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                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C.  20554


In the Matter of      )
     )
Dumont Telephone Company and     )     ASD File No. 98-70
Universal Communications, Inc.   )
     )
Petition for Waiver   )     
of Section 69.605(c)  )
of the Commission's Rules        )



                                   ORDER

     Adopted:  June 29, 1998     Released:  June 29, 1998  


By the Chief, Accounting Safeguards Division:

     1.    Dumont Telephone Company ("Dumont") and its subsidiary, Universal
Communications, Inc. ("Universal") (jointly referred to as "Petitioners"), have filed a Request
for Stay ("Request") of a portion of a Memorandum Opinion and Order released by the
Accounting and Audits Division ("Division") on February 14, 1997.  In pertinent part, the
Memorandum Opinion and Order ruled that Universal must become a cost settlement
company and that Dumont must convert from average schedule status to cost settlement status
by July 1, 1998.  Petitioners request a stay pending Commission action on their Request for
Extraordinary Relief, filed contemporaneously, that seeks permission to permit them to retain
their average schedule status rather than convert to cost status by the required date.

      2.     The Commission generally employs a four-part test under the standard
set forth in Virginia Petroleum Jobbers Association v. Federal Power Commission in
determining whether to grant motions for stay.  Under this standard, the petitioner must
demonstrate (1) that it is likely to prevail on the merits; (2) that it will suffer irreparable harm
if a stay is not granted; (3) that other interested parties will not be harmed if the stay is
granted; and (4) that the public interest favors grant of the stay.  As discussed below, we find
that a stay is warranted.

      3.     First, in their Request for Extraordinary Relief, Petitioners present
various procedural and substantive issues similar to those raised by another party, Hickory
Tech Corporation, in an Application for Review of the Memorandum Opinion and Order. 
Although we do not prejudge these issues, we believe the issues presented by Petitioners are
valid and have merit.  Second, Petitioners have demonstrated that, absent a stay, they will
suffer irreparable harm by having to bear the administrative burden and expense of
performing cost studies required to convert to cost settlement status.  Petitioners estimate that
such cost studies would cost $50,000 to $70,000.  Although financial hardship alone will not
necessarily satisfy the irreparable harm criteria, in this situation, denying the stay would
cause Petitioners to expend substantial resources that would be unnecessary--and
unrecoverable--if they later were to succeed in their Request for Extraordinary Relief.

      4.     Third, we find that granting the stay will not harm any third parties. 
Our action here only applies to Dumont and Universal until the Commission addresses their
underlying Request for Extraordinary Relief.  Finally, we find that the public interest favors
granting a stay while we further review Petitioners' Request for Extraordinary Relief.  
Requiring Petitioners to convert to cost settlement status by July 1 would require substantial
accounting changes and divert limited staff resources for this purpose, causing a severe
hardship in the day-to-day administration of these carriers.  Thus, we are persuaded that in the
interest of fairness, a stay is appropriate in this instance.

      5.     For all of the above reasons, we conclude that the Memorandum and
Order should be stayed to the extent that it requires Dumont and Universal to convert to cost
settlement status on July 1, 1998.  This stay will remain in effect until the Commission
addresses Petitioners' Request for Extraordinary Relief.  

      6.     The stay of the affected rule is procedural in nature, and therefore is not
subject to the notice and comment requirements of the Administrative Procedure Act. 
Pursuant to 5 U.S.C.  553(d)(3), we further conclude that good cause exists to stay these
rules as of the adoption date of this Order, as the rules would otherwise go into effect on July
1, 1998.  Until such time as the stay is lifted, Dumont and Universal may retain their average
schedule status.  

      7.     Accordingly, IT IS ORDERED, pursuant to Sections 4(i) and Sections
201 and 202 of the Communications Act, as amended, 47 U.S.C.  154(i), 201-202, and the
authority delegated in Sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R.  0.91
and 0.291, that Dumont's and Universal's Request for Stay IS GRANTED to the extent
indicated herein.



      FEDERAL COMMUNICATIONS COMMISSION
      


      Kenneth P. Moran
      Chief, Accounting Safeguards Division