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MEMORANDUM J. FREDERICK MOTZ, District Judge. Plaintiff-Verizon Maryland Inc. (âVerizonâ), formerly known as Bell Atlantic-Maryland, Inc., filed this complaint for declaratory and injunctive relief, alleging that defendant Maryland Public Service Commission (âPSCâ) issued orders in a proceeding brought .by Core Communications, Inc. (âCoreâ) that violated the Telecommunications Act of 1996, Pub. L. 104-104, 110 Stat. 56 (â1996 Actâ). Now pending is Verizonâs motion for summary judg *692 ment. The issues have been fully briefed and no hearing is necessary. Local Rule 105.6. I. Prior to 1996, local telephone companies, also known as local exchange carriers (âLECsâ), operated exclusive franchises within their local service areas. The 1996 Act sought to replace this monopoly with a competitive marketplace for local telephone services. To foster competition, the 1996 Act requires incumbent LECs (âILECsâ) in local markets to make their existing facilities and networks available to potential competitors. See Verizon Maryland Inc. v. Pub. Serv. Commân of Maryland, 535 U.S. 635, 638 , 122 S.Ct. 1753 , 152 L.Ed.2d 871 (2002). Specifically, as relevant here, the ILEC must âprovide ... interconnection withâ its existing network to new local carriers, referred to as Competitive LECs (âCLECsâ). 47 U.S.C. § 251 (c)(2). Interconnection allows callers who subscribe to a competitorâs service to receive calls from, and place calls to, individuals who subscribe to the incumbentâs service. Under Section 251(c)(2) of the governing statute, interconnection must be âat least equal in quality to that provided by the local exchange carrier to itself or to any subsidiary, affiliate, or any other party to which the carrier provides interconnection,â permitted by the incumbent âat any technically feasible point within the carrierâs network,â and provided âon rates, terms, and conditions that are just, reasonable, and nondiscriminatory.â Id. § 251 (c) (2) (B )-(D). To fulfill their duties under the Act, ILECs are required to enter into contracts â termed interconnection agreements (âICAsâ) â with CLECs. The parties have a âduty to negotiate in good faithâ the terms and conditions of the agreement. Id. § 251(c)(1). A proposed ICA must then be submitted to the state commission for its review and approval. Id. § 252(e)(1 )-(2). Any party aggrieved by a âdeterminationâ of a state commission under Section 252 may bring an action in the appropriate federal district court âto determine whether the agreement or statement meets the requirementsâ of Sections 251 and 252. Id. § 252(e)(6). Defendant Core, a CLEC, sought entry into the Maryland local telecommunications market, where plaintiff Verizon was the ILEC. Rather than negotiating and submitting a new ICA, Core opted-in to an existing, Commission-approved ICA between Verizon and another CLEC, then known as American Communication Services of Maryland, Inc. (âACSIâ). The ICA between Core and Verizon consisted of a short-form adoption agreement in addition to the preexisting ICA. (Pl.âs Ex. B.) Under Definitions, the ICA states, âInterconnection is As Described in the Act, and means the connection of separate pieces of equipment or transmission facilities within, between, or among networks. The architecture of Interconnection may include, but is not limited to, Collocation Arrangements, entrance facilities, and Mid-Span Meet arrangements.â (Id. § 1.33.) Section 4.0, entitled âInterconnection Pursuant to Section 251(c)(2),â contains various provisions about how the parties will interconnect, including the architecture of the facilities and equipment. (Id. § 4.0.) It states that interconnection âshall be established ... in accordance with the standards set forth in subsection 10.2.â (Id.) Subsection 10.2, in turn, provides, âUnless otherwise agreed to by the Parties, Interconnection shall be equal in quality to that provided by each of the Parties to itself or any subsidiary, affiliate, or third party.â (Id. § 10.2) The ICA defines âequal in qualityâ as âthe same or equivalent interface specifications, provisioning, installation, maintenance, testing and repair intervals for the same or equiv *693 alent services under like circumstances.â (Id.) Because Core was not yet ready to interconnect with Verizon when the ICA was adopted, the âInitial Network Implementation Schedule for Marylandâ lists all dates, including' âInterconnection Activation Date,â as âTBD,â or to be determined. (Id. at Schedule 3.0.) Similarly, the location of interconnection points (âIPsâ) on each carrierâs network are âTBD.