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					                                     PENNSYLVANIA
                               PUBLIC UTILITY COMMISSION
                                 Harrisburg, PA. 17105-3265

                                                                Public Meeting held August 17, 2000
Commissioners Present:

     John M. Quain, Chairman
     Robert K. Bloom, Vice Chairman
     Nora Mead Brownell
     Aaron Wilson, Jr.
     Terrance J. Fitzpatrick

Affiliated Interest Agreement between Bell                                            Docket Number:
Atlantic Pennsylvania, Inc. and NYNEX Long                                            G-00000778
Distance Company and Bell Atlantic
Communications, Inc.

                                                 ORDER

BY THE COMMISSION:


                  On June 14, 2000, Bell Atlantic Pennsylvania, Inc. (“BA-PA” or
“Company”) filed, pursuant to 66 Pa. C.S. §2101, et seq., an Application seeking
the Commission’s approval of an affiliated interest agreement entitled “Marketing
and Sales Agreement” (“Agreement”), entered between Bell Atlantic Network
Services, Inc.1 (“BA-NS”), on behalf of Bell Operating Telecommunication
Companies (“OTC”), including BA-PA and Telesector Resources Group, Inc.
(“Telesector”), on behalf of New York Telephone Company and New England
Telephone and Telegraph Company and NYNEX Long Distance Company d/b/a
Bell Atlantic Long Distance (“NLD”) and Bell Atlantic Communications, Inc.
(“BA-CI”), under which BA-PA will provide the marketing and sales of long


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 Bell Atlantic Network Services, Inc. is comprised of the following Bell operating companies: Bell
Atlantic-New Jersey, inc. Bell Atlantic-Pennsylvania, Inc., Bell Atlantic-Delaware, Inc., Bell Atlantic-
distance telephone service provided by BA-CI. BA-PA is also seeking the
Commission’s approval of 13 amendments (Amendments No. 1 to 13) to the above
Agreement entered on various dates between the above parties. The statutory
consideration period for this Agreement was extended until August 19, 2000.


                  The Agreement entered between BA-NS including BA-PA, Inc. and
Telesector with NLD and BA-CI was made on December 22, 1999. Under the
Agreement, BA-PA will sell the following Interexchange telecommunications
services, as indicated in Appendix A of the Agreement, to residential customers
located in Pennsylvania upon receiving state and federal regulatory approvals
permitting the provision of such service by BA-CI pursuant to Section 271 of the
Telecommunications Act of 1996:


                  1.   Domestic Dial +
                  2.   BA-CI-intraLATA Toll
                  3.   International Outbound
                  4.   Calling Card
                  5.   Operator Services
                  6.   Directory Assistance
                  7.   Personal Toll-Free
                  8.   Promotions Developed and Approved by BA-CI

                  The Agreement contains the terms and conditions under which the
Bell OTC including Bell Atlantic-Pennsylvania will provide marketing and sales
services for BA-CI. The Agreement also contains the description of services and
functions and associated compensation that will be provided by the OTC to BA-CI
in connection with BA-CI’s provision of long distance service to residential
customers. The Appendix A to the Agreement also contains conditions for sales,



Maryland, Inc., Bell Atlantic-Washington, D.C., Inc., Bell Atlantic-Virginia, Inc., and Bell Atlantic-West
Virginia, Inc.


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ordering and customer inquiry service, post sales support service and other
services and functions.
              The Appendix B lists the compensation for the agreement applicable
to each of the Bell OTC. However the information on the compensation for Bell
Atlantic-Pennsylvania was shown as TBD (“To be Determined”.) The Company
has indicted that all compensation for services provided under the Agreement is
based on and complies with FCC Parts 32 and 64 Rules and Regulations, and
accordingly, reflects fully distributed costs, prevailing market rates or actual costs
incurred, as applicable. The compensation rates applicable to Bell Atlantic-
Pennsylvania were included in one or more of the amendments, the details of
which are described below.


Amendment 1: Provides a description of OTC support services and functions and
associated compensation, that will be provided to and paid by NLD in connection
with NLD’s provision of long distance service business customers.


Amendment 2: Adds the functions related to OTC marketing campaigns and
related compensation associated with BA-CI’s provision of long distance services
to residential customers.


Amendment 3: Further describes OTC training functions related to NLD’s
provision of long distance services and associated compensation.


Amendment 4: Adds Internet Marketing and Order Processing Services associated
with BA-CI’s provision of long distance services to residential customers and
related compensation.




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Amendment 5: Adds Pre-Launch and Market Readiness Services and related
compensation, and training compensation for Massachusetts’s representatives.


