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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************** Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) Federal-State Joint Board on ) CC Docket No. 96-45 Universal Service ) ) Forward-Looking Mechanism ) CC Docket No. 97-160 for High Support for ) Non-Rural LECs ) ORDER Adopted: August 7, 1998 Released: August 7, 1998 By the Deputy Chief, Common Carrier Bureau: 1. In conjunction with the Commission's proceeding to select a forward-looking economic cost mechanism for determining the level of federal high cost support that eligible non-rural carriers will receive beginning July 1, 1999, we request certain revenue information from non-rural local exchange carriers and holding companies. By seeking additional data on revenues, we are not prejudging the outcome of issues raised on reconsideration of the Universal Service Order or the issues referred to the Joint Board, including whether the Commission should reconsider its use of a revenue benchmark. The requested information is necessary to enable the Commission to set, on a timely basis, accurate revenue benchmarks used under the Universal Service Order to determine the level of high cost support. 2. In the Universal Service Order, the Commission determined that the level of federal high cost support that eligible non-rural carriers will receive would be 25 percent of the difference between the estimated forward-looking economic cost of providing the supported services and a nationwide average revenue benchmark. The Commission also determined that the revenue benchmark should be calculated using revenues derived from local service, access, and other telecommunications services, including discretionary services. The Commission did not adopt a precise calculation of the revenue benchmark in the Universal Service Order, but stated that, based on 1994 data received in response to an earlier data request, "it appears that the benchmark for residential services should be approximately $31 and for single-line businesses should be approximately $51." 3. In a Public Notice released May 4, 1998, the Common Carrier Bureau sought to augment the record on certain issues relating to the creation of the federal forward-looking economic cost mechanism. With respect to the revenue benchmark, we sought comment generally on the amount of access revenues that should be included in the benchmark. In addition, the Bureau sought comment on the appropriate amount of intraLATA toll revenue that should be included in the revenue benchmark. We also encouraged parties to provide further information about the revenues that are derived from services provided over the network that the universal service mechanism is designed to support. 4. We find that, in addition to comments that we received in response to the May 4 Public Notice, specific information from non-rural local exchange carriers and holding companies is necessary to allow the Commission to calculate accurately the revenue benchmark that may be used to determine the level of federal high cost support. The Commission's suggested residential and business benchmarks of $31 and $51, respectively, were based on data that are four years old. In addition, the earlier data request did not ask local exchange carriers to differentiate among various revenue sources that would allow the Commission to deduct specific portions of access or toll revenue from the benchmark. 5. Purpose of Data Request. This data request is being issued to assist the Commission in implementing the forward-looking economic cost mechanism used to estimate the amount of universal service support that will be provided to eligible non-rural carriers beginning July 1, 1999. 6. Carriers Subject to Data Request. The following non-rural local exchange carriers and holding companies must respond to this data request: Aliant Communications Company, ALLTEL, Ameritech, Anchorage Telephone Utility, Bell Atlantic, BellSouth, Cincinnati Bell, Frontier Corporation, GTE, North State Telephone Company, Puerto Rico Telephone Company, Roseville Telephone Company, Southern New England, Southwestern Bell, U S West, and United Telephone System. FILING PROCEDURES 7. Instructions for Data Request. Respondents shall comply with this data request by responding to the questions in the attached spreadsheet using Excel software, version 7.0 or a prior version, and by providing other information in the format indicated in the data request. Respondents may obtain the attached spreadsheet from the Commission's web site at http://www.fcc.gov/ccb/universal_service/highcost.html#determine. Because responses will be electronically compiled into a consolidated database, respondents should not insert, delete, or move any rows, columns, or text other than those that are necessary for a complete response. "Not applicable" responses should be designated by entering "NA" in the appropriate data cell and must be explained on a separate sheet of paper. 