â (Id. at Schedule 4.0.) On July 7, 1999, Core obtained certification from the PSC as a facilities-based local exchange carrier. (PLâs Ex. C, at 8.) On July 27, 1999, Core requested interconnection and an activation date of September 10, 1999 â forty-five days following the date of the letter. (PLâs Ex. D, at 1.) As required by the ICA, Core provided Verizon with forecasts of Coreâs trunking requirements and routing information. (Id.) The letter stated, âPlease confirm in writing if the requested interconnection activation date is acceptable, or, if it is not acceptable, please propose an alternate date, together with an explanation why such alternate date is appropriate.â (Id.) Verizon did not respond in writing. The parties met on August 11, 1999, to discuss interconnection. The parties agreed to adopt the âentrance facilityâ model of interconnection. 1 (PLâs Ex. C, at 10.) Entrance facilities are âdedicated transmission facilities that connect ILEC and CLEC locations.â United States Telecom Assân v. FCC, 359 F.3d 554, 585 (D.C.Cir.2004). An entrance facility consists of two multiplexers 2 with a fiber transport between them. (See Pl.âs Ex. N, at 16.) Verizon describes four major steps for provisioning initial interconnection with Core using the entrance facility method: 1) constructing the physical interoffice facility between the Verizon and Core networks, 2) provisioning DS-3 transport circuits from Verizonâs Tandem to Coreâs Wire Center, 3) provisioning DS-1 transport circuits riding on the DS-3s, and 4) establishing interconnection trunks between Verizonâs switch and Coreâs switch over the DS-1 transport. (Id. at 2 n. 2.) Core requested interconnection at its Wire Center on the tenth floor of the Court Square Building. The Court Square Building, located about three blocks from Verizonâs central office, is known as a âcarrier hotelâ because many carriers (including Verizon) have facilities there. (PLâs Ex. C, at 6, 7.) The Court Square Building was already âon-netâ with Verizon, meaning that the building was physically connected to Verizonâs central office through underground fiber feeder cables. (Id. at 7.) Certain facilities existed in the building prior to Coreâs interconnection request on July 27, 1999. A fiber riser was installed by Verizon to bring fiber from the basement of the Court Square Building to the tenth floor. (Id. at 8.) Verizon also install *694 ed a fiber patch panel in the Wire Center to terminate the riser cable and provide for cross connects. (Id.) In May 1999, an OC-12 multiplexer (âOC-12 Muxâ) was installed in the Wire Center and connected to the fiber patch panel. (Id.) In June 1999, Verizon âturned upâ an existing OC-12 capacity ring (âExisting OC-12 Loop Ringâ) in the Wire Center, meaning that physical construction was complete, the optical signals âą were transmitting, and the ring was service-ready. (Id. at 7-8.) At some point, however, the OC-12 Mux was disconnected from the Existing OC12 Loop Ring. 3 (Id. at 12.) At the August 11 meeting, Core proposed interconnection using the Existing OC-12 Loop Ring and the OC-12 Mux for interconnection, as this would eliminate the need for Verizon to build new facilities. Verizon representatives agreed that using the Existing OC-12 Loop Ring would be technically feasible. (Id. at 11.) Core then requested an interconnection activation date of September 18, 1999. (Id. at 10; Pl.âs Ex. D, at 45.) Verizon, however, indicated that the provision of entrance facilities would require twelve to fourteen weeks, rather than the forty-five day period requested by Core. 4 (PLâs Ex. D, at 45.) The parties agree that the Existing OC-12 Loop Ring had sufficient capacity to support Coreâs initial request for interconnection. (PLâs Ex. C, at 11.) However, on August 31, 1999, Verizon informed Core that as a matter of policy, Verizon would not use the Existing OC-12 Loop Ring for interconnection purposes, whether or not it was technically feasible. (Id. at 12.) Verizon stated that instead of using the existing ring, it would need to construct a new OC-12 interoffice facility ring (âNew OC-12 IOF Ringâ), which would be completed by November 16,1999. (Id. at 12-13; PLâs Ex. A, at 5.) Meanwhile, around August 15, 1999, Verizon had informed Core that the OC-12 Mux Core desired to use for interconnection was assigned to another customer and therefore could not be used. (PLâs Ex. C, at 11.) Verizon would not provide this customerâs name to Core, but it was later revealed that Core itself (in an end-user retail capacity, according to Verizon) was the customer of record. (PLâs Ex. A, at 6.) Verizon later agreed to use this multiplexer, but stated to Core on September 7, 1999, that the OC-12 Mux would have to be âreinventoriedâ as a âcarrierâ facility in order to use it for interconnection purposes. (PLâs Ex. C, at 12.) At that time, Verizon informed Core that the standard interval for delivering an entrance facility was four to six months. (PLâs Ex. D, at 25.) On September 15, 1999, Verizon anticipated a completion date of November 16, *695 1999. (Id. at 52.) Core responded on September 24, 1999, that the November 16 date was not acceptable, and that Verizon had not yet articulated a reasonable justification for refusing to use the existing multiplexer for interconnection. (Id. at 56.) Verizon asserts it completed the New OC-12 IOF Ring by November 16, 1999, while Core maintains that Verizon did not complete it until November 30, 1999. (Pl.