Subject: Notice of Line Sharing Rate Increases

In its Report and Order and Order on Remand and Further Notice of Proposed Rulemaking, CC Docket Nos. 01-338, 96-98, and 98-147, FCC 03-36, 18 FCC Rcd 16978, released on August 21, 2003 (the "Triennial Review Order"), the Federal Communications Commission promulgated new rules and regulations pertaining to the availability of unbundled network elements pursuant to Section 251(c)(3) of the Communications Act of 1934 (the "Act"). Among other things, the FCC determined that CLECs are not impaired without access to Line Sharing,* and that ILECs such as Verizon therefore are not required to provide new Line Sharing arrangements on an unbundled basis under Section 251(c)(3) of the Act on or after October 2, 2003.

In addition, the FCC imposed transitional rules for Line Sharing arrangements placed in service during the period October 2, 2003 through October 1, 2004 pursuant to its authority under Section 201(b) of the Act. Under those transitional rules, Verizon is not required to provision new Line Sharing arrangements on or after October 2, 2004.

The FCC's rules and regulations pertaining to Line Sharing took effect on October 2, 2003, and the related provisions of the Triennial Review Order were affirmed by the U.S. Court of Appeals for the D.C. Circuit on March 2, 2004.

In accordance with the foregoing decisions, Verizon hereby provides notice to your company that, after October 1, 2004, Verizon will no longer provision new Line Sharing arrangements under Section 251(c)(3) of the Act.

In addition, in order to give effect to the FCC's transitional rules, Line Sharing arrangements placed in service during the period October 2, 2003 through October 1, 2004 shall be priced as follows:

The applicable monthly recurring rate is the rate set forth in your existing interconnection agreement or applicable state tariff or rate order for an xDSL compatible loop or, if none, a 2 wire analog loop. All other monthly recurring rates, non-recurring rates, and other rates and charges for Line Sharing are as set forth in your interconnection agreement or applicable state tariff or rate order shall apply.

Verizon is also prepared to discuss the possibility of entering into alternative commercial service arrangements that might supersede the foregoing.

These increases in rates for your Line Sharing arrangements will be billed to you beginning in October 2004 on a going forward basis. In addition, rate increases for line sharing arrangements provisioned on or after October 2, 2003 will be back-billed to the date provisioned at that time.

If you believe that your company's interconnection agreement requires Verizon to continue providing Line Sharing after October 1, 2004, please provide written support for your position to Mr. Michael Tinyk at:

Verizon Services Corp.
Suite 500
1515 North Courthouse Road

If we do not hear from you by August 1, 2004, Verizon will give effect to the foregoing notice after October 1, 2004.