The Florida Public Service Commission (PSC) has approved rates and conditions for interconnection between BellSouth Telecommunications, Inc., a local exchange carrier (LEC), and two new competitive providers of local exchange services, Metropolitan Fiber Systems of Florida, Inc. (MFS) and MCI Metro Access Transmission Services, Inc. (MCI). By a separate order, the PSC has adopted provisions for resale of BellSouth services by competing local service providers, including the unbundling of local service components. (Several other new competitors (em including Time Warner Communications, Sprint Metropolitan Network, Inc., and the Florida Cable Telecommunications Association (em had reached an agreement on interconnection and resale issues that was approved by the PSC.)
The PSC found that BellSouth, MFS, and MCI should compensate each other for the termination of local traffic by mutual traffic exchange. While leaving the terms of the stipulation between BellSouth and the others in place, the PSC was not convinced that the "mutual compensation" arrangement agreed to by the parties ensures that they will recover the cost of local interconnection through usage-based rates. Re Interconnection Involving Local Exchange Companies and Alternative Local Exchange Companies, Docket No. 950985, Order No. PSC-96-0445-FOF-TP, Mar. 29, 1996 (Fla.P.S.C.).