DT 99-003
                         BELL ATLANTIC
           Special Contract with Vitts Networks, Inc.
   Order Clarifying Order No. 23,138 and Denying the Re-filed
               Special Contract Without Prejudice
                    O R D E R   N O. 23,184
                         April 2, 1999
       On January 7, 1999, Bell Atlantic-New Hampshire (BA-NH)
     filed a special contract with Vitts Networks, Inc. (Vitts) to
     provide Frame Relay Service (FRS) and Digital Data Service (DDS).
     By Order No. 23,138, issued February 8, 1999, the Commission
     denied BA-NH's petition for approval of the Vitts special
     contract without prejudice because the Commission could not
     determine at the time the appropriate "incremental cost" to use
     to evaluate the pricing in the special contract. The Commission
     indicated in Order No. 23,138 that a docket, DT 99-018, had been
     opened to investigate fully and expeditiously the proper
     incremental cost study to use when evaluating special contract
     filings pursuant to RSA 378:18-b.  The Commission stated that
     BA-NH could refile the special contract with Vitts, after a
     decision in DT 99-018 was rendered or, in the alternative, if
     certain conditions were met. Order No. 23,138 at 5.  
       On March 3, 1999, BA-NH re-filed the special contract
     with Vitts along with the same cost support, billing and service
     information.  In its re-filed petition made pursuant to RSA
     378:18-b, BA-NH states that it has obtained the customer's
     authorization to disclose customer proprietary network
     information in order to meet the Commission's requirement that
     BA-NH may re-file the special contract "after it discloses the
     number of units for each type of service contained in the
     proposed agreement."  Order No. 23,138 at 5.  BA-NH represents
     that Vitts would prefer to maintain the information as
     confidential, but in the interest of obtaining the services it
     has agreed to disclose the number of units.  According to BA-NH,
     Vitts cannot wait for resolution of DT 99-018 as Vitts, a
     competitive local exchange provider, would like to use the
     special contract as a means to enhance its service offerings to
     its customers that are unavailable through the tariff.    
       On March 25, 1999, The Destek Group, Inc. (Destek)
     filed a Motion for Late Intervention as a Full Party and urged
     the Commission to postpone a decision on the special contract
     between BA-NH and Vitts pending resolution of DT 99-018.  Destek
     stated in its Motion that special contracts such as the one
     between BA-NH and Vitts are "discriminatory and minimize or
     eliminate the ability for other companies, like Destek, to
     compete."  Moreover, Destek avers that such special contracts
     negatively affect the development of competitive
     telecommunications in New Hampshire.   
       After having considered the re-filed special contract
     between BA-NH and Vitts, we recognize the need to clarify Order
     No. 23,138.  In making the instant filing, BA-NH reads disclosure
     of the "number of units purchased for each type of service" to be
     the only condition that it must meet to re-file the special
     contract.  Mistakenly, BA-NH does not take into account the
     additional condition contained in the next sentence of that
     order.  That sentence reads:  "[I]n addition, Bell Atlantic may
     re-file after supplementing its cost study indicating the
     proposed rates exceed TELRIC costs as stipulated in DE 97-171".
     Order No. 23,138 at 5.  Thus, under the terms of Order No.
     23,138, if BA-NH chooses not to wait for resolution of the
     special contract docket, it needs to disclose the number of units
     purchased for each type of service and supplement the cost study
     indicating that the proposed rates exceed the TELRIC costs
     stipulated in DE 97-171.  If BA-NH meets both of these
     conditions, we will expeditiously approve the Vitts special
     contract provided that BA-NH adequately addresses the concerns
     raised by Destek.  Because BA-NH has not met these conditions, we
     will deny approval at this time.
       Based upon the foregoing, it is hereby 
       ORDERED, that the Special Contract between Bell
     Atlantic-NH and Vitts Networks is DENIED without prejudice; and
     it is
       FURTHER ORDERED, that the Motion for Intervention filed
     by Destek is GRANTED.
       By order of the Public Utilities Commission of New
     Hampshire this second day of April, 1999.
           Douglas L. Patch       Susan S. Geiger     Nancy Brockway
               Chairman           Commissioner          Commissioner
     Attested by:
     Thomas B. Getz
     Executive Director and Secretary