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FEDERAL COMMUNICATIONS at: https://docs.fcc.gov/public/ and resale requirements where they COMMISSION attachments/FCC-20-152A1.pdf. stifle technology transitions and broadband deployment, but preserve I. Introduction 47 CFR Part 51 unbundling requirements where they 1. The Telecommunications Act of are still necessary to realize the 1996 [WC Docket No. 19–308; FCC 20–152; FRS 1996 (the 1996 Act) changed the focus Act’s goal of robust intermodal 17221] of telecommunications law and policy competition benefiting all Americans. from the regulation of monopolies to the Modernizing Unbundling and Resale encouragement of robust intermodal II. Background Requirements in an Era of Next- competition. Few of its effects were as 4. The 1996 Act and implementing Generation Networks and Services consequential as ending the local Commission regulations imposed a exchange monopolies held by number of obligations on incumbent AGENCY: Federal Communications incumbent local exchange carriers LECs to promote competitive entry into Commission. (LECs) and opening local markets to the telecommunications marketplace, ACTION: Final rule. competition. To facilitate new entry into including obligations to unbundle the local exchange market, the 1996 Act network elements to other carriers on a SUMMARY: In this document, the imposed special obligations on rate-regulated basis and to offer Commission eliminates unbundling incumbent LECs, including telecommunications services for resale requirements, subject to reasonable requirements to offer these new on a rate-regulated basis. In the 24 years transition periods, for enterprise-grade competitive carriers unbundled network since the passage of the 1996 Act, the DS1 and DS3 loops here there is elements and retail telecommunications Commission has continually reviewed evidence of actual and potential services for resale, both on a rate- and, when warranted, reduced competition, for broadband-capable DS0 regulated basis. incumbent LEC unbundling and resale loops and subloops in the most densely 2. In the nearly quarter-century since obligations to encourage competition populated areas, for operations support the passage of the 1996 Act, the and development of advanced systems nationwide except for the telecommunications marketplace has telecommunications capability within purposes of managing remaining UNEs, transformed from a marketplace the changing communications number portability, and dominated by monopolies to a marketplace. The Commission has interconnection, and for voice-grade marketplace characterized by consistently aimed to promote narrowband loops, multiunit premises competition and technological sustainable facilities-based competition, subloops, and network interface devices innovation. Former monopolist recognizing that permanent unbundling nationwide. The Commission preserves incumbent LECs are now one of many obligations can reduce incentives for unbundling requirements for DS0 loops intermodal competitors, facing fierce both incumbent and competitive LECs in less densely populated areas and DS1 competition from competitive LECs, to deploy next-generation networks. and DS3 loops in areas without cable providers, and wireless providers, sufficient evidence of competition. The among others. And that competition has A. The 1996 Act’s Market-Opening Commission further eliminates itself shifted from siloed markets to the Provisions unbundled dark fiber transport internet, as increasingly local and long 5. Before the enactment of the 1996 provisioned from wire centers within a distance voice, data, video, and nearly Act, incumbent LECs controlled more half-mile of competitive fiber networks, all communications technologies are than 99% of the local voice marketplace but provides an eight-year transition delivered via broadband connections. because of their ‘‘virtually ubiquitous’’ period for existing circuits so as to avoid The Commission has repeatedly networks and subsequently low relative stranding investment and last-mile adjusted the incumbent LEC-specific incremental costs. To open this deployment by competitive LECs that obligations in the 1996 Act to account monopolized market, Congress required, may harm consumers. The Report and for changed circumstances. among other things, incumbent LECs to Order also forbears from remaining 3. In this document, we continue on offer their competitors unbundled Avoided-Cost Resale obligations. In all, that path of modernizing our network elements and the Commission ends unbundling and unbundling and resale regulations. We telecommunications services for resale resale requirements where they stifle eliminate unbundling requirements, on a discounted basis. technology transitions and broadband subject to a reasonable transition period, 6. Unbundled Network Elements. deployment, but preserves unbundling for enterprise-grade DS1 and DS3 loops Section 251(c)(3) of the requirements where they are still where there is evidence of actual and Communications Act of 1934, as necessary to realize the 1996 Act’s goal potential competition, for broadband- amended (the Act) sets forth incumbent of robust intermodal competition capable DS0 loops in the most densely LECs’ unbundling obligations. benefiting all Americans. populated areas, and for voice-grade Following Congress’s directive that the DATES: Effective February 8, 2021. narrowband loops nationwide. But we Commission determine which network preserve unbundling requirements for elements should be subject to the FOR FURTHER INFORMATION CONTACT: For DS0 loops in less densely populated unbundling rules, the Commission further information, please contact areas and DS1 and DS3 loops in areas created a list of unbundled network Megan Danner, Competition Policy without sufficient evidence of elements (UNEs) that competitive LECs Division, Wireline Competition Bureau, competition. We eliminate unbundled can lease from incumbent LECs in order at [email protected], dark fiber transport provisioned from to provide competitive local service. 202.418.1151. wire centers within a half-mile of When identifying network elements SUPPLEMENTARY INFORMATION: The full competitive fiber networks, but provide subject to unbundling obligations, text of this document, WC Docket No. an eight-year transition period for section 251(d)(2) requires that the 19–308; FCC 20–1522, adopted on existing circuits so as to avoid stranding Commission consider, ‘‘at a minimum,’’ October 27, 2020, and released on investment and last-mile deployment by whether ‘‘the failure to provide access to October 28, 2020, is available for public competitive LECs that may harm such network elements would impair inspection on the Commission’s website consumers. In all, we end unbundling the ability of the telecommunications

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carrier seeking access to provide the revenue to support the development of forbearance criteria have been satisfied, services that it seeks to offer.’’ The their own competitive facilities. The and ‘‘the agency [may] reasonably statute also requires that the Commission also recognized that rural interpret[] the statute to allow the Commission determine whether access areas face higher deployment costs and forbearance analysis to vary depending to proprietary network elements is longer deployment timeframes. on the circumstances.’’ When the ‘‘necessary.’’ However, the Commission 9. Avoided-Cost Resale. In addition to Commission undertakes a competitive does not currently require incumbent unbundling obligations, section 251 analysis, ‘‘the statute imposes no LECs to make any proprietary network includes an Avoided-Cost Resale particular mode of market analysis or elements available on an unbundled provision that requires incumbent LECs level of geographic rigor.’’ In addition, basis. The identified UNEs were then to to ‘‘offer for resale at wholesale rates the Commission can consider the be made available at cost-based rates. any telecommunications service that the section 706 goal of fostering the Parties may negotiate agreed-upon rates carrier provides at retail to subscribers deployment of advanced for UNEs, which the state must then who are not telecommunications telecommunications capabilities in approve. If the parties cannot come to carriers.’’ Congress defined the making forbearance decisions. In an agreement, the rates are set by state methodology to determine wholesale considering forbearance from arbitration and will be ‘‘based on the rates as ‘‘retail rates . . . excluding the unbundling obligations, the cost (determined without reference to a portion thereof attributable to any Commission is entitled to rely on its rate-of-return or other rate-based marketing, billing, collection, and other expert predictive judgment and may proceeding) of providing the costs that will be avoided by the local balance ‘‘the positive short-term impact interconnection or network element’’ exchange carrier.’’ As a practical matter, of unbundling’’ against the ‘‘longer-term and ‘‘may include a reasonable profit.’’ incumbent LECs implement this positive impact that not unbundling 7. The impairment inquiry considers Avoided-Cost Resale obligation by would have . . . .’’ Furthermore, the whether a hypothetical ‘‘reasonably incorporating in their interconnection Commission may forbear without efficient competitor’’ would be impaired agreements with competitive LECs conducting a competitive analysis when when lack of access to a particular discounted rates established by each changed circumstances have rendered a network element creates a barrier to state for the incumbent LECs’ regulatory requirement unnecessary for entry that renders entry uneconomic. telecommunications services. The other reasons. The Commission presumes that the Avoided-Cost Resale obligations in 12. Unbundling and Resale reasonably efficient competitor would section 251(c)(4) go beyond the more Obligations Since 1996. Pursuant to the use ‘‘reasonably efficient technologies general resale requirement in section provisions of the 1996 Act, the and take advantage of existing 251(b)(1) of the Act, which applies to Commission has over the years alternative facilities deployment where incumbent and competitive LECs alike, reassessed and, when warranted, possible.’’ The impairment inquiry and does not include a wholesale reduced its unbundling and resale makes reasonable inferences about discount rate mandate. Avoided-Cost requirements to account for changes in competition, including that if Resale services are predominately used communications service markets where competitive providers have successfully by competitive LECs today to provision competition among incumbent and entered using their own facilities in one legacy TDM voice services to business competitive LECs has flourished. market, other providers could enter and government customers. Congress expressly authorized the similar markets on a similar basis. The 10. Forbearance. Section 10 of the Commission to forbear from any Commission’s impairment Act, as amended by the 1996 Act, regulatory obligations, including section determinations account for the existence requires the Commission to forbear from 251(c) obligations, once the agency of intermodal competition, as ‘‘[t]he fact applying any requirement of the Act or determined that they are no longer that an entrant has deployed its own one of its regulations to a necessary, and encouraged the facilities—regardless of the technology telecommunications carrier or Commission to use forbearance and chosen—may provide evidence that any telecommunications service if and only other means to encourage deployment of barriers to entry can be overcome.’’ if the Commission determines that: (1) advanced telecommunications Furthermore, the courts and the Enforcement of the requirement ‘‘is not capability and remove barriers to Commission have interpreted section necessary to ensure that the charges, infrastructure deployment. With respect 251(d)(2)’s ‘‘at a minimum’’ language to practices, classifications, or regulations to forbearing from section 251(c), allow the Commission to consider other by, for, or in connection with that Congress first required that section to be factors ‘‘rationally related to the goals of telecommunications carrier or fully implemented. The Commission the Act,’’ even where impairment exists. telecommunications service are just and has specifically found that section The Commission has identified reasonable and are not unjustly or 251(c) has been fully implemented—i.e., broadband deployment, as called for by unreasonably discriminatory,’’ (2) that the Commission has adopted rules section 706 of the 1996 Act, as one such enforcement of that requirement ‘‘is not implementing the statute and that those goal. necessary for the protection of rules have become effective. 8. When first implementing section consumers,’’ and (3) ‘‘forbearance from 13. In its initial orders implementing 251(d)(2) and adopting the unbundling applying that requirement is consistent section 251(c)(3), the Commission requirements, the Commission with the public interest.’’ Forbearance is adopted nationwide unbundling acknowledged that the availability of warranted only if all three criteria are obligations for local loops used to serve UNEs to competitive LECs ‘‘is a satisfied. In making the public interest mass market and enterprise customers necessary precondition to the determination, the Commission must on a technology-neutral basis, for development of self-provisioned also consider, pursuant to section 10(b) dedicated and shared interoffice network facilities.’’ Consistent with its of the Act, ‘‘whether forbearance from transport, and various other network preference for facilities-based enforcing the provision or regulation elements. The courts rejected these competition, the Commission expected will promote competitive market initial attempts, in whole or in part, for UNEs to provide competitors a means to conditions.’’ a variety of reasons, including that enter the local marketplace in order to 11. The Commission has broad overly-broad unbundling is obtain a sufficient subscriber base and discretion in analyzing whether the inappropriate. For example, the

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Supreme Court vacated the in the mass market,’’ with consumers unbundling requirements slow the Commission’s first order implementing benefitting from the race to build next- transition to next-generation services. broad unbundling regulations because it generation networks and increased For example, in 2005, the Commission failed ‘‘to apply some limiting standard, competition in broadband service. The granted the incumbent LEC Qwest relief rationally related to the goals of the Court of Appeals for the D.C. Circuit from UNE loop and transport Act,’’ as the Act requires. In a separate affirmed the Commission’s decision not obligations in portions of its service opinion, Justice Breyer observed that to require the unbundling of fiber-based territory in the Omaha Metropolitan ‘‘given the Act’s basic purpose, it loops, but remanded many other aspects Statistical Area (MSA) where a requires a convincing explanation of of the Triennial Review Order, including facilities-based cable competitor had why facilities should be shared or the Commission’s nationwide substantially built out its local network unbundled where a new entrant could impairment determinations with respect in competition with Qwest. The compete effectively without the facility, to dedicated transport elements and its Commission relied on the ‘‘substantial or where practical alternatives to that decision that wireless carriers were intermodal competition’’ presented by facility are available.’’ Justice Breyer impaired without access to unbundled the cable competitor, Cox, over its ‘‘own went on to explain that unbundling ‘‘by dedicated transport. extensive facilities’’ and, though noting itself does not automatically mean 15. In 2004, in response to the D.C. that it had earlier determined that increased competition. It is in the un Circuit’s remand, the Commission intermodal competition from cable shared, not in the shared, portions of the adopted the Triennial Review Remand providers ‘‘had not blossomed into a full enterprise that meaningful competition Order (70 FR 8940, Feb. 24, 2005). substitute’’ for wireline voice service, would likely emerge.’’ The D.C. Circuit Acknowledging that certain markets determined that Cox had changed those later vacated and remanded the were already sufficiently competitive circumstances within the Omaha MSA Commission’s next attempt to adopt and that competition could be expected as a result of its investment in the unbundling rules, because, among other to develop in markets with similar network infrastructure in that area. In things, the agency failed to weigh characteristics, the Commission limited 2007, the Commission granted similar potential negative effects of unbundling incumbent LECs’ DS1 and DS3 loop relief to ACS of Anchorage in wire on incentives to invest in facilities- unbundling obligations to buildings centers located in the Anchorage study based competition, failed to analyze served by incumbent LEC wire centers area ‘‘where the level of facilities-based impairment on a sufficiently granular without sufficient competitive presence competition by the local cable operator level, and did not adequately consider and service demand. It also limited the [GCI] ensures that market forces will the role of intermodal competition. DS1, DS3, and dark fiber interoffice protect the interests of consumers and Citing Justice Breyer’s separate opinion, transport unbundling obligations that such regulation, therefore, is the D.C. Circuit explained that depending on the level of current and unnecessary.’’ In 2015, to further its goal ‘‘mandatory unbundling comes at a cost, anticipated competition by classifying of advancing the TDM to IP transition including disincentives to research and wire centers into tiers ‘‘based on indicia for next generation networks and development by both incumbent LECs, of the potential revenues and suitability services, the Commission eliminated competitive LECs and the tangled for competitive transport deployment.’’ one of the last unbundling requirements management inherent in shared use of a The Commission also declined to applicable to next-generation networks common resource.’’ require unbundling of network elements by granting forbearance on a forward- for competitors to use exclusively for looking basis to incumbent LECs from 14. Following the D.C. Circuit’s providing long distance and mobile the requirement to make available a 64 remand, the Commission issued the voice services because of the presence of kbps voice-grade channel over overbuilt Triennial Review Order in 2003 (68 FR pervasive competition in those markets fiber loops. 52276, Sept. 2, 2003), at the same time that occurred without reliance on UNEs. as the local markets were seeing the Although the Commission declined to 17. More recently, in 2019, in increased deployment of next- eliminate unbundling requirements for response to USTelecom’s petition for generation fiber-based loops. competitors seeking to offer local forbearance, we granted forbearance Considering section 251(c)(3)’s ‘‘at a telephone service, despite evidence of from certain loop and transport minimum’’ language, the Commission some intermodal competition, it unbundling and resale obligations that declined to require unbundling for most acknowledged that ending those had become increasingly outdated due fiber-based loops because it seemed unbundling obligations ‘‘might someday to competitive fiber deployment, likely to undermine important goals of be appropriate, upon findings of technological change, and intermodal the 1996 Act, specifically the sufficient facilities-based competition in competition. Throughout this Order, exhortation in section 706 to encourage the local exchange market.’’ The when referencing the BDS Remand deployment of advanced Commission ultimately imposed Order/UNE Transport Forbearance telecommunications capability to all unbundling obligations only in those Order (84 FR 38566, Aug. 7, 2019), we Americans by removing barriers to situations where it found unbundling cite the portions containing the investment. The Commission ‘‘does not frustrate sustainable, Commission’s findings in response to recognized that unbundling fiber-based facilities-based competition.’’ the Eighth Circuit’s partial remand of loops could reduce incentives for both 16. While the Triennial Review Business Data Services in an internet incumbent and competitive LECs to Remand Order was the last time the Protocol Environment et al., WC Docket deploy advanced facilities. The Commission applied its impairment Nos. 16–143 et al., Report and Order, 32 Commission reasoned that refraining inquiry to consider the extent to which FCC Rcd 3459 (2017) (82 FR 25660, June from imposing such obligations would unbundling obligations should apply, 2, 2017) (BDS Order), as the BDS increase incentives for incumbent LECs the Commission has refined and Remand Order, and we cite the portions to develop and deploy innovative new reduced its unbundling rules by addressing aspects of the May 2018 networks, while forcing competitive forbearing from UNE loop and transport forbearance petition filed by LECs to ‘‘seek innovative network obligations where there is evidence of USTelecom—The Broadband access options to serve end users and to facilities-based deployment and Association (USTelecom) as the UNE fully compete against incumbent LECs competition, or that continued Transport Forbearance Order. In two

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orders (the UNE Transport Forbearance has at times granted requested members—Allstream Business US, LLC, Order (84 FR 38566, Aug. 7, 2019) and forbearance relief to petitioning carriers Digital West, First Communications, UNE Analog Loop and Avoided-Cost for particular UNEs in specific LLC, Biddeford Internet Corporation d/ Resale Forbearance Order (34 FCC Rcd geographic markets. Incumbent LECs are b/a GWI, IdeaTek Telecom, Mammoth 6503, Aug. 2, 2019), collectively, 2019 also required to maintain access to a 64 Networks and Visionary Broadband, UNE Forbearance Orders), we kbps channel over fiber loops for SnowCrest ISP & SnowCrest Telephone, determined that forbearance from existing customers. The Commission Socket Telecom, LLC, TelNet unbundling obligations was warranted has not found impairment with respect Worldwide, Inc., and TPx for: (1) DS1/DS3 dedicated interoffice to any new unbundled network Communications. Windstream Services, transport (UNE DS1/DS3 Transport) elements since 2004. In addition, non- LLC signed as a member of both trade between price cap incumbent LEC wire price cap incumbent LECs must offer associations, in its capacity as an centers within a half mile of competitive Avoided-Cost Resale to requesting incumbent LEC and competitive LEC. fiber network deployment; (2) two-wire carriers in their local exchange service The Joint Parties discussed but did not and four-wire analog voice-grade copper areas. reach a compromise regarding dark fiber loops, including the attached equipment 19. In November 2019, we adopted transport at that time and avoided-cost (UNE Analog Loops) for price cap the Modernizing Unbundling and Resale resale. The Joint Parties did not discuss incumbent LECs throughout the entirety Requirements in an Era of Next- UNE Analog Loops in non-price cap of their service areas; and (3) Avoided- Generation Networks and Services areas, 64 kbps voice-grade channels over Cost Resale obligations throughout the Notice of Proposed Rulemaking (NPRM) last-mile fiber loops, Multiunit Premises entirety of price cap incumbent LECs’ (85 FR 472, Jan. 6, 2020) to UNE Subloops, NIDs, and the TDM service areas. We found that these comprehensively reexamine the capabilities, features, and functionalities obligations, which are overwhelmingly Commission’s current unbundling rules of hybrid loops. The Joint Parties used to provide TDM-based local voice in light of the substantial changes in emphasized that the Compromise service, were no longer necessary based voice and broadband service Proposal was a ‘‘bargained-for, on ‘‘the sweeping changes in the competition in the communications negotiated outcome that reflects trade- communications marketplace’’ since landscape. The NPRM sought comment offs and concessions between’’ nearly 1996, including the increasing migration on proposals to modernize and update every interested competitive LEC and of consumers of all types to ‘‘newer, incumbent LECs’ remaining unbundling incumbent LEC in this docket that have any-distance voice services over next- and resale obligations to better reflect previously disputed the appropriate generation wireline and wireless the current marketplace realities of scope of the Commission’s unbundling networks,’’ as well as the wide range of intermodal voice and broadband rules at the Commission, in this intermodal competitors in the voice competition. The sole unbundling proceeding and in other proceedings, marketplace. We further found that ‘‘the obligation that the NPRM did not and in court. The Joint Parties further public interest is no longer served by propose to modify or eliminate is the noted that the Compromise Proposal maintaining these legacy regulatory requirement to unbundle 911/E911 ‘‘necessarily departs in at least some obligations and their associated costs.’’ databases. The Commission also sought ways from the specific positions each comment on the costs and benefits of its individual signatory has advanced in 18. Current Unbundling and Resale proposals, as well as proposed this proceeding,’’ but each proposal is a Requirements. Currently, the transition time frames. direct response to the record in this Commission’s unbundling rules, subject 20. Various parties, particularly proceeding. The Joint Parties also assert to forbearance as described above, incumbent and competitive LECs, that these resolutions are lawful and are require that incumbent LECs unbundle vigorously debated the issues raised by logical outgrowths of the NPRM (1) mass market copper digital and the NPRM in comments and reply proposals, ‘‘within the reasonable range xDSL-capable loops (collectively, UNE comments filed in February and March of conclusions supported by the DS0 Loops) nationwide; (2) UNE Analog 2020, and in ex parte letters filed record,’’ and in the public interest. Loops in non-price cap incumbent LEC thereafter. On August 5, 2020, 21. On September 14, 2020, service areas; (3) the TDM capabilities, INCOMPAS, USTelecom, and many of INCOMPAS, USTelecom, and many of features, and functionalities of hybrid their respective members (Joint Parties), their respective members, representing a fiber-copper loops nationwide; (4) ‘‘in recognition of the current state of majority of buyers and sellers of UNE enterprise loops (i.e., DS1 and DS3 competition in the communications Dark Fiber Transport, additionally loops) subject to the limitations adopted marketplace,’’ filed a compromise reached a compromise proposal with in the Triennial Review Remand Order resolution (Compromise Proposal) in regard to UNE Dark Fiber Transport. reflecting current and potential this docket for the Commission to The parties agreed that the Commission competition (UNE DS1 and DS3 Loops); consider regarding whether and to what should forbear and find non-impairment (5) subloops, including subloops for extent incumbent LECs must continue vis-a-vis Tier 3 wire centers located multiunit premises wiring, nationwide; to provide access to unbundled DS0 within half a mile of alternative fiber, (6) network interface devices loops and associated copper subloops, subject to an eight-year transition period nationwide; (7) dedicated interoffice DS1 loops, DS3 loops, and OSS. for existing UNE Dark Fiber Transport. transport (i.e., DS1, DS3, and dark fiber Specifically, aside from the trade transport) subject to limitations associations, INCOMPAS and B. Today’s Communications reflecting potential competition in the USTelecom, the parties to this Marketplace Triennial Review Remand Order and agreement include: Many of 22. The communications marketplace our forbearance for UNE DS1/DS3 USTelecom’s incumbent LEC has dramatically transformed since Transport in wire centers within a half members—AT&T Services, Inc., Congress passed the 1996 Act. mile of competitive fiber in the UNE CenturyLink, Inc. (now Lumen), Incumbent LECs controlled 99.7% of the Transport Forbearance Order; (8) Consolidated Communications, Inc., local telephone service market at that operations support systems nationwide; Frontier Communications Corp., and time. Incumbent LECs’ wireline voice and (9) 911/E911 databases nationwide. Verizon Communications Inc.—and subscriptions now account for only As discussed above, the Commission many of INCOMPAS’ competitive LEC approximately 39% of all wireline voice

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subscriptions and only 9% of all voice deployment of 5G wireless networks and DS3 loops and associated subloops, subscriptions across all technologies. will only accelerate this process. (2) DS0 loops and associated subloops, and (3) the TDM-capabilities, features, The fixed voice marketplace, once III. Discussion monopolized by incumbent LECs, now and functionalities of hybrid copper- includes cable companies offering VoIP, 24. In this document, we modernize fiber loops. Subject to previous grants of fixed wireless providers, over-the-top our unbundling rules in light of the forbearance, incumbent LECs must also VoIP providers, as well as competitive dramatic changes to the provide unbundled access to UNE and incumbent LECs. As for fixed communications marketplace since Analog Loops in non-price cap broadband, incumbent LECs are just one 2004, when the Commission last incumbent LEC service areas and to 64- examined unbundling obligations of many intermodal competitors, kbps channels over fiber loops that were through the impairment lens. We providing only about 22% of residential ordered before 2015. eliminate, subject to a transition period, broadband subscriptions at or above 25/ unbundling obligations for loops, 1. UNE DS1 and DS3 Loops 3 Mbps, which the Commission has transport, and other elements where 26. We proposed in the NPRM to find defined as advanced record evidence shows that they are no that competitive LECs are no longer telecommunications capability. longer necessary for reasonably efficient impaired in those counties and study Connections data are collected at the competitors to enter the market. areas deemed competitive in the BDS census tract level. Incumbent LEC Recognizing that some unbundling Order and Rate-of-Return (RoR) BDS affiliation is determined at the holding obligations have continued benefits in Order (83 FR 67098, Dec. 28, 2018) company level and the census block providing competitive (collectively, Competitive Counties), level. The incumbent LEC’s connections telecommunications services and subject to a carve-out for UNE DS1 are counted as within the incumbent’s broadband access in rural areas, where Loops used for residential purposes. study area if any portion of its study competitive entry is harder because of Based on the record in this proceeding, area overlaps the census tract. Cable entry barriers to fixed broadband as well as the Commission’s findings in providers provide approximately 75% services, including sunk costs, we the BDS Order, we adopt a modified of 25/3 Mbps residential subscriptions. maintain several unbundling version of this proposal and find that As of December 31, 2019, 99% of requirements, including for mass market unbundled access to DS1 and DS3 loops Americans had access to three providers broadband-capable loops in less densely in the Competitive Counties, where of mobile voice and broadband. As of populated areas. Sunk costs are demand for business data services is the date of this Order, December 2019 investments that have no scrap value or most highly concentrated, is is the latest data available to the value in an alternative use, e.g., a fiber unwarranted because competitive LECs Commission, so we cannot report cable connecting a customer’s location are no longer impaired without access to coverage after the T-Mobile/Sprint to the provider’s network. Most wireline these UNEs, and thus, incumbent LECs merger, and this data treats T-Mobile network costs are sunk for at least no longer need to provide unbundled and Sprint as separate providers. twenty years. In addition, entrants may access in these locations, subject to the Finally, as the Commission found in the face other entry barriers including transition periods and associated BDS Order, the enterprise market is achieving scale economies and absolute conditions we adopt. Moreover, we find subject to ‘‘intense competition,’’ with cost disadvantages. Scale economies can that continued unbundling of those 95% of census blocks with business be a barrier to entry if entrants are likely network elements is not warranted data services demand in price cap to attract fewer customers than because it frustrates the congressionally MSAs, representing 99% of business competitors, making it more difficult for mandated policy goal of ensuring the establishments, featuring at least one the entrant to compete against its deployment of next-generation networks competitive provider in addition to the competitors if it faces higher average and services. Further, independent of incumbent LEC. cost and the market retail price is close our non-impairment finding, we find to its competitor’s average cost. that, subject to the transition periods 23. The communications marketplace Absolute cost advantages can occur if and conditions, forbearance from these has also seen rapid technological the incumbent providers have obligations in the Competitive Counties change. In the enterprise services privileged access to resources. An is warranted. The record marketplace, DS1 and DS3 loops, incumbent firm may also have other overwhelmingly supports this dominated by incumbent LECs, have first mover advantages, e.g., because conclusion. INCOMPAS, USTelecom, been increasingly replaced by packet- they have a relatively high penetration and most of their members participating based services, provided by a range of rate for their services and consumers in this proceeding agree that both the providers who benefit from a face high costs in switching providers. non-impairment finding and ‘‘considerably more level playing field’’ We find that our impairment and forbearance conclusions are appropriate compared to TDM-based services. The forbearance findings, when taken for the Competitive Counties, subject to copper-to-fiber and TDM-to-IP together with the necessary transition the transition periods and associated transitions have also increasingly periods and conditions we adopt for conditions we also adopt. None of these reached residential consumers, as each element, best fulfill our statutory findings, however, apply to non- incumbent LECs have been retiring last- responsibilities and promote our policy competitive counties, where UNE DS1 mile copper and replacing it with fiber objectives. and DS3 Loops will remain available, or fixed wireless technologies. And of subject to the limits established in the course, American consumers have A. UNE Loops Triennial Review Remand Order. themselves transitioned to newer 25. Loops are the ‘‘last mile of a Finally, we decline to adopt a technologies, increasingly moving from carrier’s network,’’ connecting end-users residential carve-out for UNE DS1 fixed legacy voice to fixed or nomadic to the network to access voice, Loops, finding that the costs and voice over internet protocol (VoIP) and broadband, and other technologies. burdens associated with such an mobile voice services, and from DSL to Under existing law, incumbent LECs exemption outweigh the benefits. broadband provided over fiber and fixed must provide at least some limited 27. Background. Our rules require and mobile wireless. The widespread unbundled access nationwide to (1) DS1 that incumbent LECs make DS1 and DS3

