Q - Maryland Public Service Commission

Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
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Q.
Please state your name, your responsibilities and your professional
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background.
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A.
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Telephone, LLC. I am responsible for overseeing the design and implementation of the
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Cavalier network as it relates to Maryland, among other regions in the Cavalier footprint.
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Q.
What is the purpose of your testimony?
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A.
I am testifying against Verizon’s improper attempt to remove unbundled
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dedicated transport from Maryland, particularly in LATA 236. According to my
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understanding of the FCC’s Triennial Review Order (TRO), if Verizon seeks to eliminate
My name is Matt Ashenden. I am Director of Engineering for Cavalier
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UNE DS-1 dedicated transport, UNE DS-3 dedicated transport, or UNE dark fiber
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dedicated transport, then Verizon must first prove that CLECs are not impaired without
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access to, respectively, UNE DS-1 dedicated transport, DS-3 dedicated transport or dark
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fiber dedicated transport, on a route-by-route basis. Yet Verizon’s evidence on these
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issues is inadequate, based upon speculation, and riddled with mistakes. Moreover, my
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own inquiries to other carriers have revealed that the Maryland market for dark fiber is
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non-existent, or at best anemic. The result is that Verizon has failed to undermine the
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FCC’s findings that Maryland CLECs are impaired without access to UNE dedicated
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transport routes.
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Q.
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R. Gilbert and Carlo M. Peduto, which I’ll refer to as Gilbert/Peduto Direct?
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A.
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case for why it believes the Commission should eliminate various unbundled network
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elements in Maryland, including over a hundred UNE dedicated transport routes.
Are you familiar with Verizon’s October 31, 2003 Direct Testimony of John
Yes. The Gilbert/Peduto Direct and its attached exhibits amount to Verizon’s
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Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
1
Q.
First, on page 40, lines 7-8 of Gilbert/Peduto Direct, Verizon claims that
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routes with just “one end in Maryland” would suffice to meet the UNE transport
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triggers for dark fiber, DS-1 and DS-3 facilities. Do you agree?
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A.
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merely by showing that “one end” of the route is in Maryland. In the TRO, the FCC
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specifically rejected the ILEC proposals that were “based solely on the presence of
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alternative transport at one end of a route such that when one end of a route is
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competitive (a central office with fiber-based collocation), no unbundled transport
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[would] be available in or out of that competitive central office.”1 So the FCC requires
No. Verizon is wrong to claim it should be able to eliminate UNE transport
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an ILEC to carry its burden of proof as to both ends of a route.
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District of Columbia Public Service Commission or the Virginia State Corporation
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Commission disagrees with the Maryland Commission’s conclusions? It is within the
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realm of possibility that Verizon would rely on the SCC or PSC conclusion it finds most
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favorable and just ignore the ruling of the other state’s commission. So Verizon’s opened
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the door here to PSC arbitrage and strong-arming. On basic principles of fairness
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between the states, as well as federalism, the Commission should avoid eliminating any
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transport UNE that might involve inter-state transport. On this basis alone, this
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Commission should reject Verizon’s attempt to eliminate UNE transport between central
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offices (COs) in Maryland and, for example, the Woodley (WASHDCWL) and Dupont
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(WASHDCDP) COs in the District of Columbia and the Fairfax CO (FRFXVAFF) in
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Virginia.
1 Triennial
Review Order, ¶ 401.
2
Moreover, what if the
Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
1
Q.
Now are you familiar with the documents attached to Gilbert/Peduto Direct
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as Attachments 7, 7.1, 8 and 8.1?
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A.
