DEPARTMENT OF TELECOMMUNICATIONS AND ENERGY

TELECOMMUNICATIONS DIVISION

ANNUAL REPORT

2001

I. INTRODUCTION

This is the 2001 Annual Report of the Telecommunications Division of the Massachusetts Department of Telecommunications and Energy (“DTE”). This report is the forth report prepared by the DTE pursuant to directives in the Electric Restructuring Act. The Department submitted reports previously for 1998, 1999, and 2000. This report consists of two sections: (1) the Telecommunications Division’s activity during 2001, and (2) the current condition of the telecommunications industry within the Commonwealth.

II. TELECOMMUNICATIONS DIVISION ACTIVITY IN 2001

A. Description of the Telecommunications Division Staff

At the start of 2001, the Telecommunications Division consisted of a Director, seven Telecommunications Analysts, and an administrative secretary/tariff administrator. During the year, three analysts left the DTE due to normal turnover, one analyst was promoted to Assistant Director, and seven new analysts were hired. Thus, at the end of 2001, the DTE’s Telecommunications Division consisted of a Director, an Assistant Director, ten Telecommunications Analysts, and an administrative secretary/tariff administrator.

B. Telecommunications Division Activity in 2001

1. Tariff Filings

As noted in last year’s report, all telecommunications carriers operating in Massachusetts are required to file and maintain with the Department accurate tariffs listing all rates, charges, terms, and conditions of services. Table 1 shows the number of tariff filings that were processed by the Telecommunications Division in 2001, separating the number of tariffs filed by Verizon from the number filed by non-dominant carriers. Tariff filings increased in 2001 compared to 2000, when there were 648 tariffs filed by non-dominant carriers and 27 tariffs filed by Verizon.

Table 1

Tariff Filings in 2001

Verizon	Non-dominant Carriers
105	770

2. Statements of Business Operations

Telecommunications carriers which wish to do business within Massachusetts must file a “Statement of Business Operations” with the Telecommunications Division in addition to filing a tariff. The Statement of Business Operations includes contact information for customers who need to reach the company with questions or complaints; demonstrates compliance with DTE and Department of Revenue requirements; and offers general descriptions of services offered by the company. Table 2, below, lists the telecommunications carriers that filed Statements of Business Operations in 2001.

Table 2

Companies that Filed Statements of Business Operations in 2001

Total number of carriers that registered with the Department in calendar year 2001 - 98

Total number of CLECs that registered with the Department in calendar year 2001 - 37

C = Competitive Local Exchange Carrier (all others are long-distance, toll, and/or payphone providers)

1.	Access One, Inc.
2.	America's Digital Satellite Telephone, Inc.
3.	American Phone Services Corp
4.	AT&T BroadBand Phone of MA, LLC	C
5.	ATEL.cc, Inc.
6.	BAK Communications, LLC
7.	BBIS Communications, Inc.	C
8.	Bell Atlantic Comm., Inc. d/b/a Verizon Long Distance
9.	BroadRiver Communications of the Northeasteast Corp.	C
10.	Calpoint Massachusetts, LLC	C

