 1999. Douglas L. Patch Susan S. Geiger Nancy Brockway Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary