BASIS, PURPOSE, AND STATUTORY AUTHORITY The basis and purpose of these rules are to prescribe the provision of certain regulated telecommunications products and services of local exchange telecommunications providers that fall within the Open Network Architecture (ONA) environment created at the Federal Communications Commission (FCC) for the introduction of new and innovative enhanced services and technologies to the public through the technology of the local network and for the fair and nondiscriminatory provision of local exchange providers' basic products and services to all Enhanced Service Providers (ESPs), including the ESPs of the local exchange providers themselves. These rules deal specifically with Colorado intrastate products and services and the relationship of intrastate products and services with the federal ONA policies.

The rules are clear and simple and can be understood by persons expected to comply with them. They do not conflict with any other provision of law, and there are no duplicating or overlapping rules. The statutory authority for these rules is §40-2-108, C.R.S. RULE 1 - APPLICABILITY Rules 2 through 5 are applicable to all local exchange providers (LECs) which provide products and services that are under the ONA environment as it is defined in these rules. RULE 2 - GENERAL 2.1 Open Network Architecture is a concept originally established by the Federal Communications Commission (FCC). The purpose of ONA is to provide nondiscriminatory access to regulated products and services furnished by the local exchange provider to all ESPs so that they can offer innovative, technically efficient and cost-effective enhanced services for the benefit of Colorado consumers.

2.2 It is the purpose of the FCC ONA rules to limit the Bell Operating Companies' (BOCs) abilities to cross-subsidize enhanced service operations that have been deregulated by the FCC with revenues from regulated products and services or to engage in other anticompetitive activities.

2.3 These rules will provide an environment in the enhanced services industry that will actively promote the competitive nature of the telecommunications industry without adversely affecting the affordability of basic local exchange telecommunications services, will encourage technological advancements, and will provide increased customer choices in the marketplace.

2.4 Each individual product or service will be reviewed by the Commission on a case-by-case basis. The LEC will have the burden of proving that any prices of present or proposed Basic Service Elements (BSEs) or Complementary Network Services (CNSs) are consistent with the following general pricing guidelines:

2.4.1 All prices for regulated ONA products and services must be just and reasonable in accordance with §40-3-101, C.R.S.

2.4.2 All prices for ONA products and services must be set to promote a competitive telecommunications marketplace while protecting and maintaining the wide availability of high quality telecommunications service in accordance with §40-15-101, C.R.S.

2.4.3 In accordance with §40-15-106, C.R.S., ONA products and services that have been specifically deregulated by Colorado statute or by the Colorado Commission shall not be subsidized by products or services that are subject to the jurisdiction of the Commission.

2.4.4 The relationship between prices and costs shall be determined on a case-by-case basis utilizing all relevant information, including all available cost, market demand, competitive factors and consideration of existing cross elastic products or services.

2.4.5 When determining whether rates are just and reasonable for ONA products and services, the rate must be set (1) above an appropriate cost floor so as not to be subsidized by other regulated products or services; and (2) not be priced so high above such cost floors that such pricing would discourage or eliminate competition. RULE 3 - DEFINITIONS 3.1 Basic Service Element (BSE) - Optional unbundled products or services (such as Calling Number Identification) provided by a local exchange telecommunications provider that an ESP may require or find useful in configuring an enhanced service on a Basic Serving Arrangement.

3.2 Basic Serving Arrangement (BSA) - The fundamental tariffed switching and transport services that allow an ESP to communicate with its customers through the local exchange provider's network. Examples include basic local exchange service, private line service, and switched access. Special access is a form of BSA, but is currently deregulated.

3.3 Colocation - Placement of ESP equipment within the local exchange provider's central office.

3.4 Common Channel Signaling System #7 (SS7) - A technology that is compatible with, but not dependent upon, Integrated Services Digital Network (ISDN) for conveying call set-up and related information through data channels that are separate from the channels that customarily carry voice signals or comparable information content.

3.5 Common ONA Model - Model devised by the BOCs and Bellcore that represents the functional means through which an ESP would interconnect with the BOCs network.

3.6 Comparably Efficient Interconnection (CEI) - Plan established through Computer Inquiry III (CI-3) at the FCC for BOCs to provide enhanced deregulated services as long as they offered similar interconnections to other providers. This plan was instituted as a forerunner of ONA.

3.7 Complementary Network Services (CNS) - Optional unbundled basic products and services (such as stutter dial tone) that an end user or an ESP may obtain from an LEC for provision on an end user's line in order to access or receive an enhanced service.

3.8 Customer Proprietary Network Information (CPNI) - Customer information accumulated by the local exchange provider as a result of providing basic network services.

3.8.1 Customer-specific CPNI - Information that is customer-specific and includes billing name and address, quantities of services subscribed to by the customer, access arrangements, calling patterns, usage data, and customer billing records. Listed name, address and telephone number are not subject to this definition.