âs Ex. C, at 13.) Once the New OC-12 IOF Ring was âturned up,â the subsequent steps in the interconnection process (DS-3, DS-1, and trunking design) were completed within twenty-four days, by December 23, 1999, just over four months after the initial meeting between Core and Verizon on August 11,1999. (Id.) In October 1999, Core filed a complaint with the PSC based, on Verizonâs alleged wrongful delay of interconnection. (Id. at 2.) Core filed an amended complaint on January 18, 2001. (Id.) The matter was docketed as Case Number 8881 and delegated to the Hearing Examiner Division. (Id.) Core asserted five counts against Verizon. (Def. Coreâs Ex. 2.) In Count I, Core alleged that Verizon âbreached section 4.4.4 of the Interconnection Agreement with Core by failing to provide interconnection within the requested 45-day interval, and by refusing to negotiate an alternative interval.â (Id. ¶ 24.) In Count II, Core alleged that Verizon âbreached section 27.1 of the Interconnection Agreement by refusing to provide Core with interconnection on terms and conditions that VZ-MD provides to itself and others.â (Id. ¶ 32.) Count III alleged that Verizon âbreached Section 27.1 of the Interconnection Agreement with Core by refusing to permit interconnection at a technically feasible point.â (Id. ¶ 43.) In Count IV, Core alleged that Verizon âbreached Section 27.1 of the Interconnection Agreement with Core by imposing unjust and unreasonable terms and conditions on the. interconnection process.â (Id. IT 52.) Finally, Count V alleged that Verizon âbreached its duty of good faith and fair dealing under the Interconnection Agreement with Core by refusing to provide interconnection within a commercially reasonable time.â (Id. ¶ 56.) On March 25, 2002, the Hearing Examiner dismissed Count I of Coreâs Amended Complaint, ruling that Verizon was not required under the Interconnection Agreement to provide interconnection to Core within forty-five days of Coreâs request. (Pl.âs Ex. L.) This decision was not appealed. On August 8, 2003, after extensive briefing and a two-day evidentiary hearing, the Hearing Examiner issued a Proposed Order finding in Coreâs favor on Counts II through V. (Pl.âs Ex. C, at 38.) The Hearing Examiner stated that Coreâs separate counts âall boil[ed] down to the assertion that Verizon wrongfully delayed its interconnection with Core.â (Id. at 33.) Core argued âthat Verizonâs refusal to use its existing infrastructure to interconnect with Core, and Verizonâs insistence on granting Core access only to newly constructed, dedicated facilities, resulted in over a three-month delay in interconnection.â (Id. at 35.) The Hearing Examiner agreed with Core âthat Verizon did not provide interconnection to Core in as timely a fashion as it reasonably would have provided interconnection to any of its own customers.â (Id. at 38.) Pointing to the FCCâs statement that an incumbent LEC is not just and reasonable when it provides interconnection âin a manner less efficient than an incumbent LEC provides itself,â the Hearing Examiner found that the âcentral inquiryâ in resolving Coreâs complaint was âwhether Verizon did in fact interconnect with Core on terms less efficient than it would have offered to one of its own customers.â (Id. at 35.) The Hearing Exam *696 iner thus interpreted the word âitselfâ to mean âits customers.â The Hearing Examiner found âby a preponderance of the evidence that Verizonâs failure to reasonably respond to Coreâs clear signals that it desired speedier interconnection was unreasonable and contrary to Verizonâs responsibilities under the Act.â (Id. at 38.) The Hearing Examinerâs discussion of the merits focused on Verizonâs âpassive! ] adhere[nee] to its own interpretation of the partiesâ Interconnection Agreement.â (Id. at 35.) Amendment was a permissible way for the parties to achieve faster interconnection than described in the ICA, according to the Hearing Examiner. (Id. at 36.) Addressing Verizonâs argument that Verizon would have violated the ICA had it provided interconnection using the Existing OC-12 Loop Ring, given the lesser quality, the Hearing Examiner stated that â[q]uality specifications and Verizonâs liability concerns could have been negotiated and addressed in a redrafted Agreement.