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


In the Matter of                        )
                                   )
COMSAT Mobile Communications            )      ASD 98-73
Permanent Cost Allocation Manual        )
for the Separation of Jurisdictional and          )
Nonjurisdictional Costs                 )


                              ORDER

Adopted:  July 20, 1998                           Released:  July 21, 1998


By the Chief, Accounting Safeguards Division, Common Carrier Bureau:


          1.   On January 13, 1994, COMSAT Mobile Communications ("CMC"), a
division of Communications Satellite Corporation ("COMSAT"), filed with the Commission a
cost allocation manual ("CAM") governing the accounting separation of CMC's costs between its
jurisdictional and nonjurisdictional activities.  The manual was filed pursuant to the Commission's
order granting a waiver of its structural separation requirements to permit CMC to offer certain
nonjurisdictional maritime services on an unseparated basis.  The manual includes a list of
CMC's nonjurisdictional activities, a list of activities CMC proposes to treat as incidental to
jurisdictional activities for accounting purposes, and information on affiliate transactions, on
employee time reporting, and describing how each of CMC's accounts would be allocated
between jurisdictional and nonjurisdictional activities.

          2.   On July 13, 1995, the Common Carrier Bureau ("Bureau") released a
Memorandum Opinion and Order approving CMC's CAM subject to certain revisions.  CMC
filed a revised CAM on January 11, 1996, to which the Maritime Telecommunications Network,
Inc. ("MTN") filed Comments and Further Comments.  On February 28, 1997, CMC filed a
second revised CAM responding to concerns expressed by the staff of the Accounting Safeguards
Division ("Division"), to which MTN also filed Comments and Further Comments.  On January
28, 1998, CMC filed a third revised CAM reflecting additional concerns expressed by the
Division.  On February 5, 1998, the Bureau released a Public Notice seeking comments on CMC's
third revised CAM.  No comments were received pursuant to this Notice.

          3.   Based on our review, we find that CMC's third revised CAM contains cost
allocation and time reporting procedures that are sufficient to meet the requirements set forth in
the COMSAT Structure Order.

          4.   Accordingly, IT IS ORDERED, pursuant to Sections 4(i), 218 and 220 of
the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 218 and 220, and Sections
0.91 and 0.291 of the Commission's Rules, 47 C.F.R.  0.91 and 0.291, that the Cost Allocation
Manual filed by COMSAT Mobile Communications IS APPROVED.

          
                         FEDERAL COMMUNICATIONS COMMISSION



                         Kenneth P. Moran
                         Chief, Accounting Safeguards Division  
                         Common Carrier Bureau