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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554

                                )
In the Matter of                )
                                )
ALLNET COMMUNICATION            )
SERVICES, INC.,                 )
                                )
           Complainant,                                                             )        File No. E-89-38S                             
                                  )
                                   v.)
                                )
U.S. WEST, INC,                 )
                                )
            Defendant.          )
                                )


                             ORDER


       Adopted:  July 24, 1997;  Released:  July 25, 1997

By the Chief, Formal Complaints & Investigations Branch, Enforcement Division, Common Carrier Bureau:

      1.On November 2, 1988, complainant Allnet Communication Services, Inc., ("Allnet") filed
a formal complaint against U.S. WEST, INC. ("U S WEST") seeking, among other things, a determination
that U S WEST had unlawfully assessed late payment interest charges ("LPIC") of 24 percent in violation
of Section 201(b) of the Communications Act of 1934, as amended (the "Act").  After finding that U S
WEST's LPIC of 24 percent was per se unjust and reasonable, the Commission ordered U S WEST to refund
Allnet an amount equal to the difference between a late penalty payment assessed at what would have
constituted a reasonable rate based on equitable considerations and the assessed 24 percent LPIC.  When
the parties represented that they had failed to reach a settlement of the matter, the Commission ordered that
the above-captioned supplemental proceeding be established to resolve the LPIC issue.  On June 11, 1997,
Allnet and U S WEST filed a joint motion requesting that the supplemental proceeding be dismissed with
prejudice.  In support of the motion, the parties state that a mutually agreeable settlement has been reached.

      2.We are satisfied that granting the parties' joint motion to dismiss will serve the public
interest by eliminating the need for further litigation and the expenditure of further time and resources by
the parties and by the Commission.

      3.Accordingly, IT IS ORDERED, pursuant to Section 4(i) and 208 of the Communications Act
of 1934, as amended, 47 U.S.C.  154(i), 208, and the authority delegated in Sections 0.91 and 0.291 of the
Commission's rules, 47 C.F.R.  0.91, 0.291, that the parties' Joint Motion to Dismiss IS GRANTED.

      4.IT IS FURTHER ORDERED that the above-captioned proceeding IS DISMISSED WITH
PREJUDICE and that the proceeding IS TERMINATED.



     FEDERAL COMMUNICATIONS COMMISSION



                              Kurt A. Schroeder
                              Chief, Formal Complaints and
                                Investigations Branch
                              Enforcement Division
     Common Carrier Bureau