â (Id. at 37.) According to the Hearing Examiner, âVerizon must not impede competition by rigid adherence to an amendable agreement that a CLEC wishes to amend.â (Id. at 39.) The Hearing Examiner found that âwhen a CLEC makes known to Verizon, as Core did here, that it desires accelerated interconnection, Verizon cannot reasonably decline to offer to negotiate appropriate changes to interconnection agreements or other documents, or to work with the CLEC to achieve interconnection in a manner acceptable to both.â (Id.) On appeal to the PSC, Verizon asserted that the Hearing Examiner reached the legally impermissible conclusion that Verizon was liable because it rigidly adhered to the terms of the ICA. (PLâs Ex. M, at 1.) Verizon emphasized the Hearing Examinerâs purportedly faulty conclusion that even though Verizon was contractually obligated to provide interconnection over the higher quality IOF facilities, Verizon was required under the Act to offer to negotiate an amendment to accommodate Coreâs request to interconnect over lesser quality loop facilities. (Id. at 1-2.) Verizon claimed that the Hearing Examiner erred by imposing upon Verizon a general duty to offer to negotiate changes to interconnection agreements when requested. (Id. at 8.) On February 26, 2004, the PSC affirmed the Hearing Examinerâs Proposed Order in conclusion that Verizon wrongfully delayed interconnecting with Core by refusing to interconnect over the Existing OC-12 Loop and multiplexer facilities. (Id. at 5, 7.) The PSC concluded it was âclear that interconnection of Core over the existing facility was proposed by Core and could have been accomplished in an expeditious manner, apparently sometime around mid-September 1999 as requested by Core, but Verizon refused to do so until construction of new facilities which did not result in interconnection until apparently December 23,1999.â (Id. at 6.) In support of this conclusion, the PSC found that âcapacity was available and connection technically feasible on an existing Verizon OC-12 loop ring and OC-12 multiplexer, which Core proposed to service the interconnection.â (Id. at 5.) The PSC concluded that Coreâs proposal to utilize the Existing OC-12 Loop constituted Coreâs acceptance of that facility as compliant with the ICA. (Id. at 6-7.) The PSC found that Verizon did not inform Core of the concern that the Existing OC-12 Loop would be of âlesser qualityâ and in violation of the ICA until the hearing before the Hearing Examiner. (Id.) Nor did Verizon inform Core that the other customer assigned to the Existing OC-12 Loop was in fact Core. (Id. at 6.) The PSC found that this showed a lack of full disclosure and a *697 failure to deal in good faith on the part of Verizon, as well as improper delay that could have been avoided had Verizon agreed to use the existing facilities as proposed by Core. (Id. at 7.) Verizon filed a motion for reconsideration and rehearing. Verizon challenged the PSCâs finding that Verizon did not inform Core until the hearing before the Hearing Examiner that the Existing OC-12 Loop Ring could not be used because of its lesser quality. Verizon also moved the PSC to reconsider its conclusion that Verizon denied Coreâs request to use the existing multiplexer on the grounds that it was assigned to someone else. (Pl.âs Ex. N, at 7-14.) In addition to challenging those findings, Verizon reasserted that it acted in good faith to achieve interconnection, that there was no independent cause of action for breach of an implied duty of good faith and fair dealing, and that the PSC erred in concluding that Verizon constructed a separate âloop ringâ to interconnect with Core. (Id.) On July 9, 2004, the PSC issued Order Number 79259, denying Verizonâs petition and reaffirming the Proposed Order. (PLâs Ex. K.) In response to Verizonâs claims that Order Number 78989 contained âadditional, unwarranted and erroneous factual findings beyond those it asserts were already made in the [Proposed Order],â the PSC found that â[w]hile in Order No. 78989 the Commission elaborated to a greater extent than the Hearing Examiner did with regard to the transactions between Verizon and Core, the discussion by the Commission is fully supported by the record.â (Id. at 2.) The only argument the PSC addressed on the merits was whether Maryland law provided an independent cause of action for breach of an implied duty of good faith and fair dealing. (Id.) The PSC did not explicitly rule on this issue, but stated that Verizonâs duty could be construed as an implied duty of fair dealing as well as a duty under the ICA; in any event, Verizon fulfilled neither duty. (Id. at 8.) The PSC âaffirm[ed] the Hearing Examinerâs findings that Verizon breached the Interconnection Agreement and also failed to negotiate in good faith.