Ohio Promotional LOOP Discount

As required by the Public Utilities Commission of Ohio ("PUCO") in its February 10, 2000 Opinion and Order in Case No. 98-1398-TP-AMT ("PUCO Merger Order") and the Federal Communications Commission in its June 16, 2000 Memorandum Opinion and Order in CC Docket No. 98-184 ("FCC Merger Order"), Verizon North Inc. (formerly known as GTE North Incorporated) ("Verizon") hereby makes the following limited-duration promotional loop discount available to any Ohio Competing Local Exchange Carrier ("CLEC") that obtains qualifying loops from Verizon pursuant to Sections 251 and 252 of the Communications Act of 1934, as amended (the "Act"), under the terms of an effective interconnection agreement or 252(i) adoption, or under an applicable state tariff (the "Underlying Arrangement") of Verizon. This offer supercedes and replaces the prior offer posted to this Web site from August 4, 2000 to August 11, 2000. The CLEC will be deemed to have accepted the terms and conditions set forth in this discount plan with respect to Verizon upon payment of the first invoice issued by Verizon that reflects the promotional loop discount described below. Upon acceptance, the resulting agreement shall be deemed to have amended the Underlying Arrangement as set forth herein. The terms and conditions set forth herein, together with all applicable terms and conditions of the Underlying Arrangement, are integrally and legitimately related, and shall govern the provision of the designated services and/or facilities by Verizon to CLEC. The CLEC may reject this discount plan at any time prior to such acceptance by sending electronic or written notice to the following person:

Renee L. Ragsdale
Manager - Contract Management
Network Services Group
600 Hidden Ridge Rd., HQE03B65
Irving, Texas 75038
Fax: 972-718-1279
E-mail: contract.management@verizon.com

1. Qualifying Loops. The promotional loop discount required by the PUCO Merger Order ("PUCO Loop Discount") shall apply to the monthly recurring charges for unbundled local loops used in the provisioning of service to both Ohio residential and business end user customers of the CLEC that are ordered during the Initial Offering Window (as hereinafter defined), with a requested installation date no later than thirty (30) days after the close of the Initial Offering Window ("PUCO Qualifying Loops"). Unbundled local loops that were ordered or in service prior to the Initial Offering Window, or ordered after the end of the Initial Offering Window, shall not be eligible for a promotional loop discount. Should CLEC be entitled to order additional loops under the promotional loop discount required by the FCC Merger Order ("FCC Loop Discount") during the Extended Offering Window (as hereinafter defined) the discount available during that offering period shall apply only to the monthly recurring charges (as set forth in the Underlying Arrangement) for unbundled loops used in the provisioning of local exchange service to residential end use customers of the CLEC that are ordered during the Extended Offering Window (as hereinafter defined), with a requested installation date no later than thirty (30) days after the close of the Extended Offering Window ("FCC Qualifying Loops"). Unbundled local loops that were ordered or in service prior to the Extended Offering Window, or ordered after the end of the Extended Offering Period, shall not be eligible for the FCC Loop Discount.

2. Initial Promotional Discount Level. The promotional loop discount shall initially be set at 30% for PUCO Qualifying Loops to reflect the PUCO Loop Discount. As required by the FCC, this promotional loop discount supplements, but is not cumulative of, the market-opening discounts approved by the FCC, and additionally satisfies the PUCO s mandate that its ordered promotions set a floor, while allowing a CLEC to take advantage of a more advantageous result ordered in another jurisdiction. As such, for the term that Verizon is required to offer the PUCO Loop Discount, CLEC is given the benefit of the broader and more advantageous PUCO Loop Discount of 30%. Further, should that promotional discount expire while the FCC Loop Discount is still in effect, CLEC will be entitled to the remaining benefit of the FCC Loop Discount as specifically set forth in Paragraph 4. In no event, however, may the PUCO Loop Discount of 30% and the FCC Loop Discount of 25.05% be combined to increase the applicable percentage discount (i.e., while the PUCO Loop Discount is in effect the total discount will be 30%, not 55.05%).

3. Initial Offering Window. The Initial Offering Window during which the PUCO Loop Discount shall be made available shall open on July 30, 2000, and shall close at the earlier of the following: (a) thirty-six (36) months after commencement of the Initial Offering Window; (b) the date on which the aggregate number of business and residential unbundled local loops held by unaffiliated CLECs in Ohio reaches the maximum level of twenty thousand (20,000) loops. Verizon shall file notice with the Secretary of the FCC, the PUCO and competitive local exchange carriers operating in Ohio within 3 business days after terminating the Initial Offering Window because the maximum level of loops is reached.

