Introduction
A new issue has emerged that could have a significant impact on competitive local exchange carriers (CLECs) that use unbundled network elements (UNEs) such as UNE-Loops.  This issue is known as Special Construction Charges.

Generally, interconnection contracts between CLECs and incumbent local exchange carriers (ILECs) have an extensive section outlining the obligations by which CLECs order and ILECs provision UNEs.  CLECs must take great care to ensure that all aspects of UNE deployment are included, such as pre-ordering, ordering, provisioning, billing, repair and maintenance.  

What CLECs may not realize is that these contract provisions may be worthless if the ILEC declares that a UNE facility is “not available.”  This recently has been occurring with greater frequency with respect to UNE-Loops.  

For example, an ILEC will determine that a UNE-Loop is available only if all major components of a loop such as the feeder or distribution are present and contiguous.  If one part of the loop is not physically present, or a field dispatch must be performed to make the loop contiguous, it will not be provisioned because it is not available -- as defined by the ILEC.  

When this occurs, the ILEC determines what work is required and the associated costs required to make the UNE-Loop “available.”  The ILEC informs the CLEC of the cost and work by sending a Special Construction Authorization form.  CLECs then have the option of accepting the charges, thereby authorizing the ILEC to perform the work, or rejecting the charges and the UNE-Loop order is canceled.  

ILECs have always had retail Special Construction tariff provisions for work that is unique or out of the ordinary.  However, the type of work described by ILECs to make a UNE-Loop available is generally not considered unique or out of the ordinary.  

An example of Special Construction work include "line and station transfer," in which copper bypass is done in an existing terminal.  Other examples include "clear defective pair," which repairs a damaged copper pair and "install plugs/cards," in which the ILEC installs a plug or card where digital loop carrier technology is used.  

There are a number of issues associated with special construction charges, which I discuss in this column.  Remember, though, that when CLECs have filed complaints against ILECs about this issue, state commissions have sided with CLECs and have ordered that the practice be discontinued.

Following are several significant issues related to Special Construction Charges.