Report No. DC 96-110          ACTION IN DOCKET CASEDecember 13, 1996


        COMMISSION DENIES PETITIONS FOR RECONSIDERATION OF 
              OPERATIONAL SUPPORT SYSTEMS REQUIREMENT
                   (CC DOCKET NOS.  96-98; 95-185)


     The Commission today released an order clarifying its earlier decision that requires
those incumbent local exchange carriers (LECs) subject to Section 251(c) of the
Communications Act to provide access to their operational support system (OSS) functions. 
OSS consists of preordering, ordering, provisioning, maintenance and repair, and billing
functions.  In its Interconnection Order, released August 8, 1996, the Commission required
incumbent LECs subject to section 251(c) of the Act to offer access to OSS functions as
unbundled network elements no later than January 1, 1997.  In today's decision, the
Commission rejected requests to postpone the date by which access to OSS functions must be
offered, and clarified the obligations of incumbent LECs subject to section 251(c) with respect
to access to OSS functions. 

     In the Interconnection Order, the Commission concluded that OSS functions fall within
the statutory definition of a network element, and determined that it was technically feasible
for incumbent LECs to provide access to OSS functions on an unbundled basis.  Pursuant to
section 251(c)(3) of the Act, the Commission directed incumbent LECs subject to this section
of the Act to offer OSS functions to requesting carriers.  The Commission clarified today that
to comply with the January 1, 1997 deadline, an incumbent LEC must have made at least
certain modifications to its network in order to fulfill its obligation to provide the requesting
carrier access to the incumbent's OSS functions as a network element.  The Commission found
that an incumbent LEC subject to section 251(c) must, at a minimum, by January 1, 1997,
establish and publish the interface design specifications that it will use to provide access to OSS
functions.  An incumbent LEC, in response to a request from a requesting carrier under
section 251(c)(3) of the Act, must be prepared to agree to an implementation schedule to
provide access to OSS functions.

     In Petitions for Reconsideration, Sprint and the Local Exchange Carrier Coalition
requested that the Commission extend the mandatory date for providing access to OSS 


                                (over)

                                - 2 -

functions to January 1, 1998.  In the Order released today, the Commission found that the
requested extension was not supported by evidence in the record, and would delay the
development of competition in the local exchange market.  The Commission further found that
evidence submitted since adoption of its Interconnection Order demonstrated that incumbent
LECs are making significant progress in modifying their networks to provide requesting
carriers access to OSS functions, and that some incumbent LECs have stated that they will be
able to provide access by January 1, 1997, at least for certain types of services or network
elements.

     In the Interconnection Order, the Commission also determined that an incumbent LEC's
obligation to provide access to unbundled network elements or services for resale on a
nondiscriminatory basis, pursuant to sections 251(c)(3) and 251(c)(4) of the Act, respectively,
may also require a LEC to offer access to OSS functions.  Specifically, if an incumbent LEC
uses electronic OSS functions in connection with the provision of local exchange service to its
customers, or offers electronic interfaces to its customers or other carriers, it must offer
equivalent access to all requesting carriers.  In the Order released today, the Commission
clarified that, if an incumbent LEC is otherwise required to provide unbundled network
elements or services for resale pursuant to an interconnection agreement approved by the state
commission, it must offer the requesting carrier electronic access to OSS at least equivalent to
the access the incumbent offers to itself, its customers, or other carriers in order to meet its
obligation to provide access to unbundled elements or resale of services, on a non-
discriminatory basis.  The Commission also emphasized that providing access to OSS functions
as required by the statute and the Commission's rules is a critical requirement for complying
with section 251 of the Act.

     The Commission noted that it did not anticipate initiating enforcement action against
incumbent LECs that are making good faith efforts to provide nondiscriminatory access to OSS
functions within a reasonable period of time, pursuant to an implementation schedule approved
by the state commission.  The Commission also noted that LECs with fewer than two percent
of subscriber lines nationwide have the statutory right to seek from the relevant state
commission a suspension or modification of the requirement to provide access to OSS
functions.  In addition, rural telephone companies are exempt from this requirement until they
receive a bona fide request and the state commission determines that the exemption should be
lifted, as provided in section 251(f).

     Action by the Commission December 13, 1996, by Second Order on Reconsideration,
(FCC 96-476).  Chairman Hundt, Commissioners Quello, Ness, and Chong.

                               - FCC -

News Media contact:  Mindy J. Ginsburg at (202) 418-1500.
Common Carrier Bureau contact:  Lisa Gelb (202) 418-1580.