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The cost of the software upgrade would be approximately $81,000 and the budget for the  yO0 -changeout of equipment and reconfiguration under the network upgrade plan is approximately $90,000. Id.) Moreover, Silver Star argues that only IXCs that have been issued fourdigit CICs will be affected by this waiver. Silver Star recognizes that because it is seeking an extension beyond the end of the permissive dialing period, dialaround calls with sevendigit CACs will not be  X -possible in the Irwin exchange between June 30, 1998, and August 31, 1998.9? M yOd-ԍ Id. at 9.9 Silver Star argues, however, that the burdens imposed on the IXCs served by the Irwin exchange, and on their customers, is outweighed by the costs that would be incurred if Silver Star were required  X -to comply with the January 1, 1998 deadline.<@ @M yO-ԍ Id. at 910.< In addition, Silver Star asserts that public hearings regarding Extended Area Service offerings from the Irwin exchange may minimize  X-the need for dialaround calls made from that exchange.9AM yO-ԍ Id. at 9.9  Xb-x D.` ` Request for Extension of Hager  X4-x 14.` ` Hager, a small, rural LEC operating in Wisconsin,~B4` M yOE-ԍ Hager serves approximately 1,950 access lines. See Hager Petition at 2.~ requests an extension of the switch conversion deadline until the end of 1998. Hager currently uses a Siemens StrombergCarlson DCO switch with Release 17.0 software which does not support fourdigit  X-CICs.3C M yO!-ԍ Id.3 Hager asserts that it has decided to replace the switch with a remote switch connected to a Nortel host switch owned by West Wisconsin Telecom Cooperative, Inc. (West  X-Wisconsin), which it anticipates being complete by the end of 1998.3D M yO$-ԍ Id.3 Hager asserts that it is" D0*%%ZZ" currently in the process of obtaining a loan from the Rural Utilities Service (RUS). Following RUS approval, Hager will order the switch from Nortel, with delivery likely to follow ten months later. Hager asserts that, in the interim, it has begun work on the fiber link between Hager and West Wisconsin. While the fiber link has been installed, Hager asserts that the optical terminating equipment will not be delivered and installed until the first half of  X-1998.3EM yO-ԍ Id.3 Hager asserts that, without a waiver, it would be forced to spend approximately  Xv-$258,000 to upgrade a switch which it plans to replace within a year.3FvXM yO -ԍ Id.3 Hager asserts that no  X_-carriers have requested that Hager support fourdigit CICs.9G_M yO -ԍ Id. at 3.9 Hager argues that grant of its waiver request would be consistent with the Commission's policy of minimizing regulatory  X1-burdens on small telephone companies.H1xM yOZ-Ѝ Id. at 56, citing, e.g. Amendment of the Commission's Rules to Establish Competitive Service Safeguards for Local Exchange Carrier Provision of Commercial Mobile Radio Services, Implementation of Section 601(d) of the Telecommunications Act of 1996, WT Docket No. 96-162, FCC 97352 (rel. Oct. 3, 1997);  yO-Telephone Number Portability, Second Report and Order, CC Docket No. 95116; FCC 97289 (rel. Aug. 18, 1997). In addition, Hager asserts that grant of its waiver would be consistent with other Bureau decisions granting waivers to LECs who planned to  X -replace their switches.ZI ( M yO-Ѝ See Hager Petition at 35.Z For example, Hager cites to a Bureau decision to grant Pacific Bell a waiver of the *82 caller ID unblocking requirement, agreeing that it would be inefficient to  X -upgrade switches which were going to be replaced.-J M yO>- xMԍ See id. at 34, citing Rules and Policies Regarding Calling Number Identification ServiceCaller ID,  yO-Memorandum Opinion and Order, CC Docket No. 91281, 11 FCC Rcd 12756, 1275812759 (1996).- Hager also cites to the Bureau's decision to grant waivers of the equal access conversion deadline to LECs who planned to  X -replace their switches.K M yOh-Ѝ Hager Petition at 45; citing Lackawaxen Telephone Company, Skyline Telecom, Central Utah Telephone,  yO0-Inc., Memorandum Opinion and Order, 11 FCC Rcd 9648 (1995) (Lackawaxen MO&O).  Xy- III. DISCUSSION ă  XK-x15.