8. Confidential Information. If a respondent considers that its response to any portion of this data request constitutes confidential commercial or financial information, the respondent should comply with section 0.459 of the Commission's rules and should observe the following procedure: the respondent should complete the entire data request with the exception of those specific responses that are considered confidential information. This expurgated version should be filed and distributed in accordance with section 0.459 of the Commission's rules and the instructions found in "Responses to Data Request," below. The respondent should then duplicate the filed computer disks and paper copies, add the confidential data, and return one full confidential copy to Bryan Clopton, Accounting Policy Division, Common Carrier Bureau, Federal Communications Commission, 2100 M Street, NW, Room 8625, Washington, DC 20554. Each confidential disk and paper copy must be clearly marked "Confidential." In addition, the confidential disks and paper copies must be accompanied by a completed copy of the "Designation of Confidential Information" form attached to these instructions. The "Designation of Confidential Information" form must be signed by an authorized corporate officer or agent, and must list by question number all of the data responses considered confidential commercial or financial information. For each such response, indicate the reason for withholding the information from public inspection, and the facts on which those reasons are based. Copies of the "Designation of Confidential Information" form must also be filed and distributed with the expurgated data response, in accordance with the instructions found in "Responses to Data Request," below. 9. Public Reporting Burden. We have estimated that each response to this collection of information will take, on average, 250 hours. Our estimate includes the time to read the instructions, look through existing records, gather and maintain the required data, and actually complete and review the form or response. If you have any comments on this estimate, or how we can improve the collection and reduce the burden it causes you, please write the Federal Communications Commission, AMD-PERM, Washington, D.C. 20554, Paperwork Reduction Project (3060-0842). We also will accept your comments via the Internet if you send them to jboley@fcc.gov. Please DO NOT SEND COMPLETED DATA REQUEST RESPONSES TO THIS ADDRESS. 10. OMB Approval. Approved by OMB, 3060-0842, Expires 2/28/1999, Burden hour per respondent: 250 average. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the agency displays a currently valid control number. 11. Questions. Any questions regarding the data request or problems in completing it should be communicated to Katie King, 202-418-7400, kking@fcc.gov. 12. Responses to Data Request. Responses must be submitted on or before October 6, 1998. For a response to be complete, it must include a paper copy of the completed Excel spreadsheet and an electronic copy of the completed Excel spreadsheet on one or more 3.5" computer diskettes. Respondents should create a separate electronic file for each study area for each year requested and name each file so that the files can be identified and sorted by study area and year. A signed original and a complete paper copy of each respondent's response and one copy of information in the prescribed electronic format shall be filed with the Office of the Secretary, Federal Communications Commission, 1919 M Street, N.W., Washington, DC 20554. Two complete paper copies, and two copies of information in the prescribed electronic formats, shall be transmitted to Sheryl Todd, Accounting Policy Division, Common Carrier Bureau, Federal Communications Commission, 2100 M Street, NW, Room 8611, Washington, DC 20554. One paper copy and one copy of information in the prescribed electronic format shall be transmitted to the Commission's copy contractor, International Transcription Service, 1231 20th Street, N.W., 8th floor, Washington, DC 20036. ORDERING CLAUSE 13. Accordingly, pursuant to sections 5(c), 201-205, 220(c), 254 and 403 of the Communications Act of 1934, as amended, 47 U.S.C.  155(c), 201-205, 220(c), 254, and 403, and sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R.  0.91 and 0.291, it is HEREBY ORDERED that Aliant Communications Company, ALLTEL, Ameritech, Anchorage Telephone Utility, Bell Atlantic, BellSouth, Cincinnati Bell, Frontier Corporation, GTE, North State Telephone Company, Puerto Rico Telephone Company, Roseville Telephone Company, Southern New England, Southwestern Bell, U S West, and United Telephone System shall complete the attached Revenue Benchmark Data Request in the prescribed formats, and file their responses to the data request with the Commission by October 6, 1998. FEDERAL COMMUNICATIONS COMMISSION James D. Schlichting Deputy Chief, Common Carrier Bureau DESIGNATION OF CONFIDENTIAL INFORMATION I hereby certify that the information designated as confidential in the attached response(s) to the Revenue Benchmark Data Request is protected by ___________________ (name of company) as confidential or financial information: SIGNATURE: ___________________________ TITLE: ___________________________ ADDRESS: ___________________________ ___________________________ TELEPHONE: ___________________________ FAX: ___________________________ On a separate sheet of paper, please list the responses designated confidential, by chart number and column letter, a statement of the reasons for withholding the information from the public record, and the facts on which those reasons are based. Approved by OMB 3060-0842 Expires 2/28/1999 Burden hour per respondent: 250 average.