â (Id.) Verizon seeks review of the PSCâs Orders. II. Summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); see also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48 , 106 S.Ct. 2505 , 91 L.Ed.2d 202 (1986); Celotex Corp. v. Catrett, 477 U.S. 317, 322-23 , 106 S.Ct. 2548 , 91 L.Ed.2d 265 (1986). On review of state commission decisions, âgeneral standards for judicial review of agency action apply.â GTE S., Inc. v. Morrison, 199 F.3d 733 , 745 (4th Cir.1999). Factfindings made by the state commission are reviewed under the substantial evidence standard. In applying this standard, the court does not âsit as a super public utilities commission,â and is âânot free to substitute its judgment for the agencyâs.â â Id. at 745-46 (quoting AT & T Wireless PCS, Inc. v. City Council of City of Virginia Beach, 155 F.3d 423, 430 (4th Cir.1998)). Instead, the court âmust uphold a decision that has âsubstantial support in the record as a wholeâ even if it might have decided differently as an original matter.â AT & T Wireless, 155 F.3d at 430 (quoting NLRB v. Grand Canyon Mining Co., 116 F.3d 1039, 1044 (4th Cir.1997)). The state commissionâs interpretations of federal law, including the 1996 Act, are reviewed de novo. GTE S., 199 F.3d at 745. However, even under the de novo standard of review, âan order of a state commission may deserve a measure of respect in view of the commissionâs ex *698 perience, expertise, and the role that Congress has given it in the Telecommunications Act.â BellSouth Telecomms., Inc. v. Sanford, 494 F.3d 439, 447 (4th Cir.2007). The amount of respect given âwill vary in accordance with âthe degree of the agencyâs care, its consistency, formality, and relative expertness,â as well as âthe persuasiveness of the agencyâs position.â â Id. at 448 (quoting United States v. Mead, 533 U.S. 218, 228 , 121 S.Ct. 2164 , 150 L.Ed.2d 292 (2001)). Therefore, the court must review the decisions of the state commission âwith a respect for the Commissionâs special role in the regulatory scheme, its freedom to maneuver in that role, its expertise and experience, and the care it has taken in the particular task of forming its orders.â Id. at 449. III. In this appeal, Verizon asserts that the PSC based its conclusion that Verizon breached the ICA and wrongfully delayed interconnection with Core on erroneous interpretations of federal law. Verizon specifically challenges the PSCâs finding that federal law and the ICA required it to connect with Core using loop facilities. Verizon alleges that the PSC reached this conclusion by erroneously creating a duty for Verizon to negotiate an amendment to the ICA, or, alternatively, by erroneously finding that Core had consented to a valid modification to the ICA. A. âEqual in Qualityâ Standard Verizon claims that the PSC misconstrued federal law when it assessed the âequal in qualityâ standard using services provided to retail customers as a comparison. Verizon argues, as it did before the Hearing Examiner and the PSC, that federal law and the ICA require interconnection equal in quality not to that provided to retail customers, but to interconnection provided to itself and other carriers. I agree. The 1996 Act requires ILECs to provide interconnection to requesting CLECs âthat is at least equal in quality to that provided by the local exchange carrier to itself or to any subsidiary, affiliate, or any other party to which the carrier provides interconnectionâ and is provided âon rates, terms, and conditions that are just, reasonable, and nondiscriminatory.â 47 U.S.C. § 251 (c)(2)(D). The rule promulgated by the FCC implementing this standard states that interconnection is required âat a level of quality that is equal to that which the incumbent LEC provides itself, a subsidiary, an affiliate, or any other party. At a minimum, this requires an incumbent LEC to design interconnection facilities to meet the same technical criteria and service standards that are used within the incumbent LECâs network.â 47 C.F.R. § 51.305 (a)(3). Before the Hearing Examiner, Core argued that the âequal in qualityâ interconnection standard required Verizon to provide interconnection on the same time twenty business-day time interval Verizon provided for retail customers requesting DS-3 special access circuits, which Core asserted were technically identical to the DS-3 interconnection circuit requested by Core. (Pl.