` ` The Commission may waive any provision of its rules, in whole or in part, if  X4-good cause is shown.GL4hM yOM$-ԍ See 47 C.F.R.  1.3.G An applicant for waiver must demonstrate that special circumstances"4 L0*%%ZZf" warrant a deviation from the general rule and that such deviation will serve the public  X-interest.MM yOb- xԍ Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990); WAIT Radio v. FCC, 418 F.2d 1153 (D.C. Cir. 1969). In the First CICs Waiver Order, we stated the factors we weighed in evaluating each petition for waiver: the LEC's diligence in upgrading its switches; the availability from manufacturers of products required to accomplish the upgrade; and the impact of an extension of the conversion deadline on the IXCs served by the LEC's switches and on customers' ability to reach IXCs through CAC dialing. The same factors have been considered in evaluating each petition before us here.  XH-x16.` ` Requests for Extension of Cuba City, Belmont, and the Iowa LECs. We find that the petitions for waiver filed by Cuba City, Belmont, and the Iowa LECs demonstrate the special circumstances meriting a waiver of the January 1, 1998 conversion deadline. First, each has demonstrated that it is diligently working upgrade its switches. For example, Cuba City and Belmont began negotiations with their engineers and Nortel in the first quarter of 1997, signed contracts with Nortel in July 1997, and received equipment in late November 1997. The Iowa LECs, since they learned recently from INS that they would need to upgrade or replace their individual switches to become fourdigit CIC compliant, have demonstrated that they are diligently working to achieve compliance before the end of the permissive dialing period: (1) Deep River is working with Nortel to assess the cost and time for software upgrades; (2) FrontierIowa asserts that agreement with Nortel on a software upgrade package is forthcoming; (3) La Porte City is undergoing negotiations with Nortel for a software upgrade for one switch and replacement for another; (4) Ogden is working with Nortel to estimate costs and timing for a generic software upgrade and a possible switch replacement, and expects information from Nortel by December 14, 1997; (5) WebbDickens has initiated negotiations with Nortel for generic software upgrades; (6) Ellsworth finished negotiations for new switches in June 1997, received the switches in the beginning of November 1997, and expects switch installation in December 1997, and operation in January 1998; (7) Grand River is expediting its switch replacement originally scheduled for the last half of 1998; (8) Griswold has reviewed a bid from Nortel and is expecting a followup response by December 25, 1997; (9) River Valley has accepted bids from three manufacturers and initiated the loan process with the RFTC; and (10) Dixon is in the process of negotiating switch replacements.  X7-x17.` ` Second, based on their petitions, we conclude that Cuba City, Belmont, and the Iowa LECs have demonstrated that the product needed to accomplish the upgrade to their individual networks is not readily available from switch manufacturers, which has delayed their ability to meet the January 1, 1998 conversion deadline. Although Cuba City and Belmont have received the equipment necessary to upgrade to fourdigit CICs, they assert that, because Nortel is overwhelmed with upgrade requests, installation will not be complete until April 1, 1998. The product, therefore, is effectively "unavailable" because it has not yet"! M0*%%ZZ " been installed. The Iowa LECs did not learn from INS until November 1997 that they would need to upgrade or replace their individual switches to become fourdigiti CIC compliant, rather than relying on the centralized, INS switch. Thus, although the product needed to accomplish the upgrades for their individual networks might have been available, because they were unaware of the need for it until November 1997, it is effectively "unavailable" to meet the January 1, 1998 conversion deadline.  X_-x18.