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 PREFERRED CARRIER SERVICES, INC. and UNITED TELEPHONE COMPANY OF THE NORTHWEST .............................................................. ))))) ) ) )))))) DOCKET UT-980389 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 interconnection agreement for service resale under the Telecommunications Act of 1996. The agreement is between Preferred Carrier Services, Inc. (Preferred Carrier Services), and United Telephone Company of the Northwest (Sprint). On November 12, 1998, the parties filed a joint request for approval of the fully negotiated Interconnection Agreement for service reslae between Preferred Carrier Services and Sprint for the state of Washington (Agreement). The parties executed the Agreement on August 3, 1998. On December 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. 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 (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. Sprint is engaged in the business of furnishing telecom- munications services, including, but not limited to, basic local exchange service within the state of Washington. 4. Preferred Carrier Services is authorized to provide intrastate interexchange and local exchange telecommunications services in the state of Washington. 5. The parties filed a joint request for approval of an Inter- connection Agreement for service resale on November 12, 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 Preferred Carrier Services to enter the local exchange market and increase customer choices for local exchange services. 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 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, regulations, and Commission Orders of Washington shall govern the construction and interpretation of the Agreement. The Agreement shall also be subject to the jurisdiction of the Commission and the Washington courts. ORDER THE COMMISSION ORDERS: 1. The Agreement for network interconnection between United Telephone Company of the Northwest, and Preferred Carrier Services, Inc., which the parties executed on August 3, 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 laws, regulations, and Commission Orders of Washington shall govern the construction and interpretation of the Agreement. The Agreement shall also be subject to the jurisdiction of the Commission and the Washington courts. DATED at Olympia, Washington, and effective this 23rd day of December, 1998. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION ANNE LEVINSON, Chair RICHARD HEMSTAD, Commissioner WILLIAM R. GILLIS, Commissioner