11.	Cellular Rentals, Inc. d/b/a New England Teleconnect
12.	Ciera Network Systems, Inc.	C
13.	Comm South Companies, Inc.	C
14.	Commco Technology, LLC	C
15.	Congee Communication Corporation
16.	Custom Teleconnect, Inc.
17.	Dark Air Corporation	C
18.	Dialaround Enterprises, Inc.
19.	Direct One, LLC
20.	Dodora Unified Communications, Inc.
21.	Dominion Telecom, Inc.	C
22.	Domino Networks Communications, Inc.
23.	DSCI Corporation	C
24.	ECI Communications, Inc.
25.	Emergent Communications, LLC	C
26.	eMeritus Communications, Inc.
27.	Enron Telecommunications, Inc.	C
28.	eVoice Telecom, Inc.	C
29.	Exario Telecom, Inc.	C
30.	EZ Talk Communications, LLC	C
31.	Fiber Technologies Networks, LLC	C
32.	Frontier Communications of America, Inc.
33.	GE Business Productivity Solutions, Inc. d/b/a GE Capital Communications Services	C
34.	GiantLoop Telecom, Inc.	C
35.	Global Crest Communications, Inc.
36.	Gold Line Telemanagement, Inc.
37.	Groveline, LLC	C
38.	Intergrated Communications Consultants, Inc.	C
39.	Intrado Communications, Inc.
40.	Keen LD, Inc.
41.	KMC Data, LLC	C
42.	Legacy Long Distance International, Inc.
43.	Lightyear Communications, Inc.	C
44.	Local Telecom Holdings, LLC d/b/a Transpoint Communications	C
45.	Lockheed Martin Global Telecommunications Services, Inc.
46.	Mail.com Business Messaging Services, Inc.
47.	McGraw Communications, Inc.	C
48.	McLeodUSA Telecommunications Services, Inc.	C
49.	Mezco, LLC	C
50.	Miko Telephone Communications, Inc.
51.	Network US, Inc. d/b/a CA Affinity
52.	New Access Communications, LLC	C
53.	NJI Telecom, Inc.	C
54.	NTERA, Inc.
55.	Nynex Long Distance Company, d/b/a Verizon Enterprise Solutions
56.	OneStar Communications, LLC	C
57.	ONYX Telecom, Inc.
58.	Optical Telephone, Corp.
59.	Pac-West Telecom, Inc.
60.	PF.net Network Services Corp.
61.	Plan B Communications, Inc. d/b/a Spectrotel	C
62.	Power-Finder West Communications, LLC
63.	Quantum Shift Communications, Inc.	C
64.	QuickTel, Inc.
65.	Qwest Interprise America, Inc.
66.	QX Telecom, LLC
67.	RCN Telecom Services, Inc.
68.	Reduced Rate Long Distance, LLC
69.	Sonix4U, Inc.
70.	Sphera Opitcal Networks N.A., Inc. d/b/a Sphera Networks
71.	T-NETIX Telecommunications Services, Inc.
72.	Talk America, Inc.	C
73.	TalkNow, Inc.
74.	TDI Communications, Inc.
75.	Telecomez Corp.
76.	Telefyne Incorporated
77.	Telegenuis, Inc.
78.	TeleUno, Inc.
79.	Telis Communications Group, Inc.
80.	Total Call International, Inc.
81.	Touch America, Inc.
82.	Tremcom International, Inc.
83.	Tricom USA, Inc.
84.	United Systems Access Telecom, Inc.	C
85.	US Telecom Long Distance, Inc.
86.	USA Telephone, Inc.	C
87.	VarTec Telecom, Inc.	C
88.	Verizon Avenue Corp.
89.	Verizon Select Services, Inc.
90.	Vitcom
91.	Vitreum Networks, LLC
92.	West End Communications, Inc.
93.	Weston Telecommunications, LLC
94.	Williams Local Network, LLC	C
95.	World Communications Satellite Systems, Inc.
96.	WorldxChange Communications, Inc.
97.	XO Long Distance Services, Inc.
98.	Zephion Networks	C

3. Telecommunication Carriers that Ceased Business Operations in MA

A number of telecommunications carriers operating in Massachusetts ceased business operations in the year 2001. This year’s Annual Report includes a list of all such carriers in Table 3.

Table 3

Telecommunications Carriers that Ceased Business Operations in Massachusetts in 2001

1.	@Link Networks, Inc.
2.	2^nd Century Communications, Inc.
3.	360networks, Inc.
4.	ACS Systems, Inc.
5.	Affinity Corporation
6.	American Telephone Network, Inc.
7.	AS Telecommunications, Inc. d/b/a Allstar Telecom
8.	ATCALL, Inc.
9.	BroadBand Office Communications, Inc.
10.	Citizens Telecommunications Company
11.	Combined Billing, Inc.
12.	Communication TeleSystems International
13.	Concentric Carrier Services, Inc.
14.	Congee Communications Corporation
15.	Corrao Communications
16.	Croney Communications, Inc.
17.	Dial America Marketing
18.	Digital Broadband Communications, Inc.
19.	DirectNet Telecommunications, Inc.
20.	Domino Networks Communications, Inc.
21.	Eclipse Enterprises
22.	Edge Communications, Inc.
23.	Epoch Network, Inc.
24.	essential.com
25.	eVoice Telecom, Inc.
26.	Evulkan, Inc.
27.	FaciliCom International, LLC
28.	FirstWorld Communications, Inc.
29.	Global Telephone Corporation
30.	Globenet International, Inc.
31.	Group Advantage Providers, LLC
32.	GST Net, Inc.
33.	HarvardNet, Inc.
34.	Hertz Technologies, Inc.
35.	Hotel Connect Management, Inc.
36.	Internet Telephone Company
37.	JD Services, Inc. d/b/a American Freedom Network
38.	Jevic Transportation, Inc.
39.	JU-LE Corporation
40.	KCI Long Distance, Inc.
41.	KMAR Communications
42.	Local Business Billing, Inc.
43.	Local Long Distance Company
44.	Long Distance International, Inc.
45.	Millennium Group Telemanagement, LLC
46.	Minimum Rate Pricing, Inc.
47.	Mpower Communications Corp.
48.	Network International, LLC
49.	NEWTEL d/b/a New England Telecommunications, Inc.
50.	North American Telecommunications Corporation
51.	NorthPoint Communications
52.	OmniCall, Inc.
53.	OnSite Access Local, LLC
54.	Pathnet, Inc.
55.	PNV, Inc.
56.	Prism Massachusetts Operations, LLC
57.	RSL com PrimeCall, Inc.
58.	SmarTel Communications, Inc.
59.	Speer Communications Virtual Media, Inc.
60.	Telicor, Inc.
61.	Telscape USA, Inc.
62.	Travelers Cable TV, Inc.
63.	TresCom USA, Inc.
64.	Twister Communications Network, Inc.
65.	U.S.West Long Distance, Inc.
66.	Universal Telecom, Inc.
67.	US Network Services, Inc.
68.	USA Tele Corp.
69.	Viatel Services, Inc.
70.	VisionComm, Inc.
71.	Vista International Communications, Inc. d/b/a Worldplus International
72.	Vitts Network, Inc.
73.	VoCall Communications, Inc.
74.	Winstar
75.	World Access Telecommunications Group
76.	World Wide Communications, Inc.
77.	WorldLink Communications, Inc.
78.	WorldxChange Communications, Inc.
79.	Zmail Media, Inc.