` ` Third, we conclude that the impact of an extension of the conversion deadline on the IXCs served by Cuba City, Belmont, and the Iowa LECs, and on the ability of those LECs' customers to reach IXCs through CAC dialing, does not outweigh the burden on those LECs that would be imposed by a denial of their petitions for waiver. Cuba City, Belmont, and the Iowa LECs are all small LECs serving a limited number of access lines. Cuba City serves one exchange and a total of approximately 1,689 access lines, and Belmont serves one  X -exchange and a total of approximately 802 access lines.oN M yON-ԍ See Cuba City Petition at 2; Belmont Petition at 2.o Deep River serves one exchange  X -with 292 access lines.9O XM yO-ԍ Id. at 9.9 Dixon serves one exchange with 629 access lines.:P M yOW-ԍ Id. at 10.: Ellsworth serves  X -two exchanges with a total of 678 access lines.:Q xM yO-ԍ Id. at 11.: FrontierIowa serves one exchange with 950  X-access lines.:RM yOI-ԍ Id. at 12.: Grand River's one exchange for which it seeks a waiver serves 195 access  Xy-lines.:SyM yO-ԍ Id. at 13.: Griswold serves four exchanges with a total of 2,071 access lines.;Ty( M yOR-ԍ Id. at 14.; La Porte City  Xb-serves two exchanges with a total of 1,986 access lines.:Ub M yO-ԍ Id. at 16.: Ogden serves one exchange with  XK-1,775 access lines.:VKH M yOD -ԍ Id. at 17.: River Valley serves two exchanges with a total of 1,001 access lines.:WKM yO!-ԍ Id. at 18.:  X4-WebbDickens serves two exchanges with a total of 470 access lines.:X4hM yOM$-ԍ Id. at 19.: Cuba City and"4 X0*%%ZZf" Belmont have requested extensions of the conversion deadline until April 1, 1998. Ellsworth has requested an extension until February 28, 1998. The remainder of the Iowa LECs have requested extensions until June 30, 1998. Accordingly, the grant of their requested waivers will not affect or interfere with the end of the permissive dialing period on June 30, 1998.  X-x19.` ` We recognize that the grant of these extensions will shorten or eliminate the time we provided for IXCs to prepare their networks and to educate their customers, in  X_-creating a twostep transition in our Order on Reconsideration. We find, however, that the technical and economic burden on these LECs that would be imposed by a denial of the extensions outweighs the burden to the IXCs and their customers. Each petitioner asserts that, even if it were technically feasible, it would suffer undue economic burden in attempting to meet the January 1, 1998 conversion deadline. Further, the economic burdens imposed by a denial of the extensions would be borne by the LECs' customers. We note, moreover, that only IXCs that have been issued a fourdigit CIC (who cannot currently receive CAC calls originating with the LECs' customers) will be affected by the grant of the waivers. The petitioners' networks can, and will continue to, accept CAC calling for IXCs with threedigit CICs until the transition ends on June 30, 1998. Although we recognize the potential anticompetitive effects of the dialing disparity and seek to minimize them, we believe that those effects are outweighed by the economic and technical burdens likely to be imposed on the LECs by a failure to extend the conversion deadline for them. Thus, on balance, we find that the impact of an extension of the conversion deadline on the IXCs served by Cuba City, Belmont, and the Iowa LECs, and on the ability of those LECs' customers to reach IXCs through CAC dialing, does not outweigh the burden on the LECs that would be imposed by a denial of the extension requests.  X-x20.` ` We note that the CICs Order on Reconsideration, in addition to requiring fourdigit CIC conversion by equal access LECs as of January 1, 1998, also requires that LECs must offer a standard intercept message beginning on or before June 30, 1998, explaining that a dialing pattern change has occurred and instructing the caller to contact its IXC for further  Xe-information.jYeM yO-ԍ See CICs Order on Reconsideration at para. 26.j The Commission requires that, in developing an intercept message, LECs must consult with IXCs and reach agreement on the content of the message and on the period of  X7-time during which the message will be provided.=Z7XM yO@ -ԍ See id.= We emphasize that Cuba City, Belmont, and the Iowa LECs must comply with the Commission's intercept message requirement.  X-x21.` ` Requests for Extension of Silver Star and Hager. While we also find that the petitions for waiver filed by Silver Star and Hager demonstrate the special circumstances meriting a waiver of the January 1, 1998 conversion deadline, we condition our grant of their" Z0*%%ZZ" requested extensions until August 31, 1998, and January 1, 1999, respectively, as described below.  X-x22.