DE 98-133

                         LEVEL 3 COMMUNICATIONS LLC  

                      Petition for Authority to Provide
                      Local Telecommunications Services
                                      
                      Order Nisi Granting Authorization

                            O R D E R  N O.  23,011

                               September 2, 1998

    On July 21, 1998, Level 3 Communications L.L.C.
(Level 3) filed with the New Hampshire Public Utilities
Commission (Commission) a petition for authority to provide
switched and non-switched local exchange telecommunications
services, pursuant to the policy goals set by the New Hampshire
Legislature in RSA 374:22-g, effective July 23, 1995.
  The Legislature directed the Commission to adopt rules
on or before December 31, 1996, to enforce the provisions of RSA
374:22-g.  Effective December 4, 1996, the Commission adopted
N.H. Admin. Rules, Puc Chapter 1300 which governs the petition of
applicants to become competitive local exchange carriers (CLECs).
  Pursuant to Puc Chapter 1300, an applicant's petition
for certification shall be granted when the Commission finds that
(1) all information listed in Puc 1304.02 has been provided to
the Commission; (2) the applicant meets standards for financial
resources, managerial qualifications, and technical competence;
and, (3) certification for the particular geographic area
requested is in the public good.
  The Commission Staff (Staff) has reviewed Level 3's
petition for compliance with these standards.  Staff reports that 
they have provided all the information required by Puc 1304.02. 
The information provided supports Level 3's assertion of
financial resources, managerial qualifications, and technical
competence sufficient to meet the standards set out in Puc
1304.01(b), (e), (f), and (g).  Staff, therefore, recommends
approval of Level 3 as a New Hampshire CLEC.
  Level 3 has provided a sworn statement and request for
waiver of the surety bond requirement in Puc 1304.02(b) stating
that they do not require advance payments or deposits of their
customers.  Staff recommends granting the waiver.  
  We find that Level 3 has satisfied the requirements of
Puc 1304.01(a)(1) and (2).  In addition, we find that
certification of Level 3 in its intended service area, Bell
Atlantic's current service area, is in the public good, thus
meeting the requirement of Puc 1304.01(a)(3).  In making this
finding, as directed by RSA 374:22-g, we have considered the
interests of competition, fairness, economic efficiency,
universal service, carrier of last resort, the incumbent's
opportunity to realize a reasonable return on its investment, and
recovery by the incumbent of expenses incurred.  This finding is
further supported by the Telecommunications Act of 1996 (TAct). 
Because level 3 has satisfied the requirements of Puc 1304.01(a),
we will grant certification.
  As part of its application, Level 3 agreed to abide by
Bell Atlantic's present and future rates for intraLATA switched
access or to charge a lower rate.  If, at any point, Level 3
seeks to exceed Bell Atlantic's access rates it shall first
contact the Staff to review the proposal.  The Commission will
monitor access rates as the intraLATA toll and local exchange
markets develop.  CLECs charging higher access rates than they,
in turn, pay Bell Atlantic could inhibit intraLATA toll
competition which would call into question Section 253 of the
TAct.
  Based upon the foregoing, it is hereby
  ORDERED NISI, that Level 3's petition for authority to
provide switched and non-switched intrastate local exchange
telecommunications services in the service territory of Bell
Atlantic, is GRANTED, subject, inter alia to the requirements of
Puc 1304.03; and it is
       FURTHER ORDERED, that request for waiver of the surety
bond requirement per Puc 1304.02(b) is granted; and it is






  FURTHER ORDERED, that the Petitioner shall cause a copy
of this Order Nisi to be published once in a statewide newspaper
of general circulation, such publication to be no later than
September 9, 1998 and to be documented by affidavit filed with
this office on or before September 16, 1998; and it is
  FURTHER ORDERED, that all persons interested in
responding to this Order Nisi shall submit their comments or file
a written request for a hearing on this matter before the
Commission no later than September 23, 1998; and it is
  FURTHER ORDERED, that any party interested in
responding to such comments or request for hearing shall do so 
no later than September 30, 1998; and it is
  FURTHER ORDERED, that this Order Nisi shall be
effective October 2, 1998, unless the Commission provides
otherwise in a supplemental order issued prior to the effective
date; and it is 
  FURTHER ORDERED, that the Petitioner shall file, ten
days prior to commencing service, a rate schedule including the
name, description and price of each service, with the Commission
in accordance with N.H. Admin. Rules, Puc 1304.03(b).






  By order of the Public Utilities Commission of New
Hampshire this second day of September, 1998.


                                                              
  Douglas L. Patch      Bruce B. Ellsworth     Susan S. Geiger
      Chairman             Commissioner          Commissioner


Attested by:

                    
Thomas B. Getz
Executive Director & Secretary