BASIS, PURPOSE, AND STATUTORY AUTHORITY.

The basis and purpose of these rules is to establish regulations regarding the resale of telecommunications exchange services. These rules ensure the non-discriminatory availability of services for resale in a manner that allows resellers to provide service to their end-users in a way that enhances competition.

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. These rules are issued pursuant to Sections 40-2-108, 40-15-108, 40-15-502 (5) (b), and 40-15-503 (2) (b) (IV) C.R.S.

RULE 4 CCR 723-40-1. APPLICABILITY.

These rules are applicable to all certified telecommunications providers that provide telecommunications exchange service in the state of Colorado.

RULE 4 CCR 723-40-2. DEFINITIONS.

The meaning of terms used within these rules shall be consistent with their general usage in the telecommunications industry unless specifically defined by Colorado statute or this rule. As used in these rules, unless the Context indicates otherwise, the following definitions shall apply: 723-40-2.1 Facilities-based telecommunications provider. A certified provider of telecommunications exchange service who owns facilities.

723-40-2.2 Incumbent Facilities Based Telecommunications Provider. A facilities-based telecommunications provider that, on February 8, 1996, provided telephone exchange service in Colorado and either (a) on such date was a member of the exchange carrier association; or (b) is a person or entity that became a successor or assign of a member described in clause (a) . A facilities-based telecommunications provider will also be treated as an incumbent telecommunications pro-vider if the Federal Communications Commission has deter-mined that such provider (or class or category thereof) shall be treated as an incumbent local exchange carrier, pursuant to 47 U.S.C. § 251 (h) (2).

723-40-2.3 Operational support. Mechanisms used to facilitate the resale of telecommunications services including, but not limited to, the taking of service and repair orders, and the exchange of billing data and end-user account data in a manner consistent with Federal and Colorado law, through the mutual exchange of information between facilities-based telecommunications providers and resellers. This information may be exchanged in a variety of ways which may include, but is not limited to, electronic interfaces, technical interfaces, or access to databases. 723-40-2.4 Reseller. A certified provider of telecommunications services who purchases, pursuant to Commission-approved contract or effective tariff, telecommunications services from a facilities- based telecommunications provider and then offers the services, either by themselves as separate tariff offerings or in combination with other services, to an end-user. 723-40-2.5 Rural telecommunications provider. A telecommunications provider which: (1) serves only rural exchanges of ten thousand or fewer access lines; (2) provides common carrier service to any local exchange carrier study area that does not include either (a) any incorporated place of 10,000 inhabitants or more, or any part thereof, based on the most recently available population statistics of the Bureau of the Census; or (b) any territory, incorporated or unincorporated, included in an urbanized area, as defined by the Bureau of the Census as of August 10, 1993; (3) provides telephone exchange service, including exchange access, to fewer than 50,000 access lines;

(4) provides telephone exchange service to any local exchange carrier study area with fewer than 100,000 access lines; or, (5) had less than 15 percent of its access lines in communities of more than 50,000 on February 8, 1996.

723-40-2.6 Telecommunications. The transmission, between or among points specified by the user, of information of - the user's choosing, without change in the form or content of the information as sent and received.

723-40-2.7 Telecoromunications exchange service. Service within a telephone exchange, or within a connected system of telephone exchanges within the same exchange area, operated to furnish subscribers with intercommunicating service of the character ordinarily furnished by a single exchange, and which is covered by the exchange service charge. 723-40-2.8 Telecommunications provider. Any provider of telecommunications exchange services. 723-40-2.9 Telecommunications service. The offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used.

RULE 4 CCR 723-40-3. REGULATION OF FACILITIES-BASED TELECOMMUNICATIONS PROVIDERS.

723-40-3.1 To encourage the development of balanced competition, all facilities-based telecommunications providers shall neither prohibit nor impose unreasonable or discriminatory conditions or limitations on, the resale of their regulated telecommunications services. 723-40-3.2 Facilities-based telecommunications providers shall not be required to modify their Commission-established local calling areas for the purpose of accommodating a reseller. 723-40-3.3 Operational Support 723-40-3.3.1 Each facilities-based telecommunications provider shall offer, in a non- discriminatory manner, pursuant to contract or tariff, the operational support necessary to enable each reseller, certified within the facilities-based telecommunications provider's service territory, the opportunity to provide the reseller's end-users the same quality of service, consistent with 4 CCR 723-2, as is available to the facilities-based telecommunications provider's end-users.

723-40-3.3.2 Such contracts shall be approved by the Commission and available for review pursuant to Commission order.