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loops, which are predominantly used to characterizes the long distance and reduce[] the over-and under-inclusivity provision service to enterprise wireless markets.’’ issue posed by MSAs [metropolitan customers, available as UNEs on a 29. In the more recent BDS Order, the statistical areas] . . . and avoid[]the limited basis. These loops operate at a Commission undertook a administrability issues posed by smaller total digital signal speed of 1.544 Mbps comprehensive analysis of the business geographic units of measure.’’ It went on and 44.736 Mbps, respectively. The data services market. Business data to determine that ‘‘nearby [non- Commission adopted these unbundling services refers to the dedicated point-to- incumbent LEC wireline] competitors’’ requirements for DS1 and DS3 loops point transmission of data at certain with ‘‘nearby networks’’ are ‘‘effective more than 16 years ago. The guaranteed speeds and service levels competitor[s] in meeting BDS demand at Commission based its impairment using high-capacity connections. This a location if it either delivers BDS to a analysis at that time on two factors: The analysis focused extensively on the location or has a network within one existence of actual competition and the market for TDM-based DS1 and DS3 half mile of the location with BDS inference to be drawn from the potential channel terminations, which are demand, and/or is a cable company for competition in similar markets. The functionally identical products to UNE with a widespread HFC [hybrid fiber Commission found that ‘‘the presence of DS1 and DS3 Loops. The Commission coax] network that surrounds the fiber-based collocations in a wire center found that ‘‘[t]o a large extent in the location with BDS demand.’’ The service area is a good indicator of the business data services market, the Commission determined that a county potential for competitive deployment of competition envisioned in the [1996 will be deemed competitive when either fiber rings’’ and ‘‘a wire center service Act] has been realized,’’ and ‘‘any prior (1) at least 50% of the locations with area’s business line count is indicative advantage an incumbent might have BDS demand within the county are of its location in or near a large central enjoyed at lower bandwidths is now less within a half mile of a competitive business district, which is likely to competitively relevant in light of provider’s network, or (2) a cable house multiple competitive fiber rings customer demand that attracts a number competitor’s network serves at least (and thus numerous splice points) with of traditional and non-traditional 75% of the census blocks with BDS laterals to multiple buildings.’’ When competitors that are improving legacy demand within the county. cable networks and expanding with new viewed together, the Commission 31. Impairment Analysis. UNE DS1 explained, these characteristics ‘‘are facilities to meet demand.’’ 30. Relying upon the most and DS3 Loops are functionally likely to correspond with actual self- equivalent to DS1 and DS3 BDS end- deployment of competitive LEC loops or comprehensive data collected from both purchasers and providers of BDS user channel terminations, with the to indicate where deployment would be only real difference being their economic and potential deployment services to date, including circuit-based and packet-based BDS providers and respective prices. Indeed, UNE DS1 and likely.’’ It thus found that competitive significant providers of best-efforts DS3 Loops and DS1 and DS3 BDS end- LECs were not impaired without services, and Form 477 data, the user channel terminations use the very unbundled access to DS1 loops only in Commission created a Competitive same incumbent LEC facilities. So wire centers where there are at least Market Test to determine which where there is evidence that 60,000 business lines and four or more counties are competitive for purposes of competition for BDS DS1 and DS3 end- fiber-based collocators. It also found business data services. Best-efforts user channel terminations exists, as that competitive LECs were not services are internet access services demonstrated by the Competitive impaired without unbundled access to generally marketed to residential and Market Test, such competition also DS3 loops in wire centers where there small business consumers, rather than exists for UNE DS1 and DS3 Loops. And are at least 38,000 business lines and enterprise consumers. Unlike dedicated that competition includes packet-based four or more fiber-based collocators. packet-based BDS, best-efforts services alternatives to DS1 and DS3 Loops, 28. In explaining these findings, the often provide asymmetrical speeds and which are more versatile and capable of Commission noted that its ‘‘selection of lack service performance guarantees. handling the increasingly higher specific criteria is not an exact science, While the Commission found in the BDS bandwidth needs of business customers, and the Commission may exercise line- Order that best-efforts services generally thus demonstrating that DS1 and DS3 drawing discretion when rendering did not directly compete with fiber- loops are no longer a reasonably determinations based on agency based BDS, the Commission found that efficient technology to enter the expertise, our reading of the record the underlying facilities used to enterprise marketplace in the before us, and a desire to provide an provision best-efforts services were Competitive Counties. The existence of easily implemented and reasonable being modernized to provide actual and potential competition, bright-line rule to guide the industry.’’ competitive BDS. Providers report their intermodal or otherwise, in the The Commission limited the availability broadband deployment to the Competitive Counties leads us to of these UNEs to ten UNE DS1 Loops Commission semi-annually using FCC conclude that unbundling DS1 and DS3 and one UNE DS3 Loop per building, Form 477. The Eighth Circuit upheld loops is unwarranted even in the face of respectively, finding that competitors the portion of the BDS Order adopting some level of impairment. Finally, are more likely to self-provision higher the Competitive Market Test, while continuing the unbundling obligations capacity loops at a certain level of remanding other portions of the BDS for DS1 and DS3 loops is at odds with bandwidth demand because of the Order on notice grounds. The Congress’s mandate in section 706 that greater economic feasibility resulting Commission determined that combining we take action to encourage the from the fact that ‘‘revenue these two data sets would ‘‘approximate deployment of advanced opportunities increase with the capacity the full spectrum of competition in the telecommunications capabilities. Thus, level.’’ It also indicated that even these business data services market, including consistent with our proposal in the revised unbundling obligations were competition from medium-term NPRM, we find that where the designed to be removed ‘‘over time as entrants.’’ The Commission determined Commission in the BDS proceeding carriers deploy their own networks and that basing the Competitive Market Test found actual or potential competition, downstream local exchange markets on ‘‘the geographic unit of a county or and subject to the transition periods in exhibit the same robust competition that county-equivalent’’ would ‘‘significantly this Order, competitive LECs seeking to

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enter the business data services market marketplace in the Competitive Counties now and the growth in are no longer impaired without Counties. Thus, where the Competitive competitive providers deploying in unbundled access to DS1 and DS3 Market Test has shown that a particular areas previously outside their footprints Loops, and those UNE requirements are county or study area is competitive, we that these locations will ultimately no longer necessary. no longer require incumbent LECs to become competitive. Thus, while some 32. Given the demands for ever- make UNE DS1 and DS3 Loops available customers within a Competitive County increasing broadband speeds, and after an appropriate transition period. may not currently have available to packet-based services, we find that a 33. This actual and potential them the competition relied on by the reasonably efficient competitor would competition comes in many forms, Commission in deeming that county to not use UNE DS1 and DS3 Loops as a including from cable and fixed wireless be competitive, that number will be reasonably efficient technology for providers who entered, or are entering, relatively small and will likely shrink entering the enterprise services market the market without reliance on UNEs. over time. Indeed, the Commission in the Competitive Counties. The The record demonstrates that cable noted in the BDS Order that it expected communications marketplace today is providers are even more significant as much. This approach is consistent dramatically different from the one that competitors for enterprise services today with the Commission’s use of the existed when the Commission last than they were when the Commission impairment inquiry in 2004, when the addressed impairment over a decade explained their significance three years Commission ‘‘dr[e]w reasonable ago. Incumbent LECs were the dominant ago in the BDS Order. And while the inferences regarding the prospects for Commission previously found that fixed providers of TDM-based DS1s and DS3s competition in one geographic market wireless had a limited role in the BDS in 2004, and cable was only beginning based on the state of competition in marketplace, it noted ‘‘the promise of to make inroads into the enterprise other, similar markets.’’ 5G technology to provide quality high- services market at that time. Today, 35. Some competitive LEC bandwidth fixed wireless services to TDM-based DS1 and DS3 loops are commenters assert that the businesses in urban areas’’ and found becoming obsolete in the face of Commission’s reliance on the BDS that ‘‘fixed wireless services should be increasing bandwidth demands and the Order’s competitive findings is at odds included in the product market transition to IP-based networks and with ‘‘the level of competition required discussion because they may have a services. Their availability will become by the [Triennial Review Remand competitive effect on the market.’’ This Order’s] findings.’’ We disagree. We further constrained as incumbent LECs is the competition envisioned by the move forward with retiring their copper 1996 Act, and we would be remiss to note that INCOMPAS, along with the facilities, deploying packet-based not take into account competition from majority of its members that have filed services, and phasing out TDM services these providers. Indeed, in the context comments in this proceeding, signed the like DS1 and DS3 business data of affirming the Commission’s decision Compromise Proposal that states that services. Indeed, the Commission found not to require incumbent LECs to the competitive providers are no longer in the BDS Order that ‘‘[f]unctionally, unbundle the broadband capabilities of impaired in the Competitive Counties TDM and packet-based services are hybrid loops, the D.C. Circuit stated ‘‘we without access to UNE DS1 and DS3 broadly interchangeable in the business agree with the Commission that robust Loops. As the Commission specifically data services realm as both are used to intermodal competition from cable found in the BDS Order, for the provide connectivity for data network providers . . . means that even if all purposes of enterprise services, ‘‘the and point-to-point transmissions and CLECs were driven from the broadband largest benefits from competition come both services can be delivered over the market, mass market consumers will from the presence of a second provider, same network infrastructure.’’ It thus still have the benefits of competition with added benefits of additional went on to find that ‘‘legacy TDM between cable providers and ILECs.’’ To providers falling thereafter, in part business data services suppliers would ignore this competition and to allow because, consistent with other be constrained by the threat of potential continued reliance on UNEs in these industries with large sunk costs, the customer loss to packet-based business areas would slow the transition to next- impact of a second provider is likely to data services suppliers.’’ And it noted generation services, in contravention of be particularly profound in the case of the diminishing use and availability of the goals of section 706 and our wireline network providers.’’ This is UNE DS1 and DS3 Loops. One preference for sustainable facilities- consistent with the Commission’s competitive LEC commenter in this based competition, goals we are conclusion in the Restoring internet proceeding made this clear when it permitted to consider based on our ‘‘at Freedom Order (83 FR 7852, Feb. 22, noted that the bandwidth available a minimum’’ authority. 2018) that the presence of two wireline through bonding multiple DS1 loops 34. We realize that the BDS Order internet service providers ‘‘can be ‘‘might let a small business survive until examined competition on a county expected to produce more efficient another solution can be found.’’ But level, whereas the Commission made its outcomes than any regulated where competition, or the potential for 2004 impairment findings based on an alternative’’ relevant to our competition, exists, such other solution analysis of the smaller geographical consideration in this context. Moreover, has, by definition, been found because level of wire centers. The Commission the competitive findings in the BDS that competition comes from facilities- specifically found that ‘‘basing the Order support our findings of (1) no based providers using non-incumbent competitive market test at the county impairment, (2) the existence of LEC facilities. And that competition level strikes the best balance between intermodal competition supporting includes packet-based services, which being sufficiently granular and unbundling even in the face of some are scalable for the ever-increasing administratively feasible,’’ a finding level of impairment, and (3) that bandwidth needs of enterprise upheld by the Eighth Circuit. This eliminating this unbundling obligation customers. In light of this next- concept of striking a balance between furthers the goal of advancing generation competition, we find that a granularity and administrability is deployment of next-generation facilities reasonably efficient competitor would equally relevant and important in the and services. The Commission found in not use UNE DS1 and DS3 Loops when UNE context. We infer from the level of the BDS Order, ‘‘[t]o a large extent in the seeking to enter the enterprise competition in the Competitive business data services market, the

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competition envisioned in the competitive in the seven years since the specific circumstances at issue. Telecommunications Act of 1996 . . . data collected in the 2015 Data Although we forbear from our UNE DS1 has been realized.’’ The existence of Collection. and DS3 Loop requirements in the wireline competitors in the Competitive 37. We also reject commenter Competitive Counties, we conclude that Counties demonstrates that market entry arguments concerning the Triennial competitive LECs will be able to obtain and thus competition without UNE DS1 Review Remand Order’s finding that the DS1 and DS3 services as business data and DS3 Loops is possible in these availability of UNEs at that time served services or through section 251(b)(1) areas. Indeed, we found in last year’s to constrain business data service resale. And because the marketplace for BDS Remand Order that the vast pricing (such services were called DS1 and DS3 BDS channel terminations majority of business locations in special access services at the time). is competitive, the marketplace will Competitive Counties are served by wire Today, the widespread intermodal discipline the prices of those services. centers within a half-mile of competition and entry for enterprise 40. Section 10(a)(1). We conclude that competitive fiber. And the Commission services constrains pricing, making enforcement of UNE DS1 and DS3 Loop found in the BDS Order that the level of ‘‘synthetic’’ UNE-based competition obligations is not necessary to ensure competition based on the Competitive unnecessary, particularly as the just and reasonable rates. To the extent Market Test was likely understated and continued obligation to provide UNEs in competitive LECs seek to continue that it will only continue to grow, and Competitive Counties could reduce purchasing DS1 and DS3 services, they the competition that existed at the time investment incentives for packet-based are able to do so through commercial of the 2015 Data Collection will not services. We reiterate that the 1996 Act’s offerings. The Commission found in the recede because those competitors have market-opening provisions were BDS Order that market pressure from already incurred substantial sunk costs. intended to foster competition, not competitive alternatives, including Those competitors, including support specific competitors or business packet-based services, will ensure intermodal competitors providing models. We find the evidence of reasonable prices. Thus, the existence of advanced telecommunications facilities-based competition for products competitive alternatives already capability over next-generation and services here to be sufficient to available or that could economically be networks, did not need to rely on UNE demonstrate that reasonably efficient made available will ensure reasonable DS1 and DS3 Loops to enter these competitors have the ability to deploy prices and no harm to consumers. markets. We thus disagree with their own services without the use of Indeed, we find that competition will commenters who assert that a UNEs. While certain competitive LEC more effectively ensure just and reasonably efficient competitor would commenters may wish to continue reasonable rates more effectively than still need to rely on UNE DS1 and DS3 relying on UNE DS1 and DS3 Loops for maintenance of these UNE Loops to enter a new market. their business models, this does not requirements. Accordingly, although mean that a reasonably efficient these UNE obligations may have served 36. We also disagree with competitive competitor is impaired without access to constrain DS1 and DS3 prices at LEC objections to the Commission to those UNEs. Indeed, the business data reasonable levels 16 years ago, they no taking into consideration competition services on which these commenters longer serve that purpose. from cable providers in conducting its rely are now subject to competition from 41. Section 10(a)(2). We find that the impairment analysis. Cable providers other business data services, including evolving marketplace and the statutory are much more significant competitors through cable deployment that and regulatory safeguards that work to for enterprise services than they were 15 developed without the reliance on ensure just and reasonable rates also years ago when the Commission UNEs, an indication that there is no ensure that consumers will not be initially considered their role in the longer impairment. harmed by forbearance from marketplace for determining 38. We are further unpersuaded by enforcement of the UNE DS1 and DS3 unbundling obligations for DS1 and DS3 commenter assertions that the findings Loops obligations. And as with ensuring loops. Indeed, only three years later in in the BDS Order are flawed because just and reasonable rates, we find that the Qwest Omaha Order (20 FCC Rcd they are based on Form 477 data, which competition will better protect 19415, Dec. 2, 2005), the Commission have recently been the subject of consumers—in this instance, enterprise viewed such providers as a source of challenges regarding their accuracy. As customers—from harm than continued competition for forbearance purposes. the Commission made clear in the BDS enforcement of these outdated Fast forward almost a decade to the BDS Order, its findings were not based solely unbundling obligations. Moreover, Order, and the Commission noted the on Form 477 data. Rather, its findings absent the availability of UNE DS1 or dramatic strides of cable providers in were based largely on the 2015 Data DS3 Loops, competitors will still be able becoming ‘‘formidable competitors’’ Collection (with respect to traditional to purchase DS1 and DS3 end-user over their own fiber and hybrid facilities competitive LECs). The Commission channel terminations as business data in the business data services market. used the Form 477 data to supplement services via commercial agreements or Cable providers now offer robust the 2015 Data Collection with respect to pursuant to section 251(b)(1) resale, enterprise-grade business services that cable providers, which added only an albeit at a higher price. Such higher were not widely available in 2004, as additional 0.5% of all competitive prices, resulting from marketplace found by the Commission in the BDS counties and county equivalents. dynamics rather than regulatory Order, including for multi-regional 39. Forbearance Analysis. mandates, will serve to encourage end- customers with low to medium Independent of our finding of non- user customers to migrate to next- bandwidth needs who still require impairment for UNE DS1 and DS3 generation services, thus helping to enterprise-grade features. The Loops, we find that the forbearance advance Congress’s goal as stated in Commission previously also found that criteria are met for UNE DS1 and DS3 section 706. The rules adopted in 2004 5G networks ‘‘have the potential to Loop requirements in the same and still in force today placed limits on represent a significant additional source geographical areas—i.e., the UNE DS1 and DS3 Loop availability, of competition for the provision of Competitive Counties. In doing so, we both by wire center characteristics and business data services.’’ And the BDS have the flexibility to conduct our by the numerical cap. Competitors, marketplace has only become more forbearance analysis based on the including incumbent LECs outside of

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their incumbent territories, already use that reasonably efficient competitors customers. Moreover, to administer the DS1 and DS3 BDS end-user channel could enter in these areas without the proposed exemption on a going forward terminations to compete, including use of UNE DS1 and DS3 Loops. And basis, incumbent LECs would be facilities purchased from other UNE DS1 and DS3 requirements in required to make costly modifications to competitive LECs and from cable these locations continue to be necessary their processes, which they would then providers. And DS1 and DS3 end-user for the protection of consumers and for need to update and monitor. Some channel terminations are increasingly the public interest, based on the limited incumbent LECs state they would also becoming obsolete in light of the degree of competition found in those have to manually validate whether each pressure for applications requiring areas in the BDS Order. new address, of which they receive increasing bandwidth. Indeed, the 44. We also decline to eliminate UNE hundreds daily, qualified for the Commission found in the BDS Order DS1 and DS3 requirements in exemption. One incumbent LEC that ‘‘use and availability of UNEs is grandfathered counties, as one commenter describes in detail the diminishing.’’ commenter requests. The BDS Order did system changes necessary for a carrier to 42. Section 10(a)(3). Finally, we find not find these counties competitive implement such an exemption and the that forbearing from the UNE DS1 and based on the Competitive Market Test, substantial cost involved in DS3 Loop obligations in Competitive but rather refrained from imposing new implementing those changes. For Counties is in the public interest as it price cap regulation because they were example, Verizon describes the changes promotes the policy of ensuring the previously granted Phase II pricing it would have to implement in order to deployment of next-generation networks flexibility. In the BDS Order, the accommodate a rural residential DS1 and services. The Commission has Commission determined not to exemption, ‘‘at a minimum’’: (1) ‘‘Create found that ‘‘[p]acket-based services reimpose price cap regulation in these a new ‘‘yes/no’’ field in its provisioning represent the future of business data counties because it favored a and inventory systems to determine services’’ and ‘‘will lead to greater ‘‘conservative’’ approach to avoid whether each individual end user returns on investment and in turn, regulatory disruption, rather than on address in Verizon’s territory (millions greater incentives for facilities-based other considerations, such as the of addresses) is located in census blocks entry into the business data services underlying conditions when those areas subject to relief . . . [and] constantly market.’’ Continuing to enable reliance were granted Phase II pricing flexibility. update this data, including to on legacy lower-speed technologies The interest in a conservative approach incorporate the hundreds of new unnecessarily reduces incentives and to regulatory disruption weighs in favor addresses added on a daily basis;’’ (2) thus slows this deployment in the face of retaining UNE DS1 and DS3 Loops in ‘‘Build intelligence into the ordering of competitive alternatives as well as the grandfathered counties, as those system to limit the availability of the commercially available DS1 and DS3 UNEs are currently available in these [DS1] UNE loops to only census blocks products at market-based prices. We locations and were not affected by Phase not subject to relief; (3) ‘‘Modify billing find that the benefit of encouraging the II pricing flexibility. systems if required to bill the UNE loops 45. No DS1 Residential Exemption. In deployment of advanced subject to relief at a different rate from the NPRM, we proposed exempting from telecommunications capabilities and those loops not subject to relief (e.g., a any non-impairment findings UNE DS1 next-generation networks outweighs any different rate during a transition Loops used for providing mass market loss of competitors in the market as long period);’’ and (4) ‘‘validating the broadband in rural census blocks of as some level of competition remains. residential and broadband classification 43. UNE DS1/DS3 Loops in Non- Competitive Counties. We decline to of the circuit.’’ Indeed, the cost per Competitive and Grandfathered adopt such an exemption. The record in provider for implementing such changes Counties. We decline to extend our DS1 this proceeding does not support such and DS3 loop unbundling relief to non- an exemption, and we find that the could be ‘‘at least hundreds of competitive and grandfathered counties, burdens to incumbent LECs of thousands of dollars.’’ While consistent with our proposal in the administering any such exemption INCOMPAS and NWTA point to one NPRM. A number of incumbent LEC outweigh any benefits. The number of competitive LEC’s use of UNE DS1 commenters take the position that we existing UNE DS1 Loops in rural census Loops to serve some residential should eliminate unbundling blocks of Competitive Counties is customers based upon filings made in obligations for DS1 and DS3 loops in exceedingly small in the first place, and the 2018 USTelecom forbearance non-competitive counties as well, the subset of such loops used for proceeding, neither this competitive arguing that the existence of continued residential purposes is orders of LEC nor any other individual price cap regulation in those counties magnitudes smaller. According to competitive LEC indicated any such use obviates the need for UNE DS1 and DS3 AT&T, fewer than one percent of the in in their filings in this proceeding or Loops. However, the fact that price cap UNE DS1 Loops it sells in rural census supported such an exemption. regulation continues in these counties blocks within Competitive Counties INCOMPAS and NWTA also pointed to does not demonstrate that either the serve residential addresses. We find that Virginia Global, but that citation suffers non-impairment or forbearance standard the small number of these UNEs used in from the same infirmities as the citation has been met. The Commission’s rural areas does not warrant such to Sonic. While INCOMPAS initially findings in the BDS Order about actual treatment, particularly because the BDS called for expanding the proposed and potential competition in these areas Order found these specific areas to be exemption to enterprise customers, it indicate that there is insufficient competitive for DS1 and DS3 channel was a party to the Compromise evidence to conclude that competition terminations. According to AT&T, fewer Proposal, which did not provide a DS1 in the enterprise market currently exists than one percent of the UNE DS1 Loops exemption for residential or enterprise or is likely to exist in the near future it sells in rural census blocks within customers in the Competitive Counties. without the use of UNEs, and the Competitive Counties serve residential Because of the negligible benefits and continued existence of price cap addresses. This is not surprising given significant costs, we decline to provide regulation does not undermine those that competitive LECs use UNE DS1 and a residential DS1 exemption. findings. Nor is there sufficient DS3 Loops almost exclusively to 46. Transition Period. In the NPRM, evidence in this proceeding to conclude provision service to enterprise we proposed a uniform transition period

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for UNE DS1 and DS3 Loops that would we adopt a 42-month grandfathering agreed to support this transition provide a 36-month transition period for period for UNE DS1 Loops for all timeframe suggests the burdens they existing UNE DS1 and DS3 Loops competitive LEC customers. We adopt a claim to incur as a result of continuing without a period for new orders. Based 36-month grandfathering period for to provide such UNEs during the on the record, we find that different UNE DS3 Loops for all competitive LEC transition are outweighed by the benefit transition plans for UNE DS1s and UNE customers, with no period included for of a compromised transition proposal. DS3 Loops are warranted. Instead, for new orders. The record demonstrates 51. In addition, during the relevant UNE DS1 Loop obligations, we adopt a that demand for UNE DS3 Loops is de transition periods for any competitive two-part transition of 24 months for new minimis, justifying a shorter LEC customer, any UNE DS1 and DS3 orders and 42 months for existing UNE grandfathering period and no transition Loops that a competitive LEC leases as DS1 Loops. For existing UNE DS3 period for new orders, as compared to of the effective date of this order shall Loops, consistent with our proposal in UNE DS1 Loops. be available for lease from the the NPRM, we adopt a single transition 49. We reject proposals for either a incumbent LEC at regulated UNE rates. period of 36 months with no additional longer transition period or a shorter Such rates are established either period for placing new orders. Carriers transition period and find the through negotiated interconnection may not convert existing special access Compromise Proposal to be reasonable. agreements or through state- circuits to UNEs after the effective date Indeed, Puerto Rico Telephone commission-arbitrated rates applying of this Order. Company, which was not a party to the certain Commission-developed pricing 47. Our decision to adopt modified INCOMPAS–USTelecom Compromise formulas. Our forbearance action is not and different transition timeframes for Proposal, supports the DS1 relief, intended to upset pre-existing these enterprise UNE loops is based on transition period, and associated interconnection agreements or other both record evidence and the conditions because as a whole, it contractual arrangements that may Compromise Proposal between and ‘‘strikes a reasonable balance that currently exist nor pre-existing state- among a majority of incumbent and modernizes regulatory requirements and commission-arbitrated rates during the competitive LEC stakeholders and promotes competition,’’ providing transition period (including any participants in this proceeding, each of additional evidence of its already-adopted state commission which individually would have reasonableness. We find that these scheduled changes in UNE rates), which preferred a shorter or longer transition transition periods will provide should quell concerns of those fearing period having different accompanying competitive LECs with sufficient time to near-term price increases for UNE DS1 conditions than what their compromise make alternative arrangements, and DS3 Loops resulting from this proposal suggests. The Commission has particularly given the availability of DS1 Order. Of course, the transition long found compromise proposals and DS3 BDS channel terminations as mechanism we adopt is simply a default negotiated by interested parties discussed above, without continuing to process, and competitive LECs and price representing different interests to be impose these burdensome and costly cap LECs remain free to negotiate reasonable and to serve the public requirements on incumbent LECs for different arrangements superseding this interest. We acknowledge, however, the longer than necessary. transition period and replacing UNE need to base our findings on an 50. The 42-month transition DS1 and DS3 Loop arrangements with independent rationale. We find the timeframe within which all UNE DS1 negotiated commercial arrangements at transition periods contained in the Loops (including any new UNE DS1 any earlier time. We find this approach Compromise Proposal to be reasonable Loops ordered during the first 24 will ensure an orderly transition for and in the public interest, based both on months) and the 36-month transition end-user customers of affected the record in this proceeding and timeframe within which all UNE DS3 competitive LECs by mitigating any because the proposal has been advanced Loops must be transitioned to immediate rate changes that could by most of the major buyers and sellers alternative arrangements will commence otherwise be experienced by these end of these UNEs. We therefore adopt the on the effective date of this order. These users if current rates for UNE DS1 and following transition timeframes for transition periods should provide more DS3 Loops were immediately eliminating the availability of UNE DS1 than enough time for competitive LECs eliminated. The transition timeframes and DS3 Loops. We also reject Verizon’s and their customers to transition to we adopt will also work to ensure that assertion that we should modify the alternative voice and broadband service consumers do not experience any undue ‘‘provision-then-dispute’’ process arrangements as evidenced by the service disruption as a result. adopted in the Triennial Review willingness of the major competitive 2. UNE DS0 Loops and Associated UNE Remand Order as we significantly LEC trade association and the majority Copper Subloops reduce the availability of UNEs in this of its members to support this Order only to areas where they remain timeframe. Competitive LECs that have 52. We proposed in the NPRM to find necessary, and there is no evidence in provided record information about the that competitive LECs are no longer the record to support changing the length of their customer contracts have impaired in urban census blocks process for obtaining UNEs in the typically referenced contract lengths of without unbundled access to DS0 loops. limited areas where they remain. a minimum of three years with business Based on the record in this proceeding, 48. First, we permit competitive LECs or government customers. To the extent as well as Commission data, we adopt to order new UNE DS1 Loops for 24 competitive LECs have entered into a modified version of this proposal and months after the effective date of this longer-term contracts with their find that unbundled access to DS0 loops order. This timeframe will enable customers without securing long-term and their associated copper subloops in competitive LECs to continue to execute contracts with their suppliers, they have urbanized areas (areas of 50,000 or more short-term business plans and honor done so at their own risk like any other people), the most densely populated contractual obligations with new or business does, and we see no reasonable areas of the country, is unwarranted existing customers, including small basis for accommodating that risk. because competitive LECs are no longer businesses, while they determine which Moreover, the fact that the major impaired without unbundled access to alternative voice service option will best incumbent LECs currently subject to these UNEs. The Census Bureau divides serve their customers’ needs. Second, these unbundling obligations have the country into approximately eleven

