Please note: The attachments to the comments were not available electronically and therefore are not included as part of this document. BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Investigation ) Into U S WEST Communications Inc.'s ) DOCKET NO. UT-970300 Compliance with Section 271 of the ) Telecommunications Act of 1996 ) AT&T AND NEXTLINK COMMENTS ) ON DRAFT PROCEDURAL ORDER AT&T Communications of the Pacific Northwest, Inc. ("AT&T") and NEXTLINK Washington, L.L.C. ("NEXTLINK), provide the following Comments on the draft Order on Investigation and Policy Statement ("Draft Order") in this docket. INTRODUCTION AT&T and NEXTLINK commend the drafter(s) of the Draft Order for a job well done. The Draft Order (1) establishes an appropriate procedural schedule for the Commission's consideration of a Section 271 filing by U S WEST Communications, Inc. ("U S WEST"), (2) requires the development of a comprehensive factual record of U S WEST's compliance with the competitive checklist and of the state of local competition in Washington, and (3) resolves several preliminary issues in advance of an actual filing by U S WEST, allowing the Commission, U S WEST, and other interested parties to maximize the use of the 90 day evaluation period. The Draft Order also is consistent with the Telecommunications Act of 1996 ("Act), the Federal Communications Commission's ("FCC's") interpretation of the Act, and procedural orders issued by other state commissions in U S WEST's service territory. Accordingly, AT&T and NEXTLINK recommend that the Commission adopt the Draft Order as revised to include issues referenced in the Draft Order's request for additional comments. COMMENTS A. The Draft Order Is Consistent With FCC Decisions and Other State Commission Procedural Orders. The FCC's recent decision on Ameritech Michigan's Section 271 application clarified not only the FCC's interpretation of Section 271's substantive provisions but the FCC's expectations of consultation with state commissions. The FCC stated in no uncertain terms that it will look to the Commission to develop a comprehensive factual record on U S WEST's compliance with Section 271 requirements, including the status of local competition in Washington: In requiring the [FCC] to consult with the states, Congress afforded the states the opportunity to present their views regarding the opening of the BOCs' local networks to competition. In order to fulfill this role as effectively as possible, state commissions must conduct proceedings to develop a comprehensive factual record concerning BOC compliance with the requirements of section 271 and the status of local competition in advance of the filing of section 271 applications. We believe that the state commissions' knowledge of local conditions and experience in resolving factual disputes affords them a unique ability to develop a comprehensive, factual record regarding the opening of the BOCs' local networks to competition. In re Application of Ameritech Michigan Pursuant to Section 271, CC Docket No. 97-137, FCC 97-298, Memorandum Opinion and Order ¶ 30 (August 19, 1997) ("Ameritech Michigan Order") (emphasis added). Indeed, the FCC stressed the importance of the development of such a record as part of the review process and linked its deference to state commission conclusions to the nature and extent of that record: The [FCC] has discretion in each section 271 proceeding to determine what deference the [FCC] should accord to the state commission's verification in light of the nature and extent of state proceedings to develop a complete record concerning the applicant's compliance with section 271 and the status of local competition. We will consider carefully state determinations of fact that are supported by a detailed and extensive record, and believe the development of such a record to be of great importance to our review of section 271 applications. Id. (emphasis added). The Draft Order pre-dates the Ameritech Michigan Order but is fully consistent with the FCC's decision. The Draft Order would require that U S WEST file all information U S WEST intends to file with the FCC, as well as evidence sufficient to answer the questions posed by the Commission. Draft Order at 13-14. Such evidence must include "actual and complete information about USWC's provisioning [access and interconnection] to itself, to affiliates, and to interconnecting companies," id. at 5, and information "about the number of customers, the nature of service, and other elements to enable the Commission to understand whether the [local exchange] market is indeed open and whether one or more competitors are offering more than token competition to USWC." Id. at 10. The Draft Order thus requires the development of the "comprehensive factual record" the FCC has determined is critical to its review of any Section 271 application filed by U S WEST. The Draft Order's resolution of other