BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION MCImetro Access Transmission Services, Inc., Complainant, vs. U S WEST Communications, Inc., Respondent. ) ) ) ) ) ) ) ) ) ) DOCKET NO. UT-980323 U S WEST’S ANSWER AND AFFIRMATIVE DEFENSES Answering the numbered paragraphs in the petition for declaratory order, now designated by the Commission as a formal complaint, U S WEST states as follows: Except as otherwise expressly pleaded, U S WEST denies each and every allegation in the complaint. 1. On information and belief, U S WEST admits the allegations in paragraphs 1 and 2, except that U S WEST’s correct zip code in Seattle is 98191. 2. Paragraph 3 asserts legal conclusions to which no responsive pleading is required. Nevertheless, U S WEST affirmatively states that MCIm incorrectly predicates its allegations of jurisdiction on some state statutes and rules which do not confer such jurisdiction, nor authorize the relief requested. 3. With regard to paragraph 4, U S WEST admits that Section 251(c)(3) of the Telecommunications Act of 1996 requires “access to network elements on an unbundled basis”. The provisions of the Act speak for themselves and U S WEST denies all allegations inconsistent with the statute. 4. U S WEST admits the allegations contained in paragraph 5. 5. U S WEST denies the allegations contained in paragraph 6 except as specifically set forth herein. Dedicated transport is a network element identified by the FCC in 47 CFR 51.319(d). U S WEST is required, pursuant to the Act, the FCC’s rules, and the Commission-approved interconnection agreement in UT-960310, to provide nondiscriminatory access to this element on an unbundled basis. Attachment 3 to the agreement between U S WEST and MCImetro is entitled Unbundled Access/Elements. That attachment sets forth the definitions of the various network elements to be provided, including loops, switching, and transport. 6. Section 7 of Attachment 3 to the interconnection agreement is entitled Dedicated Transport. The definition of dedicated transport is as set forth in MCIm’s complaint: Dedicated Transport is an interoffice transmission path between MCIm designated locations to which MCIm is granted exclusive use. Such locations may include U S WEST central offices or other locations, MCIm network components, other carrier network components, or subscriber premises (emphasis added). MCIm’s interpretation of that definition for purposes of this complaint leaves out the essential term of that definition. As set forth in MCIm’s complaint, the dedicated transport service which has been requested by MCIm is not an interoffice transmission path, but rather is a path between MCIm customer premises and U S WEST wire centers. However, under the clear terms of the contract, dedicated transport is, in fact, an interoffice transmission path, not a path to a subscriber. Every part of the definition thereafter is controlled and modified by the designation “interoffice”. Thus, while MCIm relies upon the later language “MCIm designated locations”, it is clear that MCIm can only designate locations if those locations are offices. The language which identifies “subscriber premises” is inconsistent with the concept of an “interoffice” path and cannot control to read the “interoffice” requirement out of existence. The definition of dedicated transport is an MCIm definition. MCIm (and AT&T) have routinely proposed similar or identical contract language in this and other states. Any ambiguity or vagueness should be construed against the party who drafted the language. Berg v. Hudesman, 115 Wn.2d 657, 801 P.2d 222 (1990). 7. MCIm’s proposed interpretation of the contract at this point is wholly inconsistent with the testimony of MCIm in the arbitration proceeding which resulted in this agreement. MCIm supported the need for dedicated transport through the prefiled testimony of Ms. Mazzullo. There, MCIm described the dedicated transmission facilities that it sought as follows: “Dedicated transmission facilities are transport facilities used exclusively for the requesting carrier’s traffic and connect one or more of the following points: ILEC end offices, ILEC tandems, ILEC serving wire centers, other carrier wire centers or switching centers, IXC points of presence, collocated equipment at any ILEC end or tandem office.” Mazzullo testimony at pages 25-26. This definition is consistent with U S WEST’s definition and with the FCC’s definition. Furthermore, MCIm’s proposed interpretation of dedicated transport in this case is wholly inconsistent with MCIm’s advocacy in the generic cost and pricing proceedings, Docket Nos. UT-960369, 370, 371. In those combined dockets, the Commission is investigating the cost of network elements and will establish prices to replace the interim prices from the arbitrations. In that proceeding, MCIm sponsored Dr. Robert Mercer as a witness. Dr. Mercer presented a network diagram, which identified various network elements. (RAM-1 to Dr. Mercer’s rebuttal testimony in that docket, included as Attachment A to this Answer). Dedicated transport is represented on that document (by the dotted lines) as an interoffice transmission path. Dr. Mercer also described how the costs for dedicated transport were calculated (Attachment B). The transport cost calculation description contained in the Hatfield Model describes investment and demand associated with interoffice transport only. Nowhere in the Hatfield model is there substantiation for the position that dedicated transport extends from an ILEC wire center to an end-user’s premises. Distances and investment related to the cost calculation for dedicated transport are all described as interoffice. Thus, costs and prices established in both the arbitration and the generic proceeding will not reflect the “dedicated transport” to which MCIm now claims it is entitled. 8. Regarding paragraphs 7 through 10, U S WEST admits that the parties have exchanged letters on this issue, and that those letters speak for themselves. U S WEST specifically denies that MCIm has included all the relevant correspondence between the parties, or that MCIm’s representations in those letters are in any way determinative of the issue in this matter. U S WEST further denies that its conduct was illegal or that U S WEST was or is in breach of its obligations under the interconnection agreement. 9. U S WEST admits the first sentence of paragraph 11. U S WEST denies the remainder of that paragraph. 10. U S WEST denies that expedited treatment as requested in paragraph 12 is proper. 11. U S WEST denies that the relief requested in paragraph 13 is appropriate. 12. Regarding paragraphs 14 and 15, U S WEST denies that it has violated the Telecommunications Act or the interconnection agreement, or that any other relief is appropriate. U S WEST affirmatively states that the Commission should enter an order clarifying the definition of dedicated transport in the interconnection agreement so that it is consistent with the Act and with MCIm’s own testimony as set forth above. AFFIRMATIVE DEFENSES 13. MCIm fails to state a claim upon which relief can be granted. 14. MCIm’s claim is barred by the doctrines of estoppel, waiver, and laches. 15. The dedicated transport which MCIm is requesting is a combination of dedicated interoffice transport and an unbundled loop as defined in the interconnection agreement, Attachment 3. This is a service which is available, and which MCIm has ordered in the past, from U S WEST’s tariffs. This service is not available under the interconnection agreement, and is not an unbundled element. 16. MCIm is attempting to obtain a finished dedicated transport service, not an unbundled element. Such a request cannot be granted under the terms of the interconnection agreement. Further, any order compelling U S WEST to provide a finished service based on MCIm’s request for recombined elements would be in violation of the Telecommunications Act and the 8th Circuit’s decision. Thus, the Commission is barred by the doctrine of preemption from enforcing provisions of the interconnection agreement that would require such recombinations. MCIm’s request for a finished service will be granted if such a request is made pursuant to applicable tariffs which provide for that service. U S WEST requests that MCIm’s complaint be dismissed with prejudice, and that the Commission enter a clarifying order defining dedicated transport as set forth in MCIm’s prefiled testimony. Respectfully submitted on June 26, 1998. U S WEST Communications, Inc. By_____________________________ Lisa A. Anderl, WSBA # 13236