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million census blocks, the smallest unit impairment without unbundled access of December 31, 2019, that number had of geography for which the Census to DS0 loops. In doing so, it noted that nearly tripled, reaching 355.7 million. Bureau provides demographic data. fiber deployment for the mass market And according to the Centers for Disease Census blocks are classified as being was still in its infancy, wireless was not Control, most adults live wireless-only located in an urbanized area (where yet a suitable option for providing mass households, having increased from 45% populations are over 50,000) or an urban market broadband, and cable telephony to 61.3% between 2014 and 2019 and cluster (where populations range from had not developed sufficiently to be accounting for more than 80% of 2,500–50,000). Locations with fewer considered a substitute for traditional Americans between the ages of 25 and than 2,500 people are considered rural. wireline telephony. 34 and 73% of Americans between the As of the 2010 Census, 71.2% of 56. In the past 17 years, the ages of 35 and 44. Americans lived in urbanized areas, communications marketplace has 57. The change over 17 years has been 9.5% lived in urban clusters, and 19.3% dramatically changed. The most recent even more dramatic for broadband. In lived in rural areas. The record data at the time that the DS0 2003, the Commission defined advanced overwhelmingly supports this unbundling requirements were adopted services as transmission speeds of more conclusion. We decline to extend showed that wireline switched access than 200 kbps both upstream and unbundling relief in census blocks in was the leading form of downstream, and found just over 20 rural areas and urban clusters. telecommunications, and incumbent million mass market advanced service 53. Section 51.319(a)(1) of our rules LECs were the dominant providers of lines in use. The Commission now defines fixed broadband as speeds of at requires incumbent LECs to make wireline switched access. It followed available on an unbundled basis digital least 25/3 Mbps, and it was available to that unbundling requirements were copper loops and two-wire and four- approximately 96% of all Americans by focused on providing competitive LECs wire copper loops conditioned to the end of 2019. We exclude Barrier with the network elements, such as transmit digital signals (collectively, Communications Corporation’s local loops, to provide wireline DS0s or UNE DS0 Loops). We exclude deployment data from our analysis switched access in competition with from the purview of this term UNE because of inaccuracies and incumbent LECs. The data available in Analog Loops, which are addressed overstatements in that company’s Form early 2003 reported 187.5 million separately below. UNE DS0 Loops are 477 filings. While the Commission does wireline switched access lines, with used predominantly to serve residential not yet consider satellite broadband to incumbent LECs providing and small and medium businesses. UNE be a substitute for wireline broadband, Copper Subloops are the portions of the approximately 167.5 million of those the Commission found that ‘‘[i]f we copper DS0 loops that are used to lines, about 88% of the total. Cable include satellite service in our estimate, connect certain end-user premises with providers reported serving only 2% of the December 2018 data shows that local loops. all switched access lines (via coaxial fixed 25/3 Mbps service is deployed to 54. USTelecom, INCOMPAS, and cable) in the reported data available nearly every American.’’ Further, more most of their members participating in when the Commission adopted the than 87% of Americans had access to this proceeding agree that, subject to the Triennial Review Order. Other forms of fixed speeds of 250/25 Mbps by the end applicable transition period and wireline voice lines, including of 2019. Deployment of last-mile fiber associated conditions we adopt for UNE interconnected VoIP, were so negligible loops, which was not widespread in DS0 Loops in this Order, competitive that they were unreported. Over the last 2003, has expanded extensively. LECs are no longer impaired without 17 years, wireline switched access lost Between 2014 and 2019, residential access to UNE DS0 Loops in urbanized its role as the leading technology for subscription to a fiber based broadband areas. We agree with this assessment. telecommunications. The most recent service more than doubled, increasing We also find that continued unbundling data reported 38.4 million total wireline from 8.3 million to 16.7 million. And of those network elements in urbanized switched access lines, with incumbent mobile broadband, provided via LTE areas frustrates the goal of ensuring LECs providing 29.9 million of those technology, which did not even exist in deployment of advanced lines, less than one-fifth of the wireline 2004, is now available in geographic communications capability. switched access lines they provided in areas covering virtually all Americans. Independently, we conclude that 2003. In the interim, interconnected Approximately 96% of Americans now forbearance from the UNE DS0 Loop VoIP went from being irrelevant and have access to both 25/3 Mbps obligation is warranted in urbanized thus unreported until 2008, to the most terrestrial broadband and 5⁄1 Mbps areas, subject to the transition period recent data showing 69.5 million Mobile LTE broadband. and associated conditions we adopt. interconnected VoIP lines reported, 58. Continuing Marketplace Changes. Our findings of non-impairment and outnumbering wireline switched access Competition in the mass market forbearance from UNE DS0 Loops and lines from all providers. Wireline communications space is likely to UNE Copper Subloops requirements do switched access lines now account for continue to grow, as barriers to entry not apply to UNE DS0 Loops and just 8% of all retail voice subscriptions have rapidly fallen for broadband associated UNE Copper Subloops in less across all technologies, and those providers using fixed wireless densely populated urban clusters or provided by incumbent LECs are only technology in densely populated areas. rural areas where the record and about 39% of all wireline end-user Industry analysts and incumbent Commission data do not provide subscriptions (both switched access and wireline providers believe that 5G may sufficient evidence of entry by facilities- interconnected VoIP). Overall, allow wireless providers to capture a based competitors, intermodal or incumbent LECs serve over fixed lines significant share of the residential otherwise, without the use of UNE DS0 only 9% of all voice subscriptions broadband marketplace. T-Mobile Loops. across all technologies. At the same time committed, as a condition of its merger 55. Background. The current wireline switched access line counts with Sprint, to roll out an in-home unbundling requirements for DS0 loops were decreasing, wireless voice broadband service in millions of and copper subloops were adopted more subscribership was increasing. households, with a goal of serving the than 17 years ago. At that time, the December 2002 data reported 136.2 majority of zip codes by 2024. These 5G Commission found nationwide million mobile wireless subscribers. As plans, and those of the other two

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national wireless providers, are most incumbent LECs have deployed serve new customers in order to obtain advanced in dense urbanized areas broadband meeting this speed threshold the necessary scale and revenue to fund where the deployment business case is in 73% of these areas. Incumbent LEC such fiber-to-the-home builds, we no most compelling. Other providers, affiliation is determined at the holding longer find these claims compelling. including Starry, are also deploying company level and for all census block These competitive LECs are not ‘‘new fixed wireless technologies to serve which the incumbent LEC’s study area entrants’’ in these urbanized areas any urban areas in different frequency overlaps the census block. We exclude longer, and network expansion like that bands. And wireless as an intermodal a provider’s deployment if the provider for other types of technology providers alternative to wireline voice and is not an incumbent LEC and whose last should no longer be based on broadband service is only going to mile connection is based upon a copper unnecessary unbundled DS0 loops. increase further as 5G deployment technology (i.e., FCC Form 477 These and other technologies, rather progresses, further pushing DS0 loops Technology Codes 10, 11, 12, 20 and than copper loops, are reasonably into obsolescence. Cable providers have 30). In addition, 84% of households in efficient methods of entry into expanded their broadband networks urbanized areas live in census blocks urbanized areas today. beyond their current footprints to ready served by at least two 25/3 Mbps 62. Our conclusions about actual and themselves for competition from providers without the use of UNEs, and potential competition are supported by forthcoming 5G services. 90% of households live in census blocks our ‘‘at a minimum’’ authority under 59. Impairment Analysis. We find served by at least two 10/1 Mbps section 251(d)(2). We are not only sufficient evidence of facilities-based providers without the use of UNEs. For permitted to look to the impact of competition and competitive entry in purposes of this analysis, we exclude unbundling requirements on broadband urbanized area census blocks without deployment of non-incumbent LECs that deployment as ‘‘rationally related to the reliance on UNE DS0 Loops and UNE report broadband based upon copper goals of the Act,’’ but are required to Copper Subloops to determine that facilities on the assumption that these take this important policy goal into competitive LECs in those locations are firms are likely using UNEs. Finally, account. We reject the Electronic no longer impaired without access to because urbanized area census blocks Frontier Foundation’s argument that we those UNEs, and that policy are relatively small, to the extent that a should reconsider our decisions in the considerations weigh against facilities-based provider already serves 2000s to end the unbundling of fiber-to- maintaining these requirements. one customer in a given census block, the-home loops. As the Commission has Because UNE Copper Subloops are used economies of scale are more likely to consistently found, unbundling fiber- to connect DS0 loops to end-user accrue to serve additional customers in based loops could reduce the incentives premises, our conclusions about UNE that census block, as the Commission for both incumbent and competitive DS0 Loops apply equally to UNE long ago noted. There are, on average, LECs to invest in next-generation Copper Subloops. Because of the many 0.057 square miles in a rural census networks, and there is no evidence to competitive alternatives available to block, 0.017 square miles in an urban suggest that unbundling’s effect on customers in urbanized areas, we find cluster census block, and 0.028 square incentives to invest would be any that elimination of these unbundling miles in an urbanized area census block. different in low-income urban markets. requirements will not impact the In doing so, we find that continued provision of 9–1–1 service. Our 61. Moreover, it is our predictive unbundling of DS0 loops would inhibit, conclusion is based on three related judgment, supported by the record, that rather than promote, broadband findings. First, robust intermodal reasonably efficient competitors seeking deployment and the transition to next- competition, particularly from cable to enter the fixed voice and broadband generation networks and services in providers, now exists in urbanized marketplace in urbanized areas for urbanized areas, because continued areas, meaning that in these areas, ‘‘the residential and small business unbundling at regulated rates could costs cognizable under the Act of customers are likely to use a variety of artificially slow the transition away unbundling that UNE outweigh the technologies, including fixed wireless, from legacy services and reduce benefits of unbundling, even if some rather than relying upon the existing incentives to invest in more advanced level of impairment might be present.’’ copper-based local loop network or technologies, such as fixed wireless and Second, reasonably efficient competitors building a similar network. That is, the fiber-based networks. seeking to provide broadband and voice use of DS0 loops to enter the broadband 63. While we proposed in the NPRM services in urbanized areas would use and voice marketplace in urbanized a finding of no impairment in urban fixed wireless or other technologies, and areas is no longer a reasonably efficient census blocks, which would include not copper-based DS0 loops. Third, in technology. Indeed, the three national both urbanized areas (areas of 50,000 or light of this actual intermodal mobile wireless carriers continue to more people) and urban clusters (areas competition and potential competition invest in 5G-based fixed wireless with at least 2,500 but less than 50,000 from entering providers, continuing to service, which will provide additional people), based on the record and our require incumbent LECs to offer UNE fixed-service choices for voice and own data, we conclude that we should DS0 Loops reduces incentives to invest broadband services, particularly in limit that finding only to urbanized area and slows the transition to next- dense urbanized areas where 5G is being census blocks. The data show that there generation networks, in contravention of first deployed and where small cell are fewer competitor options in census statutory goals we consider under technology is most efficiently used. And blocks categorized as urban clusters and section 251(d)(2) of the Act. other fixed wireless providers are rural areas than in urbanized area 60. Intermodal competition in the similarly deploying innovative census blocks. For example, as of form of cable competition alone is solutions. The record also indicates that December 31, 2019, approximately 84% enough to establish the existence of a range of providers are deploying fiber- of households in urbanized areas lived sufficient competition even in the to-the-home networks, including but not in census blocks with two or more absence of UNEs. Nearly all households limited to incumbent and competitive providers of 25/3 Mbps broadband, in urbanized areas (98%) live in census LECs. To the extent competitive LECs compared to 59% of households in blocks served by cable broadband with claim they remain dependent upon UNE urban clusters and 42% in rural areas. speeds of at least 25/3 Mbps, and DS0 Loops in these urbanized areas to Incumbent LEC affiliation is determined

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at the holding company level and for all offering the same services currently Loops currently exist in certain areas or census block which the incumbent provisioned over UNE DS0 Loops in are starting to emerge. For example, LEC’s study area overlaps the census urbanized areas will have access to according to CenturyLink, at least three block. We exclude a provider’s commercial alternatives, subject to the large cable providers launched products deployment if the provider is not an existence of ‘‘suitable facilities’’ after intended to serve as alternatives to UNE incumbent LEC and whose last mile the transition. And because the Analog Loops shortly after the connection is based upon a copper marketplace for mass market last-mile Commission adopted the UNE Analog technology (i.e., FCC Form 477 loops is competitive, as discussed Loops and Avoided-Cost Resale Technology Codes 10, 11, 12, 20 and above, the marketplace will discipline Forbearance Order. And CenturyLink 30). We therefore reject arguments that the prices of those services. itself offers a UNE DS0 Loop wholesale we should extend relief to urban 65. Section 10(a)(1). We conclude that alternative in areas in which it was clusters. By limiting DS0 loop enforcement of UNE DS0 Loop previously granted forbearance. unbundling relief to urbanized areas, we obligations in urbanized area census Moreover, incumbent LECs have also obviate the concerns of commenters blocks is not necessary to ensure just committed to making wholesale that consumers in less densely and reasonable rates. Intermodal alternatives commercially available populated areas, particularly urban competition in urbanized areas has ‘‘where suitable facilities exist’’ ‘‘in any clusters, may lose their only source of increased dramatically since the area in which unbundled DS0 loops are competition or lose access to high-speed Commission adopted the current DS0 no longer available,’’ which competitive broadband altogether. Commission staff loop unbundling obligations, and mass LECs can use to provide service. analysis of FCC Form 477 deployment market customers in urbanized areas 67. Section 10(a)(3). Finally, we find data as of December 31, 2019 and of now have numerous voice and that forbearing from the UNE DS0 Loop study area maps indicates that broadband options available to them. obligation in urbanized area census approximately 42,000 households have The competitive pressures posed by blocks is in the public interest as it a single provider option for 25/3 Mbps those intermodal competitors will serve promotes the policy of facilitating the that may rely on UNE DS0 Loops, based to constrain incumbent LEC rates for deployment of next-generation networks on the number of households who live commercial replacement offerings to and services and encouraging the in census blocks where a single provider UNE DS0 Loops. Both actual and transition away from legacy facilities. reports 25/3 Mbps deployment for potential competition force incumbent As we noted in the UNE Analog Loops residential customers over a copper wire LECs to compete on price in order to and Avoided-Cost Resale Forbearance loop. The identification of the provider retain, and grow, their existing customer Order, end users transitioning from as a CLEC is based upon the provider’s bases. Competition overall constrains TDM to new technologies and services holding company name and incumbent incumbent LEC rates to end users. And ‘‘will experience the benefits the LEC study area maps that indicate that incumbent LECs have an incentive to Commission has recognized as flowing the provider is not the incumbent LEC. make wholesale inputs available at from that transition,’’ including ‘‘not About 35,000 of these households live reasonable rates so that they will only the benefits from the technologies in rural areas and urban clusters where continue to earn revenues from themselves but also from the vibrant UNE DS0 Loops will remain available. competitive LECs rather than losing competition associated with next- We believe that the approximately 7,000 those revenues to intermodal generation [] services.’’ Indeed, competitors. The record supports extensive intermodal competition has households who live in urbanized areas forbearing from this unbundling already developed in these areas. (just 0.008% of the 88 million obligation, as enforcement of the Retaining UNE DS0 Loop obligations in households in urbanized areas) with obligation is not necessary to ensure just this competitive environment in only one provider of 25/3 Mbps will not and reasonable rates in this competitive urbanized area census blocks could be negatively affected by our action environment. actually harm the facilities-based today for two reasons. First, as 66. Section 10(a)(2). We find that the competitive options that are currently discussed below, we provide a two-part evolving marketplace and the statutory available and developing, because the transition period for UNE DS0 Loops in and regulatory safeguards that work to use of UNEs at cost-based rates may urbanized areas, including a 2-year ensure just and reasonable rates also allow providers using legacy period for new orders and a 4-year ensure that consumers will not be technologies to undercut new entrants period for existing orders. Second, we harmed by forbearance from using fixed wireless and other advanced believe that these areas may be among enforcement of the UNE DS0 Loop technologies, as well as reducing the ripest for entry by competitive obligation. Most importantly, consumers competitive LECs’ incentives to invest providers, including fixed wireless in urbanized areas now have a in advanced technologies. And providers, based on their relative multitude of intermodal competitors, continued reliance on legacy services by density and now that UNE DS0 loops with others attempting to enter, vying end users reduces the incentive of will no longer be available in these areas for their voice and broadband business. incumbent and competitive LECs alike after the transition. The fact that these competitors use more to deploy advanced networks and 64. Forbearance Analysis. The facts modern technologies than copper-based services. We therefore find retaining this supporting our finding of non- local loops supports our decision in this requirement in urbanized areas would impairment equally support an document. As we found in the UNE have an adverse effect on the public independent finding that forbearance Analog Loops and Avoided-Cost Resale interest. The Commission has from our UNE DS0 Loop and UNE Forbearance Order, ‘‘regulations that previously expressed its preference for Copper Subloop requirements in subsidize end-user customers to remain facilities-based competition. urbanized area census blocks is on legacy services and technologies run 68. Geographic Area. Certain appropriate. As with UNE DS1 and DS3 counter to the Commission’s goal of commenters urge us to find that Loops, we find that forbearance is facilitating technology transitions to the competitive LECs are not impaired appropriate based on our analysis of the long-term benefit of all consumers.’’ We without access to all UNE DS0 Loops or specific circumstances at issue. also note that there is evidence that that we should forbear from this Competitive LECs wanting to continue wholesale alternatives to UNE DS0 obligation on a nationwide basis. We

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disagree. Two of these commenters decision. The same extensive believe it is increasingly likely to be (USTelecom and AT&T) subsequently investment in the legacy cable video fixed wireless technology, whether entered into a joint compromise network that enabled cable companies provided by 5G or other means. We proposal that appears to limit their to provide competitive voice and therefore ‘‘explicitly reject arguments request for relief to urbanized areas broadband service in competition with that support unbundling based on the subject to certain conditions. While incumbent LECs and served as the costs associated with a particular broadband deployment and competitive underpinning of the Commission’s architecture or approach—even an entry may be increasing in urban decision to refrain from unbundling architecture or approach employed by clusters and rural areas, competitive hybrid loop broadband capabilities the incumbent LEC—where entry using broadband availability in these areas applies equally to our decision today for a more efficient available technology continues to lag behind densely UNE DS0 Loops. If the Commission was would permit economic entry.’’ populated urbanized areas, and the permitted to rely on cable deployment 73. ‘‘Natural Forbearance.’’ Certain costs of deployment are inherently to support a decision not to unbundle commenters assert that the higher as density falls. the broadband capabilities of hybrid Commission’s copper retirement rules 69. Alternatively, other commenters loops, we may rely on it to support our provide incumbent LECs an avenue for urge us to make our findings of no decision to eliminate unbundling for ‘‘natural forbearance’’ and thus assert impairment or forbearance on a county DS0 loops here. Moreover, we can that we should not provide UNE DS0 basis rather than on a census block consider the effects of intermodal Loop relief through deregulatory means. basis, as proposed in the NPRM, for competition in our decision to weigh Because section 251(c)(3)’s requirements purposes of administrative efficiency. other factors when considering whether do not apply to fiber facilities (other Still others request that we implement to order unbundling, particularly the than dark fiber transport), see 47 CFR our findings on a wire center basis, to incentives for broadband deployment, 51.319, an incumbent LEC may obtain provide incumbent LECs with flexibility based on our section 251(d)(2) authority. unbundling relief by deploying fiber or in implementation. We disagree that a 71. Form 477 Data. Some commenters other next-generation networks and then geographic basis other than census assert that we should not rely on Form retiring its copper facilities pursuant to blocks is the best geographic area to rely 477 data to support competition our network change disclosure rules. upon. The Commission’s Form 477 data findings because of flaws in that data. Incumbent LECs retire their copper is reported on a census block level, thus We disagree. Our UNE DS0 Loop relief facilities through a notice-only process, making that geographic boundary the in this Order is limited to urbanized without the need to seek our most appropriate for measuring the areas. The census blocks in those areas authorization. The continued extent of competitive facilities-based are generally extremely small, meaning unbundling obligation, commenters deployment by technology and the even in the unlikely event a provider is assert, thus acts as an incentive for availability of competitive broadband serving only one or a few locations in incumbent LECs to deploy fiber. We are alternatives for households. While these census blocks, we can infer that unpersuaded. First, unbundling imposes incumbent LECs provision UNEs at the the other locations in the census block significant economic costs not wire center level, and some wire centers are extremely likely to be served in the recognized by this argument. Second, serve both urbanized areas and urban near future. Indeed, based on the most unbundling requirements lack sufficient cluster and rural census blocks, to the recent Form 477 data, cable’s footprint countervailing benefits in densely extent an incumbent LEC does not wish increased by over 645,000 households, populated urbanized areas, given the to take measures to distinguish between or 1.8 million people, from December degree of competition and potential the different types of census blocks, we 2018 to December 2019. Our assumption entry that already exists in those areas find that it is better to err on the side of such a deployment strategy, separate from the incumbent LEC’s of overinclusiveness for UNE DS0 considering the high fixed costs of decision whether or not to retire copper Loops, to avoid eliminating such UNE broadband deployment, is a ‘‘reasonable in that area. Given the existence of access for customers located in rural inference[] regarding the prospects for competition in urbanized areas that areas and urban clusters. Indeed, the competition in one geographic market does not rely on access to UNE DS0 Commission erred on the side of from the state of competition in other, Loops, we find that this one-sided overinclusiveness when defining Tier 3 similar markets,’’ as we are required to regulation giving certain competitive Wire Centers for the purpose of where make per the United States Telecom LECs an economic advantage where to unbundle transport. Ass’n v. FCC, 359 F.3d 554 (D.C. Cir. others have entered the market without 70. Cable Deployment. Certain 2004) decision (USTA II decision). such an advantage is unwarranted, and commenters assert that reliance on cable 72. 5G and Other Nascent incumbent LECs should no longer have deployment as evidence of non- Technologies. Certain commenters to bear this lopsided burden. impairment is inappropriate due to assert that we should not rely on 74. Single Competitor Not Enough to cable provider first-mover advantages, potential 5G deployment to support Find Non-Impairment. Certain because they already had extensive findings of potential competition commenters also oppose the proposed facilities deployed for providing video sufficient to find non-impairment. finding of non-impairment in the NPRM service and had an established customer Again, as we explain above, DS0 loops because, they assert, a single competitor base. We disagree. For one, our are no longer a reasonably efficient is not sufficient to show that impairment and forbearance analyses technology to provide voice or competitive providers are not impaired require us to consider competition from broadband services in urbanized areas. without unbundled access to the all sources. When affirming the We must look not only to existing particular network element. However, Commission’s decision not to require competition in making an impairment we find evidence of existing and the unbundling of the broadband finding, but to all sources of potential potential intermodal competition in capabilities of hybrid loops, the D.C. competition as well. And the urbanized areas. Nor is this argument Circuit held that ‘‘robust intermodal impairment inquiry specifically consistent with the D.C. Circuit’s competition from cable providers’’ was ‘‘presume[s] that a requesting carrier holding in the USTA II decision that the sufficient evidence of competition, in will use reasonably efficient presence of intermodal competition itself, to justify the Commission’s technology.’’ As we have indicated, we from cable providers alone was

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sufficient to support eliminating competitive LECs in these urbanized disruption or rate changes that could unbundling obligations for hybrid loops. areas to transition away from depending otherwise be experienced by these end In any event, competitive providers will on UNE DS0 Loops without stranding users if current rates for these UNE DS0 still have access to UNE DS0 Loops in any investments they may have made Loops were immediately eliminated. census blocks in rural and urban cluster while not burdening incumbent LECs 3. UNE Narrowband Voice-Grade Loops areas after the relief we grant in this with the costs of unbundling longer order becomes effective, thus largely than necessary. We note that Puerto 78. In the NPRM, we proposed to obviating the concerns of these Rico Telephone Company, which was eliminate all remaining narrowband commenters. not a party to the INCOMPAS– voice-grade loop unbundling 75. Transition Period. While the USTelecom Compromise Proposal, obligations. We find that competitors NPRM proposed a three-year transition supports the UNE DS0 relief, transition are no longer impaired without access to period and sought comment on a six- period, and associated conditions as a these elements, nationwide. Moreover, month period for new orders, numerous ‘‘reasonable balance.’’ we find that continued unbundling of these network elements is no longer stakeholders have negotiated and 77. During the relevant transition justified because it contravenes the proposed an alternative transition period for any competitive LEC Congressionally-mandated policy goal timeframe that we find to be reasonable customer, any UNE DS0 Loops that a of ensuring the deployment of next- based on the record in this proceeding competitive LEC leases as of the and which we adopt instead. We generation networks and services. We effective date of this Order shall be also adopt our proposal and condition our relief from UNE DS0 Loop available for lease from the incumbent and associated UNE Copper Subloop independently find that forbearance LEC at regulated UNE rates. Such rates obligations on a two-part transition, from the remaining UNE Narrowband are established either through consistent with the Compromise Voice-Grade Loop obligations negotiated interconnection agreements Proposal. First, we permit competitive nationwide is warranted. or through state-commission-arbitrated LECs to order new UNE DS0 Loops for 79. Background. Under our current rates applying certain Commission- an additional 24 months after the rules, incumbent LECs must provide developed pricing formulas. Our effective date of this order. This three specific types of unbundled forbearance action is not intended to timeframe will enable competitive LECs narrowband voice-grade loops: UNE upset pre-existing interconnection to continue to execute short-term Analog Loops, 64 kbps voice-grade agreements or other contractual business plans, honor contractual channels over last-mile fiber loops when obligations with new or existing arrangements that may currently exist an incumbent LEC retires copper (UNE customers, including small businesses, nor pre-existing state-commission- 64 kbps Voice-Grade Channel Over and replace UNE DS0 Loops lost arbitrated rates during the transition Fiber Loops), and the TDM capabilities through end-user customer moves or period (including any already-adopted of hybrid loops (UNE Hybrid Loops) loop degradation, while they determine state commission scheduled changes in (collectively, UNE Narrowband Voice- which alternative voice service option UNE rates), which should quell Grade Loops). will best serve their customers’ needs. concerns of those fearing near-term 80. UNE Analog Loops are one type of Second, we adopt a 48-month price increases for UNE DS0 Loops copper loop that incumbent LECs must grandfathering period for all resulting from this Order. However, make available to competitors under the competitive LEC customers. The 48- beginning with month 37 of the Commission’s rules implementing month transition timeframe within grandfathering period, incumbent LECs section 251(c)(3). Notably, UNE Analog which all UNE DS0 Loops (including may raise their prices by up to 25%. Loops are capable of providing only any new UNE DS0 Loops ordered Delaying any price increase for the first legacy TDM voice service, often referred during the first 24 months) must be three years of the transition period to as plain old telephone service, or transitioned to alternative arrangements should obviate concerns about ‘‘POTS.’’ UNE Analog Loops, by will commence on the effective date of economic pressure accompanying any definition, are not capable of providing this order. Industry organizations and such increase. However, allowing a or supporting digital communications, their members, accounting for the lion’s price increase during the final year of including modern IP-based services or share of buyers and sellers of these the transition will further incentivize even digital subscriber line (DSL) UNEs, agree that this 48-month period competitive LECs to transition their service. In the recent USTelecom is reasonable and should provide more customers off of legacy networks. And forbearance proceeding, we granted than enough time for competitive LECs incumbent LECs will be entitled to forbearance relief from unbundling and their customers to transition to charge market rates after month 48, requirements for UNE Analog Loops to alternative service arrangements. when the grandfathering period will price cap incumbent LECs in their Competitive LECs typically have expire. And incumbent LECs have service areas. We granted this relief due contract lengths of a minimum of three committed to providing commercial to extensive intermodal competition years with business or government alternatives for DS0s at the end of the present in the voice marketplace, the customers. To the extent competitive transition period where the facilities harmful marketplace distortions LECs have entered into longer-term exist to do so. Of course, the transition generated by outdated regulations, and contracts with their customers without mechanism we adopt is simply a default because the continued existence of UNE securing long-term contracts with their process, and competitive and incumbent Analog Loops reduced incentives for suppliers, they have done so at their LECs remain free to negotiate different both incumbent and competitive LECs own risk like any other business does, arrangements superseding this to invest in their own facilities and to and we see no reasonable basis for transition period and replacing UNE transition to next-generation networks. accommodating that risk. DS0 Loop arrangements with negotiated 81. UNE Hybrid Loops are another 76. We reject proposals calling for commercial arrangements at any earlier type of loop that incumbent LECs must either a longer transition period or a time. We find this approach will ensure make available to competitors under the shorter transition period. We find this an orderly transition for end-user Commission’s rules implementing four-year period to be a reasonable time customers of affected competitive LECs section 251(c)(3). Hybrid loops are local frame that is sufficient to enable by mitigating any immediate service loops ‘‘composed of both fiber optic