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in Maryland where the TRO’s “self-provisioning” trigger has allegedly been met for,
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respectively, LATA 236 and LATA 238. The “self-provisioning” trigger requires 3 or
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more unaffiliated competing carriers to have transport deployed. Attachments 8 and 8.1
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purport to show the UNE dedicated transport routes in Maryland where the TRO’s
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“competitive wholesale” trigger has allegedly been met for LATA 236 and for LATA
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238. The “competitive wholesale” trigger requires 2 or more alternative, unaffiliated
Yes. Attachments 7 and 7.1 purport to show the UNE dedicated transport routes
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transport providers immediately capable and willing to provide transport services. The
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horizontal axis of each Attachment lists the CLECs supposedly satisfying the respective
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trigger, while the vertical axis of each Attachment shows the particular wire center pairs
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of the UNE transport routes Verizon seeks to eliminate. Since Cavalier’s Maryland
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network needs are currently focused in LATA 236, my testimony will focus on the
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alleged triggers listed on Attachments 7 and 8. But I would expect that much of my
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testimony would have application in LATA 238 as well.
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Q.
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does Verizon claim Cavalier to be a route-specific transport trigger candidate?
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A.
Yes.
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Q.
Are other CLECs listed as well?
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A.
Yes. A number of CLECs are listed as supposed trigger carriers on particular
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routes. From Cavalier’s perspective, the most notable CLECs so listed are [CLEC
Turning your attention to Attachments 7 and 8 to Gilbert/Peduto Direct,
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Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
1
PROPRIETARY INFORMATION BEGINS] [CLEC PROPRIETARY
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INFORMATION ENDS].
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Q.
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CLECs should be listed on Attachments 7 and 8 as satisfying the dedicated
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transport route-specific triggers?
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A.
No.
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Q.
Why not?
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A.
For a number of reasons, these lists are fundamentally false and deficient.
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Q.
What do you mean?
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A.
The methodology Verizon used to decide which companies to list was based on
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numerous assumptions and not on solid evidence. Verizon admitted as much in its direct
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testimony. On page 43 and 49 of Gilbert/Peduto Direct, Verizon admitted it did not have
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“particularized, route-specific evidence” of wholesale transport availability on any given
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route for any given carrier. So instead of “appl[ying] the switching triggers on a granular
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basis”, which I understand to be required by the TRO, Verizon speculated about the
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availability of dark fiber, DS-3 and DS-1 transport based on its “general” observations.
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For instance, rather than make an affirmative showing that a CLEC was actually
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providing competitive wholesale dark fiber transport to other CLECs on a particular
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route, Peduto and Gilbert essentially testified at page 41 of their testimony that Verizon
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just performed a physical inspection of collocated facilities. With that kind of cursory
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and theoretical approach, as opposed to confirming actual self-deployment and actual
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wholesale activity, Verizon was bound to produce erroneous data. Also, I have just
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learned that apparently, with less than a full day’s notice, Verizon has moved to amend
Do you agree with Verizon’s characterization that Cavalier and these other
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Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
1
and supplement Gilbert/Peduto Direct. So, should the Commission allow the amended
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testimony, which the Commission should not, I will require additional time in which to
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review Verizon’s supplemental and amended testimony before responding.
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Q.
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produced flawed evidence?
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A.
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ILEC parse and present a granular analysis as to each type of transport (dark fiber, DS-1
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and DS-3) over a particular route, Verizon has done no such thing. Instead Verizon has
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lumped all three types of transport facilities together. For example, if Verizon claims its
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physical inspection revealed a CLEC to be providing wholesale DS-3 transport between
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two wire centers, Verizon has simply jumped to the conclusion, without evidentiary
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basis, that the CLEC is also providing wholesale dark fiber. So, from Attachment 8,
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Verizon would have the Commission believe that, [CLEC PROPRIETARY
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INFORMATION BEGINS] [CLEC PROPRIETARY INFORMATION ENDS]
Can you point to any examples of how Verizon’s physical inspection has
Yes. First, the Commission will note that, despite the FCC’s requirement that the
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Q.
Do you think Verizon’s oversights were as to Cavalier only?
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A.
No, I do not. From my perspective, Verizon has fundamentally mischaracterized
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the Maryland dark fiber market. If such a market exists at all in LATA 236, at best it is
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on life support.
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Q.
Why do you say that?
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A.
