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


In the Matter of

Revisions to U S West, Inc.'s    )     ASD 98-95
Cost Allocation Manual)

                                   ORDER

     Adopted:  October 30, 1998; Released:  October 30, 1998

     By the Chief, Accounting Safeguards Division:

     1.  On October 16, 1998, U S West, Inc. (U S West) filed revisions to its Cost
Allocation Manual (CAM).  Included in the filing were revisions to reflect the deployment of
cable service in Phoenix, Arizona using VDSL technology.  This technology allows U S West
to use the distribution portion of existing local loop facilities to deliver cable television
service and local exchange services to subscribers.  As proposed, U S West would allocate all
costs of its cable television service offering to nonregulated activities, except for costs
associated with the distribution portion of local loops.  U S West proposes to continue to
allocate all costs of existing loop distribution plant to regulated activities. 

     2.  Pursuant to Section 64.903(b) of the Commission's rules, 47 C.F.R.  64.903(b),
such CAM revisions may become effective on fifteen-days' notice.  The Common Carrier
Bureau, however, may extend that notice period for not more than 180 days.  Id.  We have
concerns with U S West's proposed allocation of loop plant costs.  Because of these concerns,
we will stay the effective date of these revisions until December 31, 1998.  During this period
we will review the proposed revisions for compliance with the Commission's cost allocation
rules and policies and with the Communications Act.

     3.  Accordingly, IT IS ORDERED that the revisions to U S West, Inc.'s Cost
Allocation Manual, filed October 16, 1998, ARE STAYED until December 31, 1998.

     FEDERAL COMMUNICATIONS COMMISSION



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