âs Ex. C, at 14.) The Staff of the PSC agreed, arguing in the proceedings below that the âequal in qualityâ standard required a comparison to Verizonâs retail customers, and consequently Verizon should have provided interconnection over the Existing OC-12 Loop Ring. (Id. at 20-21.) Verizon claims that a connection over a loop facility, such as the Existing OC-12 Loop Ring Core requested to use, is lesser in quality than interconnection over IOF. 5 *699 Interoffice facilities (IOF) consist of two fiber multiplexers with a fiber transport between them, creating a dedicated path between the two networks. Loop facilities, in contrast, can connect multiple end user customer locations with numerous multiplexers within a wire center to the ILEC central office. 6 Verizon Maryland used only interoffice facility configurations for its own interoffice trunks and for trunk interconnection with other carriers. (Pl.âs Ex. N, at 17.) Verizon asserts that had it followed Coreâs request to provide interconnection over the lesser quality Existing OC-12 Loop Ring, it would have been in violation of Section 251 and the ICA. 7 The PSC erred by evaluating âequal in qualityâ using Verizonâs provision of services to large retail customers as a comparator. Using an ILECâs provision of services to retail customers to determine whether an ILEC has provided interconnection that is âequal in qualityâ does not comport with the clear language of the statute. The FCCâs regulation reaches the same conclusion, providing that â[a]t a minimum â the ILEC must provide interconnection with the same level of quality that is used within its own network. 47 C.F.R. § 51.305 (a)(3). Indeed, were the statute to permit ILECs to connect with potential competitors using the inferior facilities provided to retail customers, ILECs could stifle competition by refusing to provide the same quality to potential competitors that it provides to itself. Core next argues that the ICA is broader than the statute and allows a comparison of retail customers to evaluate the equal in quality standard. Section 10.2 of the ICA provides that interconnection must be âequal in quality to that provided by each of the Parties to itself or any subsidiary, affiliate, or third party.â Core claims that âthird partyâ can mean âlarge retail customers.â (Core Mem. 20-21.) However, other provisions in the ICA make clear the contractâs meaning. The very next sentence of Section 10.2 provides that â âequal in quality' means the same or equivalent interface specifications, provisioning, installation, maintenance, testing and repair intervals for the same or equivalent services under like circumstances.â (PLâs Ex. B § 10.2 [emphasis added].) Services provided to retail customers are not âthe sameâ as or âequivalentâ to interconnection. Indeed, Verizon does not âinterconnectâ with retail customers. Moreover, the ICA between Verizon and Core *700 expressly incorporates the statute and regulations, providing: â[Verizon] shall provide the Interconnection ... in accordance with the performance standards set forth in Section 251(c) of the Act and the FCC Regulations, in particular the rules set forth in 47 Code of Federal Regulations §§ 51.305(a)(3) to (a)(5)....â (Id. § 27.1.) Additionally, the ICA provision governing joint implementation and grooming process states that the parties shall define âstandards to ensure that Interconnection trunk groups experience a grade of service, availability and quality which is comparable to that achieved on interoffice trunks within [VerizonJâs network and in accord with all appropriate relevant industry-accepted quality, reliability and availability standards.â (Id. § 10.1(a) [emphasis added].) It is evident that the use of the word âthird partyâ in Section 10.2 of the ICA refers to third parties provided âthe same or equivalent servicesâ by Verizon â namely, other carriers to which Verizon interconnects. Therefore, I find that the PSC misconstrued federal law and the ICA in evaluating the âequal in qualityâ interconnection standard against Verizonâs end-user retail customers. 8 Given that the PSCâs finding of a violation of the ICA was largely based on Verizonâs refusal to connect with Core over the existing loop facility, the PSCâs Orders are vacated. B. Duty to Amend or Negotiate Amendments Verizon alleges that the PSC ruled, contrary to federal law, that Verizon had a duty to and should have amended its interconnection agreement with Core to allow interconnection using lesser-quality loop facilities. Verizon also asserts that the PSC misconstrued federal law by finding that the duty to negotiate interconnection agreements in good faith, a requirement under Section 251(c) of the 1996 Act, also encompasses a duty to negotiate amendments to interconnection agreements. It is difficult to discern whether the PSC in fact adopted the portion of the Hearing Examinerâs Proposed Order finding that Verizon should have offered to amend the ICA. The PSC Order states, âWhile the Proposed Order contains references to possible amendment of the ICA to achieve the interconnection, the facts as presented (and not in dispute) show Coreâs proposal to utilize the existing loop interconnection to meet its time objective would essentially constitute Coreâs acceptance of the shared facility as being in compliance under the ICA.