There are several reasons. First, all of Verizon’s data regarding the routes most
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important to Cavalier are faulty, and show that Verizon has failed to satisfy the triggers
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for any of those routes. Specifically, Cavalier is most vulnerable as to, and therefore
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Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
1
focused upon, the following transport routes, where Verizon’s Attachments 7 and 8
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identified the corresponding CLECs as allegedly satisfying the “competitive wholesale”
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(C/W) or “self-provisioning” (S/P) or both (B) triggers:

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Bethesda (CHCHMDBE) to Woodley (WASHDCWL) – Allegiance (B),
Metromedia/Abovenet (B), and MCI/Worldcom (B).

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Berwyn (CLPKMDBW) to Laurel (LARLMDLR) – MCI/Worldcom (C/W)
and Xspedius (C/W).

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Gaithersburg (GTBGMDGB) to Rockville (RKVLMDRV) – Qwest (C/W)
and MCI/Worldcom (C/W).

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Silver Spring (SLSPMDSS) to Dupont (WASHDCDP) – Allegiance (B),
Metromedia/Abovenet (B), and MCI/Worldcom.
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Cavalier thus compared Verizon’s case as to these routes with the Maryland
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Commission’s census data, which reflected the various CLECs’ own self-reporting of
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their transport availability and wholesale offerings.
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Q.
What did your analysis reveal?
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A.
It was somewhat shocking, particularly as to dark fiber. In short, the data that
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were self-reported by Verizon’s alleged trigger candidates, which were maintained
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behind the firewall of the PSC’s website, completely undermined Verizon’s case. For
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instance, the self-reported census data for [BEGIN CLEC PROPRIETARY] [END
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CLEC PROPRIETARY]
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Q.
Were there any other discrepancies?
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Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
1
A.
Yes. Verizon would have the Commission believe that [BEGIN CLEC
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PROPRIETARY] [END CLEC PROPRIETARY]
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Q.
Might CLECs have an incentive to give false data?
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A.
No, quite the contrary. If a CLEC were actually providing transport over a
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particular route, that CLEC would favor the elimination of UNE transport. UNE
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transport elimination should result in both greater market share and increased pricing
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power for a CLEC offering transport over a particular route.
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Q.
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data as compared to the Verizon case in chief as to the four routes you listed?
So what is the net result of Cavalier’s analysis of the CLECs’ self-reported
In each case, Verizon fails to achieve the requisite number of three “self-
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A.
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provisioning” or two “competitive wholesale” transport triggers as it applies to dark fiber.
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As such the Commission should reject altogether Verizon’s attempt to eliminate UNE
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transport in LATA 236 or, at the very least, over the four routes I listed.
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Q.
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to believe Verizon should be prevented from eliminating UNE transport?
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A.
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from this state, I have issued a formal Request For Information for dark fiber in the
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Maryland market in the event Cavalier were to find itself with lost UNE routes.
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Q.
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dark fiber market?
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A.
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not mean that CLEC could ever be a competitive provider of dark fiber. The CLEC’s
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underlying dark fiber provider might very well have prohibited the re-sale of dark fiber.
Apart from the flaws in Verizon’s case in chief, do you have any other reason
Yes. As a direct result of Verizon’s petition to eliminate UNE transport routes
Do you have any particularly noteworthy observations about the Maryland
Yes. Just because a CLEC might have dark fiber available for its own use does
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Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
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For instance, I inquired of [BEGIN CLEC PROPRIETARY] [END CLEC
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PROPRIETARY]
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Q.
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first data and information request, found in [BEGIN PROPRIETARY] [END
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PROPRIETARY]
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Q.
Have you found any other problems with Verizon’s data?
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A.
Yes. On numerous routes, Verizon has listed both Qwest and Allegiance as
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satisfying the transport triggers. But, as has been widely reported, on December 18, 2003
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Qwest announced that it will purchase substantially all assets of Allegiance, which will
Turning your attention to Verizon’s response to the Maryland PSC Staff’s
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bring both companies’ transport facilities under Qwest’s ownership and control. Thus, on
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all routes where Verizon has listed both companies as satisfying a trigger, Verizon has
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engaged in double-counting. The Commission should take care to ensure that Qwest-
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Allegiance never amounts to more than a single trigger for any transport route.
