Review of the Section 251 Unbundling Obligations of Incumbent Local Exchange Carriers

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On August 21, 2003, the Commission initiated a Further Notice of Proposed Rulemaking to determine whether it should change its interpretation of section 252(i) of the Communications Act of 1934, as amended (the Act), as implemented by Sec. 51.809 of the Commission's rules (the "pick-and-choose" rule). In this Order, the Commission replaces the current pick-and-choose rule with an "all-or-nothing rule" that requires a requesting carrier seeking to avail itself of terms in an interconnection agreement to adopt the agreement in its entirety, taking all rates, terms, and conditions from the adopted agreement. The Commission determines in this Order that the pick-and-choose rule is a disincentive to give and take in interconnection negotiations. In addition, the Commission finds that other provisions of the Act provide adequate protection for requesting carriers from discrimination.