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cable, usually in the feeder plant, and found that this unbundling requirement incumbent LEC’s legacy network. We copper wire or cable, usually in the could impede copper loop retirements find there is no longer any credible basis distribution plant.’’ Our rules currently and the ongoing transition from copper to claim competitors are impaired require that incumbent LECs unbundle to fiber and from legacy TDM-based without access to these UNE Analog either (1) a TDM voice-grade capable 64 services to next-generation networks Loops. First, voice-grade copper loops kbps channel or (2) a spare copper loop and services. While the Commission are no longer a reasonably efficient if the requesting carrier seeks to provide found that this UNE had a ‘‘decreasingly technology to enter the voice narrowband services, and only the TDM relevant purpose’’ as a safeguard to marketplace, in light of facilities-based features, functions, and capabilities of protect narrowband voice competition and over-the-top alternatives to provide hybrid loops if the requesting carrier during the copper-to-fiber transition, it voice service. A reasonable entrant seeks to provision broadband services. nevertheless retained the 64 kbps voice- would use any of a number of newer UNE Hybrid Loops are used to provide grade channel unbundling obligation for technologies and services capable of the ‘‘exact same legacy TDM-based existing users. providing advanced voice and services that could be provided with 83. UNE Narrowband Voice-Grade broadband services, including wireless UNE Analog Loops.’’ The only Loops, be they UNE Analog Loops, UNE technologies. And a number of over-the- difference is that UNE Hybrid Loops Hybrid Loops, or UNE 64 kbps Voice- top voice capabilities are available that ‘‘provide those services partially over Grade Channel Over Fiber Loops, are could also be used to enter the voice fiber facilities, rather than over copper- used, if at all, almost exclusively for the market today without constructing only facilities.’’ In the Triennial Review provision of switched access voice- network facilities, instead relying on the Order, the Commission declined to grade service, which we have found broadband capabilities of other order unbundling of the packet-based customers are migrating away from in providers’ networks. capabilities of hybrid loops, because favor of IP- and wireless-based voice 86. Second, intermodal competition unbundling ‘‘these next-generation services provided by multiple for voice services is so advanced that network elements would blunt the intermodal providers. Our conclusions competitive providers, including cable deployment of advanced in the UNE Analog Loop and Avoided- providers, wireless providers, and other telecommunications infrastructure by Cost Resale Forbearance Order were VoIP providers, have come to dominate incumbent LECs and the incentive for based on Form 477 data, which is the voice service marketplace. The level competitive LECs to invest in their own collected on a nationwide basis. Indeed, of competition, much of which evolved facilities, in direct opposition to the in 2019, incumbent LEC legacy without UNEs, is such that the cost of express statutory goals authorized in networks provided only about 8% of unbundling can no longer be justified. section 706.’’ retail voice subscriptions across all As the Commission noted in 2004, technologies, serve a minority of both impairment can only be found for low- 82. The UNE 64 kbps Voice-Grade wired residential connections and wired capacity loops ‘‘if no alternatives Channel Over Fiber Loops obligation business connections, and face growing outside the incumbent’s network are was created when the Commission competition from voice service available.’’ eliminated unbundled access to fiber- alternatives including facilities-based 87. Finally, the declining share of based local loops because, among other fixed voice providers such as cable incumbent LEC switched-access voice reasons, requiring unbundling of fiber- companies providing VoIP, mobile subscriptions in recent years and the based local loops would ‘‘undermine wireless facilities-based providers and prevalent deployment of facilities-based important goals of the 1996 Act,’’ resellers, and VoIP providers offering alternatives indicates that incumbent particularly the section 706 goal to over-the-top services via broadband. LECs no longer have a unique position encourage the deployment of advanced 84. Impairment Analysis. Consistent in the voice service market. We further telecommunications capability to all with our NPRM proposal to eliminate find that continued unbundling of these Americans. The Commission found, these obligations, we find that network elements that serve only to however, that where an incumbent LEC competitors are not impaired without preserve outdated legacy voice services has retired its copper facilities, lack of access to UNE Narrowband Voice-Grade slows the transition to next-generation access to an incumbent LEC fiber loop Loops due to the widespread networks and services in contravention would impair a competitive carrier in its availability of intermodal competition, of our significant policy objectives in provision of narrowband voice services the declining number of incumbent LEC promoting the deployment of advanced it had been providing over the voice subscriptions, the lack of demand telecommunications capabilities. Our unbundled copper loop. In essence, this for these UNEs, and the migration away decision to eliminate UNE Narrowband ‘‘very limited’’ requirement was from legacy TDM services. Section Voice-Grade Loop obligations furthers intended to prevent incumbents from 251(d)(2) mandates that the Commission the Commission’s ultimate goal of exercising their ‘‘sole control’’ over the consider ‘‘at a minimum’’ whether fostering the deployment of next- disposition of copper loops (by retiring access to proprietary network elements generation networks and services and the copper loop and replacing it with a is necessary and a competitor would be consumers’ migration to next-generation fiber-based local loop) to disrupt impaired without access to such services. competitors’ provision of narrowband network elements. We find that 88. UNE Hybrid Loops. Nationwide services. By 2015, the Commission continued unbundling of these network elimination of UNE Hybrid Loop recognized that this requirement itself elements contravenes the obligations is also appropriate because could undermine incentives for congressionally mandated policy goal of reasonably efficient competitors are not broadband deployment and granted ensuring the deployment of next- impaired without access to these forbearance on a forward-looking basis generation networks and services. UNEs—i.e., no reasonably efficient to incumbent LECs from the 85. UNE Analog Loops. We find that competitor would seek to enter today’s requirement to make available a 64 kbps competitors are not impaired without voice-service market by using a loop voice-grade channel over overbuilt fiber access to UNE Analog Loops solely capable of providing TDM loops. This 64 kbps unbundling nationwide. Today, there are a service. The ‘‘widespread deployment of requirement remains in the Code of multitude of competitive alternatives for facilities-based alternatives’’ to the Federal Regulations. The Commission voice services that do not rely on an TDM-based services provided over UNE

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Hybrid Loops and the fact that competitive voice alternatives that competition and pricing conditions intermodal competition for voice warrant a finding of non-impairment. In better or worse in the residential voice services is so advanced indicates there sum, the impact of eliminating these market before it de-lists additional DS0 is no basis for competitors to claim they grandfathered UNEs is negligible given UNEs based on a claimed competitive are impaired without access to TDM- the lack of demand for this residential voice service market,’’ but based services, particularly those grandfathered UNE and the migration does not specifically challenge provided over UNE Hybrid Loops. from legacy TDM voice service to newer extending unbundling relief to the Further, competitive LECs no longer technologies and services. A reasonably remaining UNE Analog Loops. We face significant barriers to entering the efficient competitor would not look to previously forbore from UNE Analog voice market without access to the UNE 64 kbps Voice-Grade Channel Over Loop requirements for price cap TDM-based services provided over UNE Fiber Loops as a reasonably efficient incumbent LECs in light of the Hybrid Loops owned by incumbent technology for entering the voice ‘‘overwhelming evidence demonstrating LECs. Competitors have come to services marketplace today. Competitors the increasing migration from legacy dominate the voice service marketplace are therefore not impaired without TDM voice service to IP-based and using technologies that do not include access to the remaining grandfathered wireless voice communications TDM-based voice. The declining UNE 64 kbps Voice-Grade Channel Over capabilities provided by multiple amount of incumbent LEC voice Fiber Loops. And eliminating these intermodal providers.’’ UNE Analog subscriptions and the de minimis remaining channels that perpetuate Loops in non-price cap areas are used to demand for the TDM-based services outdated technology will further reduce provide the exact same outdated TDM- provided over UNE Hybrid Loops potential delays to the TDM-to-IP based services as UNE Analog Loops in demonstrates that access to these UNEs transition, facilitating the goals of the price cap areas. Moreover, UNE DS0 are not necessary for a reasonably Act. Loops, which can also be used to efficient competitor to enter today’s 90. Forbearance—Analog Loops. provide voice service, will still be voice-service marketplace. For these Section 10(a)(1). As a separate and available in rural and urban cluster reasons, no reasonably efficient independent ground for eliminating census blocks, which account for competitor would seek to enter today’s UNE Narrowband Voice-Grade Loops approximately 85% of the population voice service market by using a loop requirements nationwide, we conclude residing in census blocks overlapping solely capable of providing TDM that the remaining UNE Analog Loop non-price cap study areas. We find that service, just as we find with respect to obligations are unnecessary to ensure it is in the incumbent LECs’ interest to UNE Analog Loops. Rather, such an that the charges for voice services are continue to serve wholesale customers. entrant using its own facilities would just and reasonable for the same reasons In fact, incumbent LECs have committed provide any of a number of newer set forth in the UNE Analog Loop and to offer commercial replacements in technologies and services capable of Avoided-Cost Resale Forbearance Order. areas where UNE DS0 Loops will no providing both voice and broadband No party has advanced a theory under longer be available. UNE DS0 Loops are services, or provide over-the-top service which incumbent LECs could engage in provided over the very same facilities as relying on other providers’ broadband unreasonable practices and UNE Analog Loops, only without the networks. Moreover, eliminating access classifications regarding the remaining TDM equipment placed on the loops by to the TDM capabilities of UNE Hybrid UNE Analog and UNE Hybrid Loops the incumbent LEC to limit the loop to Loops will reduce potential delays to without also being able to charge unjust voice-grade service. We therefore find the TDM-to-IP transition and will and unreasonable rates. As there is no that forbearance from the remaining promote broadband deployment that record evidence to the contrary, we find UNE Analog Loop requirements in non- will benefit American consumers and that that the circumstances in non-price price cap areas will not result in unjust businesses, supporting important goals cap areas are indistinguishable from or unreasonable voice service rates. of the Act. those in price cap areas with respect to 91. Section 10(a)(2). We also find that 89. Grandfathered UNE 64 kbps these UNEs that can only be used to enforcement of the remaining UNE Voice-Grade Channel Over Fiber Loops. provision voice-grade service. Further, Analog Loop obligations is unnecessary We also eliminate the remaining competitors have not specifically for the protection of consumers for the previously grandfathered UNE 64 kbps indicated that they are purchasing or reasons discussed above and in the UNE Voice-Grade Channel Over Fiber Loops relying upon these UNEs to provide Analog Loop and Avoided-Cost Resale obligation as reasonably efficient voice services in non-price cap areas Forbearance Order. Specifically, we carriers are not impaired without where other voice alternatives do not find that forbearance will not result in continuing access to these grandfathered exist. Because of lack of record evidence unjust or unreasonable rates for arrangements. The de minimis use of the of use of UNE Narrowband Voice-Grade consumers, nor will consumers risk grandfathered UNE 64 kbps Voice-Grade Loops, we also reject the argument that losing service given that competitive Channel Over Fiber Loops demonstrates we should expand the rural exemption LECs continue to have other means by that continued access to these UNEs is to include these loops. In fact, very few which to offer consumers voice service. not necessary for a reasonably efficient of these UNEs still exist in non-price While a handful of commenters express competitor to enter today’s voice-service cap areas. Price-cap incumbent LECs concern about increased costs leading to marketplace. As with the remaining account for over 99% of UNE loops increased prices for consumers, the UNE Analog Loops and UNE Hybrid provisioned to competitors. The record ‘‘explosion of competition [in the voice Loops, no competitive LECs or other shows virtually uniform support for service market] amply protects party in the record has specifically eliminating the requirements for voice- consumers far better than narrow, indicated that any provider is relying grade loops due to the changing voice- technology-specific Commission upon these grandfathered UNEs to services marketplace and lack of dictates ever could.’’ Moreover, the provide voice services today. And even demonstrated need for these majority of non-price cap incumbent where some competitive LECs may requirements. TPx contends that ‘‘[t]he LECs are rural LECs, most of which continue to do so, this use does not Commission should evaluate whether qualify for the rural exemption from all overcome the compelling evidence of the loss of analog voice loops makes section 251(c) requirements, including

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UNE Analog Loops. They therefore the remaining UNE Analog Loop nationwide basis for all incumbent LECs already have no obligation to offer their requirements as ‘‘it is no longer in 2015 but grandfathered the obligation telecommunications services to necessary to require . . . once-upon-a- as to existing UNE 64 kbps Voice-Grade competitive LECs at UNE prices while time market-opening obligations that Channels Over Fiber Loops. The record the rural exemption remains in place. today amount to disparate regulatory indicates that there are only a small Further, UNE DS0 Loops will remain burdens that frustrate the transition to number of grandfathered UNE 64 kbps available in urban clusters and rural advanced communications services Voice-Grade Channel Over Fiber Loops areas after forbearance, and incumbent offered over next-generation networks.’’ that are still being used. Indeed, no LECs have committed to provide 93. UNE Hybrid Loops. We also commenter argues this obligation commercial alternatives to UNE DS0 forbear, on a nationwide basis, from our should be preserved. To the extent Loops after they are eliminated in regulations requiring access to UNE competitors still rely on the urbanized areas. Those UNEs not only Hybrid Loops. The fact that UNE Hybrid grandfathered 64 kbps voice-grade afford the same voice capabilities as Loops are ‘‘used to provide the exact channel over fiber loops, the three-part UNE Analog Loops, they have the added same legacy TDM-based services’’ that forbearance standard would be met for advantage of being capable of carrying can be provided with UNE Analog the same reasons it is met with respect broadband service. While retaining UNE Loops supports forbearance from this to the remaining UNE Analog Loops and DS0 Loops or UNE Narrowband Voice- UNE requirement for the same reasons UNE Hybrid Loops. We note the lack of Grade Loops impose costs on incumbent that we forbore from UNE Analog Loops clarity in Commission precedent as to LECs, we find DS0s are worth keeping in price-cap areas in the UNE Analog the precise status of this grandfathering available in urban clusters and rural Loop and Avoided-Cost Resale obligation and find that we need not areas because of the benefits DS0s have Forbearance Order and in non-price cap resolve it in this Order because for rural broadband. The narrowband- areas today. There is broad record elimination is justified based on the fact only capability of UNE Narrowband support for eliminating the that no commenters argue to retain the Voice-Grade Loops does not have the requirements for UNE Hybrid Loops UNE obligations for these 64 kbps voice- same benefits for consumers. nationwide, and no party claims to use grade channels. Specifically, even if the Additionally, this forbearance continues or rely on this UNE, nor does any party cost for incumbent LECs to maintain the to facilitate the TDM-to-IP transition, argue that the obligation should remain legacy equipment and systems is low, which benefits all consumers in the long in place. Moreover, as the Commission continuing to maintain and support this term. found when it forbore from the 64 kbps obligation solely to protect narrowband voice channel over fiber in 2015, the legacy voice service is no longer 92. Section 10(a)(3). Moreover, we requirement to provide access to find that forbearance from the remaining necessary to ensure just and reasonable unbundled legacy elements when rates or protect consumers in light of UNE Analog Loops requirements is incumbent LECs upgrade their copper consistent with the public interest for our prior findings about the state of the loops to modern facilities can slow the voice services marketplace and the de the same reasons we detailed in the transition to next-generation networks UNE Analog Loop and Avoided-Cost minimis use of these unbundled 64 kbps and services. Therefore, forbearance channels provisioned over fiber. Resale Forbearance Order—that is, from the remaining UNE Hybrid Loop reducing reliance on outdated requirements meets the requirements of 95. Transition Period. The NPRM technology encourages competition section 10(a) of the Act. We conclude proposed a transition period of three based on next-generation networks and that, because no carriers claim to use years and sought comment on whether broadband services. Forbearance from this UNE, pursuant to section 10(a)(1), we should include a six-month period outdated unbundling rules will promote forbearance from the UNE Hybrid Loop for new orders for all UNE Narrowband next-generation infrastructure obligation will not result in unjust or Voice-Grade Loops. Based on record deployment by both incumbent LECs unreasonable voice service rates, and we evidence that UNE Narrowband Voice- and competitive LECs that otherwise also find that enforcing the UNE Hybrid Grade use is de minimis and that no would have relied on UNEs. We reject Loop obligation is unnecessary for the commenter has indicated new orders are arguments that we should refrain from protection of consumers pursuant to being placed, we find a three-year forbearance because of a lack of section 10(a)(2). Forbearance from these transition period appropriate for these commercial alternatives for voice-grade obligations is also consistent with the UNEs and is consistent with the UNE analog loops. Again, UNE DS0 Loops, public interest pursuant to section Transport Forbearance Order and the which afford the same voice capabilities 10(a)(3) as it will remove an UNE Analog Loop and Avoided-Cost as UNE Analog Loops and are also unnecessary regulatory burden and Resale Forbearance Order, each of capable of carrying broadband service, promote next-generation infrastructure which provided three-year transition will remain available after forbearance deployment by both incumbent LECs periods, ‘‘to fully ensure that current in rural areas and urban clusters. and competitive LECs that otherwise and potential competition plays its Additionally, at least one major would have relied on UNEs. We thus expected role’’ to ensure consumers incumbent LEC is now offering grant nationwide forbearance from the currently using these services are not commercial alternatives to UNE Analog UNE Hybrid Loop requirements. harmed, and for competitive LECs ‘‘to Loops, and the other major incumbent 94. Grandfathered UNE 64 kbps replace their embedded base of legacy LECs have agreed to offer commercial Voice-Grade Channel Over Fiber Loops. TDM customer premises equipment and alternatives to UNE DS0 Loops once We also conclude that nationwide other increasingly obsolete TDM-based they are no longer available as UNEs. forbearance from the requirement that peripheral devices with new IP-capable Finally, the Act requires us to protect competitive LECs continue to receive equipment.’’ In other contexts, the competition, not competitors, and we do unbundled access to the previously Commission similarly has adopted a not believe that the continued grandfathered 64 kbps voice-grade uniform transition period of three years availability of UNE Analog Loops is channels over fiber loops is appropriate to allow existing customers to facilitate necessary in light of the competitive pursuant to the requirements of section their transition to alternative facilities or nature of today’s voice marketplace. We 10(a) of the Act. The Commission arrangements in other deregulatory thus grant nationwide forbearance from forbore from this requirement on a actions. We find that this transition

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period supplies the necessary incentives proceeding and in the interest of the Commission consider ‘‘at a for both incumbent and competitive regulatory parity, however, we diverge minimum’’ whether access to LECs alike to deploy their own next- from the proposal in the NPRM as to proprietary network elements is generation networks as expeditiously as Multiunit Premises UNE Subloops and necessary and a competitor would be possible, while ensuring that end users find that competitors are no longer impaired without access to such do not experience undue service impaired without access to Multiunit network elements. The Commission disruption. Thus, competitive LECs Premises UNE Subloop obligations enacted these particular unbundling must transition to alternative facilities nationwide and that access to this obligations to address issues related to or services within this three-year stand-alone UNE is not necessary for facilities-based competitors accessing transition period that will begin on the competitors to deploy their own the customer’s location where access to effective date of this Order. facilities. We also independently find the premises was controlled or managed 96. No commenters specifically that forbearance is warranted for by someone other than the customer. In argued for a longer or shorter transition Multiunit Premises UNE Subloops 2003, the Commission explained that period for UNE Narrowband Voice- separate and apart from our impairment incumbent LECs had ‘‘first-mover Grade Loops. We disagree with analysis. We further find that advantages’’ with respect to access to commenters who made more general competitors are no longer impaired customers in multiunit premises assertions that the transition period for without access to the UNE Network because of their prior exclusive access. these and other UNEs should be shorter Interface Devices (NID) requirement and This no longer holds true today. In fact, than three years for existing customers. consistent with the NPRM, the incumbent LEC ‘‘frequently is not We reason that three years is independently find that forbearance the ‘incumbent’ in the multiunit appropriate in this case to alleviate any from this obligation is also appropriate premise,’’ and ‘‘it is the owner of the potentially negative impact on previous because the record indicates that stand- property, and not the [incumbent] LEC investments in legacy customer alone NIDs are not necessary for or another provider, that typically premises equipment and service competitive LECs to access potential controls access to the property.’’ disruption. customers. Therefore, we eliminate Competitive LECs do not assert the 97. We also disagree with commenters these unbundling obligations on a contrary is true. Indeed, cable who made general assertions there nationwide basis. companies are often the incumbent should be a longer transition period to 100. Multiunit Premises UNE provider in the MTE. Moreover, place new orders and for existing Subloops. Subloops are portions of a competitive LECs ‘‘can economically customers to continue services. UNE loop or ‘‘smaller included segment[s] of run their own high-capacity facilities to Narrowband Voice-Grade Loops are no an incumbent LEC’s local loop plant.’’ multiunit premises,’’ and the longer an ‘‘integral part of the Competitive LECs generally order Commission’s rules prohibit LECs from competitive landscape,’’ and thus three subloops with the intention of taking entering into exclusive access contracts years is sufficient to protect against ‘‘the competitor all the way to the with the owners of commercial and service disruption, based on the record customer.’’ Our rules impose UNE residential multiunit premises. evidence that these UNEs are not obligations for two types of subloops— Therefore, we find that there is no extensively leased or relied upon copper subloops, discussed above, and evidence that incumbent LECs face nationwide. We find that a period multiunit premises subloops. The lower barriers to entry to serve longer than three years is unjustified Commission’s rules separately address multiunit premises than competitive and not in the public interest as it does Multiunit Premises UNE Subloops due LECs. As such, incumbent LECs ‘‘enjoy not coincide with the Commission’s to previously-found specific no particular advantage in deploying to policy goal of advancing next-generation ‘‘impairments associated with facilities- [multiunit] premises’’ and competitive networks and services. based entry in multiunit buildings or LECs are no longer impaired without 98. As with all UNE relief, we campus environments.’’ The rule states access to Multiunit Premises UNE recognize that the transition mechanism that incumbent LECs must offer Subloops. we adopt today is simply a default unbundled access to these subloops process, and carriers remain free to necessary to access wiring at or near a 102. INCOMPAS and NWTA assert negotiate alternative arrangements multiunit customer premises, i.e., all that competitive LECs ‘‘serving MTEs superseding this transition period. Our incumbent LEC loop plant between the face significant barriers to entry because transition mechanism also does not minimum point of entry at a multiunit of the many anticompetitive practices replace or supersede any commercial premise and the point of demarcation. imposed by MTE owners and arrangements carriers have reached for Unlike copper subloops, the Multiunit managers’’—not incumbent LECs—and the continued provision of facilities or Premises UNE Subloop includes the allude to these anticompetitive practices services. Therefore, we adopt a three- entirety of the loop plant regardless of as ‘‘incumbent providers and MTE year transition of existing UNE the capacity level or type of loop the owners entering into sale-and leaseback Narrowband Voice-Grade Loops, requesting carrier will provision to its agreements’’—which are largely commencing on the effective date of this customer, that is, including fiber or agreements between cable providers and Order. hybrid loops. The Multiunit Premises building owners. Indeed, most of the UNE Subloop also includes any inside arguments against sale-and-leaseback B. Multiunit Premises UNE Subloops wiring owned and controlled by the arrangements in the MTE Docket and Network Interface Devices incumbent LEC. contend that they are used by building 99. In the NPRM, we proposed to 101. Impairment Analysis. The record owners and cable providers to eliminate UNE Subloops, including demonstrates that incumbent LECs ‘‘no circumvent the Commission’s cable Multiunit Premises UNE Subloops, in longer have a unique competitive inside wiring rules, which only apply to the same geographic areas where we position in multiunit premises’’ and certain video providers and not eliminated the underlying UNE Loop, thus, the very reason for requiring incumbent LECs. This argument is not and we take action consistent with that incumbent LECs to provide Multiunit directed at incumbent LECs, nor does it proposal as to UNE Copper Subloops Premises UNE Subloops no longer demonstrate that incumbent LECs face above. Based on the record in this exists. Section 251(d)(2) mandates that lower barriers to entry than competitive