â (Pl.âs Ex. A, at 6-7.) Somewhat contradictory is the PSCâs Order on Reconsideration, which affirmed âthe Hearing Examinerâs findings that Verizon ... failed to negotiate in good faith.â (PLâs Ex. K, at 3.) In so affirming, the PSC cited to the portions of the Hearing Examinerâs Order that concerned amending the agreement. (See id. at 3 n. 7 [citing PLâs Ex. C at 35-38].) It is unclear the basis for which the PSC found a duty to negotiate in good faith amendments at the unilateral request of Core, if the PSC indeed intended to adopt that portion of the Hearing Examinerâs opinion. *701 The PSCâs finding that Verizon breached the ICA necessarily includes a finding that Verizon was required under the ICA to connect with Core in the way Core requested. If that were true, no amendment would be necessary. Indeed, Core asserts that it ânever claimed that Verizon was required to amend the ICA.â (Core Mem. 28.) Moreover, Section 251(c) âdoes not mandate that incumbent LECs cater to every desire of every requesting carrier.â Iowa Utils. Bd. v. FCC, 120 F.3d 753, 813 (8th Cir.1997), aff'd in part and revâd in part on other grounds by 525 U.S. 366 , 119 S.Ct. 721 , 142 L.Ed.2d 835 (1999). Verizon was under no obligation to amend the ICA to allow interconnection through lesser-quality facilities. C. Duty of Good Faith and Fair Dealing The PSC found that Verizon breached its duty to provide interconnection in a commercially reasonable manner â in other words, its duty of good faith and fair dealing. (Pl.âs Ex. C, at 29.) Core based this claim in the proceedings before the PSC on Verizonâs withholding of the âtrue nature of Verizonâs objections to Coreâs requested interconnection,â which made it impossible for Core to address Verizonâs concerns. (Id. at 30.) Core maintained that Verizon âmade every attempt to prevent Core from achieving interconnection within a reasonable time frame,â by failing to inform Verizon of the reasons for its refusal to interconnect using the Existing OC-12 Loop Ring and OC-12 Mux. (Id.) Core points specifically to Verizonâs statement that the multiplexer had been assigned to a âcustomer of recordâ other than Core, when in fact the customer of record was Core itself. (Id.) Core also points to Verizonâs later statement that the equipment needed to be reinventoried from customer to carrier facility. (Id. at 30-31.) Verizon correctly challenges the PSCâs conclusion in its original order that there is an independent cause of action under Maryland law for breach of an implied duty of good faith and fair dealing. As the PSC appeared to recognize upon reconsideration, while a negotiated contract contains an implied duty of good faith and fair dealing, âMaryland law does not recognize an independent cause of action for breach of the implied covenant of good faith and fair dealing. A breach of that implied covenant simply supports âanother cause of action at law, e.g., breach of contract[.]â â Cutler v. Wal-Mart Stores, Inc., 175 Md.App. 177 , 927 A.2d 1, 11 (Md.Ct.Spec.App.2007) (quoting Mount Vernon Props., LLC v. Branch Banking & Trust Co., 170 Md.App. 457 , 907 A.2d 373, 381 (Md.Ct.Spec.App.2006)) (alteration in original). In its reconsideration order, the PSC based its finding of liability instead on a contractual duty found in the ICA. As discussed above, the duties under the contract may need to be reevaluated given my determination that the âequal in qualityâ standard is assessed using other carriers and Verizon itself as a comparator, not Verizonâs retail customers. For the foregoing reasons, summary judgment is granted for plaintiff and PSC Orders 78989 and 79259 are vacated. 9 A separate order implementing this ruling follows. *702 ORDER For the reasons stated in the accompanying Memorandum, it is, this 30th day of June 2009, ORDERED: 1. Plaintiff Verizon Maryland Ine.âs motion for summary judgment is granted; 2. Maryland Public Service Commission Order Nos. 78989 and 79259, In re Complaint of Core Communications, Inc. v. Verizon Maryland Inc., Case No. 8881, are vacated; and 3. Judgment is entered in favor of plaintiff against defendants. 1 . The contract provides that Core has the sole right and discretion to specify any of three methods for interconnection at any of the Verizon IPs: (1) a physical or virtual collation facility established by Core at Verizon's IP; (2) a physical or virtual collation facility established separately at Verizon's IP by a third party with whom Core has contracted with for that purpose; or (3) an entrance facility and transport leased from Verizon (and any necessary multiplexing), extending to Verizonâs IP from a mutually agreed upon point on Coreâs network. (PLâs Ex. B § 4.2.2.) In turn, Verizon has the sole right and discretion to specify any of three methods for interconnection at any of Coreâs IPs. (Id. § 4.2.5.) 