4. Investigations

The Telecommunications Division completed and opened a number of formal investigations in 2001. Investigations involve significant policy analysis and are conducted under strict administrative procedures. The Telecommunications Division completed 7 investigations in 2001, compared to 18 in 2000. Much of the Division’s staff resources in 2001 were devoted to three major cases: Verizon’s Section 271 investigation, an investigation of Verizon’s UNE and other wholesale rates, and an investigation of a proposed plan by Verizon for alternative regulation. Table 4, below, lists the number of investigations that were in progress on January 1, 2001, the number of investigations that were started in 2001, the number of investigations that were completed in 2001, and the number of investigations that were still in progress on December 31, 2001.

Table 4

2001 Investigations

Number of Telecommunications Division Investigations
In Progress on January 1, 2001	11
Started in Calendar Year 2001	8
Completed in Calendar Year 2001*	7
In Progress on December 31, 2001	12

*"Completed" means the issuance of a final order, no outstanding motions or other procedural matters, and review of compliance filings.

The following section provides a brief description of each of the Telecommunications Division’s investigations, indicating the status of the investigation as of December 31, 2001 (i.e., open or closed).

2001 TELECOMMUNICATIONS INVESTIGATIONS

CASE #	PARTIES	CASE DESCRIPTION	STATUS
DTE 94-185	Verizon, AT&T	Dept. investigation to establish price floors for Verizon non-premium services	Closed
DTE 97-88/97-18 (Phase II, Part 2)	Verizon, New England Public Communications Council (NEPCC)	Dept. investigation into Verizon’s PAL and PASL tariffs	Open
DTE 98-36	Verizon, various CLECs, cable companies, other utilities	Dept. Rulemaking, pursuant to ‘96 Telecom Act, to establish rules for CLECs to obtain access to ROWs	Closed
DTE 98-38	Verizon, Attorney General, various CLECs and wireless providers	Dept. investigation into rate center consolidation as a possible number conservation measure in Eastern Massachusetts	Open
DTE 98-57 (Phase III and Phase IV)	Verizon, AT&T, CTC, Telecommunications Resellers Assoc. (TRA)	Review of Verizon’s proposed interconnection tariff No. 17.	Open
DTE 99-42/43	MediaOne, Greater Media, Verizon	Dept. arbitration of interconnection agreements between MediaOne and Verizon, and Greater Media and Verizon	Closed
DTE 99-77	Town of Athol and nearby communities, Verizon	Dept. investigation of complaint by Athol concerning Verizon’s service to North Quabbin communities	Closed
DTE 99-271	Verizon, Attorney General, various CLECs	Dept. review of Verizon’s Section 271 compliance filing	Closed
DTE 00-54	Sprint, Verizon	Dept. arbitration of interconnection agreement between Sprint and Verizon	Closed
DTE 00-64	Various carriers, Attorney General	Dept. investigation into area code relief for Western Massachusetts	Open
DTE 00-101		Dept. investigation to reclaim exchange codes	Open
DTE 01-20	Verizon, Attorney General, various CLECs	Dept. investigation to establish rates for Verizon’s unbundled network elements (“UNEs”) and for resale services	Open
DTE 01-31	Verizon, Attorney General, various CLECs	Dept. investigation into appropriate regulatory plan to succeed price cap regulation for Verizon	Open
DTE 01-33	Verizon, Attorney General, various CLECs and IXCs	Dept. proceeding regarding mandatory thousands-block pooling trials and other number conservation measures	Open
DTE 01-34	Verizon, Attorney General, various CLECs	Dept. investigation on its own motion into Verizon’s provision of special access services	Open
DTE 01-38	Verizon, AT&T, Covad Communications	Investigation of collocation power charges	Closed
DTE 01-39	Verizon, AT&T, Covad Communications	Complaint brought by Covad and AT&T regarding collocation power charges assessed by Verizon	Open
DTE 01-70	Fiber Technologies Network, LLC and Town of Shrewsbury Electric Light Plant	Complaint brought by Fiber Technologies to attach to the utility poles of Shrewsbury Electric	Open
DTE 01-96	Town of Cummington	Petition by Town of Cummington for a public interest payphone	Open

