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Discontinuance Application Of Verizon Not Automatically Granted

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Released: November 9, 2012

PUBLIC NOTICE

Federal Communications Commission

News Media Information 202 / 418-0500

445 12th St., S.W.

Internet: http://www.fcc.gov

Washington, D.C. 20554

TTY: 1-888-835-5322

DA 12-1824

Released: November 9, 2012

APPLICATION OF MCI COMMUNICATIONS SERVICES, INC. D/B/A VERIZON

BUSINESS SERVICES AND VERIZON ENTERPRISE SOLUTIONS LLC
TO DISCONTINUE DOMESTIC TELECOMMUNICATIONS SERVICES

NOT AUTOMATICALLY GRANTED

WC Docket No. 12-297

Comp. Pol. File No. 1054

On

September 21, 2012, MCI Communications Services, Inc. d/b/a Verizon Business Services

and

Verizon Enterprise Solutions LLC

(collectively Verizon Business or Applicants), located at

One
Verizon Way, Basking Ridge, NJ 07920

, filed an application with the Federal Communications
Commission (FCC or Commission) requesting authority, under section 214 of the Communications Act
of 1934, as amended, 47 U.S.C. § 214, and section 63.71 of the Commission’s rules, 47 C.F.R. § 63.71, to
discontinue a certain domestic telecommunications service in all fifty states, the District of Columbia,
Puerto Rico and the U.S. Virgin Islands (collectively Service Areas).1 By this Public Notice, the Wireline
Competition Bureau announces that Verizon Business’s application to discontinue service will not be
automatically granted pursuant to section 63.71.
The application indicates that Verizon Business currently offers interstate frame relay service at
speeds less than 200 kbps (Frame Relay service) in the Service Areas. Verizon Business describes Frame
Relay service as a public metropolitan and wide-area data service that utilizes packet switching
technology and digital transmission facilities to provide a data delivery service primarily used by
commercial customers. Verizon Business states, however, that there are plans to discontinue Frame
Relay service in the Service Areas because of declining market demand. In the notice to customers,
Verizon Business explains that, on or after November 21, 2012 and subject to Commission authorization,
Verizon Business plans to no longer offer Frame Relay service to the public subject to certain
grandfathering restrictions. Verizon Business specifies that, on or after November 21, 2012, existing
customers will be able to retain their service in accordance with the terms and conditions of their existing
contracts, but Verizon Business plans to no longer accept new orders or orders for moves, adds, or
changes to existing Frame Relay service except as required by contract. According to Verizon Business,
customers will be asked to transition to alternative services upon expiration of existing contracts, but
Verizon Business will continue to provide Frame Relay service on a month-to-month basis as remaining
customers transition, until Verizon Business discontinues the service entirely. Verizon Business


1 The application was subsequently received in the Competition Policy Division of the Wireline Competition Bureau
on September 26, 2012. By Public Notice dated October 10, 2012, the Commission notified the public that, in
accordance with 47 C.F.R. § 63.71(c), Verizon Business’s application would be deemed to be automatically granted
on the 31st day after the release date of the notice, unless the Commission notifies Verizon that the grant will not be
automatically effective. Comments Invited on Application of MCI Communications Services, Inc. d/b/a Verizon
Business Services and Verizon Enterprise Solutions LLC to Discontinue Domestic Telecommunications Services
,
Public Notice, WC Docket No. 12-297, DA 12-1618 (WCB October 10, 2012). Accordingly, the automatic grant
date for Verizon Business’s application would have been November 10, 2012.