` ` We find that Silver Star warrants an extension of the conversion deadline. First, Silver Star has demonstrated that it is diligently working to convert the Irwin exchange  X-under Silver Star's planned network configuration. Upon issuance of the CICs Second Report  Xv-and Order, Silver Star attempted to expedite conversion of the Irwin exchange. Silver Star has explored other alternatives to enable it to meet the Commission's deadline, although without success. Second, although Silver Star does not maintain that the product needed to accomplish the upgrade is unavailable, Silver Star cannot begin construction pursuant to its  X -network reconfiguration plan until May 1998, because of extreme weather conditions.T[ M yO -ԍ See Silver Star Petition at 5.T Third, we conclude that the impact of an extension of the conversion deadline on the IXCs served by the Irwin exchange, and on the ability of Silver Star's customers served by that exchange to reach IXCs through CAC dialing, does not outweigh the burden on Silver Star that would be imposed by a denial of its petition for waiver. The Irwin exchange serves only 407 access  X -lines.T\ XM yO-ԍ See Silver Star Petition at 1.T The effect on sevendigit CAC dialing for this small number of access lines is not outweighed by the burden that would be imposed on Silver Star by requiring it to spend virtually the same amount of money on a switch upgrade as is budgeted for the switch's reconfiguration.  X4-x23.` ` We also find that Hager warrants an extensions of the conversion deadline. First, Hager has demonstrated that it is diligently working to replace its switch. Hager is currently in the process of obtaining a loan from the RUS. After approval of its loan, Hager will order the switch from Nortel, with delivery likely to follow ten months later. Hager asserts that, in the interim, it has begun work on the fiber link between Hager and West Wisconsin, the owner of the host switch to which Hager's new remote switch will connect. Second, based on its petition, we conclude that Hager has demonstrated that the product needed to accomplish the switch replacement to upgrade to fourdigit CICs is not readily available from the switch manufacturer, which has delayed Hager's ability to meet the January 1, 1998 conversion deadline. While the fiber link has been installed, Hager asserts that the optical terminating equipment will not be delivered and installed until the first half of 1998. Third, we conclude that the impact of an extension of the conversion deadline on the IXCs served by Hager, and on the ability of Hager's customers to reach IXCs through CAC dialing, does not outweigh the burden on Hager that would be imposed by a denial of its petition for  X-waiver. Hager is a small rural LEC serving approximately 1,950 access lines.N]M yO$-ԍ See Hager Petition at 2.N The affect on"x]0*%%ZZ" sevendigit CAC dialing for this small number of access lines is not outweighed by the burden that would be imposed on Hager of spending $258,000 to upgrade its existing switch, which it plans to replace within a year.  X-x24.` ` We cannot ignore, however, the difficulties that the IXCs served by Silver Star and Hager will experience in educating their customers about the forthcoming changes in dialing patterns, and the inability of these IXCs' customers to reach them through CAC dialing after the transition ends on June 30, 1998. We, therefore, condition our grant of Silver Star's waiver request until August 31, 1998, and of Hager's waiver request until January 1, 1999. As of June 30, 1998, IXCs will have converted threedigit CICs to fourdigits and fivedigit CACs to seven digits. IXCs assigned fourdigit CICs will expect their customers to be able to reach them by dialing sevendigit CACs. Their customers will have the same expectation. As we did with Cuba City, Belmont, and the Iowa LECs, we require that Silver Star and Hager offer an intercept message by June 30, 1998. We modify that requirement, however, for Silver Star and Hager. Specifically, we require that, beginning on June 30, 1998, in its intercept message, Silver Star indicate that callers will not be able to reach their long distance carriers through access code dialing until August 31, 1998. Likewise, we require that Hager, beginning on June 30, 1998, indicate that callers will not be able to reach their long distance carriers through access code dialing until January 1, 1999. These intercept messages should help minimize disruption to the IXCs served by Silver Star and Hager, and to those IXCs' customers trying to reach them by CAC dialing between June 30, 1998, and the expiration of Silver Star's and Hager's waivers. We also require that Silver Star and Hager provide the same notification in bill inserts to customers.  