4. Other Activities

In addition to the activities described above, the Telecommunications Division devoted considerable time to many other tasks. Telecommunications Division staff reviewed 35 negotiated interconnection and resale agreements between Verizon and CLECs. Division staff devoted significant time to gaining carrier compliance with annual return requirements. Division staff also continued to respond daily to numerous questions about DTE policy from consumers, legislators, regulated companies, consultants, and financial analysts. As in 2000, Division staff resolved several disputes between carriers. The Telecom Division also expended significant resources working with carriers and their customers to minimize disruption from carriers that exited the market. Finally, Division staff continued to devote considerable time to staying current on changes in federal telecommunications policies and judicial case law affecting Massachusetts.

III. CONDITION OF THE MASSACHUSETTS TELECOMMUNICATIONS INDUSTRY

The following statistics summarize the current condition of the Massachusetts telecommunications industry, using the most recent data available from the DTE’s records, the FCC, and the common carriers. Where appropriate, the DTE compares the current data to data included in the calendar year 2000 report.

● Intrastate Revenues of Massachusetts Common Carriers

$2,736,392,839.20

(Based on FY2000 revenues).

● Number of Telephone Lines in Massachusetts by Customer Class

Calendar Year	Business	Residence	Total Access Lines
2000	3,330,920	2,880,721	6,211,641
1999	2,513,029	2,923,602	5,436,631
% growth from 1999	32.55%	- 1.47%	14.26%

Source: FCC ARMIS Report No. 43-08 (Verizon lines only).

● Number of Carriers Authorized to Provide Local Telecommunications Services in Massachusetts*

*As of January 2002

Incumbent Local Exchange Carriers: 5 (no change since FY ‘98)

Verizon

Granby Telephone Company

Sentinel Tree Telephone Company

Richmond Telephone Company

Taconic Telephone Company

Competitive Local Exchange Carriers: 2001: 175 2000: 161 1999: 132

01 Communications of Massachusetts, LLC

1-800-RECONEX, Inc.

A.R.C. Networks, Inc.

ACC National Telecom Corp.

Acclaim Telecom Corporation

Adelphia Business Solutions of MA, Inc.

Advanced Communication Systems

Advanced TelCom, Inc.

Affinity Network Incorporated

Allegiance Telecom of Massachusetts, Inc.

Allied Riser of Massachusetts, Inc.

American Fiber Network

Apco Telecommunications, Inc.

ARBROS Comm. Licensing Co., N.E.

AT&T BroadBand Phone of Massachusetts, LLC

AT&T Communications of NE, Inc.

Atlantic Connections, LLC

Atlas Communications, LTD.

Avatar Telecom, Inc.

Backbone Communications, Inc.

Bandwidth Communications, LLC

Barnstable Telephone, Inc

BBIS Communications, Inc.

BellSouth BSE, Inc.

Boston Telecommunications Services

BrahmaCom, Inc.

BridgeCom International, Inc.

BroadRiver Communications of the Northeast Corp.

Broadview Networks, Inc.

C2C Fiber of Massachusetts, Inc.

Calpoint Massachusetts, LLC

CAT Communications International, Inc.

Cbeyond Communications, LLC

Choctaw Communications, Inc.

Choice One Communications of MA, Inc.

Ciera Network Systems, Inc

Claricom Networks, Inc.

Coastal Internet Access, Inc.

