BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Pricing Proceeding ) for Interconnection, Unbundled Elements ) DOCKET NO. UT-960369 Transport and Termination, and Resale ) ) ) In the Matter of the Pricing Proceeding ) for Interconnection, Unbundled Elements ) DOCKET NO. UT-960370 Transport and Termination, and Resale ) for U S WEST COMMUNICATIONS, INC. ) ) ) In the Matter of the Pricing Proceeding ) DOCKET NO. UT-960371 for Interconnection, Unbundled Elements ) Transport and Termination, and Resale ) NEXTLINK/TCG/ELI COLLOCATION for GTE NORTHWEST INCORPORATED ) TESTIMONY SUMMARIES ) ) Pursuant to the Commission's Sixteenth Supplemental Order on Prehearing Conference, NEXTLINK Washington, Inc. ("NEXTLINK"), TCG Seattle ("TCG"), and Electric Lightwave, Inc. ("ELI") respectfully supplement the previously filed summaries of their witnesses' testimony to include the following summaries of their collocation testimony, all of which address Issue IX (Collocation) on the Commission's Issues List. NEXTLINK/TCG/ELI NEXTLINK, TCG, and ELI prefiled Collocation Response Testimony of Steven E. Turner, which focuses on the issue of whether the collocation (including Expanded Interconnection Channel Terminations) cost studies filed by U S WEST Communications, Inc. ("U S WEST") and GTE Northwest Incorporated ("GTE") comply with the FCC's Physical Collocation Order. Mr. Turner testifies that these cost studies do not comply with that order in several respects. Neither U S WEST nor GTE provide the Commission with the information necessary to determine collocation costs as the FCC required. Both U S WEST and GTE simply state an investment amount for a collocation category without providing any information supporting or explaining the development of that investment, and neither company uses a forward-looking, systemic methodology to determine collocation costs. In addition, Mr. Turner testifies that the ad hoc collocation costing U S WEST and GTE propose conflicts with specific directives in the FCC order. Both U S WEST and GTE include individual case basis ("ICB") pricing for some collocation elements, which the FCC expressly prohibited. The FCC also refused to allow incumbent local exchange carriers ("ILECs") to cost collocation facilities based on the assumption that those facilities are dedicated solely to requesting carriers -- an assumption that permeates U S WEST's collocation cost study. Mr. Turner concludes that the Commission cannot establish cost-based, nondiscriminatory rates for collocation as the FCC and the Telecommunications Act of 1996 ("Act") require by using the collocation cost studies submitted by U S WEST and GTE. Mr. Turner, therefore, recommends that the Commission reject these cost studies and open another phase of this proceeding to allow a full exploration of the forward-looking costs associated with collocation. NEXTLINK NEXTLINK prefiled the Direct and Response Collocation Testimony of Douglas Sobieski and the Response Collocation Testimony of Rex Knowles. Sobieski. Mr. Sobieski's Direct Testimony presents the results of his efforts to develop a market price for collocation. Because this testimony was stricken prior to filing responsive testimony and reinstated after responsive testimony was filed, portions of Mr. Sobieski's Direct Testimony have been included in his and Mr. Knowles' Collocation Response Testimony. Accordingly, NEXTLINK will file revised Direct Testimony for Mr. Sobieski that minimizes the duplication among the collocation testimony NEXTLINK has submitted. Mr. Sobieski provided third party contractors with specifications for collocation construction and requested that these contractors provide a quote for what they would charge to undertake that construction. The price quotes Mr. Sobieski received were substantially lower than the rates U S WEST proposes to charge for collocation. Accordingly, Mr. Sobieski recommends that the Commission establish collocation rates no higher than these market prices -- and lower if the economies of scope and scale enjoyed by U S WEST and GTE enable them to undertake that construction at a lower cost -- and that the Commission allow competing local exchange carriers ("CLECs") to self-provision collocation site preparation in U S WEST and GTE central offices. In his Collocation Response Testimony, Mr. Sobieski briefly describes what is involved in constructing collocation space and how U S WEST actually provisions collocation. Mr. Sobieski testifies that U S WEST provides collocation with facilities used by all carriers located in U S WEST's central office -- including U S WEST -- as contemplated by the FCC Physical Collocation Order. U S WEST's actual provisioning, therefore, sharply contrasts with U S WEST's cost study assumption that facilities are dedicated to three requesting carriers. Mr. Sobieski also explains why U S WEST's generic power cabling cost estimates do not accurately reflect costs in U S WEST's central offices in Washington and why GTE's ICB pricing is problematic. On other collocation issues, Mr. Sobieski recommends that the Commission reject U S WEST's proposal to require the use of a single point of termination ("SPOT") frame because use of a SPOT frame does not provide CLECs with access to unbundled loops that is equivalent to the access U S WEST has to those loops. In addition, Mr. Sobieski explains why U S WEST's offer to allow third party contractors to construct cage enclosures is not sufficient to enable carriers requesting collocation to ensure reasonable rates, terms, and conditions for collocation site preparation. Knowles. The Collocation Response Testimony filed by Mr. Knowles explains the importance of collocation to NEXTLINK and other facilities-based CLECs and how U S WEST's insistence on payment of nonnegotiable, exorbitant rates as a prerequisite for collocation, without regard for U S WEST's contractual obligations, constitutes a barrier to entry in the local exchange market. Mr. Knowles testifies that neither U S WEST nor GTE has provided sufficient information to enable the Commission to base collocation rates on their cost studies. The information the ILECs have provided, however, demonstrates their failure to comply with FCC directives in its Physical Collocation Order, particularly the FCC's prohibition on ICB pricing. Even a rough comparison of U S WEST's proposal with GTE's proposal (as well as with U S WEST's federal virtual collocation tariff and proposal in Utah), moreover, shows that U S WEST's cost and pricing proposals in this proceeding are excessive. Mr. Knowles recommends that the Commission establish just, reasonable, and nondiscriminatory collocation rates; adopt market price caps and/or authorize CLECs to self-provision all aspects of collocation site preparation; and prohibit the ILECs from imposing any charges for collocation that the Commission has not approved, including prohibiting U S WEST and GTE from denying or delaying collocation on the basis of a CLEC's refusal to pay unapproved charges. DATED this _____ day of October, 1998. DAVIS WRIGHT TREMAINE LLP Attorneys for NEXTLINK Washington, Inc., TCG Seattle, and Electric Lightwave, Inc. By Gregory J. Kopta WSBA No. 20519