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LECs, and is therefore inapplicable in of access to this UNE subloop. its obligation to provide the NID the UNE context. We find that this Moreover, no commenter has presented functionality as part of an unbundled argument is more appropriately suited compelling evidence regarding the loop or subloop, an incumbent LEC for our current MTE proceeding where necessity of this stand-alone UNE. must also offer nondiscriminatory many incumbent LECs are also calling 105. Forbearance. We also find that access to the NID on an unbundled, for action related to what they claim are forbearance is warranted for Multiunit stand-alone basis to requesting carriers anticompetitive practices of MTE Premises UNE Subloops separate and for the purpose of connecting the owners and incumbent providers, often apart from our non-impairment finding. competitor’s own loop facilities. cable providers. As evidenced by the current record only Forbearance from this obligation would 103. Granting relief from this stand- a de minimis number of multiunit necessarily coincide with and follow alone requirement will not disrupt any premises subloops are currently being our forbearance proposals related to policy decisions that we may make in sold, especially on a stand-alone basis. loops and subloops and previous other proceedings examining The record also supports forbearing forbearance grants related to loops. An competition in multiunit premises. from this requirement as it is incumbent LEC must permit a Although competitive LECs have economical for competitive LECs to run requesting carrier to connect its own asserted that special barriers still exist their own high-capacity facilities to loop facilities to on-premises wiring to accessing multiunit premises, we find MTEs. Moreover, incumbent LECs ‘‘at through the incumbent LEC’s NID. The that concerns about access to multiunit risk of losing revenue when traffic shifts need for unbundled access to an premises should be and would be better from their facilities to competitive incumbent LEC’s NID arose to address addressed in the MTE proceeding, offerings will seek to preserve such scenarios, typically in multiunit where we are considering ways to revenues, in whole or in part, by locations, where access to the inside improve competitive broadband access offering commercial access to their wire on the premises was controlled by to multiple tenant environments, and facilities.’’ Sections 201 and 202 of the a premises owner that did not want where any action we take would apply Act would also prohibit incumbent additional NIDs installed on their to a broader group of providers rather LECs from engaging in unreasonably premises, or where a customer had no than only incumbent LECs. The discriminatory behavior. Thus, need for a duplicate NID. Commission found in the Triennial preservation of this UNE obligation is 108. Impairment. We find that Review Remand Order, ‘‘it would be not necessary to ensure just, reasonable, reasonably efficient competitors are no inappropriate to distort our unbundling and nondiscriminatory rates and terms longer impaired without access to the analysis in an effort to solve alleged per section 10(a)(1) of the Act. UNE NID requirement. Competitive and deficiencies in other aspects of our 106. The Commission’s rules incumbent LECs have described regulatory regime.’’ It thus left prohibiting LECs from entering into substantially changed circumstances in ‘‘building-specific impediments to be exclusive access contracts with the the last two-plus decades such that this addressed in other Commission owners of residential multiunit network element no longer serves any proceedings, or in other fora, as premises serves to protect consumers in meaningful purpose. Competitive LECs appropriate.’’ Indeed, the Commission accordance with section 10(a)(2) of the have stated that ‘‘[a]s a practical matter, has on multiple occasions broadened its Act. Multiunit Premises UNE Subloops [they] do not purchase network interface rules prohibiting providers from are also unnecessary to protect device elements separate from entering into exclusive building access consumers given their lack of use. We unbundled loops.’’ Incumbent LECs are agreements with MTE owners so that further find that retaining this on record stating that there is ‘‘virtually similar rules now apply to incumbent requirement would not be in the public no demand’’ for stand-alone UNE NIDs. LECs serving residential and interest as it would contravene the AT&T even specifies that it sells no commercial properties, competitive Commission’s and the 1996 Act’s UNE NIDs, and ‘‘has not sold any in LECs, and multichannel video broadband deployment goals—that is, some time.’’ Competitive LECs have not programming distributors subject to ‘‘it would deter competitors from indicated that there are still cases where section 628 of the Act. Any remaining deploying their own facilities to reach the NID is the sole means of accessing barriers to accessing multiunit premises the premises and ensuring durable this customer premise’s wire. The wiring are independent of accessing the competition for the business of its record demonstrates that continued Multiunit Premises UNE Subloop, and tenants.’’ Elimination of unbundling access to these UNEs is not necessary no commenters in this proceeding mandates will incentivize and promote for a reasonably efficient competitor to demonstrate that incumbent LECs new deployment by competitive LECs enter today’s marketplace. As maintain special advantages in multi- and broader commercial access to the competitors LECs ‘‘acknowledge they tenant environments today. We clarify incumbent LECs’ facilities to thereby are not impaired without access to that our findings today and our decision achieve lasting facilities-based stand-alone unbundled NIDs, there can to eliminate the Multiunit Premises competition consisted. Therefore, be no argument that such access is UNE Subloop requirement do ‘‘not in consistent with section 10(a)(3) of the necessary.’’ any way prejudice the distinct set of Act, forbearing from Multiunit Premises 109. Forbearance. As proposed in the questions regarding the effect on UNE Subloops would serve the public NPRM, we also independently find that competition of restrictions imposed by a interest. Accordingly, we find that forbearance from the UNE NID building owner.’’ forbearance from Multiunit Premises obligation is appropriate because the 104. The record further supports UNE Subloops meets the statutory record indicates that stand-alone NIDs nationwide elimination of Multiunit requirements of section 10(a) of the Act. are no longer necessary for competitive Premises UNE Subloops as only a de 107. Network Interface Devices. The LECs to access potential customers. minimis number of multiunit premises network interface device, or NID, which Stand-alone UNE NIDs no longer serve subloops are currently being sold, is always located at the customer’s a meaningful purpose and demand for especially on a stand-alone basis. As premises, is defined as any means of this UNE is non-existent. We find that there is already a lack of demand and interconnecting the incumbent LEC’s the lack of stand-alone UNE NIDs usage, reasonably efficient competitors distribution plant to wiring at a indicates that forbearance from the would not generally be impaired by lack customer premises location. Apart from obligation easily meets the statutory

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requirements of section 10(a) of the Act. advanced services over the facilities which protects competition and Because carriers are not using this UNE, today that in many instances would not consumers and furthers the public enforcement of the UNE NID obligation be replicable in the short and medium interest. In that Order, the Commission is not necessary to ensure just and terms, we provide an eight-year forbore from UNE DS1/DS3 Transport reasonable rates or practices. Nor is this transition period for existing UNE Dark obligations for price cap incumbent obligation necessary to protect Fiber Transport. LECs at wire centers within a half mile consumers, given its lack of use. Finally, 112. Background. Dark fiber transport, of competitive fiber. To administer that because the UNE NID obligation otherwise known as ‘‘interoffice dark forbearance, the Bureau released a list of consists of a regulatory burden that fiber,’’ is fiber-optic cable deployed approximately 11,000 Tier 2 and Tier 3 serves no beneficial purpose, between incumbent LEC wire centers wire centers identified as having forbearance from the requirement is that has not been ‘‘lit’’ through the competitive fiber located within a half consistent with the public interest. addition of optronic equipment that mile. The Commission concluded that 110. Transition Period. In the NPRM, would make it capable of carrying the presence of alternative fiber within we proposed a uniform three-year telecommunications. The Commission’s a half mile creates competitive transition period for all Multiunit unbundling rules require incumbent marketplace dynamics, observing that a Premises UNE Subloops and UNE NIDs. LECs to unbundle their interoffice dark ‘‘facilities-based competitor within a We adopt this three-year transition fiber and make it available to a half mile of a location solely served by period for existing customers and no requesting carrier where the requested an incumbent LEC sufficiently restrains period for new orders, consistent with transport involves at least one Tier 3 incumbent LEC pricing.’’ our proposal in the NPRM. We find a wire center end point. Where obligated 115. In the NPRM, we sought three year transition period appropriate pursuant to our unbundling rules, the comment on our proposal to find that for the same reasons we did so in the incumbent LEC is required to lease its competitive LECs are not impaired 2019 UNE Forbearance Orders. Based unused, unlit fiber, subject to without access to unbundled dark fiber on record evidence regarding lack of availability, allowing the competitive transport to wire centers that are within usage or reliance on these UNEs and the LEC to deploy its own electronics to a half mile of alternative fiber. The fact that no commenter has indicated light the dark fiber and provision last- proposal used the same factual new orders are being placed for either mile service to end users served from underpinning as the UNE Transport of these UNEs, we find a three-year the terminating wire center as if such Forbearance Order, in which the transition period is appropriate, and a dark fiber were part of its own fiber timeframe for new orders to continue to network. Commission forbore from UNE DS1/DS3 be unnecessary. We find that this 113. The Triennial Review Remand Transport obligations for price-cap transition period supplies the necessary Order, in setting the current unbundling incumbent LECs at wire centers within incentives for both incumbent and requirements more than fifteen years a half mile of competitive fiber. competitive LECs alike to deploy their ago, examined both actual competition However, unlike the UNE Transport own next-generation networks as and inferences that could be drawn Forbearance Order, which examined expeditiously as possible, while about potential competition. In whether the presence of nearby ensuring that end users do not analyzing potential competition, the competitive fiber protected competition experience undue service disruption. Commission found that both the number and consumers and furthered the public We disagree with generalized arguments of fiber-based collocators and a wire interest, the NPRM observed that the in favor of longer or shorter transition center’s service area’s business line impairment inquiry asks only whether a periods because we believe a three-year count were indicative of actual and ‘‘reasonably efficient competitor within transition for existing UNEs allows potential competition for transport. The a half mile of alternative fiber’’ could competitive LECs to make alternative Commission concluded at that time that either obtain such transport at arrangements, without unduly slowing unbundling was warranted for dark fiber competitive rates or by building its own the transition away from these UNEs. transport originating or ending in Tier 3 network. The Commission also rejected Thus, competitive LECs must transition wire centers because those routes ‘‘show arguments that nearby provider-owned to alternative facilities or services a generally low likelihood of supporting fiber should not be treated as a within this three-year grandfathering actual or potential competitive transport competitive alternative for UNE DS1/ period. The transition period will begin deployment.’’ For purposes of UNE Dark DS3 Transport because other fiber on the effective date of this Order. Fiber Transport, a Tier 3 wire center is providers are generally uninterested in any wire center that does not qualify as providing competitive DS1/DS3 C. UNE Dark Fiber Transport either a Tier 1 wire center (which has transport service and, in particular, 111. Consistent with our proposal in at least four fiber-based collocators or at cable providers are ill-suited or the NPRM, we find that competitive least 38,000 business lines, 47 CFR unwilling to provide such service due to LECs are not impaired without access to 51.319(d)(3)(i)), or a Tier 2 wire center the unique characteristics of their UNE Dark Fiber Transport at wire (which has at least three fiber-based networks. We found that the evidence centers that are within a half mile of collocators or at least 24,000 business competitive LECs relied on was alternative fiber, subject to the transition lines, 47 CFR 51.319(d)(3)(ii)). By outdated and failed to reflect continued period we adopt. The record supports contrast, the Commission found that fiber deployment, particularly BDS this finding. Independently, we also unbundling was not required on other transport, in the past 15 years. We forbear from our regulations requiring routes because a reasonably efficient therefore determined that even if cable incumbent LECs to provide UNE Dark competitor already had or could companies were unwilling to provide Fiber Transport from the same wire potentially deploy or obtain dark fiber transport, the existence of such centers. To sustain the non-impairment transport. networks, which serve end users in the finding and forbearance conclusions, 114. In the UNE Transport same vicinity as the competitor, is likely and to avoid stranding substantial Forbearance Order, we concluded that sufficient to temper price increases and investment in last-mile networks by the presence of nearby competitive fiber result in reasonably competitive competitive LECs, which provide creates a sufficiently dynamic outcomes in the medium term. We also numerous consumers with competitive marketplace for DS1 and DS3 transport, sought comment on whether our

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observations about competitive fiber Order underreports the deployment of longer impaired without access to new located within a half mile of wire competitive fiber today, as it has likely UNE Dark Fiber Transport. Incumbent centers in the DS1/DS3 transport market improved in the intervening years since LECs urge the Commission to find no in the UNE Transport Forbearance the data was collected. Additionally, impairment and contend generally that Order were applicable to interoffice some competitive LECs have even these UNEs are no longer justified. dark fiber and could support a deployed their own dark fiber transport AT&T argues that ‘‘[t]hanks to the reasonable inference of no impairment to replace the unbundled transport massive data collection in the BDS for competitors leasing UNE Dark Fiber leased from incumbent LECs. proceeding, . . . the Commission now Transport that are similarly situated. 118. The rules we adopt in this has far more information about the Lastly, we sought comment on whether document modernize our dark fiber actual extent of competitive transport to extend forbearance to UNE Dark Fiber unbundling requirements to reflect deployment than it did in 2005’’ when Transport obligations for the same wire changes in the marketplace since 2004, it found no impairment for dark fiber centers subject to our UNE DS1/DS3 when we last revised our UNE Dark transport vis-a` -vis Tier 1 and Tier 2 wire Transport forbearance. Fiber Transport rules. At that time, the centers. AT&T observes that according 116. Impairment Analysis. Based on Commission limited the extent to which to BDS data, ‘‘competitors have the record before us, we conclude that incumbent LECs were obligated to continued to deploy their own facilities competitive LECs are no longer provide UNE Dark Fiber Transport by in and near Tier 3 wire centers,’’ with impaired without access to UNE Dark finding that, under the impairment ‘‘competitive supply at thousands of Fiber Transport provisioned from wire standard, competitive LECs are not Tier 3 wire centers,’’ suggesting that a centers within a half mile of competitive impaired without access to UNE Dark ‘‘reasonably efficient competitor can fiber. The Commission has long Fiber Transport where both wire centers feasibly deploy its own facility to serve envisioned the use of UNEs by are classified as either Tier 1 or Tier 2 such wire centers.’’ competitors as a stepping stone to wire centers. As a result, the 120. The record demonstrates that deployment of their own facilities. The unbundling obligations for interoffice where alternative fiber exists within a impairment inquiry considers whether a dark fiber only applied where at least half mile of a wire center, entry is hypothetical reasonably efficient one terminating end point is a Tier 3 possible—i.e., competing providers have competitor would be impaired when wire center. The Commission has been able to offer service to the area, lack of access to a particular network described Tier 3 wire centers as those irrespective of the technology they use. element creates a barrier to entry that that ‘‘show a generally low likelihood of Because the impairment inquiry is renders entry uneconomic. The record supporting actual or potential technology agnostic, arguments as to the demonstrates that competitive LECs competitive transport deployment.’’ We substitutability of dark fiber are have in fact widely deployed facilities refer to these Tier 3 wire centers as irrelevant. As we explained in the without the need for UNE Dark Fiber ‘‘UNE triggering’’ wire centers. In this NPRM, ‘‘[w]hile the Commission has Transport. But while a competitive LEC document, however, the record reflects previously differentiated lit from dark may prefer UNE Dark Fiber Transport, that alternative fiber with respect to Tier fiber, that has no bearing on the fact that ‘‘that has no bearing on the fact that the 3 wire centers has expanded the existence of a nearby fiber network existence of a nearby fiber network tremendously, indicating that suggests the ability of a reasonably suggests the ability of a reasonably competitive LECs are no longer efficient competitor to self-provision its efficient competitor to self-provision its impaired without the use of UNE Dark own fiber network in competition with own fiber network in competition with Fiber Transport where there is the incumbent LEC, regardless of the incumbent LEC, regardless of competitive fiber with a half-mile. One whether that network owner offers lit whether that network owner offers lit commenter suggests that the fiber services or dark fiber facilities.’’ fiber services or dark fiber facilities.’’ Commission should also ‘‘consider 121. We disagree with commenters Indeed, ‘‘[t]he fact that an entrant has expanding its rural exemption for all that argue that new UNE Dark Fiber deployed its own facilities—regardless elements of its NPRM, should it adopt Transport remains essential to entry of the technology chosen—may provide its proposals,’’ including UNE Dark even where alternative fiber exists. evidence that any barriers to entry can Fiber Transport. However, as discussed Competitive LECs have claimed that be overcome.’’ Thus, we ask only below, neither the impairment inquiry unbundled dark fiber is essential to whether a competitive LEC could nor the forbearance criteria distinguish provisioning service, reaching new ‘‘provide the services that it seeks to as between rural and urban customers, and that alternative fiber is offer,’’ irrespective of whether it uses lit communities. While we may, for sometimes unavailable. Several or unlit fiber, as we presume that a example, extrapolate from routes when competitive LECs have in fact used competitive LEC could ‘‘take advantage examining impairment, and look to, e.g., unbundled access to interoffice dark of existing alternative facilities consumer harm under forbearance, as fiber and other UNEs to obtain a deployment where possible.’’ we explain, the record demonstrates sufficient customer base within an 117. Absent UNE Dark Fiber that UNE Dark Fiber Transport is no incumbent LEC’s local market, thus Transport, competitive LECs have been longer necessary—even in rural generating enough revenue to eventually able to use alternatives such as communities. Additionally, the fact that build a competing fiber network. The commercial dark fiber, access to which dark fiber may be useful for 5G, use of UNE Dark Fiber Transport has has expanded greatly since we ordered ultimately has no bearing on either then allowed many competitors to UNE Dark Fiber Transport. Further, as inquiry. gradually deploy their own last-mile we observed in the NPRM and the 2017 119. While we observed in the NPRM fiber networks to offer service to BDS Order, competitive LECs have been that stakeholders disagreed as to the consumers, competing directly with deploying their own fiber facilities at an relevance of UNE Dark Fiber Transport incumbent LECs for market share. These accelerating rate over the past two in the current marketplace and whether arguments fail to engage with the decades, a result of declining costs and or not competitive LECs are impaired impairment standard, however. While increases in potential revenues due to without its continued use, the majority UNE Dark Fiber Transport may have growing demand. We expect, then, that of commenters in the record now helped new entrants to enter the market even the data contained in the BDS concede that competitive LECs are no at the time when we initially ordered

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unbundling, that does not bear on the to ‘barriers to entry,’ ’’ and that This not only reinforces our finding of argument of whether unbundling of ‘‘inferring no impairment in all areas no impairment but also independently, dark fiber continues to be necessary where competitive fiber may be located when coupled with the Commission’s today. Further, these commenters fail to within a half mile of the wire center’’ findings regarding the competitiveness demonstrate that where alternative fiber fails to satisfy the ‘‘nuanced approach to of the market without reliance on UNEs, is available—lit or unlit—new entrants impairment demanded’’ by the courts. persuades us that unbundling should be remain impaired. The existence of However, we need not analyze on a eliminated pursuant to our ‘‘at a alternative fiber—regardless of the specific-route basis ‘‘when and by minimum’’ authority even assuming technology used—indicates that a whom such competitive fiber was arguendo some level of impairment in reasonably efficient competitor can deployed, whether the fiber is actually light of the costs of unbundling. enter the market. One commenter argues used to provide service in that market, 124. Forbearance Analysis. In that in considering the issue of or of the remaining operational and addition to supporting our finding of alternative fiber, the Commission economic barriers to transport non-impairment, the record should differentiate between deployment’’ as Uniti Fiber urges. Such independently compels us to forbear ‘‘commercially owned dark fiber and a level of granularity would require a from our UNE Dark Fiber Transport dark fiber funded and controlled by case-by-case assessment of impairment, requirements in the same wire centers. government entities, who do not an approach criticized by courts that Forbearance is appropriate based on our typically make fiber commercially have instead approved of examining analysis of the specific circumstances at available,’’ and reiterates the argument ‘‘facilities deployment along similar’’— issue. We find that the criteria for that CLECs sometimes do not make their not identical—‘‘routes . . . .’’ And we forbearance are met and therefore do so own dark fiber commercially available. can and must also draw reasonable with respect to our regulations requiring However, even if some alternative fiber inferences about deployment by incumbent LECs provide UNE Dark is government subsidized or examining similar markets. Further, this Fiber Transport from these wire centers, controlled—no alternative data is alternative fiber suggests the existence subject to the transition period and advanced to suggest how much of it is— of sufficient demand to justify entry conditions we adopt. as explained above, whether or not such absent dark fiber transport UNEs, and 125. Section 10(a)(1). We conclude fiber is commercially available has no competitive LEC commenters ignore that UNE Dark Fiber Transport bearing on the analysis. Additionally, potential revenue opportunities despite obligations from Tier 3 wire centers with respect to the issue of public highlighting hypothetical costs and with alternative fiber within a half mile safety, no argument is made that barriers. Although commenters argue are not necessary to ensure just and reasonable rates. We limit our eliminating UNE Dark Fiber Transport that existing networks would be harmed forbearance only to those wire centers will create issues for, e.g., accessing 9– by eliminating UNE Dark Fiber where alternative fiber is present within 1–1, and we do not find that any such Transport, largely due to reliance a half mile of the wire center, which public-safety issue arises. Whether a interests, we take into account such creates market pressure to keep rates new entrant uses commercial dark fiber concerns in adopting a transition down. And given the incentives for or deploys their own network has no period. And while competitive LECs providers, we expect those currently bearing on the fact that entry is point to various success stories of the using UNE Dark Fiber Transport to economically feasible. kind envisioned by the Commission either deploy alternative fiber when it unbundled dark fiber for Tier 3 122. One commenter argues that the themselves or to use commercially wire centers, ultimately we must ask impairment inquiry cannot simply look available dark fiber or other transport at whether there is alternative fiber only whether providers are now alternatives, which should further within a half mile of a wire center; impaired without access to it on an temper rates. We therefore conclude that rather, it contends that a more granular unbundled basis. unbundling obligations are no longer analysis of whether alternative fiber 123. Further, incumbent LECs claim necessary from these wire centers to reaches the same destination is they see little demand for unbundled ensure just and reasonable rates. necessary to determine if entry into a dark fiber from competitive LECs and 126. Section 10(a)(2). We find that the particular market is economically argue that UNE Dark Fiber Transport evolving marketplace and the statutory feasible, because switching to constitutes a small proportion of and regulatory safeguards that work to alternative fiber is otherwise not an available dark fiber transport overall. ensure just and reasonable rates also option for existing providers. However, Verizon reiterates that it both uses and ensure that consumers will not be the impairment inquiry only asks if a sells a de minimis amount of UNE Dark harmed by forbearance from requiring reasonably efficient competitor could Fiber Transport. Incumbent LECs argue, UNE Dark Fiber Transport from wire enter the market, as evidenced here by conversely, that the marketplace for centers within a half mile of alternative the existence of alternative fiber. commercial dark fiber transport is fiber. With the availability of alternative Whether these competitors then make thriving, with AT&T explaining that it fiber offerings, incumbent LECs face their fiber commercially available for purchases a large amount of commercial pressure to constrain rates and to act to other providers is not at issue. One dark fiber transport outside its retain existing customers. Although not commenter has contended that the incumbent franchise areas. According to all alternative fiber is dark fiber, such a ‘‘presence of competitive fiber within a USTelecom, the record evidence distinction is ultimately irrelevant to half-mile of a wire center provides no presented by competitive LECs shows consumers: they are concerned about insight as to the economic viability of their progress in replacing UNE Dark the end product, not the specific such fiber deployments.’’ However, the Fiber Transport with their own technology used for middle-mile Commission may use proxies and draw interoffice transport, further indicating transport. And while competitive LECs inferences therefrom rather than that competitive LECs ‘‘have largely, if transitioning off of UNE Dark Fiber analyzing every route individually. In so not entirely, moved on from reliance on Transport may look to commercial dark doing, however, Uniti Fiber claims that these UNEs.’’ Additionally, use of UNE fiber as an alternative, where no such the Commission must evaluate routes Dark Fiber Transport for provisioning alternative exists, we nevertheless that are ‘‘similarly situated with regard service to rural areas appears minimal. anticipate that the timeframe provided

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for in our transition coupled with the LECs claim that a loss of UNE Dark exist to justify deployment . . . .’’ As incentives for competitive LECs to Fiber Transport would result in INCOMPAS and NWTA explain, in so deploy their own network facilities as abandoned service in such areas. limiting transport capacities, we the record indicates they have been Specifically, investment into fiber to the undertook an analysis of competitors’ doing should ensure that consumers home and fiber rings may be abandoned, revenue potential—something continue receiving service. and some recent awards of government commenters seeking capacity 127. Section 10(a)(3). Finally, we find support grants for broadband limitations fail to do here. And unlike that forbearing from UNE Dark Fiber deployment (e.g., CAF II (83 FR 15982, DS3s, dark fiber requires significant Transport from these wire centers is in April 13, 2018)) rely on UNE Dark Fiber investment by competitive LECs to the public interest as it promotes the Transport for construction. The Connect enable it to carry traffic, which also policy of ensuring the deployment of America Fund Phase II program is a part limits the amount of bandwidth that can next-generation networks and services. of the Universal Service High-Cost be realistically transported. Competition is the preferred method by program designed to expand broadband INCOMPAS/NWTA also claim that per- which the Commission safeguards the and voice services to places where they Mbps revenue has declined over time, public interest. We have found that are unavailable, and the Commission and that the record does not provide an ‘‘disparate treatment of similarly provides funding to subsidize new economic rationale for limiting the situated competitors creates network infrastructure or upgrades. extent to which competitive LECs can marketplace distortions that may harm 130. Incumbent LECs, however, argue upgrade the electronics attached to dark consumers,’’ and forbearance eliminates that UNE Dark Fiber Transport fiber for additional capacity. such distortions. Not only must the constitutes a small portion of their dark 133. Many incumbent LECs argued for Commission consider whether fiber transport overall. Because this a short transition period for existing forbearance will promote competition, unbundled element comprises such a UNE Dark Fiber Transport of only a few but ‘‘[i]f the Commission determines minute portion of incumbent LECs’ years. Prior to agreeing to an eight-year that such forbearance will promote business, this suggests that a lengthier transition period, various incumbent competition among providers of period than we adopt for other UNEs LECs or their representatives argued for telecommunications services, that today would have a relatively smaller transition periods as short as 18 months determination may be the basis for a effect on incumbent LECs. And as we but no longer than three to five years. Commission finding that forbearance is have explained, the ‘‘at a minimum’’ However, we agree with competitive in the public interest’’ under section language in section 251(d)(2) allows the 10(a)(3). Further, we expect that Commission to consider other factors LECs that argue that these timelines are forbearance will promote deployment of ‘‘rationally related to the goals of the too short under the circumstances. For a provider’s own fiber, thus facilitating Act,’’ including deployment of example, proponents of a longer deployment of additional next- broadband, access to which may be transition timeframe argue than an generation networks. impaired. Given the relatively smaller abbreviated transition periods 128. Transition Period. For cost to incumbent LECs, we thus find ‘‘downplay[] the costs of, and other competitive LECs currently offering that permitting competitive LECs to barriers to, overbuilding existing, services reliant on UNE Dark Fiber continue using UNE Dark Fiber unused interoffice dark fiber transport Transport, substantial costs, including Transport will avoid potential waste routes,’’ which even over ‘‘the short sunk costs, have been incurred to use and safeguard existing customers. period of a few years’’ can ‘‘easily run[] such facilities, including, for example, 131. One commenter also argued that into the tens, if not hundreds, of the deployment of fiber-based last-mile competitive LECs should only be millions of dollars.’’ In addition, we networks and enterprise connections, as allowed to maintain UNE Dark Fiber recognize that carriers may face other well as the addition of expensive Transport subject to capacity limits. The deployment issues, including state and optronic equipment. These sunk commenter claimed that the local restrictions such as on rights-of- investments in many cases would be Commission should ‘‘make clear that way, ‘‘attaching facilities to bridges or rendered useless if a competitive LEC purchasers are limited to using [UNEs] prohibitions on boring river levees,’’ as were forced off of UNE Dark Fiber for transport capacities of no more than well as other ‘‘local terrain challenges,’’ Transport too quickly, and the record the equivalent of 12 DS3s,’’ claiming at least in some areas dark fiber might indicates that competitive LECs would that in the Triennial Review Remand not be easily replaceable in some areas be unable to continue serving some Order, ‘‘the Commission found that in the short term. Considering these markets. We therefore grandfather requesting carriers are not impaired possibilities at the same time existing UNE Dark Fiber Transport for without access to transport facilities competitive LECs are transitioning to eight years so as to avoid risking above 12 DS3s on a given transport alternative solutions for unbundled abandonment of services and stranding route.’’ As such, they believe it would loops that they may be relying on, the significant investments reliant on be inconsistent to allow competitive result could be that higher capacity existing dark fiber. This timeframe LECs to use dark fiber to ‘‘carry almost advanced services may become strikes the appropriate balance between any capacity depending on the unavailable in some areas where the competing interests of the various electronics the CLEC attaches to it,’’ competitive LECs providing these stakeholders as well as enjoys support which they argue is a ‘‘severe anomaly services currently rely on UNE Dark by the majority of those stakeholders as in the Commission’s unbundling rules.’’ Fiber Transport. Given the costs and reflected in the record today. We have 132. However, the rationale for time needed for deploying new found such compromises reasonable limiting transport with respect to DS3s replacement transport facilities at the and in the public interest. is inapplicable as applied to dark fiber. same time these same competitive LECs 129. Such a transition period for In the Triennial Review Remand Order, are deploying alternative loop facilities, existing UNE Dark Fiber Transport we set the 12–DS3 capacity limit to customers of these services could be avoids stranding significant investment ‘‘establish a safeguard to limit access to forced to go without for potentially by competitive LECs and negatively a carrier that has attained a significant significant periods of time. Our longer impacting their customers, including scale on such a route indicating that transition period addresses this those in remote locations. Competitive more than sufficient potential revenues potential unintended consequence.

