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 FRONTIER LOCAL SERVICES, INC. and GTE NORTHWEST INCORPORATED .............................................................. ) ) ) ) ) ) ) ) ) ) ) DOCKET UT-980353 ORDER APPROVING AGREEMENT FOR EXCHANGE AND BILLING OF TERMINATING TRAFFIC BACKGROUND This matter comes before the Washington Utilities and Transportation Commission (Commission) for approval of a fully negotiated agreement under the Telecommunications Act of 1996 (Act). The agreement is between Frontier Local Services, Incorporated (Frontier Local Services), and GTE Northwest Incorporated (GTENW). On September 23, 1998, the parties filed a joint request for approval of the fully negotiated Agreement for the Exchange and Billing of Terminating Traffic (Agreement) between Frontier Local Services and GTENW for the state of Washington. The parties executed the Agreement on September 15, 1998. On November 16, 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, requires parties to fully negotiated agreements to submit the agreement to the Docket UT-980353 PAGE 1 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. GTENW is engaged in the business of furnishing telecommunications services, including, but not limited to, basic local exchange service within the state of Washington. 4. Frontier Local Services is authorized to provide intrastate interexchange telecommunications services and local exchange services within the state of Washington. 5. The parties filed a joint request for approval of the Agreement between Frontier Local Services and GTENW on September 23, 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 Frontier Local 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 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 Exchange and Billing of Terminating Traffic between Frontier Local Services, Inc., and GTE Northwest Incorporated, which the parties executed on September 15, 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 of 1996 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 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 16th day of November, 1998. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION ANNE LEVINSON, Chair WILLIAM R. GILLIS, Commissioner