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