DOCKET NO. UT-980334 PAGE 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Request for Approval of Negotiated Agreement under the Telecommunications Act of 1996 Between PHONE SOLUTION, INC. and U S WEST COMMUNICATIONS, INC. .............................................................. ) ) ) ) ) ) ) ) ) ) ) ) DOCKET NO. UT-980334 ORDER APPROVING FULLY NEGOTIATED INTERCONNECTION AGREEMENT FOR SERVICE RESALE BACKGROUND This matter comes before the Washington Utilities and Transportation Commission (“Commission”) for approval of a fully negotiated agreement for service resale under the Telecommunications Act of 1996. The agreement is between Phone Solution, Inc. (“Phone Solution”) and U S WEST Communications, Inc. (“USWC”). On July 15, 1998, the parties filed a joint request for approval of the fully negotiated agreement for service resale (“the Agreement”). The parties executed the Agreement on June 26, 1998. Phone Solution, Inc., is not currently registered as a provider of telecommunications services in the state of Washington. On September 23, 1998, the Commission convened an open public meeting at its offices in Olympia, Washington, to consider the request for approval of the Agreement. At the open meeting, the Commission approved the Agreement as submitted, however, the Agreement will not become operable until such time that Phone Solution has become registered as telecommunications service provider by this Commission. FINDINGS OF FACT 1. The Commission is an agency of the state of Washington vested by statute with the authority to regulate the rates, rules, regulations, practices, accounts, securities, and transfers of public service companies, including telecommunications companies. 2. Section 252(e)(A)(1) of the Telecommunications Act of 1996 (the “Act”), requires parties to fully negotiated agreements to submit the agreement to the Commission for approval. Section 252(e)(2)(A) states that the Commission may only reject an agreement (or any portion thereof) adopted by negotiation if it finds that: (i) the agreement (or any portion thereof) discriminates against a telecommunications carrier not a party to the agreement; or (ii) the implementation of such agreement or portion is not consistent with the public interest, convenience, and necessity. 3. USWC is engaged in the business of furnishing telecommunications services, including, but not limited to, basic local exchange service within the state of Washington. 4. Phone Solution, Inc., is not currently authorized to provide intrastate telecommunications services in the state of Washington. Approval of this agreement does not in any way waive Phone Solution, Inc.’s, requirement to become a registered local exchange company in the state of Washington. This Agreement will not become operable until such time that Phone Solution, Inc., has been registered as a telecommunications service provider by this Commission. 5. The parties filed a joint request for approval of the Agreement for service resale between Phone Solution and USWC on July 15, 1998. 6. The parties voluntarily negotiated the entire Agreement. 7. The Agreement does not discriminate against any other telecommunications carrier. 8. The Agreement will facilitate local exchange competition in the state of Washington by enabling Phone Solution to enter the local exchange market and increase customer choices for local exchange services once it has become registered to provide telecommunications services in this state. The provisions of the Agreement are consistent with the public interest, convenience, and necessity. CONCLUSIONS OF LAW 1. The Commission has jurisdiction over the subject matter of and all parties to this proceeding. 2. The Agreement is consistent with the public interest, convenience, and necessity. 3. The Agreement meets the criteria of Sections 251 and 252 of the Act, including Section 252(e). 4. The laws of Washington shall govern the construction and interpretation of the Agreement. The Agreement shall also be subject to the present and future decisions of the Commission and the Washington courts. ORDER The COMMISSION ORDERS: 1. The Agreement for Service Resale between Phone Solution, Inc., and U S WEST Communications, Inc., which the parties executed on June 26, 1998, is approved. 2. In the event that the parties revise, modify or amend the agreement approved herein, the revised, modified, or amended agreement shall be deemed to be a new negotiated agreement under the Telecommunications Act and shall be submitted to the Commission for approval, pursuant to 47 U.S.C. § 252(e)(1) and relevant provisions of state law, prior to taking effect. 3. The Agreement does not become operable until such time that Phone Solution, Inc., has become registered to provide telecommunications services in the state of Washington. 4. The laws of Washington shall govern the construction and interpretation of the Agreement. The Agreement shall also be subject to the present and future decisions of the Commission and the Washington courts. DATED at Olympia, Washington, and effective this 23rd day of September, 1998. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION ANNE LEVINSON, Chair RICHARD HEMSTAD, Commissioner