X-x25.` ` Because we grant Hager an extension significantly beyond the end of the permissive dialing period, we impose an additional requirement on it to assist the Bureau in monitoring Hager's diligence in converting to fourdigit CICs by January 1, 1999, the expiration of its waiver. Specifically, Hager must file two reports with the Network Services Division of the Common Carrier Bureau, the first on June, 30 1998 and the second on September 30, 1998, detailing the progress it has made towards installation and operation of its new, fourdigit CIC compliant switch. The reports should contain information concerning, but not limited to, the status of: delivery and installation of the optical terminating equipment for the fiber link between Hager and West Wisconsin; action on Hager's RUS loan; Hager's switch order from Nortel; delivery of the switch from Nortel; and installation and testing of the new switch. We believe such a reporting condition is necessary to ensure that Hager complies with the Commission's fourdigit CIC conversion requirement in a manner consistent with the public interest and to avoid further requests for waiver of the conversion deadline." ]0*%%ZZ"  X- IV. ORDERING CLAUSES ă  X-x26.` ` IT ORDERED, pursuant to Section 1.3 of the Commission's rules, 47 C.F.R.  1.3, and authority delegated in Section 0.91 of the Commission's rules, 47 C.F.R.  0.91, and Section 0.291 of the Commission's rules, 47 C.F.R.  0.291, that the Petition for Limited Waiver of Cuba City Telephone Exchange Company IS GRANTED, by extending for it the switch conversion deadline for fourdigit CIC capability until April 1, 1998.  XH-x27.` ` IT IS FURTHER ORDERED, pursuant to Section 1.3 of the Commission's rules, 47 C.F.R.  1.3, and authority delegated in Section 0.91 of the Commission's rules, 47 C.F.R.  0.91, and Section 0.291 of the Commission's rules, 47 C.F.R.  0.291, that the Petition for Limited Waiver of Belmont Telephone Company IS GRANTED, by extending for it the switch conversion deadline for fourdigit CIC capability until April 1, 1998.  X -x28.` ` IT IS FURTHER ORDERED, pursuant to Section 1.3 of the Commission's rules, 47 C.F.R.  1.3, and authority delegated in Section 0.91 of the Commission's rules, 47 C.F.R.  0.91, and Section 0.291 of the Commission's rules, 47 C.F.R.  0.291, that the GVNW/Management Petition of Ten (10) Iowa Local Exchange Telephone Companies for Waiver of the January 1, 1998 Implementation Date for 4digit CIC IS GRANTED, by extending the switch conversion deadline for fourdigit CIC capability: for Ellsworth  X4-Cooperative Telephone Association until February 28, 1998, and for Deep River Mutual Telephone Company, Dixon Telephone Company, Ellsworth Cooperative Telephone Association, Frontier Communications of Schuyler, Iowa, Grand River Mutual Telephone Corporation, Griswold Cooperative Telephone Company, La Porte City Telephone Company, Ogden River Telephone Company, River Valley Telephone Cooperative, and WebbDickens Telephone Company until June 30, 1998.  X-x29.` ` IT IS FURTHER ORDERED, pursuant to Section 1.3 of the Commission's rules, 47 C.F.R.  1.3, and authority delegated in Section 0.91 of the Commission's rules, 47 C.F.R.  0.91, and Section 0.291 of the Commission's rules, 47 C.F.R.  0.291, that the Petition for Limited Waiver of Silver Star Telephone Company, Inc., IS GRANTED by extending for it the switch conversion deadline for fourdigit CIC capability until August 31, 1998, subject to the conditions stated herein." ]0*%%ZZ "  X-x30.` ` IT IS FURTHER ORDERED, pursuant to Section 1.3 of the Commission's rules, 47 C.F.R.  1.3, and authority delegated in Section 0.91 of the Commission's rules, 47 C.F.R.  0.91, and Section 0.291 of the Commission's rules, 47 C.F.R.  0.291, that the Request for Waiver of Hager Telecom, Inc., IS GRANTED by extending for it the switch conversion deadline for fourdigit CIC capability until January 1, 1999, subject to the conditions stated herein.  XH- T x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Geraldine A. Matise x` `  hh@Chief, Network Services Division x` `  hh@Common Carrier Bureau