In 2002, the Massachusetts Transportation and Public Utilities Commission reviewed the rates for unbundled network elements for Verizon Massachusetts local exchange network. Competitive local exchange carriers can lease parts or all of Verizon’s local network at these rates. The rates must be based on cost plus a reasonable mark-up for profit. For this, the parties to the proceeding submitted different cost models.

NERA evaluated the cost model submitted by AT&T and MCI and concluded in testimony that the proposed model suffered from a number of deficiencies, both in design and implementation. Consequently, the NERA team recommended against the adoption of this model to determine the price of the unbundled network elements. This project involved written and oral expert testimony by NERA Senior Vice President Christian Dippon. This team has provided expert testimony in similar cases in many other jurisdictions for Verizon and other incumbent local exchange carriers.

The Massachusetts Transportation and Public Utilities Commission rejected the cost model proposed by AT&T and MCI and instead adopted the cost model proposed by Verizon.