Columbia Telecommunications Inc.

Comm South Companies, Inc.

Concert Communications Sales LLC

Consolidated Edison Communications, Inc.

Conversent Communications of Massachusetts, LLC

Cooperative Communications, Inc.

CoreComm Massachusetts, Inc.

CoreTel Communications, Inc.

CRG International, Inc.

CTC Communications Corp.

Dark Air Corp.

Dominion Telecom, Inc.

DPI-TeleConnect, LLC

DSCI Corporation

Eagle Communications, Inc.

Eastern Telephone, Inc.

Easy Cellular, Inc.

El Paso Networks, LLC

Emergent Communications, L.L.C

Enkido, Inc.

Enron Telecommunications, Inc.

Essex Communications, Inc.

Exario Telecom, Inc.

Excel Telecommunications, Inc.

EZ Talk Comunications, LLC

FairPoint Communications Solutions Corp.

Fiber Technologies Network, L.L.C.

Focal Communications Corporation of MA

Freedom Ring Communications, LLC

GE Business Productivity Solutions, Inc.

Gerson Group

GiantLoop Telecom, Inc.

Global Broadband, Inc.

Global Crossing Telemanagement, Inc.

Global Crossings Local Services Inc.

Global Metro Networks Massachusetts, LLC

Global NAPs, Inc.

GoBeam Services, Inc.

Groveline, LLC

ICG Telecom Group, Inc.

IDS Telcom LLC

IG2, Inc.

Integrated Communications Consultants

Intermedia Communications, Inc.

International Exchange Comm., Inc.

International Plus

International Telcom, Ltd.

Jirehcom, Inc.

KMC Data, LLC

KMC Telecom V, Inc.

LCI International Telecom Corp.

Level 3 Communications, LLC

Lighthouse Competitive Telephony Corp

Lightship Telecom LLC

Lightwave Communications, LLC

Lightyear Communications, Inc.

Lightyear Telecommunications, LLC

LineOne, LLC

Local Telecom Holdings, LLC

Log On America, Inc.

Long Distance of Michigan, Inc.

Lyxom, Inc.

Massachusetts Local Telephone Company, Inc.

Maxcess, Inc.

McGraw Communications, Inc.

MCI WorldCom Communications, Inc.

MCImetro Access Transmission Services

MCImetro Access Transmission Services-Boston Sales

McLeodUSA Telecommunications Services, Inc.

MegaCLEC, Inc.

Metro Teleconnect Companies Inc.

Metropolitan Telecommunications of MA

Mezco, LLC

Nationnet Communications Corporation

Navigator Telecommunications, LLC

NECLEC, LLC

New Access Communications, LLC

New Edge Network, Inc.

New England Digital Distribution, Inc

New Line Telephone & Communications Co., Inc.

NorCom, Inc.

Norfolk County Internet, Inc.

Norstar Communications, Inc.

North American Telephone Network, Inc.

NOS Communications, Inc.

NUI Telecom, Inc.

OneStar Communications, LLC

OneStar Long Distance, Inc.

OnFiber Carrier Services, Inc.

Optimum Global Communications, Inc.

PaeTec Communications, Inc.

Plan B Communications, Inc.

PNG Telecommunications, Inc.

Preferred Carrier Services, Inc.

Premiere Network Services, Inc.

Primus Telecommunications, Inc.

ProDesign Corp.

ProSpeed/Complete Business Systems

QuantumLink Communications

QuantumShift Communications, Inc.

Qwest Communications Corporation

RCN Telecom Services of MA, Inc.

RCN-BecoCom, LLC

Richmond Connections, Inc.

RNK, Inc.

SBC Telecom, Inc.

ServiSense.com, Inc.

Sigma Networks Telecommunications, Inc.

Southnet Telecomm Services, Inc.

Sprint Communications Company, L.P.

Supra Telecommunications and Information

Talk America Inc.

Talk Time Communications, Ltd.

TalkingNets Holdings, LLC

Telecarrier Services Inc.

Telecom Resources, Inc.

Telecommunications Cooperative Network

Teleport Communications-Boston

Telera Communications, Inc.

Telergy Network Services, Inc

Teligent Services, Inc.

Tie Communications, Inc.

Trans National Communications International, Inc.

Transbeam, Inc.

U.S. Telepacific Corp.

United States Telecommunications, Inc.

United Systems Access Telecom, Inc.

Universal Access, Inc.

US LEC Corp.

USA Telephone Inc.

VarTec Telecom, Inc.

Verizon Avenue Corp.

Williams Local Network, LLC