BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION MCImetro Access Transmission Services, Inc., Complainant, vs. U S WEST Communications, Inc., Respondent. ) ) ) ) ) ) ) ) ) ) DOCKET NO. UT-971158 U S WEST’S ANSWER TO MCI’S PETITION FOR RECONSIDERATION On February 19, 1998, the Commission entered an order in this matter granting U S WEST’s motion for summary determination and dismissing MCI’s complaint. On February 27, 1998, MCI filed a petition for reconsideration and/or clarification of the Commission’s order. This answer is submitted pursuant to the Commission’s notice allowing U S WEST and Staff to file answers to the motion. MCI’s petition initially states that MCI does not oppose, and in fact agrees with, the Commission’s policies described in Section IV. of the Order to the effect that: 1. Parties should engage in negotiations to resolve interconnection issues; 2. Interconnection contracts are the reasonable outcome of such negotiations; 3. Pre-market testing of the systems and the processes required to provide local services should be provided for (sic) interconnection contracts, and; 4. Disagreements over compliance with interconnection contracts should be resolved through negotiations where possible. MCI then goes on to take a totally inconsistent and baffling position with regard to the relief requested on reconsideration. MCI essentially asks the Commission to change every single policy that MCI says it agrees with and asks the Commission to determine, notwithstanding the above, that MCI has some independent statutory right to unilaterally dictate the terms and conditions for pre-market testing. Of course, the fundamental issue that the Commission decided is that MCI does not, and that the terms and conditions of such testing are to be negotiated between the parties and memorialized in an agreement. This is undeniably the correct outcome, both as a matter of law and policy, and the Commission should not change its order. MCI argues that the Commission’s rulings regarding the parties’ contractual rights and obligations suggest that MCI has no statutory protections or remedies and that the Commission has no statutory powers outside of the interconnection agreement. Such an argument is both incorrect and beside the point. This is because, in fact, the parties do have statutory rights and the Commission does have statutory authority wholly independent of the interconnection agreement, and not usurped by the contract. These statutory rights apply to the negotiation, interpretation and implementation of the contract terms. Thus, for example, the statutory protection against discrimination protects a carrier against a contract which is discriminatory, either on its face or as applied. Plain and simple, while MCI claims that it was discriminated against, it was not. What MCI asked for, pre-market testing, was not in the contract at the time. In fact, the services that MCI sought to pre-market test were still very much the subject of negotiations between the parties and were certainly not anticipated in the then existing interim agreement between the parties. MCI’s statutory protections under the law enabled MCI to negotiate non-discriminatory terms for testing. The Commission properly recognized that this was an item that the parties have the ability to negotiate. The Commission was confirmed in this conclusion by the fact that the parties did actually negotiate terms and conditions for testing. MCI could not claim that the contract operated to discriminate because MCI had not bothered to negotiate terms for testing in the interim agreement. What is baffling here is how U S WEST could even arguably be held to be required to test a service when the contractual rights regarding testing are at that moment completely undefined and undetermined. None of the services or unbundled network elements was available under the interim agreement at the time the requests for testing were made. Absent a negotiated or arbitrated agreement concerning testing, especially for a service or a network element which U S WEST might argue it is not even legally obligated to provide, how can MCI assert a right to test that service? The answer is that it cannot, and the Commission so decided. MCI did not find it important enough to include testing language in either the 1995 or the 1996 interim agreements, and thus cannot assert an independent right outside the agreement to testing. What is even more important is that it is totally inconceivable that U S WEST should be required to test as yet undefined and, certainly, uncontracted services. Nothing in the Commission’s order suggests that MCI does not have rights under state law, but the order does properly conclude that MCI’s rights under state law allow it to negotiate an interconnection agreement which includes terms and conditions for testing. The fact that MCI did not do so is what is fatal to the complaint. U S WEST described in its earlier pleadings that its practices are completely consistent with prior Commission decisions about how carriers should do business with each other. The Commission’s decision in the interconnection docket, cited by the Commission in its order in this case, is the essential point that MCI seems to miss or ignore. The Commission expected (and required) that carriers would enter into contracts or agreements with each other governing the specifics of an interconnection agreement. The Commission discussion on this issue is instructive: We agree with USWC that it is appropriate to require a contract to memorialize matters unique to a specific interconnection. The Commission’s interconnection orders have emphasized negotiations. This approach is consistent with the approach of the recently-passed federal Telecommunications Act of 1996. Details such as specific locations of meet points, deadlines, penalties, methods of accounting for toll and local traffic, etc., require negotiation between the two carriers, and a contract is a reasonable outcome of such negotiation. . . . The Commission has ordered the tariffing of terms and conditions that the parties were unable to resolve satisfactorily through negotiation and that are general in nature. Further disagreement over details shall be handled through mediation and arbitration consistent with federal law. WUTC v. U S WEST, Docket Nos. UT-941464, et al., (Ninth Supplemental Order, page 24, March 13, 1996). Thus, almost six months prior to the agreement between MCI and U S WEST, and 16 months prior to the complaint in this matter, the Commission had already clearly and correctly determined that carriers’ relationships and obligations are defined by tariff or contract, not by general reference to state law and not through complaint prior to negotiation. U S WEST must also reassert its position that its obligations under the Act are to be fulfilled through specific agreements reached by arbitration or negotiation. If the Commission were to determine that U S WEST is required to test with any carrier under any circumstances, it would not only gut the requirements of the Act, but also provide ample room for mischief on behalf of U S WEST’s competitors. The Act is clear that an incumbent LEC’s duties under 251(b) and (c) are to be fulfilled through an agreement, not through unilateral demands made by the requesting carrier. As already noted in this case, just such an agreement has now been arbitrated between U S WEST and MCI. Business processes were an area of significant dispute between the parties. It is unreasonable to expect U S WEST to perform functions such as testing resold services before those processes are defined by agreement. If MCI were allowed to unilaterally impose requirements for testing on U S WEST prior to the existence of any agreement, it would allow MCI to circumvent the requirements of the Act that provide for arbitrated or negotiated interconnection agreements. Thus, a Commission order requiring testing prior to the effective date of an interconnection agreement would be inconsistent with the provisions of the Act and would violate sections 251(d)(3) and 261. CONCLUSION U S WEST believes that MCI has misinterpreted the requirements of state law, and the rights and obligations which each party has under the law. MCI’s right regarding pre-market testing is the right to negotiate an agreement which defines the testing obligation and which is non-discriminatory and otherwise consistent with the requirements of state and federal law. The Commission should deny reconsideration and reaffirm its earlier ruling that absent an approved interconnection agreement providing for testing orders, and defining the terms and conditions under which testing will be required, and the services for which testing will be required, U S WEST was under no obligation to accept or fill those orders from MCI. Respectfully submitted this 25th day of March, 1998. U S WEST Communications, Inc. ________________________________ Lisa A. Anderl, WSBA No. 13236