Agenda Date: October 27, 1999 Item Number: Docket: UT-990391 Company Name: Utilities - General Rulemaking to implement Section 252(i) of the Telecommunications Act of 1996 and FCC rule 51.809. Staff: Kathy Folsom, Telecommunications Analyst Jing Roth, Regulatory Consultant Tre Hendricks, Administrative Law Clerk Larry Berg, Administrative Law Judge Recommendation: Direct the Secretary to file a preproposal statement of inquiry (CR-101) with the code reviser in Docket UT-990391 on the subject of implementing Section 252(i) of the Telecommunications Act of 1996 and FCC rule 51.809, generally known as the “pick and choose” provisions. Discussion: On September 10, 1999, the Commission Staff initiated this rulemaking in order to explore the need for rules governing procedural and substantive requirements to implement Section 252(i) of the Telecommunications Act of 1996 (“the Act”) and FCC rule 51.809, generally known as the “pick and choose” provisions. Pursuant to Section 252(i) of the Act, local exchange carriers must “make available any interconnection, service, or network element provided under an agreement approved under this section to which it is a party to any other requesting telecommunications carrier upon the same terms and conditions as those provided in the agreement.” On June 15, 1999, Telcom Group, Inc., NEXTLINK Washington, Inc., Electric Lightwave, Inc., Frontier Local Services, Inc., and Frontier Telemanagement, Inc. filed a petition, in Docket UT-990355, requesting that the Commission issue a declaratory order or an interpretive and policy statement regarding implementation of the pick and choose provisions. The petitioners alleged that their efforts to “pick and choose” provisions from existing interconnection agreements have demonstrated uncertainty as to the implementation of the pick and choose provisions of Section 252(i). The Commission circulated a draft interpretive and policy statement on October 15, 1999, requesting comment from all interested parties. The general purpose of the statement is to establish guidelines for parties seeking to pick and choose interconnection arrangements under Section 252(i). The Commission may formally adopt the interpretive and policy statement after considering all comments. The principles contained in the interpretive and policy statement may be used by the Commission in developing its opinions and decisions regarding interconnection agreements that come before it. Currently, the Commission does not have rules specifically addressing the pick and choose provisions of the Act. This rulemaking inquiry is intended to determine whether there is a need for Commission rules on the subject, in light of the Commission interpretive and policy statement, and if so, what the rules should provide. Staff will schedule public meetings and workshops with broad notice to interested persons, inviting regulated utilities and other interested parties to participate in the rulemaking process. An initial workshop will likely be held in December, 1999, to consider the need for rules regarding the pick and choose provisions of the Act. Conclusion: Staff recommends that the Commission direct that a rulemaking process be convened on this topic and order the Commission Secretary to file a preproposal statement of inquiry (CR-101) with the code reviser.