maintains that the public convenience and necessity will not be impaired by the proposed discontinuance
because next generation technologies that provide higher bandwidths and a wider range of applications
have substantially replaced Frame Relay service in the marketplace. Verizon Business asserts that
affected customers were notified of the proposed discontinuance by letters sent via U.S. mail on
September 21, 2012. The application indicates that Verizon Business is considered non-dominant with
respect to the service to be discontinued.
The Commission normally will authorize proposed discontinuances of service unless it is shown
that customers or other end users would be unable to receive service or a reasonable substitute from
another carrier, or that the public convenience and necessity would be otherwise adversely affected.
Where there is question as to whether a service has reasonable substitutes or whether the present or future
public convenience and necessity will be adversely affected, the Commission will scrutinize the
discontinuance application, consistent with its statutory obligations.2 We find that the public interest will
not be served by automatic grant of Verizon Business’s application. Therefore, by this Public Notice,
Verizon Business is notified that its application to discontinue domestic telecommunications services will
not be granted automatically.3 We emphasize that our removal of Verizon Business’s application from
the automatic grant process should not be construed as a final determination on the merits of Verizon
Business’s request for authority to discontinue service.
This proceeding is considered a “permit but disclose” proceeding for purposes of the
Commission’s ex parte rules.4 Persons making ex parte presentations must file a copy of any written
presentation or a memorandum summarizing any oral presentation within two business days after the
presentation (unless a different deadline applicable to the Sunshine period applies). Persons making oral
ex parte presentations are reminded that memoranda summarizing the presentation must (1) list all
persons attending or otherwise participating in the meeting at which the ex parte presentation was made,
and (2) summarize all data presented and arguments made during the presentation. If the presentation
consisted in whole or in part of the presentation of data or arguments already reflected in the presenter’s
written comments, memoranda or other filings in the proceeding, the presenter may provide citations to
such data or arguments in his or her prior comments, memoranda, or other filings (specifying the relevant
page and/or paragraph numbers where such data or arguments can be found) in lieu of summarizing them
in the memorandum. Documents shown or given to Commission staff during ex parte meetings are
deemed to be written ex parte presentations and must be filed consistent with rule 1.1206(b). In
proceedings governed by rule 1.49(f) or for which the Commission has made available a method of
electronic filing, written ex parte presentations and memoranda summarizing oral ex parte presentations,
and all attachments thereto, must be filed through the electronic comment filing system available for that
proceeding, and must be filed in their native format (e.g., .doc, .xml, .ppt, searchable .pdf). Participants in
this proceeding should familiarize themselves with the Commission’s ex parte rules.


2 See 47 U.S.C. § 214(a); 47 C.F.R. § 63.71; see also Policy and Rules Concerning Rates for Competitive Common
Carrier Services and Facilities Authorizations Therefor
, First Report and Order, CC Docket No. 79-252, 85 FCC 2d
1, 49 (1980) (Competitive Carrier First Report and Order) (“we have retained the right to delay grant of a
discontinuance authorization if we believe an unreasonable degree of customer hardship would result.”); Federal
Communications Comm’n v. RCA Communications, Inc.
, 346 U.S. 86, 90 (1953). See, e.g., AT&T Application to
Discontinue Interstate Sent-Paid Coin Service Not Automatically Granted
, Public Notice, NSD File No. W-P-D-497
(Aug. 3, 2001).
3 See 47 C.F.R. § 63.71(c) (“The application to discontinue . . . shall be automatically granted on the 31st day . . .
unless the Commission has notified the applicant that the grant will not be automatically effective.”)
4 47 C.F.R. §§ 1.1200 et seq.
2

People with Disabilities: To request materials in accessible formats for people with disabilities
(Braille, large print, electronic files, audio format), send an e-mail to fcc504@fcc.gov or call the
Consumer & Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 (tty).
For further information, contact Carmell Weathers, (202) 418-2325 (voice),
carmell.weathers@fcc.gov, or Rodney McDonald, (202) 418-7513 (voice), rodney.mcdonald@fcc.gov, of
the Competition Policy Division, Wireline Competition Bureau. The tty number is (202) 418-0484. For
further information on procedures regarding section 214 please visit
http://www.fcc.gov/wcb/cpd/other_adjud.
– FCC –
3

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