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134. We do not believe that our eight- Company, which was not a party to the LECs to provide OSS on an unbundled year transition period will significantly Compromise Proposal, agrees that it is basis in the Triennial Review Order reduce incentives for continued supported by the record. As the because it found that ‘‘these functions deployment. Competitive LECs reliant advocates of the compromise proposal are essential for carriers to serve mass on UNE Dark Fiber Transport have state, this transition period recognizes market and enterprise customers’’ and shown their propensity to deploy their ‘‘the fact that competitive LECs will because competitive LECs providing own fiber as soon as they can to simultaneously be impacted by these services are ‘‘impaired on a transition to their own network facilities transitions away from unbundled access national basis without access to OSS.’’ and eliminate dependence on the to multiple elements integral to the 138. Impairment Analysis. We find incumbent LEC completely. We believe operation of their networks, including that competitors are not impaired this transition timeframe will provide DS0, DS1 and DS3 loops, in addition to without access to UNE OSS, except sufficient time for them to do so without dark fiber transport.’’ We therefore where carriers are continuing to obtain unduly disrupting their customers and provide a transition period of eight and manage UNEs and for purposes of better advance broadband deployment years for UNE Dark Fiber Transport local interconnection and local number than if these same competitors ordered prior to the effective date of this portability. We note that our prematurely lost access to their existing Order. impairment and forbearance findings UNE Dark Fiber Transport and instead D. Operations Support Systems apply to UNE OSS maintained directly withdrew from certain geographic or indirectly by an incumbent LEC—i.e., markets entirely. 136. In the NPRM, we proposed to forbear from the UNE Operations it makes no difference ‘‘whether the 135. On the other hand, we do not Support Systems (OSS) obligations incumbent LEC maintains the OSS believe indefinite grandfathering would except as used to manage UNEs. The database itself or outsources the be appropriate. Although some NPRM did not propose to eliminate maintenance but retains control over the commenters convincingly argue that a unbundled access for 911/E911 database.’’ We find, based on the record, longer period of time than the three databases. Thus, UNE OSS obligations that UNE OSS is of little value when years proposed in the NPRM is remain for accessing 911/E911 databases decoupled from UNE ordering and necessary to transition off of UNE Dark for any requesting carrier regardless of provisioning, and that there is limited Fiber Transport, they do not advance any Commission action herein usage of this stand-alone UNE in today’s arguments that would suggest longer providing UNE OSS relief. The record marketplace. NASUCA’s reply asserts than eight years is needed. WorldNet, generally supports this approach, with the same arguments raised by NCTA for example, contends that an exception the exception of local interconnection and INCOMPAS, most of which are should be made for Puerto Rico to and local number portability where covered in the Compromise Proposal grandfather UNE Dark Fiber Transport incumbent LECs maintain such and adequately address their concerns. there indefinitely. However, their databases. We find that competitors are NASUCA also asserts that OSS is used arguments fail to explain why eight not impaired without access to UNE by competitive LECs to make ‘‘changes years or another significant period of OSS, except where carriers are to directory listings’’ and eliminating time would be insufficient to obtain continuing to manage UNEs and for the OSS UNE would ‘‘impair the ability alternative transport. Nor do they purposes of local interconnection and of competitors to offer service and in engage with either the impairment or local number portability. doing so would harm consumers who forbearance inquiries: while they assert Independently, we forbear from would suffer from incomplete and that the situation in Puerto Rico is applying UNE OSS requirements, except delayed directory information.’’ To the unique, they do not explain why the when unbundled OSS is used to manage extent NASUCA’s directory listing presence of alternative fiber does not other UNEs, local interconnection, and assertion is a stand-alone argument, it is indicate that a reasonably efficient local number portability. not developed enough to respond to its competitor should be able deploy or 137. Under our current rules, alleged effects on consumer harm. Nor obtain alternative transport, or elaborate incumbent LECs must offer do the competitive providers which on any of the forbearance criteria. And nondiscriminatory access to their would use directory listings claim that although INCOMPAS and the NWTA operations support systems, or OSS, for losing unbundled access to such listings have previously argued that ‘‘no qualifying services on an unbundled would harm them or their end-user transition period would be able to offset basis. OSS consists of pre-ordering, consumers. And assuming arguendo the harms to consumers and fiber ordering, provisioning, maintenance that directory listings are important to deployment,’’ claiming some UNE Dark and repair, and billing functions competitive providers, which we do not Fiber Transport ‘‘is irreplaceable,’’ supported by an incumbent LEC’s concede, we find, consistent with our INCOMPAS itself contends that databases and information. The discussion below, that it is in the recognizing the benefits of UNE Dark Commission previously found that the interest of incumbent LECs to provide Fiber Transport and the challenges of UNE OSS ‘‘requirement includes an assistance with directory listings as part transitioning therefrom is not itself an ongoing obligation on the incumbent of their wholesale services. We agree argument for ‘‘permanent LECs to make modifications to existing with commenters that there is generally grandfathering.’’ Meanwhile, OSS as necessary to offer competitive ‘‘no need to offer regulated unbundled competitive LECs have variously offered carriers nondiscriminatory access and to access to OSS in any circumstance arguments for why incumbent LECs’ ensure that the incumbent LEC complies where the Commission has eliminated proposals are insufficient, or in favor of with all of its network element, resale access to the corresponding unbundled longer timeframes for UNEs generally, and interconnection obligations in a network facilities,’’ except with respect e.g., of seven years minimum. Instead, nondiscriminatory manner.’’ OSS is to ordering local interconnection or we agree with the Joint Parties’ used to provision other UNEs, and it is number portability. As such, we find explanation of how their proposal also a separate stand-alone UNE that is that the market conditions that warrant ‘‘chart[s] a middle course that used for interconnection and other unbundling relief on the basis of non- accommodates the various parties’ purposes, including number porting. impairment or forbearance above for needs.’’ Indeed, Puerto Rico Telephone The Commission required incumbent UNE Loops of multiple types as well as

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UNE Dark Fiber Transport and other purpose is consistent with the public requirements. Section 251(c)(4) of the network elements also warrant interest pursuant to section 10(a)(3). For 1996 Act requires that incumbent LECs unbundling relief here. We therefore the same reasons discussed above, we make available to requesting carriers at conclude that this UNE is generally not decline to forbear with regard to its wholesale rates any telecommunications necessary for a reasonably efficient continued availability on an unbundled service they offer to their own non- competitor to enter today’s basis for local interconnection and carrier customers on a retail basis. The communications service marketplace, number portability. record supports forbearing from this except for local interconnection and 141. We note that elimination of OSS obligation for non-price cap incumbent number portability. Moreover, we find unbundling obligations, as specified LECs for many of the same reasons that that it is in the incumbent LEC’s interest above, will not adversely impact public justified forbearance from Avoided-Cost to offer necessary services, like OSS, safety. Unbundled access to 911 and E– Resale obligations for price cap when they provide commercial 911 databases will remain available and incumbent LECs. alternatives to UNEs or other wholesale the NPRM did not even propose to 144. In August 2019, we granted price products. As Sonic, a major purchaser of consider limiting access to this UNE, as cap incumbent LECs forbearance from UNE Loops and Transport, explains, will unbundled OSS requirements the Avoided-Cost Resale requirement incumbent LECs ‘‘have to maintain where UNEs are available and for based on ‘‘the breadth of the voice ordering systems and will have to purposes of local interconnection and service marketplace and the number of manage the sharing of facilities if they local number portability. The NPRM did wholesale input alternatives to offer wholesale services.’’ not propose to modify the E911/911 competitive LECs seeking to continue 139. We decline to find lack of UNE. We find that the California Public serving customers currently served by impairment with regard to UNE OSS Utility Commission’s assertion that Avoided-Cost Resale’’ and given that used for interconnection and number competitive LECs ‘‘may struggle to ‘‘Avoided-Cost Resale requirements . . . portability, however, as the record resolve maintenance and repair issues serve only to prolong dependence on indicates that UNE OSS still plays an that ultimately could adversely affect an legacy TDM voice services rather than important role with respect to these end-user’s ability to reach emergency pave the way for meaningful facilities- critical local competition tools. Some services’’ is misplaced as that concern based competition over next-generation competitive LECs and cable providers relates to the maintenance of copper networks providing advanced raised network interconnection and networks rather than OSS or communications capability.’’ We number portability implications if this unbundling generally and thus is not followed that action by seeking real-time electronic interface is not relevant to this proceeding. No comment in the NPRM on whether there maintained. Consistent with these commenter, including the competitive are any reasons why we should not comments and the comments of the providers that use OSS or the California extend that forbearance to non-price cap majority of the LEC stakeholders Public Utility Commission, specifically incumbent LECs. The record in response commenting on this issue recognizing asserts that OSS is needed to resolve to the NPRM does not provide any the importance of preserving continued maintenance and repair issues, compelling reason to refrain from UNE OSS access for these purposes, we generally. Moreover, UNE OSS remains extending Avoided-Cost Resale maintain the status quo of UNE OSS for available to manage existing UNEs forbearance herein to all incumbent purposes of local interconnection and which includes aspects of maintenance LECs. Competitive LEC resellers’ local number portability. and repair functions for such UNEs. As customer base is almost exclusively 140. Forbearance. Consistent with the discussed above, we find that it is in the made up of business and government NPRM and the record, we incumbent LEC’s interest to offer customers. As a result, forbearance from independently forbear from the stand- associated services, like OSS, when they the Avoided-Cost Resale requirement alone UNE OSS obligation, except for provide wholesale products. will not impact mass market customers. carriers continuing to obtain and 142. Transition Period. The transition 145. As we found in the UNE Analog manage UNEs and for purposes of local period for UNE OSS used to order and Loops and Avoided-Cost Resale interconnection and local number manage UNEs phased out by this Order Forbearance Order, competitive LECs portability where the incumbent LEC naturally coincides with the transition almost exclusively use Avoided-Cost maintains such databases. Based on the periods adopted for each such UNE Resale to provision legacy TDM voice record as discussed above and the fact described above. Incumbent LECs service to business and government that no commenter opposed indicate they will also provide customers. In many cases, these resold forbearance, except with regard to commercial access to their OSS systems legacy voice lines are used for number portability and interconnection, to requesting carriers in any area in redundancy, and not competitive entry we find that forbearance from the stand- which unbundled OSS functionality is or as a primary voice line for customers alone UNE OSS obligation, except with no longer available for particular of these services. Moreover, TDM respect to ordering local interconnection network elements because of service will remain available for or number portability, meets the unbundling relief, ensuring a seamless purchase by competitive LECs, just not requirements of section 10(a) of the Act. transition away from UNE OSS, at wholesale rates. As noted elsewhere The very limited use of this network availability that coincides with in this Order, no actions we take today element in today’s marketplace except transition timeframes for unbundled eliminate the availability of legacy for the purposes for which we continue network elements. TDM-based service. According to to make it available and the fact we Granite, the leading provider of retain it where it is used to manage E. Avoided-Cost Resale Avoided-Cost Resale, the vast majority UNEs is sufficient evidence that this 143. The NPRM proposed to extend of TDM lines resold by competitive stand-alone UNE OSS obligation is not the forbearance relief granted to price LECs are purchased via section 251(b)(1) necessary to ensure either just and cap incumbent LECs for Avoided-Cost resale and commercial agreements reasonable rates or the protection of Resale requirements to non-price cap rather than via Avoided-Cost Resale, consumers pursuant to sections 10(a)(1) carrier incumbent LECs. We adopt this and these options will remain available and 10(a)(2). Moreover, the elimination proposal and grant relief from all after forbearance from the Avoided-Cost of regulatory burdens that serve no remaining Avoided-Cost Resale Resale requirements. Commenters

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responding to our NPRM do not provide certain providers. Granite can hardly be the majority of their resold services any evidence that competitive considered the type of ‘‘small business’’ through either commercially negotiated circumstances are any different in non- that the Commission was referring to in agreements or section 251(b)(1) resale. price cap LEC service areas. 1996. Nor are the commenters opposing While TPx has not made a similar 146. The obligations and forbearance from this requirement ‘‘new statement, it also has not provided responsibilities imposed on incumbent entrants’’—Granite, for example, has specifics regarding how many of its LECs by the 1996 Act were ‘‘designed to been in business for nearly two decades 12,000 resold lines are purchased via open monopoly telecommunications and can hardly credibly claim Avoided- Avoided-Cost Resale and how many via markets to competitive entry.’’ This Cost Resale obligations in non-price cap other avenues. Moreover, TPx’s carefully crafted design applies equally service areas, or price-cap service areas comments themselves, versus the to UNEs and Avoided-Cost Resale. for that matter, are necessary to sustain attached declaration, make no mention Granite, the primary commenter on this its existence in today’s exceedingly of Avoided-Cost Resale. Indeed, Granite issue, asserts that the Commission competitive voice services marketplace. has previously acknowledged that it conflated UNEs and Avoided-Cost And even if it were, the Act does not purchases the majority of its resold Resale in granting forbearance from the protect specific competitors or business services this way, arguing that it relies latter in the UNE Analog Loop and models where overwhelming evidence on the existence of Avoided-Cost Resale Avoided-Cost Resale Forbearance Order. of pervasive competitive alternatives as leverage for negotiating better rates. While one CLEC other than Granite did exist for consumers, including those Avoided Cost Resale was enacted to comment on Avoided-Cost Resale, it that may currently take service from help jumpstart competition in the was in the larger context of its use of a companies like Granite. Indeed, even ‘‘if market; it was not intended to serve as ‘‘combination of UNEs, avoided-cost all CLECs were driven from the . . . a leveraging tool for individual resold services, and [its] own fiber market,’’ the existence of ‘‘robust competitors when negotiating network’’ asserting that it uses Avoided- intermodal competition’’ from other agreements. We thus are unpersuaded Cost Resale where the incumbent LEC is providers warrants upholding the by Granite’s assertion that sections the only source of wired voice service. Commission’s decision. 251(b)(1), 201, 202, and 208 will not 147. Rural exemption. The majority of When implementing section 251 of the serve as sufficient regulatory backstops non-price cap incumbent LECs are rural 1996 Act, however, the Commission to ensure unreasonable and LECs, most of which qualify for the unreasonably discriminatory rates. As viewed Avoided-Cost Resale as an rural exemption from all section 251(c) ‘‘important entry strategy for many new requirements, including Avoided-Cost we stated in the UNE Analog Loops and entrants, especially in the short term Resale. They therefore have no Avoided-Cost Resale Forbearance Order, when they are building out their own obligation to offer their ‘‘even if the rates paid by competitive facilities’’ and that ‘‘in some areas and telecommunications services to LECs to resell voice service were to rise for some new entrants . . . it will competitive LECs at wholesale rates based on our grant of forbearance from remain an important entry strategy over while the rural exemption remains in Avoided-Cost Resale, there is no reason the longer term.’’ The Commission place. Indeed, competitive LECs such as to believe that end-user rates will be further noted that ‘‘[R]esale will also be Granite have admitted that they are unjust or unreasonable.’’ Moreover, an important entry strategy for small unable to avail themselves of Avoided- UNE DS0 Loops will remain available in businesses that may lack capital to Cost Resale in many rural areas because rural and urban cluster census blocks, as compete in the local exchange market of the rural exemption. As a result, will UNE DS1 and DS3 Loops in non- by purchasing unbundled elements or maintaining Avoided-Cost Resale in competitive counties, to the extent the by building their own networks.’’ non-price cap areas provides little to no incumbent LEC is not entitled to the Therefore, even at the time that Avoided benefit to competitive LECs whose rural LEC exemption. Competitive LECs Cost Resale was enacted, the business model relies primarily on thus will remain able to provision Commission envisioned that new resold services. In such areas, resale service to customers in those areas via entrants would utilize the regulation under section 251(b)(1) is the only means other than Avoided-Cost Resale only until they could deploy their own regulatory resale-related mechanism to the same extent they are able to facilities. Indeed, for competitive LECs available to them. Section 251(b)(1) today. Granite asserts that the that engage in their own facilities-based obligations are not implicated by our Commission should retain Avoided-Cost deployments, Avoided-Cost Resale data actions here. Resale in those areas in which it retains suggests it is no longer, if it ever was, 148. Section 10(a)(1). We conclude UNE DS0 Loops because they are a particularly important entry strategy. that enforcement of Avoided-Cost provided over the same facilities. The majority of competitive LEC Resale obligations is not necessary to However, while many competitive LECs commenters did not even address ensure just and reasonable rates for use UNE DS0 Loops as a stepping-stone Avoided-Cost Resale in their comments voice-grade services. To the extent to deployment of their own networks, as filed in this proceeding. While competition protects against rates, well as to provide high-speed WorldNet mentions resale in its charges, practices, and classifications broadband, those competitive LECs comments in this proceeding, always as that are not just and reasonable, it relying on Avoided-Cost Resale do so ‘‘UNEs and resale,’’ it never discusses logically follows that it also protects almost exclusively to provision only why Avoided-Cost Resale is necessary. against charges, practices, and voice-grade services. Thus, while And the declaration submitted in classifications that are unjust and retaining UNE DS0 Loops furthers the support of WorldNet’s comments unreasonable. Thus, to whatever extent congressionally mandated goal of discusses why UNEs are necessary, but the enforcement of section 251(c)(4) is ensuring the provision of advanced it makes no mention at all of resale. As not necessary to ensure just and services to all Americans, Avoided-Cost we noted in the UNE Analog Loops and reasonable rates, it necessarily follows Resale does not. Alternative voice Avoided-Cost Resale Forbearance Order, that such enforcement prevents the services are also available from Avoided-Cost Resale was never opposite from occurring, that is, unjust intermodal competitors, and intended to be the permanent business and unreasonable rates. Competitive commercial replacements will be strategy it seems to have become for LECs such as Granite already purchase available where UNE Loops are being

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phased out. The availability of these and expediting the transition to next- copper networks and move their other voice services serves to constrain generation networks in a forbearance customers to fiber facilities without incumbent LEC rates for services analysis. Indeed, the D.C. Circuit has need for Commission authorization, a previously purchased via Avoided-Cost specifically approved of the process the Commission has worked to Resale. Commission considering section 706 expedite and facilitate over the past 149. Section 10(a)(2). We find that the goals in a forbearance analysis. three years. Line-powered TDM service evolving marketplace and the statutory Moreover, section 10’s public interest is available only to the extent that a and regulatory safeguards that work to determination gives the Commission carrier has not retired its copper loops, ensure just and reasonable rates also broad discretion as to what public a business decision that is made by the ensure that consumers will not be interest factors it may consider in carrier and not the Commission. No harmed by forbearance from determining whether section 10(a)(3)’s actions taken in this Order remove the enforcement of the Avoided-Cost Resale prong has been met. Commenters raise availability of either copper-based obligation. Competitive LEC resellers’ no new arguments opposing forbearance facilities or legacy TDM-based services. customer base is almost exclusively from the Avoided-Cost Resale As we have previously stated: ‘‘Nothing made up of business and government requirements to non-price cap LECs about the rules at issue in this order customers. As a result, forbearance from than they did in opposing forbearance require carriers to maintain line- the Avoided-Cost Resale requirement from those requirements for price cap powered copper loops—whether those will not impact mass market customers. LECs, except to point to fewer loops may be retired is a subject of our Again, competitive LECs have made it alternatives being available in rural copper retirement rules.’’ However, clear that they purchase very few of the locales. We address their arguments in incumbent LECs retiring their copper services they resell via Avoided-Cost detail below. However, as we noted facilities must continue providing the Resale, and they will still have access to above, rural incumbent LECs are largely same TDM-based service to their TDM-based services via commercial exempt from the Avoided-Cost Resale customers as before the retirement, just agreements and section 251(b)(1). While requirements. without line power, unless they also this may result in higher prices, this 152. Moreover, we are unpersuaded seek Commission authorization to should serve to encourage end-user that extending forbearance from discontinue that service. And in such a customers to migrate to next-generation Avoided-Cost Resale requirements to situation, the incumbent LEC must then services, thus helping to advance non-price cap incumbent LECs will comply with our technology transition Congress’s goal as stated in section 706. provide incentives for incumbent LECs They also will still be able to purchase to harm competition and consumers. discontinuance rules. As customer a variety of wholesale inputs, including This argument stems almost wholly demand for TDM over copper continues UNE DS0 Loops in rural and urban from the claimed potential for increased to dwindle, incumbents are more likely cluster census blocks and via UNE DS1 rates that might make particular to retire their copper and focus their and DS3 Loops in non-competitive competitors such as Granite unable to resources on deploying next generation counties to the extent they are available continue providing service to their end- networks, at which point line power today. Even if these competitive LECs user customers via commercial service will not be as readily available. And the choose not to stay in the market via offerings that Granite has negotiated Commission has previously taken action UNEs rather than Avoided-Cost Resale, with certain incumbent LECs. As we to ensure that end users are aware of the other competitors may choose to enter have repeatedly reminded Granite and need to take action to ensure that their these markets via UNEs. And customers others, however, the 1996 Act’s market- non-copper-based phone service will also have access to various opening provisions were put in place to continues to function in the event of a intermodal alternative services, to protect competition, not specific power outage. It is also inconsistent which they have increasingly been competitors or particular business with our goal of speeding the transition migrating. plans. And nothing in this Order to next generation networks and 150. Section 10(a)(3). Finally, we find eliminates the availability of TDM-based services and our policy to discourage that forbearing from Avoided-Cost services. Eliminating the subsidy for ‘‘reliance on outmoded legacy services.’’ Resale obligations for non-price cap legacy services that make them available To the extent certain commenters LECs is in the public interest as it at a lower price, though, may lead to suggest that copper-based TDM service promotes the important Commission greater adoption of next-generation is its own product market, we reject policy of furthering the deployment of services and further Congress’s goal and these claims as unsupported by next-generation networks and services the Commission’s mission of sufficient evidence. Moreover, we have and encouraging the rapid transition to encouraging the deployment of already declined to find TDM-based IP-based voice services and the benefits advanced communications capabilities. services in general to be their own that accrue to the public at large from 153. Line power. We disagree with product market. Moreover, the the widespread use of such services. commenters who assert that Avoided- Commission has previously noted in Increased adoption rates of next- Cost Resale should remain available other forbearance contexts that generation services provide incentives because of the purported benefits of ‘‘[p]erfect substitutability is not for incumbent and competitive LECs line-powered service. Some commenters required.’’ And nothing compels us to alike to expend precious resources on claim that ‘‘traditional’’ TDM service is apply the type of market power analysis deployment of networks capable of line-powered and thus is more reliable used in the Qwest Phoenix Order (25 supporting those services. To the extent than next-generation services that FCC Rcd 8622, June 22, 2010) to our end users are allowed to rely on the require backup power to function forbearance here for Avoided-Cost availability of legacy services, many will during power outages. We did not find Resale. We now decline to find the even continue to do so and eschew the move this argument persuasive in the context more narrow categorization of copper- to next-generation networks and of price cap areas, and we do not find based TDM service to be its own services. it persuasive now as to non-price cap product market. To find otherwise 151. We reject Granite’s argument that areas. To do otherwise would be would be inconsistent with the we cannot consider the public interest inconsistent with incumbent LECs’ Commission’s prior findings that copper benefits of facilities-based competition ability to retire their line-powered retirements come within the purview of

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the section 251(c)(5) of the Act, are subject to this same response given close the digital divide. As a result, requiring only that incumbent LECs that no actions taken in this Order forbearing from the Avoided-Cost Resale provide adequate notice of network remove the availability of legacy TDM- requirements in non-price cap areas will changes, and do not constitute a based services. have minimal effect. discontinuance of service under section 156. One stop shop. Opponents of 158. Deployment incentive. As 214(a) of the Act. Moreover, nothing of extending to non-price cap areas discussed in the UNE Analog Loop and the sort is required by the Act, and forbearance from Avoided-Cost Resale Avoided-Cost Resale Forbearance Order, indeed, finding that copper-based TDM requirements point once again to their forbearing from Avoided-Cost Resale service must be maintained would slow multi-location business customers. requirements will encourage the the transition to advanced services, in Because competitive LEC commenters transition to next-generation services by contravention of section 706 of the 1996 opposing this relief have made no new leveling the playing field between next- Act. Forbearing from this outdated arguments specific to non-price cap generation services and legacy TDM- regulation will incentivize carriers to areas, we are not persuaded that the based services. We reject Granite’s redirect resources to next-generation needs of these customers justify argument that forbearing from the networks, thus benefiting the public by retaining this requirement for non-price Avoided-Cost Resale requirement acts as allowing for more advanced cap incumbent LECs. First, rural LECs, a disincentive for incumbent LECs to telecommunications capabilities. As the which include many non-price cap deploy additional next-generation Commission previously stated, ‘‘[w]e incumbent LECs, are already exempt facilities by making incumbent LECs’ will not impede the progress toward from the Avoided-Cost Resale TDM-based services delivered over deployment of next-generation facilities requirements. Additionally, to the copper more profitable. There is no such for the many because of the reticence of extent particular non-price cap evidence in the record, and indeed an ever-shrinking few.’’ incumbent LECs are not exempt from Granite’s argument is at odds with 154. Regardless, when an incumbent section 251(c)’s requirements, incumbent LECs’ retirement of copper LEC retires its copper, which it can do competitive LECs will still be able to loops and replacement with next- on 90-days’ notice and without a need purchase these services via section generation alternatives. Moreover, the to first obtain Commission 251(b)(1) resale or commercial majority of customers in non-price cap authorization, customers will still agreements. Finally, to the extent areas have access to service by both receive the same TDM-based service, broadband is available to these cable and wireless providers, which albeit without the legacy feature of line locations, multi-location businesses can incentivizes incumbent LECs to replace power. At such point, when TDM link their various locations in other their aging copper facilities with next- service is provided over fiber, it requires ways, such as through a virtual private generation networks in order to remain the use of backup power to operate network via IP-based services. competitive. We also reject Granite’s during power outages. In addition, 157. VoIP unavailable. The argument that nationwide forbearance where copper loops still exist and unavailability of broadband in certain from the Avoided-Cost Resale incumbent LECs provide voice areas and, thus, the unavailability of requirement is inconsistent with our telecommunications services over those VoIP in those areas, does not render more granular treatment of UNE DS1 loops, copper-based TDM service will inappropriate extending forbearance and DS0 Loops. Both UNE DS1 and DS0 remain available for resale under section from Avoided-Cost Resale requirements Loops can be used to provide broadband 251(b)(1) regardless of our forbearance to non-price cap incumbent LECs, services, and in balancing the costs of herein. Competitive LECs in non-price contrary to the assertions of certain regulation with the potential benefits cap areas will also be able to purchase commenters. First, approximately two- that these loops can provide for these services pursuant to commercially thirds of the Americans residing in rural broadband deployment and access negotiated agreements, which is how areas and urban clusters (combined) where competition is less developed they currently purchase the majority of have access to broadband service from and entry is less likely, we determine their resold services. cable providers, and at least three above that these UNE Loops should 155. Opponents of forbearance also wireless providers are available almost remain available in limited areas. But point to the occurrence of natural universally. For those areas that lack Avoided-Cost Resale does not provide disasters to support the continued access to broadband, many incumbent similar benefits for broadband necessity of Avoided-Cost Resale, LECs in non-price cap areas qualify for deployment, and therefore we do not thereby limiting their argument to TDM- the rural exemption under section believe that it would benefit the public based services provided over copper 251(f), as noted above. Moreover, TDM interest to retain Avoided-Cost Resale in rather than fiber facilities. However, service will remain available for resale any specific areas. those same natural disasters can and do under section 251(b)(1) in those areas 159. Resale as backstop. Commenters lead to expedited copper retirements, absent the incumbent LEC seeking to opposing forbearance from Avoided- meaning that the TDM-based services discontinue those services. In order to Cost Resale requirements assert that the available for resale are no longer line discontinue service, the carrier would Commission has always retained those powered. Indeed, copper tends to have to seek Commission authorization. requirements when granting forbearance perform more poorly in many such 47 U.S.C. 214(a). And one of the factors from unbundling obligations, such as in situations whereas fiber is more resilient the Commission considers when the Qwest Omaha Order. But Qwest and faces lower outage risks from reviewing discontinuance applications Omaha was decided 15 years ago, at a weather events and aging. The is the adequacy of the available time when the market was dramatically Commission specifically adopted rules replacement service(s). Indeed, the different and TDM service played a in 2017 expressly to accommodate such Commission specifically adopted rules much larger role than it does today. In circumstances, as well as expedited applicable to the discontinuance of addition, the Commission’s decision copper retirements resulting from other legacy TDM-based voice service that there was based on the specific facts of circumstances outside the incumbent encompass just such situations. Finally, that case. The Commission found in LEC’s control. Assertions by the the Commission continues its efforts to Qwest Omaha that section 251(b)(1) California PUC and Michigan PSC that accelerate broadband deployment to resale was not an adequate substitute for we must consider public safety concerns unserved and underserved areas and avoided-cost resale because it lacked a