Amendment 6: Adds additional Pre-Launch Service and related compensation.


Amendment 7: Adds additional services supporting NLD’s provision of long
distance service to business customers and associated compensation.


Amendment 8: Revises compensation for certain services related to BA-CI’s
provision of long distance service to residential customers.


Amendment 9: Adds the rates for training Pennsylvania service representatives to
support BA-CI’s provision of long distance service to residential customers.


Amendment 10: Revises Internet Marketing and Order Processing Services and
related compensation as originally provided for in Amendment 4.


Amendment 11: Adds additional services related to BA-CI’s provision of long
distance services to residential customers, and revises the compensation matrices.


Amendment 12: Adds services and associated compensation in connection with
NLD’s provision of long distance service to business customers, and adds rates
applicable to BA-PA training of new service representatives.


Amendment 13: Adds incentive compensation for OTC services supporting BA-
CI’s provision of long distance service to residential services.




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             In support of this filing the Company has indicated, inter alia, the
following:
             --Bell Atlantic Network Services, Inc. is a corporation
             organized under the laws of Delaware and maintains its
             principal place of business at 1320 North Court House Road,
             Arlington, Virginia 22201. Bell Atlantic Network Services is
             the centralized service company for Bell Atlantic operating
             telephone Companies including Bell Atlantic-Pennsylvania,
             Inc.


             --Telesector Resources Group, Inc. is a corporation organized
             under the laws of the State of Delaware and maintains its
             principal place of business at 1095 Avenue of the Americas,
             New York, New York 10036. Telesector Resources Group,
             Inc. is the centralized service company for the NYNEX
             operating telephone companies, New York Telephone and
             New England Telephone. The merger of Bell Atlantic and
             NYNEX makes Telesector Resources Group to be an affiliate
             of Bell Atlantic-Pennsylvania Inc. as contemplated by 66 Pa.
             C.S. §2101(a).


             --That NYNEX Long Distance Company, d/b/a Bell Atlantic
             Long Distance is a Corporation organized under the laws of
             the State of Delaware and maintains its principal place of
             business at 1372 Broadway, 8th Floor, New York, New York
             10018. NYNEX Long Distance Company d/b/a Bell Atlantic
             Business Services will provide long distance service to
             business customers.


                                         5
              --That Bell Atlantic Communications, Inc. is a Corporation
              organized under the laws of the State of Delaware and
              maintains its principal place of business at 1320 North Court
              House Road, 9th floor, Arlington, Virginia 22201. Bell
              Atlantic Communications, Inc. will provide long distance
              service to residential customers.


              --The Agreement will provide BA-PA’s customers with one-
              stop-shopping for local and long distance service.


              --The Agreement will not become effective for Bell Atlantic-
              Pennsylvania, Inc. in Pennsylvania until the approval by the
              Commission.


              --The Agreement is in the best interest of Bell Atlantic-
              Pennsylvania, Inc. and its customers.


              The Company has also indicated that neither any services were
rendered nor any revenues were derived through the Agreement from Pennsylvania
operation in excess of the exception set forth at Section 2102 (d) of the Public
Utility Code prior to the approval of this Agreement.


              Upon our review of the Company’s filing it does not appear that this
filing is unreasonable or contrary to the public interest; therefore, we shall approve
the Company’s filing. However, our approval does not constitute a determination
that the filing is lawful, just, reasonable, or consistent with the public interest. Our
approval is contingent on the possibility that subsequent audits and reviews may be




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conducted pursuant to Section 2101, et seq., of the Public Utility Code, 66 Pa. C.S.
§2101, et seq. THEREFORE,

IT IS ORDERED:

              1. That the Application of Bell Atlantic Pennsylvania, Inc., docketed
at G-00000778, for approval of an affiliated interest agreement between Bell
Atlantic Network Services, Inc., on behalf of Bell Atlantic Pennsylvania, Inc. and
Telesector Resources Group, Inc., on behalf of New York Telephone Company
and New England Telephone & Telegraph Company and NYNEX Long Distance
Company and Bell Atlantic Communications Inc. is approved subject to:
              (a) Possible inquiry in any Commission proceeding, and
              (b) Subsequent Commission audits and reviews.




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2. That this approval shall apply only to the agreement(s), services(s), parties, and
   any other matters specifically and clearly defined under the instant filing.


                                          BY THE COMMISSION,




                                          James J. McNulty
                                          Secretary




(SEAL)


ORDER ADOPTED: August 17, 2000


ORDER ENTERED: August 17, 2000




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