3.8.2 Aggregate CPNI - Aggregated or summarized customer-specific CPNI from which information identifying specific customers has been deleted.

3.9 Enhanced Service - A service offered over common carrier transmission facilities that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the customer's transmitted information; provide the customer with additional, different, or restructured information; or involve customer interaction with stored information.

3.10 Enhanced Service Provider (ESP) - Provider of enhanced services that utilizes ONA products or services of regulated telecommunications providers, including interexchange carriers (IXCs) and resellers acting as ESPs.

3.11 Information Industry Liaison Committee (IILC) - The forum designated by the FCC for future input and further development of ONA at the federal level.

3.12 Joint Marketing - The offering, in the ordinary course of business, of enhanced services and basic products or services to the same customer during the same telephone sales contact where the telephone contact has been initiated by the customer. It does not include sales activities where face-to-face contacts are made with customers or their representatives, or to sales activities where the telephone contact is initiated by the LEC.

3.13 ONA Products and Services - BSAs, BSEs and CNSs.

RULE 4 - SPECIFIC OPEN NETWORK ARCHITECTURE RULES 4.1 AVAILABILITY OF SERVICES. All existing and future ONA product or service offerings will be made available for use with whatever access arrangements are lawfully available to the customer and technically compatible with the services.

4.1.1 All BSEs and CNSs filed in the LEC's exchange and network services tariff will also be made available for purchase and resale by all ESPs, including IXCs and resellers acting as ESPs. If a BSE or CNS is technically compatible with an access BSA, then that element should also be filed in the appropriate section of an access tariff. Equivalent pricing and terms and conditions should prevail in those situations where the same BSE or CNS is filed in both the exchange and access tariffs.

4.1.2 LECs who offer deregulated enhanced services will purchase BSAs, BSEs and CNSs (and other basic products or services) at tariffed rates where such products or services are offered under tariff. Where a BSE or CNS has been deregulated or detariffed in Colorado, the LEC may offer this product or service to the public through a price list; however, deregulated products and services are not subject to the jurisdiction of the Commission (§40-15-102(6)) and are not subject to these rules.

4.1.3 LECs who also offer deregulated enhanced services will maintain a separate section of their tariff containing a listing of all ONA products and services offered by that LEC. This separate ONA section will reference the appropriate tariff and tariff section for each product and service in question if a complete set of rates, terms and conditions is not contained in this separate ONA section. This ONA tariff section will also include a compatibility matrix indicating which BSEs and CNSs are available with each BSA category.

4.1.4 LECs will make available to all ESPs, including IXCs and resellers acting as ESPs, a three year deployment projection, by market area and wire center, of ONA product or service availability.

4.1.5 LECs will make available to all ESPs, including IXCs and resellers acting as ESPs, technical references to documents that provide the technical specifications of LECs' interfaces that could affect customer premises equipment or the functionalities provided to ESPs for the purpose of providing enhanced services.

4.1.6 All requests for ONA products or services by the ESPs shall be evaluated by the LEC for viability. The ONA product or service shall be offered by the LEC if sufficient market demand is demonstrated for that particular ONA product or service. If market demand is not sufficient to produce a global offering, the LEC will offer the product or service priced on an individual case basis (ICB) if the ESP still desires the product or service and is willing to pay a price that is compensatory to the LEC. These ICB rates will be subject to review by the Commission, including being subject to Rules 4.3 and 5 following. In the event that the LEC satisfies an ESP request for an ONA product or service under an ICB arrangement, the LEC will negotiate appropriate handling of development costs if additional market demand develops for the product or service. Adjustments or credits to the ICB customer will be based on the new demand data.

4.2 CUSTOMER PROPRIETARY NETWORK INFORMATION

4.2.1 Access to CPNI is allowed to ESPs only as provided in 4.2.1 through 4.2.7, inclusive, and consistent with the Commission's Rules on the Collection and Disclosure of Personal Information (4 CCR 723-7).

4.2.2 LEC personnel involved in marketing or provisioning enhanced services shall not be permitted access to customer-specific CPNI without prior written authorization from individual customers with more than twenty lines. LEC personnel involved in marketing or provisioning enhanced services shall be permitted access to customer-specific CPNI without prior written authorization from individual customers with twenty or less lines, unless a customer has specifically requested restriction of the CPNI. In instances where a customer has requested restriction of CPNI, access to customer-specific CPNI shall be limited to LEC personnel who are not involved in marketing or provisioning enhanced services. LECs shall provide a simple and convenient way for customers to request such restriction.

4.2.3 LECs shall mail a notification to each customer with more than 20 lines describing the customer's option to restrict CPNI access. Such notification shall be mailed within six months of the adoption of these rules and annually thereafter. oral notification shall be provided to customers with more than 20 lines at the time of initiating service. Further written notification shall be provided to customers with more than 20 lines within 60 days of initiation of service. LECs shall also prominently display a comparable notification to all customers in the LECs' local telephone directories.