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wholesale pricing requirement. of encouraging consumers to transition interconnection agreements or through However, that Order was adopted 15 to next-generation services and are state-commission-Avoided-Cost Resale years ago when the communications unnecessary to protect consumers or the rate studies applying certain marketplace was very different from public interest. Commission-developed pricing today’s marketplace. In particular, the 162. Pending appeal. INCOMPAS formulas. Our forbearance action is not voice marketplace is replete with asserts that it is inappropriate for the intended to upset pre-existing facilities-based competition, and Commission to extend forbearance from interconnection agreements or other incumbent LECs no longer have a Avoided-Cost Resale requirements to contractual arrangements that may dominant role in voice as whole or non-price cap incumbent LECs while currently exist nor pre-existing state wireline voice in particular. Moreover, the appeal of the UNE Analog Loop and commission wholesale discount rates the Commission did not then have Avoided-Cost Resale Forbearance Order during the transition period (including before it a record showing that the is pending. We disagree. That Order any already-adopted state commission majority of resold services are remains effective at this time, and this scheduled changes in the discount purchased by means other than is a different proceeding with a new rates), which should quell concerns Avoided-Cost Resale. record upon which to consider regarding near-term price increases 160. In any event, UNE DS0 Loops extending Avoided-Cost Resale following forbearance from Avoided- will remain available in rural and urban forbearance. Nothing in this record Cost Resale obligations. As with the cluster census blocks, and UNE DS1 and persuades us that a different conclusion transition for price cap LEC Avoided- DS3 Loops will continue to be available is warranted. Cost Resale, we find this transition in non-competitive counties, to the 163. Transition Period. In the NPRM, period will minimize the impact of any extent the incumbent LEC is not entitled we proposed a three-year transition immediate rate increase for end-user to the rural LEC exemption. Moreover, period for this forbearance relief, and customers of affected competitive LECs we find today and similarly found in the we sought comment on whether to that could otherwise occur if current UNE Analog Loops and Avoided-Cost include a six-month period for new pricing for these services were Resale Forbearance Order that the orders. We adopt this proposal and do immediately eliminated. Further, the continued requirement to provide not include any period for new orders, process that we describe is a default Avoided-Cost Resale slows the conditioning our forbearance from non- process from which competitive LECs transition to next generation services price cap LEC Avoided-Cost Resale and non-price cap incumbent LECs and undermines our goal of sustainable obligations on an appropriate transition remain free to deviate pursuant to facilities-based competition. Thus, period. Competitive LECs using mutual agreement. The transition unlike in Qwest Omaha, we no longer Avoided-Cost Resale to fill in gaps timeframe we adopt will work to ensure need to retain Avoided-Cost Resale to where UNE Loops are unavailable and that end-user customers do not ensure voice competition because where they have not yet deployed their experience any undue service technology has changed and we know own fiber facilities will need to consider disruption as a result. We find no reason there is competition in the voice market. whether they can devote resources to to adopt any longer transition period The circumstances at issue here thus are deploying their own network facilities and thus we reject INCOMPAS’s distinguishable from those at issue in during the transition period or make proposed seven-year transition period. prior UNE forbearance orders that alternative commercial arrangements. INCOMPAS relies on the seven-year retained Avoided-Cost Resale as a And competitive LECs operating on a transition period provided for in the T- regulatory backstop and alternative to purely resale basis will need time to Mobile/Sprint Order (34 FCC Rcd 10578, facilities-based competition. negotiate new pricing arrangements Nov. 5, 2019) ‘‘for DISH to become a 161. Alternative Proposals. Granite under section 251(b)(1) resale, negotiate facilities-based provider.’’ However, the makes two proposals with respect to entirely new commercial wholesale most vocal opponent to eliminating the retaining the Avoided-Cost Resale arrangements, or work with their Avoided-Cost Resale requirement is requirement. First, it proposes customers to migrate them to IP-based Granite, which is not a facilities-based preserving the requirement solely for voice services. However, unlike with provider and has not professed any business and government customers. We UNEs, competitive LECs using Avoided- desire or intention to become one, and have already disposed of this argument Cost Resale do not have to place new there is little record evidence suggesting in the UNE Analog Loops and Avoided- orders to address individual last-mile Avoided-Cost Resale is used as a bridge Cost Resale Forbearance Order. Second, loops that have deteriorated or to deal to facilities-based competition. And it proposes preserving the requirement with the residential churn that requires neither INCOMPAS nor Granite provide where UNE DS0 Loops will remain competitive LECs using UNE DS0 Loops any evidence that consumers will be available—i.e., in rural and urban to place new orders when a residential harmed without a longer period. cluster census blocks. Granite argues customer at a particular location moves that ‘‘where market conditions warrant and a new potential residential F. Cost Benefit Analysis retaining UNE DS0 loops, they equally customer moves into that location. 165. We take a dynamic and forward- warrant retaining Avoided-Cost Resale.’’ 164. Accordingly, we condition our looking approach to evaluate the However, competitive LECs use grant of forbearance from non-price cap benefits and costs of regulation. The Avoided-Cost Resale to provision legacy LEC Avoided-Cost Resale obligations on Commission has discussed at length the TDM voice service, while UNE DS0 a three-year grandfathering period. This failings of ex ante regulation and found loops are used to provide both transition period will begin on the that ex ante regulation is necessary only broadband and voice service. The effective date of this Order. During the where competition cannot be relied Commission’s policy of transitioning to relevant transition period, any Avoided- upon to reasonably discipline the next-generation services therefore Cost Resale services that a competitive market. Our consideration of the relative warrants forbearance from Avoided-Cost LEC purchases as of the effective date of benefits and costs of the obligations for Resale requirements even where market this order shall be available for purchase UNE DS0 associated subloops, UNE DS1 conditions support retaining UNE DS0 from the incumbent LEC at regulated and DS3 associated subloops follows the loops. We decline to adopt either rates. Wholesale discounts are same reasoning as our consideration the proposal as both undermine the policy established either through negotiated underlying Loop obligations for these

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services discussed in this section. To for DS1 and DS3 business data services, well as choices of product offerings. In the extent that we find that the benefits the Commission’s conclusions as to the urbanized areas, we find that the of continuing UNE obligations exceed net costs of continued regulation of DS1 benefits of the UNE DS0 obligation are the costs of obligation, this analysis and DS3 business data service should negligible because the facilities-based applies equally to the UNE OSS apply equally to UNE DS1 and DS3 competition such regulations are obligation necessary to provision UNEs Loops. Thus, the obligation to offer UNE intended to foster is established to an and to support number portability. DS1 and DS3 Loops is no longer needed extent that makes these rules redundant. Further, the costs of the obligation to where the Commission has found that Currently, 71% of mass market provision Multiunit Premises UNE market sufficiently competitive and/or consumers in these areas can obtain Subloops, UNE Hybrid Loops, found no need for continued regulation broadband services meeting a 25/3 Grandfathered UNE 64 kbps Voice- of DS1 and DS3 business data services. Mbps speed threshold from at least the Grade Channel Over Fiber Loops, UNE Second, the demand for UNE DS1 and incumbent LEC and a cable provider. NIDs and UNE Narrowband Voice-Grade DS3 Loops and DS1 and DS3 business This contrasts with 21% of consumers Loops exceed the benefits of continuing data services have declined over time as in rural areas and 27% of consumers in these obligations because there is no competitive LECs have built out their urban clusters. The corresponding indication that these UNEs are used by own networks and migrated away from figures for broadband services meeting a competitors to any significant degree. TDM-based services; thus suggesting 10/1 Mbps speed threshold are 82% for Further in the case of Multiunit that competitive LECs’ need for these urbanized areas, 36% for rural areas, Premises UNE Subloops, the record inputs has declined as these competitors and 59% for urban clusters. And indicates that the it is the owner of the have built their own facilities. competition and entry by fixed wireless property, not the incumbent LEC, that Consequently, requiring the supply of providers continues to increase. Thus, controls access to the property. Thus, UNE DS1 and DS3 Loops where relief competition between two facilities- competitive LECs concerns with access has been granted for DS1 and DS3 based providers with near ubiquitous to the MTEs are beyond the scope of our business data services is likely to have networks, and expected entry by fixed actions here, and instead belong to the a net expected cost in medium and long wireless providers, without the current MTE Docket. The obligation to term. Finally, as there are no material distortions of UNE regulation, will bring offer UNEs and Avoided-Cost Resale operational or performance distinctions greater benefits over the medium term, have been in place for over 23 years, between UNE DS1 and DS3 Loops and than ongoing UNE requirements, which and the Commission has long DS1 and DS3 business data services and distort incumbent and competitive recognized that unbundling ‘‘is an these services are used interchangeably, LECs’ incentives to compete. especially intrusive form of economic there is no benefit to have one 169. In contrast, the record presents regulation.’’ The Commission has found regulatory paradigm for UNE DS1 and insufficient evidence of competitive that these obligations can yield negative DS3 Loops and another for DS1 and DS3 changes to end UNE DS0 Loop effects, including diminishing business data services, particularly obligations in urban clusters and rural incentives to invest, inhibiting facilities- given the impact that a differential areas. We find that: (1) Mass market based competitive entry and forestalling regulatory paradigm could have on customers in these areas often either do the benefits of competition. Thus, we firms’ incentives to invest in their own not have access to a high speed seek to eliminate UNEs and Avoided- networks and next-generation services. broadband service or can only obtain 167. In the short term, however, we such service from a single provider, Cost Resale where development of do not want to disrupt the services which sometimes is a competitive LEC competition means the costs of currently received by customers of that relies on UNE DS0 loops; and (2) continuing these obligations outweigh competitive LECs that purchase UNE certain competitors rely on UNE DS0 their benefits and where the statutory DS1 and DS3 Loops in these areas, loops to connect their customers to their criteria for declining to impose such particularly given the impact on own fiber networks and are swapping requirements are otherwise satisfied. businesses and consumers from the out these loops for their own last mile 166. UNE DS1 and DS3 Loops. We recession and COVID–19 pandemic facilities as they build out their fiber find that over the medium and long which has increased the need for network to their end-users’ premises. term the costs of maintaining the reliable broadband services for Based on December 2019 Form 477 data, obligation to supply UNE DS1 and DS3 businesses and consumers. the proportion of households with Loops in those counties and study areas Consequently, we find that the 42- either no or one provider option for 25/ deemed competitive in the BDS Order month transition period for UNE DS1 3 Mbps services was 57% in rural areas and RoR BDS Order exceed any benefits Loops and the 36-month transition and 40% in urban clusters compared to such supply provides. First, the period for UNE DS3 Loops provides 16% in urbanized areas. As noted Commission has found UNE DS1 and sufficient time for the competitive LECs above, of the approximately 42,000 DS3 Loops to be ‘‘particularly close to transition to alternative arrangements thousand households who have a single substitutes’’ for DS1 and DS3 business and/or to replace these productive option for 25/3 Mbps service that may data services, and deregulated pricing inputs with their own facilities. As rely upon UNE Loops, about 35,000 live for DS1 and DS3 business data services discussed in the DS1/DS3 section, there in rural areas and urban clusters where in the counties and study areas deemed is record evidence that the use of UNE UNE DS0 Loops will remain available. competitive in the BDS Order and RoR DS3 Loops is de minimis, justifying a Thus, consistent with our initial BDS Order. The Commission has found shorter transition period. imposition of UNE DS0 Loop that ex ante price regulation for DS1 and 168. UNE DS0 Loops. We find that the requirements, access to UNE DS0 Loops DS3 business data services to be costs of maintaining the obligation to in urban clusters and rural areas unnecessary in these counties and study supply UNE DS0 Loops in urbanized continues to support the development of areas and that the costs of ex ante areas exceed any benefits such supply competition and the deployment of regulations exceed the benefits of ex provides. UNE obligations are heavy- advanced services in these areas. ante regulation for DS1 and DS3 handed and so carry substantive 170. In urbanized areas, we find the business data services. Because UNE regulatory costs. They likely distort two-part transition for UNE DS0s Loops DS1 and DS3 Loops are close substitutes pricing and investment decisions, as appropriately balances the short-term

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needs of the competitive LECs to Analog Loops. The Commission has relief. Although we provided a five-year, maintain competitive supply while they found that the availability of these UNEs rather than three-year, grandfathering extend their networks. Competitors at subsidized prices distorts period for Puerto Rico due to the state claim that the immediate loss of UNE competitors’ incentives to build their of the economy and ongoing hurricane DS0 Loops would strand their own last mile facilities and the restoration efforts in the 2019 UNE investments and cause the cessation of deployment of next-generation facilities, Forbearance Orders, a unique transition services to their customers, particularly hindering the Commission’s policy period is not warranted here for Puerto given the recession that has been caused goals and reducing overall efficiency. Rico, and competitive LECs providing by the COVID–19 pandemic. We find The migration away from legacy TDM service there have been on notice for these claims credible as facility-based services is occurring in price-cap and almost a year now that such UNEs may replacement of existing UNEs requires non-price cap areas. The Commission no longer be available. While we sought substantive time and effort. forbore from imposing these obligations comment on a longer transition period 171. UNE Dark Fiber Transport. for price-cap LECs, and identical for Puerto Rico in the NPRM, we did not Consistent with the UNE Transport reasoning applies to non-price LECs. propose a different transition timeframe. Forbearance Order, we find that the Allowing competitive LECs access to We find that we have provided a costs of maintaining the obligation to these services during the three-year sufficient transition period for the UNE supply new UNE Dark Fiber Transport transition period will allow an orderly and resale obligations for which we exceed any benefits such supply transition to the more efficient end state. grant relief, which should also provide provides to wire centers that are within In addition, providers with customers more than enough time for competitive a half mile of alternative fiber. Such an that prefer legacy services and that rely LECs in Puerto Rico to seamlessly obligation distorts the incumbent and upon Avoided-Cost Resale to provision transition their existing customers to competitive LECs’ incentives to invest those services, may continue to offer alternative facilities or services. A in transport networks, e.g., because it is legacy services via section 251(b)(1) longer transition would unnecessarily unlikely UNE prices correctly reflect resale and commercial agreements. continue to impose outdated burdens efficient costs in all circumstances. G. Other Considerations solely placed on the incumbent LEC, Similarly, competitive LECs may undermining incentives for sustainable inefficiently prefer to purchase UNEs 174. SBA Response. We disagree with facilities-based competition, which is without any long-term obligations, the Chief Counsel of the Small Business important to encourage as Puerto Rico rather than bearing the multi-decade Administration that removing these continues to rebuild. Moreover, we UNE and resale obligations for which risk deployment entails. clarify that the transition periods we we grant relief today will prevent small 172. We find that there are net adopt herein do not supersede or competitive LECs from providing benefits to competitors to retain use of modify any previously-adopted their existing UNE Dark Fiber Transport competitive services to consumers and transition periods applicable to Puerto for a significant period of time, from deploying their own networks, and Rico. however, because of the risk of that the benefits to adopting these stranding competitors’ investments that changes will have unclear economic 176. We also reject WorldNet’s rely upon this transport. This concern is benefits. We eliminate UNEs and resale argument that the Commission should sharpened by the recession caused by only where they are no longer necessary exempt Puerto Rico from any the COVID–19 pandemic, which has for competition and entry as the Act elimination or reduction of UNE or increased the need for broadband requires, and preserve them where they resale obligations in this proceeding due services, and has made it harder to still serve a useful purpose. Moreover, to its unique economic circumstances. finance deployment. Some competitive the fact that INCOMPAS and As WorldNet acknowledges, we recently LECs rely on embedded UNE Dark Fiber USTelecom and almost all of their decided not to exempt Puerto Rico with Transport to support the investments members who participated in this regard to the UNE and Avoided-Cost they have made in networks, notably proceeding have reached a compromise Resale obligations at issue in the UNE including last-mile facilities, which as to several of the UNEs that SBA raises Analog Loop and Avoided-Cost Resale represent substantial investments that concerns about, provides us with Forbearance Order. For similar reasons, are sunk for many years. Competitively additional assurance that eliminating namely, that reducing unbundling replacing the UNE Dark Fiber Transport certain UNEs subject to transition obligations will increase incentives for they currently rely on would in some conditions will not unduly affect small facilities-based deployment, our instances require significant businesses. We expect that the benefits decision in this document applies to investments (on the part of the from eliminating these UNEs and resale, Puerto Rico. Importantly, customers in providers or third parties) and would including increased competition and Puerto Rico will have a number of take substantial time. The result, in deployment of next-generation facilities, alternative options that will protect some instances, would be the cessation will also extend to small businesses. them from unreasonable rates and of services to existing customers and of Additionally, any small businesses charges, aided in part by the planned new last-mile deployments. relying on current UNE Dark Fiber Commission’s ongoing work to And the cost of continuing to provision Transport will retain all of their current implement the Uniendo a Puerto Rico existing UNE Dark Fiber Transport is rights for eight years. To the extent Fund and ensure that the residents of comparatively low. Accordingly, we are small businesses are burdened, we the island have access to next- persuaded there are significant net expect that this generous transition generation technologies that are resilient benefits to permit competitors’ period will provide them sufficient time to hurricanes and other natural continued use of embedded UNE Dark to act to avoid disruptions to their disasters. Even after our actions today, Fiber Transport at existing terms and current business operations. WorldNet will still be able to make conditions for eight years. 175. Puerto Rico. Based on the record voice services available to its customers 173. Avoided-Cost Resale and UNE in this proceeding, we do not find that via alternative arrangements such as Analog Loops. We find there are net a longer grandfathering period is commercial agreements with the costs of continuing the obligations to necessary for Puerto Rico for any UNE incumbent LEC or other providers and offer Avoided-Cost Resale and UNE or resale obligations for which we grant section 251(b)(1) resale, or through

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deployment of its own facilities-based that relied upon the comprehensive BDS a half mile of alternative fiber; (8) stand- voice services. Thus, we do not find it Data Collection and the Commission’s alone UNE network interface device necessary to exempt Puerto Rico from prior orders that relied upon those (NID) obligations; (9) operations support the UNE and resale obligations that are analyses. While the Commission is systems (OSS) unbundling obligations; eliminated or reduced today. Moreover, currently developing a new data and (10) Avoided-Cost Resale the transition timeframes that we have collection to replace Form 477, it is obligations in non-price cap areas. The adopted should provide more than primarily doing so to improve precision unbundling requirement imposed by the sufficient time for WorldNet to in specific areas, which, while 1996 Act were designed to promote transition any of its existing customers undoubtedly important for Universal competition, not specific competitors; as to alternative facilities or services. Service purposes, is not required for our such, in evaluating the continued need 177. Public Safety. With respect to more general findings to refine for particular UNEs or Avoided-Cost concerns that the Commission ‘‘should unbundling requirements. For purposes Resale, we look to the existence of carefully consider the impacts that its of this proceeding, as discussed above, competition rather than the impact our proposal . . . would have on public we have accurately captured the actions will have on individual safety,’’ we note that such issues have ‘‘current competitive landscape’’ competitors. been considered with respect to each nationwide and find that our actions 182. Drawing on the record in this UNE element where the issue has been today will ‘‘effectively foster proceeding along with data from a raised in the record as well as in the competition and benefit consumers.’’ variety of sources, including findings in discussion of Avoided-Cost Resale. As the BDS Order, RoR BDS Order, and discussed above, to the extent IV. Procedural Matters Form 477 data, the Commission makes commenters raise issues about losing 179. Final Regulatory Flexibility findings regarding actual and potential line power and TDM service over Analysis. As required by the Regulatory competition in different geographic copper, this Order will not impact the Flexibility Act of 1980, as amended areas. In those localities where availability of such features, nor does it (RFA), an Initial Regulatory Flexibility competition is robust, the Commission affect the availability of 9–1–1 Analysis (IRFA) was incorporated in the finds that continuing to require functionality. And consistent with the NPRM in this proceeding. The incumbent LECs to provide access to the NPRM, we retain the access to E911/911 Commission sought written comment on UNEs described above is database UNE without modification. We the proposals in the NPRM, including counterproductive. Ending these therefore find that our actions today will comment on the IRFA. The present requirements will minimize not affect issues related to public safety Final Regulatory Flexibility Analysis burdensome regulations and allow in any way. (FRFA) addresses comments received on market forces to drive innovation and 178. Form 477 Data. With respect to the IRFA and conforms to the RFA. competitive pricing. concerns that there are limitations A. Need for, and Objectives of, the Rules related to our reliance on Form 477 1. UNE DS1 and DS3 Loops data, such data is the best, most granular 180. In the NPRM, the Commission 183. Based on the record in this data currently available. Importantly, proposed to revise its unbundling and proceeding, as well as the conclusions however, in this Order, we rely on Form resale requirements to account for drawn in the BDS Order, the 477 data primarily for nationwide changes in communications service Commission finds competitive LECs are findings in the UNE Narrowband Voice- markets where competition has no longer impaired without access to Grade Loops and Avoided-Cost Resale flourished, and sought comprehensive unbundled DS1 and DS3 loops in those sections, and on findings that apply to comments on these proposals. Thus, counties that are already competitive or urbanized areas as compared to urban this Order provides a new regulatory where there is the potential for clusters and rural areas. Moreover, the framework that does away with obsolete competition (collectively, ‘‘Competitive nationwide findings we primarily rely regulatory obligations and promotes the Counties’’). Therefore, these UNE on in the UNE Narrowband Voice-Grade deployment of competitive facilities and requirements are no longer necessary Loops and Avoided-Cost Resale sections next-generation networks, spreading the nor appropriate in these locations. Even are voice subscription counts rather benefits of innovation and facilities- if there were continuing impairment, than deployment data. While some based competition to market entrants requiring provision of these UNEs parties in this proceeding have and end-users alike, including small would contravene the Commission’s questioned the reliability of deployment businesses in each category. mandate to ensure the deployment of data, none have questioned the validity 181. Specifically, in the NPRM the next-generation infrastructure. In the of voice subscription counts. While Commission sought comment on alternative, the Commission finds that some commenters criticize Form 477 proposals to eliminate: (1) UNE DS1 and forbearance from enforcing deployment data as overstating DS3 loop obligations in counties and requirements for UNE DS1 and DS3 deployment because a provider need study areas deemed competitive in the loops in Competitive Counties is only serve one location in a census BDS Order and RoR BDS Order; (2) UNE appropriate. In these competitive block for the block to be considered DS0 loops in urban census blocks; (3) localities, market forces will ensure fair served, we note that in urbanized areas, UNE analog loop obligations where they pricing. None of these findings apply to where census blocks are extremely still apply; (4) 64 kbps voice-grade non-competitive counties. small, a provider that serves one channel over fiber loops obligations location is very likely to be able to serve where they still apply; (5) unbundling 2. UNE DS0 Loops the other locations in the census block requirements for the narrowband 184. Based on the record in this in the near future. To the extent frequencies of hybrid loops; (6) UNE proceeding, as well as Form 477 data, commenters raise concerns about the subloops in the particular instances or the Commission finds that cable precision of Form 477 data in specific geographic areas where we propose to companies provide significant areas, nothing in our Order relies on eliminate the unbundling obligation for competition, and therefore competitive such specificity. The findings in the the underlying loop to the customer’s LECs are no longer impaired without UNE DS1/DS3 and UNE Dark Fiber premises; (7) unbundled dark fiber access to unbundled DS0 loops in Transport sections are based on analyses transport to wire centers that are within urbanized census blocks, and

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independently forbears from the are discussed throughout the Order and of the new regulations on small entities obligation. As such, UNE obligations are are summarized in part E, below. that will be directly impacted by the no longer appropriate in these areas. 190. We reject arguments that ending changes. To the contrary, the This finding does not apply to urban UNE access for competitive providers Commission specifically requested cluster census blocks nor rural census would damage their ability to compete comments regarding economic impacts blocks. in the affected markets because UNE on small entities that may result from loop obligations are being rolled back the changed regulations. Many such 3. UNE Narrowband Voice-Grade Loops, only in counties and study areas already comments were submitted in response, Multiunit Premises Subloops, and NIDs deemed competitive, and access to dark allowing the Commission to consider 185. The Commission finds that fiber will be grandfathered for eight the concerns of small competitive LECs competitors do not face significant years for all providers currently and other entities throughout this Order. barriers to entry into the voice-service utilizing it. Furthermore, the Though the Chief Counsel advises the market, and therefore forbear from any Commission’s objective in finding non- Commission to issue a further notice of remaining UNE Narrowband Voice- impairment is to foster competition, not proposed rulemaking with a Grade Loop obligations nationwide. The to promote any specific competitor. In supplemental IRFA, we believe this is Commission also finds that impairment making the impairment inquiry, we unnecessary because the NPRM no longer exists without access to UNE make the reasonable inference that if described in detail the proposed Multiunit Premises Subloops and NIDs. competitive providers have successfully changes to the regulatory framework, Further, the Commission finds that entered one market using their own posed specific questions on how best to competitive LECs are not impaired by facilities, other providers can enter implement the changes, and sought lack of access to these UNEs, and that similar markets on a similar basis. comprehensive comments from all continued provision thereof contravenes 191. We also reject the claim that parties. As described in paragraph 193 the Commission’s mandate to ensure removing access to UNEs will inhibit of this RFA, a summary of the NPRM deployment of next-generation development of next-generation was published in the Federal Register, networks. infrastructure. Indeed, we find that thus providing notice to all affected continuing provision of UNEs in areas entities, including small entities. 4. UNE Dark Fiber with robust competition in place will 195. We disagree with the Chief result in stagnation of innovation and 186. The Commission finds that Counsel’s argument that removing these delay the deployment of new competitive LECs are not impaired UNE obligations will prevent small technologies such as 5G networks. without UNE dark fiber that is within a competitive LECs from providing 192. With respect to whether small competitive services to consumers and half mile from alternative fiber. Further, business customers will lose their from deploying their own networks. the Commission independently forbears choice in providers with the adoption of Indeed, the Commission is from any UNE Dark Fiber Transport this Order, or may lose access all implementing these changes in order to within a half mile from alternative fiber. together if the only provider in their promote facilities-based competition However, access will be grandfathered region is unable to provide service by that will benefit large and small for eight years for those who are already way of UNEs, we note that because UNE providers as well as end-users. Access relying on it. loop obligations will only be removed in to UNEs was always intended as a 5. Operations Support Systems markets where competition is stepping stone for competitors to gain sufficiently robust. Additionally, we market entry and build their own 187. The Commission finds that provide 8 years for competitive LECs to networks, to be retired once competition competitive LECs are not impaired transition from UNE Dark Fiber was established. In evaluating the need without access to OSS, except for the Transport. While price increases are for a given UNE the Commission purposes of number portability and possible as a result of the transition to considers the existence of competition, interconnection. commercial pricing for some network including intermodal competition, not 6. Avoided-Cost Resale elements, these increases do not the impact on any particular competitor. constitute impairment. The Commission’s impairment 188. For the same reasons the 193. With respect to the suggestion determinations consider the existence of Commission granted price-cap that a significant number of small intermodal competition because ‘‘[t]he incumbent LECs forbearance from the entities may be unaware of this fact that an entrant has deployed its Avoided-Cost Resale requirement in proceeding and that the Commission own facilities—regardless of the 2019, the Commission now extends that should engage in educational outreach technology chosen—may provide forbearance to non-price-cap incumbent to inform them of it, we disagree with evidence that any barriers to entry can LECs. The Commission finds that this assertion because the NPRM be overcome.’’ Further, examining these enforcement of these obligations is explained the proposed regulatory same facts, the Commission finds that unnecessary to moderate end-user changes in detail and solicited the forbearance criteria are met, as pricing nor to protect competitive LECs’ comments from all parties. A summary competition will ensure that rates ability to provide service due to the of the NPRM was published in the remain just and reasonable and protect abundance of alternatives available Federal Register, and we believe that consumers, while also promoting the across markets. such publication constitutes appropriate public interest by spurring deployment B. Summary of Significant Issues Raised notice to small businesses subject to the of next-generation facilities. by Public Comments in Response to the regulations. Additionally, those entities relying on IRFA dark fiber will have a significant C. Response to Comments by the Chief period—eight years—to transition from 189. In this section, we respond to Counsel for Advocacy of the Small UNE Dark Fiber Transport. comments filed in response to the IRFA. Business Administration 196. Unbundling requirements for To the extent we received comments 194. First, we disagree with the Chief DS1 and DS3 loops will be removed raising general small business concerns Counsel’s assertion that the Commission only in those counties already during this proceeding, those comments failed to consider in its IRFA the impact determined to be competitive in the BDS