4. Extended Offering Window. Should the Initial Offering Window close prior to twenty-four (24) months after its commencement because the aggregate number of unbundled local loops held by unaffiliated CLECs in Ohio reaches the maximum level of twenty thousand (20,000) loops, and, if at such time Verizon has not met any of the conditions prescribed by the FCC Merger Order to close the offering window of the FCC Loop Discount, an Extended Offering Window shall open during which time CLEC may take advantage of the FCC Loop Discount. Such Extended Offering Window shall run for the remainder of the twenty-four (24) month period that commenced upon the opening of the Initial Offering Window, or, if earlier, until (1) the number of unbundled residential loops billed at either promotional loop discount in Ohio reaches the maximum level of thirty-one thousand (31,000) residential loops, or (2) the date on which competing carriers, in aggregate, offer service over their own facilities to at least 15% of Verizon customer locations, or (3) the date on which Verizon has completed 50% of the out of region commitment described in Section XVI of Appendix D to the FCC Merger Order. At such time during the Extended Offering Window that 50% and 80% of the maximum thirty-one thousand (31,000) residential loops is reached in Ohio, Verizon will provide written or electronic notice to all competitive local exchange carriers operating in the state. Additionally, Verizon shall file notice with the Secretary of the FCC, the PUCO, and competitive local exchange carriers operating in Ohio within 3 business days after terminating the Extended Offering Window because the maximum level of residential loops is reached. Unbundled residential loops installed and made operational at either promotional loop discount on or after July 30, 2000 shall be counted toward the maximum, whether or not they remain in service.

5. FCC Promotional Discount Level. During the Extended Offering Window, if any, the FCC Loop Discount of 25.05% shall apply to all FCC Qualifying Loops in Ohio.

1. Certification. CLEC shall abide by the following conditions with respect to unbundled local loops for which it requests the FCC Loop Discount: (i) the loop shall be used to provide residential telephone exchange service and any associated exchange access service and shall not be used to provide any Advanced Services (as defined in Section I.2 of Appendix D of the FCC Merger Order); (ii) the loop shall not be purchased as part of a UNE Platform or in any other combination with Verizon s local switching or the functions and features associated with that switching; and (iii) the loop shall be used in accordance with any other binding conditions imposed under applicable agreements, judicial or administrative decisions, or governing law. On a quarterly basis, while taking advantage of the FCC Loop Discount, CLEC shall certify in writing to Verizon and the PUCO that it is using all unbundled local loops provided at a promotional discounted price in accordance with these conditions. Such certification shall be in a form acceptable to Verizon at its reasonable discretion.
2. Audit.Verizon shall have the right to hire, at its own expense, an independent third party auditor to perform all necessary audits and inspections needed to assure that unbundled local loops provided under the FCC Loop Discount are used in accordance with conditions (i) and (ii) described in paragraph 5.a. CLEC shall cooperate in the performance of such audits and inspections. Audit information will be restricted to Verizon regulatory, legal and/or wholesale personnel, and Verizon will prohibit those personnel from disclosing audit-related, customer-specific or company-specific proprietary information to Verizon retail personnel. Any telecommunications carrier or other person found by the PUCO to have violated the conditions of Paragraph 5.a. or that fails to cooperate in an audit may be denied the FCC Loop Discount on any unbundled local loop for which the use conditions or the audit provisions are violated. In addition, any such telecommunications carrier or other person that intentionally and repeatedly violates the use conditions of Paragraph 5.a. may be denied the FCC Loop Discount on unbundled local loops ordered or installed after the date of such a finding by the PUCO.

6. Advanced Services Discount Election. An Ohio CLEC that does not opt out of this discount plan will also be deemed to have chosen to participate in the Promotional Advanced Services Loop Discount prescribed by the FCC Merger Order and generally provided by Verizon to CLECs on an opt-out basis. Such Promotional Advanced Services Loop Discount is offered subject to the terms and conditions prescribed by the FCC Merger Order as posted at /merger/master.htm. In reconciling the overlapping discounts on monthly recurring loop charges under the FCC Promotional Advanced Services Loop Discount and the PUCO Loop Discount during the period that both discounts are offered, however, CLEC shall receive the greater 30% discount and shall be offered such discount pursuant to the terms and conditions of the PUCO Loop Discount.

7. Promotional Period. Once in effect for any qualifying unbundled loop, a promotional loop discount shall remain in effect for a Promotional Period that shall terminate at the earlier of: (a) the date that is thirty-six (36) months from the date on which a qualifying unbundled loop is installed and operational; or (b) the date on which the unbundled loop is no longer in service at the same location and for the same carrier. Verizon shall be under no obligation to provide an unbundled loop at any promotional loop discount outside the Promotional Period.

8. Application of Promotional Loop Discounts. A promotional loop discount may be applied through billing credits, true-ups or other billing mechanisms, provided that such credits, true-ups, or other billing mechanisms are applied within sixty (60) days of the initial billing for service.

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