December 10, 1999
  
  
  The Honorable William E. Kennard
  Chairman
  Federal Communications Commission
  445 12th Street, SW
  Washington, D.C.  20554
  
       Re:  Bell Atlantic-New York Long Distance Application,
            CC Docket No. 99-295
  
  Dear Chairman Kennard:
  
       You asked whether the provision by Bell Atlantic of xDSL services
  through a separate affiliate would ensure that services and facilities are provided
  to competing xDSL providers on a non-discriminatory basis, and whether Bell
  Atlantic would be willing to establish such an affiliate.
  
       The answer to both questions is yes.
  
       As an initial matter, we believe that our Application and reply comments
  demonstrated that Bell Atlantic has satisfied the requirement to provide non-
  discriminatory access to unbundled loops.  For that reason, Bell Atlantic is in
  compliance with the checklist today and should be granted authority to provide
  long distance today.
  
       Establishing a separate affiliate for xDSL services would ensure that
  competing providers of such services continue to receive non-discriminatory
  access to services and facilities.  This Commission previously concluded as
  much.  In the context of the SBC/Ameritech merger, the Commission expressly
  held that establishing a separate affiliate "will provide a structural mechanism to
  ensure that competing providers of advanced services receive effective,
  nondiscriminatory access to the facilities and services . . . that are necessary to
  provide advanced services."  SBC/Ameritech Order,  363.  According to the
  Commission, "[b]ecause the merged firm's own separate advanced services
  affiliate will use the same processes as competitors, and pay an equivalent price
  for facilities and services," establishing a separate affiliate "ensure[s] a level
  playing field between SBC/Ameritech and its advanced services competitors." 
  Id.  The same is true here. 
       Bell Atlantic also is willing to establish such an affiliate on the same
  substantive terms that the Commission recently approved in the context of the
  SBC/Ameritech Order, App. C  1-14, subject only to the exceptions and
  clarifications outlined in the attachment to this letter.    
  
  
  
                                Very truly yours,
  
  
  
  
  
  
                                Thomas J. Tauke
       
  
  Attachment