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Q.
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transport services (DS-1s and DS-3s) in with dark fiber transport services?
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A.
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“dark fiber obtained as an unbundled network element from Verizon counts as the buying
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carrier’s own fiber if that carrier attaches its own electronics and offers the activated fiber
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at wholesale.” It is a destructive error in circled logic for Verizon, or anyone, to accept
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this phrase and to accept Verizon’s data without granularity that breaks apart lit transport
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services (DS-1s and DS-3s) from dark fiber transport services. This indicates that if a
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CLEC uses UNE dark fiber, then Verizon counted it toward the trigger that will eliminate
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UNE dark fiber.
Have you found any other problems with Verizon’s approach of lumping lit
Yes. On page 32 of the Gilbert/Peduto Direct they embrace the order defining that
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Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
1
Q.
Are there any other issues you wish the Commission to consider?
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A.
Yes. As I’ve indicated, the stakes in this case are high. It took Cavalier two years
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to build its network in Maryland, and it would be highly disruptive if we were forced to
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find alternative dark fiber facilities, if in fact they even exist. We would need at least 8
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months from the time that a UNE segment is eliminated for the processes of bidding,
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decision-making, and re-routing fiber segments.
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The situation is all the more acute in that, since October 2, 2003, Verizon has
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engaged in a concerted effort of (a) strong-arming CLECs into accepting Verizon’s
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unilaterally drafted TRO amendment proposal, (b) refusing to advise CLECs of whether,
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in the event Verizon is successful, Verizon intends to remove the at-risk facilities
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altogether and (c) refusing thus far to negotiate over any rates of services already
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impacted by the TRO. As is generally known in Maryland, Verizon improperly
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announced to CLECs by October 2 letter that Verizon would condition its compliance
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with the TRO upon CLECs’ agreeing to Verizon’s self-serving interconnection
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agreement (ICA) amendment. Verizon’s October 2 letter further indicated that, as to
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each CLEC, Verizon would refuse to comply with the TRO during its ICA negotiation
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period. Making Verizon’s tactic all the more offensive, Verizon’s proposed pricing is
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absurdly expensive for, e.g. the routine DS-1 facilities modifications ordered by the FCC.
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See Attachment B to my testimony. Since that time Cavalier has repeatedly sent Verizon
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written requests about whether, if successful, Verizon would eliminate altogether any
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facilities CLECs have come to rely upon. Cavalier has also asked about how the
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remaining facilities would be priced. For three months Verizon has failed to answer
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these basic questions.
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Public Version Direct Testimony of Matt Ashenden
On Behalf of Cavalier Telephone Mid-Atlantic, LLC
MD PSC Case No. 8983
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I think the Commission should therefore take this issue very seriously. To date
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we have had no indication from Verizon whether, if a particular dedicated transport route
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is removed from the list of UNEs, CLECs will have any access to that facility at all, let
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alone at a wholesale price.
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Q.
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dedicated transport UNEs in LATA 236?
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A.
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methodology, the plain errors in the data and the real-world evidence of a dearth of
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alternative dark fiber availability – all show Verizon’s case on dedicated transport to be
What is your conclusion about Verizon’s case for the elimination of
The problems I’ve mentioned about Verizon’s evidence– the flaws in
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untrustworthy. The Commission should not be overturning the FCC’s UNE transport
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impairment finding based only upon nonvalidated Verizon evidence. The fact that
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Verizon was incorrect on all 45 examples where Cavalier was used to satisfy the triggers
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as they pertain to dark fiber should be reason enough to reject the validity of Verizon’s
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flawed approach. In my opinion, faulty evidence like this cannot support the “specific,
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affirmative findings” necessary to overturn the FCC’s TRO finding. In short, Verizon
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has failed to carry its burden of proving the FCC was wrong to conclude that CLECs in
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Maryland are impaired without access to dedicated transport UNEs.
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Q. Does this complete your testimony at this time?
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A. Yes.
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