4.2.4 Customer-specific CPNI shall not be disclosed by a LEC to non-LEC ESPs, LEC affiliates, or other third parties without written authorization of the customer or their agent. Customers may designate an ESP, LEC affiliate, or other third party as their agent. Nothing in these rules shall be construed to preclude or prohibit an ESP from ordering ONA services for and on behalf of its customer without presenting written authorization from the customer to the LEC.

4.2.5 The use of customer-specific CPNI by the LEC for billing and for provisioning of Part 2 and Part 3 services of Title 40 Article 15 OF C.R.S. (including the publishing of directories) shall not be subject to these restrictions, but such use shall be consistent with the Commission's Rules on the Collection and Disclosure of Personal Information (4 CCR 723-7).

4.2.6 All aggregate CPNI available to the ESP affiliated with the LEC shall be made available to ESPs under the same rates, terms and conditions as the ESP affiliated with the LEC.

4.2.7 Each LEC shall specifically state in its tariffs the terms and conditions for providing CPNI and the specific types of customer-specific and aggregate CPNI that it will offer.

4.3 UNBUNDLING OF LOCAL EXCHANGE PROVIDER SERVICES

4.3.1 LECs shall provide ESPs with the necessary services of the LEC to serve as building blocks to bring new enhanced services to consumers. The LECs shall be responsive to ESP requests in unbundling their services to the extent that is technically and economically feasible.

4.3.2 A detailed record of all requests made by ESPs for the unbundling of specific LEC services shall be maintained and made available to the Commission. This information shall contain the name of the requesting ESP, the date of the request, the specific type of unbundling requested, the LEC's planned and actual response date, and the response of the LEC.

4.3.3 Any ESP that has been denied a specific service unbundling by a LEC may file a complaint in accordance with §40-6-108, C.R.S.

4.4 COLOCATION OF ESP EQUIPMENT IN LOCAL EXCHANGE PROVIDER PREMISES

4.4.1 The colocation of ESP facilities or equipment within LEC's facilities is optional to the LEC.

4.4.2 If a LEC allows colocation of ESP facilities or equipment that is not that of its own ESP, then it must allow colocation by other ESPs under the same terms and conditions. This rule is subject to the provisions of Rule 4.4.3 following.

4.4.3 If security or safety issues arise, the LEC may, at its option, disallow colocation of an ESP's facilities or equipment. The facts surrounding the disallowance of colocation for security or safety issues must be made available to the Commission and to the ESP denied colocation.

4.4.4 If the LEC's ESP is physically colocated within the facilities of the LEC and at least one ESP is not allowed colocation in that same facility, then the LEC must price its ONA products and services to its own ESP as if the ESP were physically located two miles from that local exchange provider facility.

4.4.5 LECs must ensure that the basic services used by their enhanced service operations are available to other ESPs in an equally efficient manner. Factors for evaluating this standard will include the absence of systematic differences between the basic service access given to the LEC and to others, end-user perception of quality, and utility to other ESPs.

4.5 REGULATORY TREATMENT OF ONA PRODUCTS AND SERVICES

4.5.1 Unless specifically defined as deregulated products and services by §40-15-401, C.R.S., all products or services that are defined as ONA products and services by an LEC will be treated as regulated products and services under either §40-15-201 or §40-15-301, C.R.S.

4.5.2 If a product or service offered by a LEC is subsequently deregulated, that product or service will not be treated under these ONA rules, except in regulatory oversight to prevent improper cross subsidization between regulated and unregulated products and services in accordance with §40-15-106.

4.6 Before an LEC offers an enhanced service to a customer in a joint marketing contact, the customer shall be advised orally, in an unbiased manner, that other providers offer alternative services to the enhanced service being offered by the LEC.

4.7 Joint marketing between the LEC and its own ESP shall be undertaken by contract.

4.7.1 A customer who, as the result of a joint marketing contact, has contracted for an enhanced service with an ESP affiliated with the LEC shall have seven (7) days in which to cancel the enhanced service without cost to the customer.

4.7.2 At the time of any joint marketing contact pursuant to 4.7.1, the LEC shall inform the customer of his or her right to cancel the enhanced service without cost. RULE 5 - ONA COMPLAINT PROCESS 5.1 At any time when a disagreement arises between an ESP and a LEC regarding the provision of local exchange services under these rules, either party may file a complaint with the Commission in accordance with §40-6-108, C.R.S.

5.2 LECs and ESPs may establish and are encouraged to enter into arbitration agreements on ONA issues in accordance with Colorado Uniform Arbitration Act found at §§13-22-201 to 223, C.R.S.