preliminary issues is also consistent with the FCC's interpretation of the Act. See In re Application of SBC Communications, Inc., CC Docket No. 97-121, FCC 97-228, Memorandum Opinion and Order ¶ 27 (June 26, 1997) (BOC cannot apply under Track B if the BOC has received a request for negotiation from an unaffiliated competing carrier that, if implemented, would satisfy the requirements in Track A). The initial procedural schedule included in the Draft Order is also consistent with orders issued by other state commissions in U S WEST's service territory. The commissions in Oregon, Colorado, New Mexico, and Nebraska have all adopted the NARUC 90 day time period for consideration of a U S WEST 271 application in advance of its filing with the FCC and have established procedural schedules for that 90 day period that are similar or virtually identical to the Draft Order's schedule. A copy of these orders is attached to these comments. Although AT&T and NEXTLINK continue to believe that 90 days is very little time to develop and evaluate what is likely to be a significant volume of relevant material, the proposed procedural schedule maximizes the ability of the Commission, U S WEST, and interested parties to compile the requisite comprehensive factual record within that limited time frame. B. The Commission Should Require That U S WEST File a Factually Complete Application Including Detailed Evidence On Its Alleged Compliance With Section 271 Requirements. The Draft Order invited additional comments on what specific information should be provided on five specific topics: (1) U S WEST's provisioning of access and interconnection; (2) the existence of "more than an insignificant level of competition"; (3) full implementation of checklist items; (4) separate affiliate requirements; and (5) the existence of a competitive market. In an appendix to its Opening Comments, AT&T provided a detailed list of issues (in the form of questions) the Commission should consider in evaluating each checklist item, affiliated interest requirements, and the status of competition in the local exchange market. The attached Oregon Public Utility Commission Order incorporates many of these same issues and requires that U S WEST provide information responsive to the specific questions raised in that order. AT&T and NEXTLINK believe that the issues listed in the AT&T Appendix and the Oregon Order should be incorporated into the final Commission Order and that U S WEST should be required to provide responsive evidence as part of its filing in Washington. AT&T and NEXTLINK propose three further modifications to the Draft Order. First, the Commission should issue a protective order now, rather than when U S WEST files its notice with the Commission. Some of the evidence U S WEST must provide as part of its filing will be confidential, and given the short time in which interested parties must review the filing and prepare information requests, those parties should be able to receive the entire filing when U S WEST submits it to the Commission. Second, the Draft Order should expressly state that the procedures it establishes apply to each application U S WEST makes with the FCC for interLATA authority under Section 271. The applications of Ameritech Michigan and SBC in Oklahoma demonstrate that an RBOC may not be successful the first time it files with the FCC. The Commission should clarify that U S WEST, should it experience a similar rejection of its first Section 271 application for Washington, must submit updated evidence to this Commission under the 90 day procedural schedule prior to filing any subsequent application with the FCC. Finally, the procedural schedule should require, as has the FCC, that U S WEST's notice filing be factually complete as initially filed, and that any subsequent information provided by U S WEST be strictly limited to responding to interested party filings. See Ameritech Michigan Order ¶¶ 49-59 (imposing same requirement on FCC filings). U S WEST should be strongly discouraged from gaming the procedure by withholding or otherwise failing to provide evidence until their reply and thus effectively preventing the Commission and interested parties from adequately evaluating or responding to that evidence. CONCLUSION The Draft Order establishes an appropriate procedural schedule and is consistent with FCC and other state commission orders. AT&T and NEXTLINK, therefore, recommend that the Commission adopt the Draft Order with the modifications discussed in these Comments. DATED this _____ day of September, 1997. Davis Wright Tremaine LLP Attorneys for AT&T Communications of the Pacific Northwest, Inc., and NEXTLINK Washington, L.L.C. By Gregory J. Kopta WSBA No. 20519 Deborah Whiting Jaques Susan D. Proctor NEXTLINK AT&T Communications of the 1003 Montello Avenue Pacific Northwest, Inc. Hood River, Oregon 97031 1875 Lawrence Street, Suite 1575 Denver, Colorado 80202