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Order and RoR BDS Order. Furthermore, analysis. As noted above, a ‘‘small service are small businesses that may be access to equivalent network elements is business’’ under the RFA is one that, affected by our actions. According to still available for purchase via inter alia, meets the pertinent small Commission data, one thousand three commercial agreements, which supports business size standard (e.g., a telephone hundred and seven (1,307) Incumbent a finding a non-impairment. Indeed, communications business having 1,500 Local Exchange Carriers reported that competitive providers already rely on or fewer employees), and ‘‘is not they were incumbent local exchange these commercially available elements dominant in its field of operation.’’ SBA service providers. Of this total, an to compete. Obligations to provide UNE Advocacy contends that, for RFA estimated 1,006 have 1,500 or fewer DS0 loops will cease only in urbanized purposes, small incumbent LECs are not employees. Thus, using the SBA’s size census blocks where there is ample dominant in their field of operation standard the majority of incumbent evidence of intermodal competition; because any such dominance is not LECs can be considered small entities. urban cluster and rural census blocks, ‘‘national’’ in scope. We have therefore 202. Competitive Local Exchange where the record does not provide included small incumbent LECs in this Carriers, Competitive Access Providers evidence of robust competition, will RFA analysis, although we emphasize (CAPs), ‘‘Shared-Tenant Service retain the legacy UNE requirements. that this RFA action has no effect on Providers,’’ and ‘‘Other Local Service 197. We disagree with the implication Commission analyses and Providers.’’ Neither the Commission nor in the Chief Counsel’s comments that determinations in other, non-RFA the SBA has developed a small business the new regulations offer no economic contexts. size standard specifically for these benefit. In implementing these 200. Wired Telecommunications service providers. The appropriate regulatory changes, the Commission is Carriers. The U.S. Census Bureau NAICS Code category is Wired pursuing its congressionally mandated defines this industry as ‘‘establishments Telecommunications Carriers and under goal of ensuring deployment of next- primarily engaged in operating and/or that size standard, such a business is generation networks and services. providing access to transmission small if it has 1,500 or fewer employees. Pursuant to the provisions of the 1996 facilities and infrastructure that they U.S. Census Bureau data for 2012 Act, the Commission revises its own and/or lease for the transmission of indicate that 3,117 firms operated unbundling and resale requirements to voice, data, text, sound, and video using during that year. Of that number, 3,083 account for changes in communications wired communications networks. operated with fewer than 1,000 service markets where competition Transmission facilities may be based on employees. Based on these data, the among incumbent and competitive LECs a single technology or a combination of Commission concludes that the majority has flourished and UNEs are no longer technologies. Establishments in this of Competitive LECS, CAPs, Shared- necessary to facilitate market entry. industry use the wired Tenant Service Providers, and Other Congress authorized the Commission to telecommunications network facilities Local Service Providers, are small forbear from any regulatory obligations that they operate to provide a variety of entities. According to Commission data, once the agency determined that they services, such as wired telephony 1,442 carriers reported that they were are obsolete, and encouraged the services, including VoIP services, wired engaged in the provision of either Commission to use forbearance and (cable) audio and video programming competitive local exchange services or other means to encourage deployment of distribution, and wired broadband competitive access provider services. Of advanced telecommunications internet services. By exception, these 1,442 carriers, an estimated 1,256 capability and remove barriers to establishments providing satellite have 1,500 or fewer employees. In infrastructure deployment. Promoting television distribution services using addition, 17 carriers have reported that investment in innovation and advanced facilities and infrastructure that they they are Shared-Tenant Service technologies can only provide greater operate are included in this industry.’’ Providers, and all 17 are estimated to economic benefits for all parties The SBA has developed a small have 1,500 or fewer employees. Also, 72 involved. business size standard for Wired carriers have reported that they are Telecommunications Carriers, which Other Local Service Providers. Of this D. Description and Estimate of the consists of all such companies having total, 70 have 1,500 or fewer employees. Number of Small Entities to Which the 1,500 or fewer employees. U.S. Census Consequently, based on internally Rules Will Apply Bureau data for 2012 show that there researched FCC data, the Commission 198. The RFA directs agencies to were 3,117 firms that operated that year. estimates that most providers of provide a description of, and, where Of this total, 3,083 operated with fewer competitive local exchange service, feasible, an estimate of, the number of than 1,000 employees. Thus, under this competitive access providers, Shared- small entities that may be affected by size standard, the majority of firms in Tenant Service Providers, and Other the rules adopted herein. The RFA this industry can be considered small. Local Service Providers are small generally defines the term ‘‘small 201. Incumbent Local Exchange entities. entity’’ as having the same meaning as Carriers. Neither the Commission nor 203. Interexchange Carriers (IXCs). the terms ‘‘small business,’’ ‘‘small the SBA has developed a small business Neither the Commission nor the SBA organization,’’ and ‘‘small governmental size standard specifically for incumbent has developed a small business size jurisdiction.’’ In addition, the term local exchange services. The closest standard specifically for providers of ‘‘small business’’ has the same meaning applicable NAICS Code category is interexchange services. The closest as the term ‘‘small business concern’’ Wired Telecommunications Carriers. applicable NAICS Code category is under the Small Business Act. A ‘‘small Under the applicable SBA size standard, Wired Telecommunications Carriers. business concern’’ is one which (1) is such a business is small if it has 1,500 The applicable size standard under SBA independently owned and operated; (2) or fewer employees. U.S. Census Bureau rules is that such a business is small if is not dominant in its field of operation; data for 2012 indicate that 3,117 firms it has 1,500 or fewer employees. U.S. and (3) satisfies any additional criteria operated the entire year. Of this total, Census Bureau data for 2012 indicate established by the Small Business 3,083 operated with fewer than 1,000 that 3,117 firms operated for the entire Administration (SBA). employees. Consequently, the year. Of that number, 3,083 operated 199. We have included small Commission estimates that most with fewer than 1,000 employees. incumbent LECs in this present RFA providers of incumbent local exchange According to internally developed

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Commission data, 359 companies services. Of these, an estimated 211 great majority of firms can, again, be reported that their primary have 1,500 or fewer employees and two considered small. telecommunications service activity was have more than 1,500 employees. 208. Wireless Communications the provision of interexchange services. Consequently, the Commission Services. This service can be used for Of this total, an estimated 317 have estimates that the majority of local fixed, mobile, radiolocation, and digital 1,500 or fewer employees. resellers are small entities. audio broadcasting satellite uses. The Consequently, the Commission 206. Other Toll Carriers. Neither the Commission defined ‘‘small business’’ estimates that the majority of Commission nor the SBA has developed for the wireless communications interexchange service providers are a size standard for small businesses services (WCS) auction as an entity with small entities. specifically applicable to ‘‘Other Toll average gross revenues of $40 million 204. Operator Service Providers Carriers.’’ This category includes toll for each of the three preceding years, (OSPs). Neither the Commission nor the carriers that do not fall within the and a ‘‘very small business’’ as an entity SBA has developed a small business categories of interexchange carriers, with average gross revenues of $15 size standard specifically for OSPs. The operator service providers, prepaid million for each of the three preceding closest applicable size standard under calling card providers, satellite service years. The SBA has approved these SBA rules is for the category Wired carriers, or toll resellers. The closest small business size standards. In the Telecommunications Carriers. Under applicable size standard under SBA Commission’s auction for geographic that size standard, such a business is rules is for Wired Telecommunications area licenses in the WCS there were small if it has 1,500 or fewer employees. Carriers. The applicable SBA size seven winning bidders that qualified as U.S. Census Bureau data for 2012 show standard consists of all such companies ‘‘very small business’’ entities, and one that there were 3,117 firms that operated having 1,500 or fewer employees. U.S. winning bidder that qualified as a that year. Of this total, 3,083 operated Census Bureau data for 2012 indicates ‘‘small business’’ entity. 209. Wireless Telecommunications with fewer than 1,000 employees. Thus that 3,117 firms operated during that Carriers (except Satellite). This industry under this size standard, the year. Of that number, 3,083 operated comprises establishments engaged in Commission estimates that the majority with fewer than 1,000 employees. Thus, operating and maintaining switching of firms in this industry are small under this category and the associated and transmission facilities to provide entities. According to Commission data, small business size standard, the communications via the airwaves. 33 carriers have reported that they are majority of Other Toll Carriers can be Establishments in this industry have engaged in the provision of operator considered small. According to services. Of these, an estimated 31 have spectrum licenses and provide services internally developed Commission data, 1,500 or fewer employees and 2 have using that spectrum, such as cellular 284 companies reported that their more than 1,500 employees. services, paging services, wireless primary telecommunications service Consequently, the Commission internet access, and wireless video activity was the provision of other toll estimates that the majority of operator services. The appropriate size standard carriage. Of these, an estimated 279 service providers are small entities. under SBA rules is that such a business 205. Local Resellers. The SBA has not have 1,500 or fewer employees. is small if it has 1,500 or fewer developed a small business size Consequently, the Commission employees. For this industry, U.S. standard specifically for Local Resellers. estimates that most Other Toll Carriers Census Bureau data for 2012 show that The SBA category of are small entities. there were 967 firms that operated for Telecommunications Resellers is the 207. Wireless Service Providers. The the entire year. Of this total, 955 firms closest NAICs code category for local SBA has developed a small business employed fewer than 1,000 employees resellers. The Telecommunications size standard for wireless firms within and 12 firms employed of 1000 Resellers industry comprises the two broad economic census employees or more. Thus under this establishments engaged in purchasing categories of ‘‘Paging’’ and ‘‘Cellular and category and the associated size access and network capacity from Other Wireless Telecommunications.’’ standard, the Commission estimates that owners and operators of Under both SBA categories, a wireless the majority of Wireless telecommunications networks and business is small if it has 1,500 or fewer Telecommunications Carriers (except reselling wired and wireless employees. For the census category of Satellite) are small entities. Satellite telecommunications services (except Paging, Census Bureau data for 1997 Telecommunications. This category satellite) to businesses and households. show that there were 1,320 firms in this comprises firms ‘‘primarily engaged in Establishments in this industry resell category, total, that operated for the providing telecommunications services telecommunications; they do not entire year. Of this total, 1,303 firms had to other establishments in the operate transmission facilities and employment of 999 or fewer employees, telecommunications and broadcasting infrastructure. Mobile virtual network and an additional 17 firms had industries by forwarding and receiving operators (MVNOs) are included in this employment of 1,000 employees or communications signals via a system of industry. Under the SBA’s size more. Thus, under this category and satellites or reselling satellite standard, such a business is small if it associated small business size standard, telecommunications.’’ Satellite has 1,500 or fewer employees. U.S. the great majority of firms can be telecommunications service providers Census Bureau data from 2012 show considered small. For the census include satellite and earth station that 1,341 firms provided resale services category Cellular and Other Wireless operators. The category has a small during that year. Of that number, all Telecommunications, Census Bureau business size standard of $35 million or operated with fewer than 1,000 data for 1997 show that there were 977 less in average annual receipts, under employees. Thus, under this category firms in this category, total, that SBA rules. For this category, U.S. and the associated small business size operated for the entire year. Of this Census Bureau data for 2012 show that standard, the majority of these resellers total, 965 firms had employment of 999 there were a total of 333 firms that can be considered small entities. or fewer employees, and an additional operated for the entire year. Of this According to Commission data, 213 12 firms had employment of 1,000 total, 299 firms had annual receipts of carriers have reported that they are employees or more. Thus, under this less than $25 million. Consequently, we engaged in the provision of local resale second category and size standard, the estimate that the majority of satellite

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telecommunications providers are small telecommunications connections and will not affect the reporting, entities. internet service providers using client- recordkeeping, or other compliance 210. Wireless Telephony. Wireless supplied telecommunications requirements of carriers, including telephony includes cellular, personal connections (e.g., dial-up ISPs) fall in small entities. communications services, and the category of All Other F. Steps Taken To Minimize the specialized mobile radio telephony Telecommunications. The SBA has carriers. The closest applicable SBA developed a small business size Significant Economic Impact on Small category is Wireless standard for All Other Entities, and Significant Alternatives Telecommunications Carriers (except Telecommunications which consists of Considered Satellite). Under the SBA small business all such firms with gross annual receipts 215. The RFA requires an agency to size standard, a business is small if it of $35 million or less. For this category, describe any significant alternatives that has 1,500 or fewer employees. For this U.S. Census Bureau data for 2012 show it has considered in reaching its industry, U.S. Census Bureau data for that there were 1,442 firms that operated proposed approach, which may include 2012 show that there were 967 firms for the entire year. Of these firms, a total the following four alternatives (among that operated for the entire year. Of this of 1,400 had gross annual receipts of others): (1) The establishment of total, 955 firms had fewer than 1,000 less than $25 million. Consequently, differing compliance or reporting employees and 12 firms had 1000 under this size standard a majority of requirements or timetables that take into employees or more. Thus under this firms in this industry can be considered account the resources available to small category and the associated size small. entities; (2) the clarification, standard, the Commission estimates that 213. All Other Telecommunications. consolidation, or simplification of a majority of these entities can be The ‘‘All Other Telecommunications’’ compliance or reporting requirements considered small. According to category is comprised of establishments under the rule for small entities; (3) the Commission data, 413 carriers reported primarily engaged in providing use of performance, rather than design, that they were engaged in wireless specialized telecommunications standards; and (4) an exemption from telephony. Of these, an estimated 261 services, such as satellite tracking, coverage of the rule, or any part thereof, have 1,500 or fewer employees and 152 communications telemetry, and radar for small entities. have more than 1,500 employees. station operation. This industry also 216. In arriving at the conclusions Therefore, more than half of these includes establishments primarily described above, the Commission entities can be considered small. engaged in providing satellite terminal considered various alternatives, which 211. Internet Service Providers stations and associated facilities it rejected or accepted for the reasons set (Broadband). While ISPs are only connected with one or more terrestrial forth in the body of this Order, and indirectly affected by our present systems and capable of transmitting made certain changes to the rules to actions, and ISPs are therefore not telecommunications to, and receiving reduce undue regulatory burdens, formally included within this present telecommunications from, satellite consistent with the Communications FRFA, we have addressed them systems. Establishments providing Act and with guidance received from informally to create a fuller record and internet services or voice over internet the courts. These efforts to reduce to recognize their participation in this protocol (VoIP) services via client- regulatory burden will affect both large proceeding. Broadband internet service supplied telecommunications and small carriers. The significant providers include wired (e.g., cable, connections are also included in this alternatives that commenters discussed DSL) and VoIP service providers using industry. The SBA has developed a and that we considered are as follows. their own operated wired small business size standard for ‘‘All telecommunications infrastructure fall Other Telecommunications’’, which 217. Maintaining the status quo. The in the category of Wired consists of all such firms with annual main alternative plan that was suggested Telecommunication Carriers. Wired receipts of $35 million or less. For this in the comments was to simply leave Telecommunications Carriers are category, U.S. Census Bureau data for the rules as they are. We decline to do comprised of establishments primarily 2012 show that there were 1,442 firms so, in light of the importance of engaged in operating and/or providing that operated for the entire year. Of deployment of facilities-based access to transmission facilities and those firms, a total of 1,400 had annual competition and next-generation infrastructure that they own and/or receipts less than $25 million and 15 infrastructure, which is one of the lease for the transmission of voice, data, firms had annual receipts of $25 million central motivations behind this Order as text, sound, and video using wired to $49, 999,999. Thus, the Commission well as the Commission’s telecommunications networks. estimates that the majority of ‘‘All Other congressionally mandated goal. Transmission facilities may be based on Telecommunications’’ firms potentially 218. Business Data Services/DS1 & a single technology or a combination of affected by our action can be considered DS3 Loops. In this Order, we have technologies. The SBA size standard for small. limited unbundling of DS1 and DS3 this category classifies a business as loops to areas where there is insufficient small if it has 1,500 or fewer employees. E. Description of Reporting, evidence of competition. In reaching U.S. Census Bureau data for 2012 show Recordkeeping, and Other Compliance this conclusion, we considered that there were 3,117 firms that operated Requirements for Small Entities comments from small competitive LECs, that year. Of this total, 3,083 operated 214. The objective of the new who in general would prefer greater with fewer than 1,000 employees. regulatory framework is to encourage access to these UNEs. We rejected their Consequently, under this size standard the deployment of next-generation arguments on the ground that the the majority of firms in this industry can networks and to unburden incumbent reasonably efficient competitor would be considered small. LECs where there is substantial not rely on DS1 or DS3 loops as 212. Internet Service Providers (Non- evidence of facilities-based competition reasonably efficient technology for Broadband). internet access service and market entry. Beyond the benefits market entry. Furthermore, we find that providers such as Dial-up internet that providers will enjoy from a commenters do not adequately consider service providers, VoIP service decreased regulatory burden on their the prospect of competitive deployment providers using client-supplied day-to-day operations, these changes nor the advantages held out by such

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deployment, where feasible, for send a copy of this Report and Order to ■ i. Removing and reserving paragraph consumers and carriers alike. Congress and the Government (b)(2); 219. Transition Plans. The Order also Accountability Office pursuant to 5 ■ j. Revising paragraph (b)(3)(i); sets out transition plans to govern the U.S.C. 801(a)(1)(A). ■ k. Removing paragraph (c); migration away from UNEs where a ■ l. Redesignating paragraph (d) through particular element is no longer available V. Ordering Clauses (f) as paragraph (c) through (e); and on an unbundled basis. We have 223. Accordingly, it is ordered that, ■ m. Revising newly redesignated considered various comments indicating pursuant to sections 1–4, 10, 201, 202, paragraphs (c)(2)(iv) and (e). that many small businesses have built and 251 of the Communications Act of The revisions and additions read as their business plans on the basis of 1934, as amended, 47 U.S.C. 151–154, follows: continued access to UNEs and have 160, 201, 202, and 251, this Report and § 51.319 Specific unbundling worked to ensure that the transition Order Is adopted and shall be effective requirements. plans will give competing carriers a thirty (30) days after publication in the (a) * * * sufficient opportunity to transition to Federal Register. (1) Copper loops. An incumbent LEC alternative facilities or arrangements. 224. It is further ordered that part 51 shall provide a requesting This alternative represents a reasonable of the Commission’s rules is amended as telecommunications carrier with accommodation for small entities and set forth in the Final Rules and shall be nondiscriminatory access to the copper others, which we believe will ultimately effective on the effective date on an unbundled basis in census blocks result in an orderly and efficient announced herein. defined as rural or urban cluster by the 225. It is further ordered that the transition. Therefore, as set forth in the Census Bureau. A copper loop is a Commission shall send a copy of this Order, we have adopted plans to stand-alone local loop comprised Report and Order to Congress and the grandfather unbundled access to dark entirely of copper wire or cable. For Government Accountability Office fiber loops for eight years where they purposes of this section, copper loops pursuant to the Congressional Review are already in use; for DS1 loops, a two- include only digital copper loops (e.g., Act, see 5 U.S.C. 801(a)(1)(A). part transition of 24 months for new DS0s and integrated services digital orders and 42 months for existing loops; 226. It is further ordered that the network lines) as well as two-wire and for DS0 loops, a 24 month period for Commission’s Consumer & four-wire copper loops conditioned to new orders and a 48-month Governmental Affairs Bureau, Reference transmit the digital signals needed to grandfathering period for all Information Center, shall send a copy of provide digital subscriber line services, competitive LEC customers; for OSS this Report and Order, including the regardless of whether the copper loops UNEs, a period equivalent to the Final Regulatory Flexibility Analysis, to are in service or held as spares. The respective UNE the OSS UNE is used to the Chief Counsel for Advocacy of the copper loop does not include packet order and manage; and a three-year Small Business Administration. switching capabilities as defined in transition period for those who List of Subjects in 47 CFR Part 51 paragraph (a)(2)(i) of this section. The currently utilize other UNEs that will cease to be available. Communications, Communications availability of DS1 and DS3 copper common carriers, Telecommunications, loops is subject to the requirements of G. Report to Congress Telephone. paragraphs (a)(4) and (5) of this section. 220. The Commission will send a Federal Communications Commission. * * * * * copy of the Report and Order, including (v) Transition period for narrowband Marlene Dortch, this FRFA, in a report to be sent to loops. Notwithstanding any other Congress pursuant to the Congressional Secretary. provision of the Commission’s rules in Review Act. In addition, the Final Rules this part, an incumbent LEC shall continue to provide a requesting Commission will send a copy of the For the reasons discussed in the telecommunications carrier with Report and Order, including this FRFA, preamble, the Federal Communications nondiscriminatory access to two-wire to the Chief Counsel for Advocacy of the Commission amends 47 CFR part 51 as and four-wire analog voice grade copper SBA. A copy of the Order and FRFA (or follows: summaries thereof) will also be loops, the TDM-features, functions, and published in the Federal Register. PART 51—INTERCONNECTION capabilities of hybrid loops, or to a 64 221. Paperwork Reduction Act of 1995 kilobits per second transmission path Analysis. This document does not ■ 1. The authority citation for part 51 capable of voice grade service over the contain information collection(s) subject continues to read as follows: fiber-to-the-home loop or fiber-to-the- to the Paperwork Reduction Act of 1995 Authority: 47 U.S.C. 151–55, 201–05, 207– curb loop for 36 months until February (PRA), Public Law 104–13. In addition, 09, 218, 225–27, 251–52, 271, 332 unless 8, 2024, provided such loop was being therefore, it does not contain any new otherwise noted. provided before February 8, 2021. or modified information collection (vi) Transition period for digital ■ 2. Section 51.319 is amended by: copper loops and two-wire and four- burden for small business concerns with ■ a. Revising paragraph (a)(1) wire copper loops conditioned to fewer than 25 employees, pursuant to introductory text; the Small Business Paperwork Relief ■ b. Adding paragraphs (a)(1)(v) and transmit digital signals. Act of 2002, Public Law 107–198, see 44 (vi); Notwithstanding the remainder of U.S.C. 3506(c)(4). ■ c. Removing and reserving paragraph paragraph (a)(1) of this section, an 222. Congressional Review Act. The (a)(2)(ii) and removing paragraphs incumbent LEC shall continue to Commission has determined, and the (a)(2)(iii) and (a)(3)(iii)(C); provide a requesting Administrator of the Office of ■ d. Revising paragraph (a)(4)(i); telecommunications carrier with Information and Regulatory Affairs, ■ e. Adding paragraph (a)(4)(iii); nondiscriminatory access to copper Office of Management and Budget, ■ f. Revising paragraph (a)(5)(i); loops as defined in this section for 48 concurs that this rule is ‘‘non-major’’ ■ g. Adding paragraph (a)(5)(iii); months until February 10, 2025, under the Congressional Review Act, 5 ■ h. Revising paragraph (b) introductory provided that the incumbent LEC began U.S.C. 804(2). The Commission will text; providing such loop no later than

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February 8, 2023. Incumbent LECs may (1) Any county or portion of a county not technically feasible to unbundle the raise the rates charged for such loops by served by a price cap incumbent LEC subloop at the point requested. no more than 25 percent during months that is not included on the list of * * * * * 37 to 48 of this transition period and counties that have been deemed may charge market-based rates after competitive pursuant to the competitive (c) * * * month 48. market test established under § 69.803 (2) * * * * * * * * of this chapter; or (iv) Dark fiber transport. Dark fiber (4) * * * (2) Any study area served by a rate- transport consists of unactivated optical (i) Availability of DS1 loops. (A) of-return incumbent LEC provided that interoffice transmission facilities. study area is not included on the list of Subject to the cap described in Incumbent LECs shall unbundle dark competitive study areas pursuant to the paragraph (a)(4)(ii) of this section, an fiber transport between any pair of competitive market test established incumbent LEC shall provide a incumbent LEC wire centers except under § 61.50 of this chapter. requesting telecommunications carrier where, through application of tier with nondiscriminatory access to a DS1 (B) Once a wire center exceeds the business line and fiber-based collocator classifications described in paragraph loop on an unbundled basis to any (d)(3) of this section, both wire centers building not served by a wire center thresholds, no future DS3 loop defining the route are either Tier 1, Tier with at least 60,000 business lines and unbundling will be required in that wire 2, or a Tier 3 wire center identified on at least four fiber-based collocators, but center. A DS3 loop is a digital local loop only if that building is located in: having a total digital signal speed of the list of wire centers that has been (1) Any county or portion of a county 44.736 megabytes per second. found to be within a half mile of served by a price cap incumbent LEC * * * * * alternative fiber pursuant to the Report that is not included on the list of (iii) Transition period. and Order on Remand and counties that have been deemed Notwithstanding paragraph (a)(5)(i) of Memorandum Opinion and Order in competitive pursuant to the competitive this section, an incumbent LEC shall WC Docket No. 18–14, FCC 19–66 market test established under § 69.803 continue to provide a requesting (released July 12, 2019). An incumbent of this chapter; or telecommunications carrier with LEC must unbundle dark fiber transport (2) Any study area served by a rate- nondiscriminatory access to DS3 loops only if a wire center on either end of a of-return incumbent LEC provided that for 36 months after until February 8, requested route is a Tier 3 wire center study area is not included on the list of 2024, provided such loop was being that is not on the published list of wire competitive study areas pursuant to the provided before February 8, 2021. centers. Notwithstanding any other competitive market test established * * * * * provision of the Commission’s rules in under § 61.50 of this chapter. (b) Subloops and network interface this part, an incumbent LEC shall (B) Once a wire center exceeds both devices. An incumbent LEC shall continue to provide a requesting the business line and fiber-based provide a requesting telecommunications carrier with collocator thresholds, no future DS1 telecommunications carrier with nondiscriminatory access to dark fiber loop unbundling will be required in that nondiscriminatory access to subloops transport for eight years until February wire center. A DS1 loop is a digital local on an unbundled basis in accordance 8, 2029, provided such dark fiber loop having a total digital signal speed with section 251(c)(3) of the Act and transport was being provided before of 1.544 megabytes per second. DS1 this part and as set forth in this February 8, 2021. loops include, but are not limited to, paragraph (b), provided that the two-wire and four-wire copper loops underlying loop is available as set forth * * * * * capable of providing high-bit rate digital in paragraph (a) of this section. (e) Operations support systems. An subscriber line services, including T1 Notwithstanding any other provision of incumbent LEC shall provide a services. the Commission’s rules in this part, an requesting telecommunications carrier * * * * * incumbent LEC shall continue to with nondiscriminatory access to (iii) Transition period. provide a requesting operations support systems on an Notwithstanding paragraph (a)(4)(i) of telecommunications carrier with unbundled basis only when it is used to this section, an incumbent LEC shall nondiscriminatory access to the subloop manage other unbundled network continue to provide a requesting for access to multiunit premises wiring elements, local interconnection, or local telecommunications carrier with and network interface devices on an number portability, in accordance with nondiscriminatory access to DS1 loops unbundled basis for 36 months until section 251(c)(3) of the Act and this for 42 months until August 8, 2024, February 8, 2024, provided such part. Operations support system provided the incumbent LEC began subloop or network interface device was functions consist of pre-ordering, being provided before February 8, 2021. providing such loop no later than ordering, provisioning, maintenance February 8, 2023. * * * * * and repair, and billing functions (5) * * * (3) * * * supported by an incumbent LEC’s (i) Availability of DS1 loops. (A) (i) Technical feasibility. If parties are databases and information. An Subject to the cap described in unable to reach agreement through incumbent LEC, as part of its duty to paragraph (a)(5)(ii) of this section, an voluntary negotiations as to whether it incumbent LEC shall provide a is technically feasible, or whether provide access to the pre-ordering requesting telecommunications carrier sufficient space is available, to function, shall provide the requesting with nondiscriminatory access to a DS3 unbundle a copper subloop at the point telecommunications carrier with loop on an unbundled basis to any where a telecommunications carrier nondiscriminatory access to the same building not served by a wire center requests, the incumbent LEC shall have detailed information about the loop that with at least 38,000 business lines and the burden of demonstrating to the state is available to the incumbent LEC. at least four fiber-based collocators, but commission, in state proceedings under [FR Doc. 2020–25254 Filed 1–7–21; 8:45 am] only if that building is located in one of section 252 of the Act, that there is not BILLING CODE 6712–01–P the following: sufficient space available, or that it is

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