2 . According to the Hearing Examinerâs Proposed Order, a "multiplexer is a device that combines digital channels of one size, such as a DS-1, into a digital channel of a larger size, such as a DS-3. Multiplexing also occurs on optical facilities. For example, a mux [âmultiplexerâ] is necessary to transition from an OC-1 to an OC-12 facility.â (Pl.âs Ex. C, at 8.) 3 . It is disputed whether the ring was disconnected at the time of Coreâs interconnection request. According to the Proposed Order, "Verizon's witness Albert testified that he believed that the OC-12 Mux was disconnected from the OC-12 loop ring sometime between June 7 and August 11, 1999. Core witness Mingo maintains that the exact date of the disconnection is a red herring, and in any event, the disconnection occurred substantially after the August 11 Meeting.â (PLâs Ex. C, at 12-13.) 4 . Throughout these discussions, Core was under the mistaken impression that Verizon was required under the ICA to interconnect with Core within forty-five days. The Hearing Examiner found that the contract provision relied upon by Core in support of this alleged forty-five day obligation did not in fact apply to initial interconnection, and even if it did, the contract language clearly stated that "the interconnection data in a new LATA [Local Access and Transport Area] shall not be earlier than forty-five days after receipt by [Verizon] of all complete and accurate trunk orders and routing information.â (Pl.âs Ex. L, at 17 [emphasis added].) 5 . As a factual matter, Core asserts that Verizon has not established that it provides a lesser quality of service to its retail customers. *699 (Core Commcâns, Inc.âs Oppân to PLâs Mot. for Summ. J. ["Core Mem.â] 24.) No factual finding was made before the Commission on this issue. I note that a letter written by the PSC in another proceeding accepts Verizonâs assertion that loop facilities are of lesser quality than IOF facilities. (PL's Ex. J, at 6.) 6 . The PSC recounts in its Order that "Verizon indicated it would construct a new loop ring as a dedicated facility for Core.â (PLâs Ex. A, at 5.) The language used by the PSC is troubling, as it reflects a fundamental misunderstanding of the key issue disputed by the parties: Verizon claims it was required to construct a new interoffice entrance facility, which contributed to the delay, because the existing loop ring was of lesser quality than the interoffice facilities Verizon itself uses. Verizon did not claim, as the language in the Order would indicate, that it was constructing a new lesser-quality loop facility. 7 . Core alleges that Verizon did not mention the quality concern regarding the loop facility until it initiated the litigation against Verizon; therefore, Core did not know that it should request a modification of the Agreement. (Core Mem. 23-25.) In response, Verizon points to a September 7, 1999 e-mail to Core stating that Verizon must build an entrance facility with two multiplexers. (Pl.'s Ex. D, at 25 ["As Iâve explained to Mr. Mingo on more than one occasion, a single entrance facility consists of two muxes and a facility between them. Thus, even if we can use the muxes at Core's POPs, for each entrance facility we will still need to build a second mux at the [Verizon] central office.â].) 8 . The PSC seemed to indicate that even if the ICA required interconnection over an interoffice facility, a modification of the contract was achieved because "Core's proposal to utilize the existing loop interconnection to meet its time objective would essentially constitute Core's acceptance of the shared facility as being in compliance under the ICA." (PL's Ex. A, at 6-7.) However, concerning modifications of the ICA, the contract provides: "No modification, amendment, supplement to, or waiver of the Agreement or any of its provisions shall be effective and binding upon the Parties unless it is made in writing and duly signed by the Parties.â (PL's Ex. B § 29.19.) According to its terms, the contract could not have been modified by Coreâs unilateral request. 9 . This court has no authority to remand this action for further proceedings. If Core or the PSC believe further proceedings are necessaiy given the interpretations of federal law stated in this opinion, they should proceed accordingly. For example, further factual findings related to the "equal in quality" standard may be needed. (But see Pl.âs Ex. J, at 6.)
Case Information
- Court
- D. Maryland
- Decision Date
- June 30, 2009
- Status
- Precedential