[BETA] Fortnightly

The Florida Public Service Commission (PSC) has approved rates and conditions for interconnection between BellSouth Telecommunications, Inc., a local exchange carrier (LEC), and two new competitive providers of local exchange services, Metropolitan Fiber Systems of Florida, Inc. (MFS) and MCI Metro Access Transmission Services, Inc. (MCI). By a separate order, the PSC has adopted provisions for resale of BellSouth services by competing local service providers, including the unbundling of local service components. (Several other new competitors (em including Time Warner Communications, Sprint Metropolitan Network, Inc., and the Florida Cable Telecommunications Association (em had reached an agreement on interconnection and resale issues that was approved by the PSC.)

The PSC found that BellSouth, MFS, and MCI should compensate each other for the termination of local traffic by mutual traffic exchange. While leaving the terms of the stipulation between BellSouth and the others in place, the PSC was not convinced that the "mutual compensation" arrangement agreed to by the parties ensures that they will recover the cost of local interconnection through usage-based rates. Re Interconnection Involving Local Exchange Companies and Alternative Local Exchange Companies, Docket No. 950985, Order No. PSC-96-0445-FOF-TP, Mar. 29, 1996 (Fla.P.S.C.).

The PSC's separate ruling on resale of local services directs BellSouth to offer seven defined loop and port services on an unbundled basis. The LEC must also resell its loop-concentration capabilities and allow its competitors to collocate loop-concentration facilities. The PSC kept the resale docket open, giving BellSouth 60 days to develop a comprehensive proposal for "sub-loop unbundling." Re Resale Involving Local Exchange Companies and Alternative Local Exchange Companies, Docket No. 950984-TP, Order No. PSC-96-0444-FOF-TP, Mar. 29, 1996 (Fla.P.S.C.).

The Iowa Utilities Board (IUB) has modified its proposed rules governing compensation for

termination of telecommunications services between LECs and competitive companies. The IUB first proposed to rely on mutual exchange of traffic as a form of compensation until termination tariffs are approved; now, the IUB has decided to retain mutual exchange of services until an LEC can show that traffic becomes unbalanced. It said the different approach was motivated by concern that monetary compensation might burden LECs, especially in the initial stages of local-service competition. Re Local Exchange Competition, Docket No. RMU-95-5, Apr. 4, 1996 (Iowa U.B.).

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