723-40-3.4 A facilities-based telecommunications provider may require a deposit from a reseller, pursuant to a Commission approved tariff filing,. The tariff shall specify, at a minimum, the amount of the deposit, the circumstances under which the deposit shall be required, when the deposit shall be returned, and the terms and conditions of the forfeiture of the deposit' Such deposit shall be in an amount sufficient to recover the reasonable costs borne by the facilities-based telecommunications provider in the event the reseller (1) abandons, discontinues, or curtails telecommunications exchange service without Commission approval or (2) fails to pay thefacilities-based telecommunications provider for services rendered. 723-40-3.5 In the event a reseller abandons, discontinues, or curtails telecommunications exchange service without Commission approval, the facilities-based telecommunications provider shall (1) notify each customer of the reseller's abandonment, discontinuance, or curtailment of service and of the customer's option to receive services directly from the facilities-based telecommunications provider or switch to another provider, and, (2) provide, at a minimum, exchange telecommunications service to each of the reseller's former customers pursuant to the facilities- based telecommunications provider's rates, terms, and conditions, unless the customer requests service from another provider.

723-40-3.6 Subject to Commission approval, an incumbent facilities-based telecommunications provider shall charge resellers a price equal to the retail price the provider charges end-users adjusted for any marketing, billing, collection, and other costs that will be avoided by the incumbent facilities- based telecommunications provider. For purposes of this rule, the price charged to resellers shall also reflect any package discounts the incumbent facilities-based telecommunications provider offers to its end-users for a combination of products if the resold combination of products purchased is identical.

RULE 4~CCR 723-40-4. SERVICE QUALITY.

723-40-4.1 For purposes of compliance with the Commission's Rules Regulating Telecommunications Service Providers and Telephone Utilities (4 CCR 723-2), the reseller is a customer of the facilities-based telecommunications provider.

723-40-4.2 All providers of local exchange services, including resellers, shall comply with all Commission rules applicable to local exchange service providers.

723-40-4.3 The provider of local exchange services that directly interfaces with the end-user is obligated to serve that end-user according to the Commission's rules. 723-40-4.4 Services offered for resale by the facilities-based telecommunications provider must be provisioned at the same standard of quality as the services offered to its end-users. RULE 4 CCR 723-40-5. CONFIDENTIALITY.

723-40-5.1 Each facilities-based telecommunications provider shall establish procedures to ensure that its personnel, including but not limited to those personnel who are involved in the provision of resold service and operational support to resellers, (1) hold as confidential all information about the reseller and its end-users obtained solely from providing services to a reseller and, (2) not utilize that information to compete against the reseller. 723-40-5.2 Each facilities-based telecommunications provider shall establish procedures to ensure that specific or summarized information about a reseller or its end-users obtained solely from providing services to the reseller is not used by the provider to (1) develop marketing strategy to compete with the reseller or, (2) develop, market or sell services that compete with the reseller. 723-40-5.3 Each facilities-based telecommunications provider and each reseller of its services shall develop mutually agreeable and reciprocal arrangements for the protection of their respective customer proprietary network information.

RULE 4 CCR 723-40-6. TARIFF FILINGS.

723-40-6.1 Except for those providers addressed in Rule 6.2, each facilities-based telecommunications provider shall file tariffs with the Commission implementing the resale of services according to these rules within 30 days of the effective date of these rules, or within 30 days of the date the facilities-based telecommunications provider receives operating authority. 723-40-6.2 Rural facilities-based telecommunications providers shall file tariffs with the Commission implementing the resale of requested services according to these rules within 30 days after such company has received a bona fiderequest by a reseller that has been granted operating authority within the facilities-based telecommunications provider's service territory and the Commission has determined that such request is not unduly economically burdensome and is technically feasible.

RULE 4 CCR 723-40-7. NEGOTIATION, MEDIATION, AND ARBITRATION. 723-40-7.1 Nothing in Rule 6 shall be construed to limit a telecommunications provider's ability to reach a negotiated, mediated, or arbitrated agreement with respect to the rates, terms, and conditions associated with the resale of telecommunications services. 723-40-7.2 All agreements for resale of telecommunications services shall be submitted to the Commission for approval.

RULE 4 CCR 723-40-8. REGULATION OF RESELLERS.

723-40-8.1 All providers of residential basic local exchange services shall price such services to comply with statutory provisions of 40-15-502(3).

723-40-8.2 Until U S WEST Communications, Inc., is authorized to provide interLATA services in Colorado, or until February 8, 1999, whichever is earlier, a telecommunications provider that serves greater than 5 percent of the nation*s presubscribed access lines may not jointly market, in Colorado, telecommunications exchange service obtained from U S WEST Communications, Inc., pursuant to 47 U.S.C. 251 (c)(4) with interLATA services offered by that telecommunications provider.

723-40-8.3 A reseller that obtains a telecommunications service at wholesale that, at retail is available only to a category of subscribers, is prohibited from offering such service to a different category of subscribers.

723-40-8.4 If the reseller is reselling basic local exchange service to a particular end-user, the end-user's bill must separately identify the reseller's Commission-approved price for basic local exchange service.

RULE 4 CCR 723-40-9. DISPUTE RESOLUTION.

The Commission shall resolve disputes arising out of any provision of resold telecommunications services pursuant to these rules.

RULE 4 CCR 723-40-10. VARIANCE AND WAIVER.

The Commission may permit a variance or waiver from these rules, if not contrary to law, for good cause shown and if it finds that compliance is impossible, impracticable or unreasonable.