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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 ) ) Petition of Saddleback Communications for) CC Docket No. 96-45 Designation as an Eligible ) Telecommunications Carrier Pursuant to) Section 214(e)(6) of the Communications Act) MEMORANDUM OPINION AND ORDER Adopted: November 4, 1998 Released: November 4, 1998 By the Deputy Chief, Common Carrier Bureau: 1. In this Memorandum Opinion and Order, we grant Saddleback Communications' (Saddleback) petition for designation as an eligible telecommunications carrier (ETC) pursuant to section 214(e)(6) of the Communications Act of 1934 (Act). BACKGROUND 2. In the Telecommunications Act of 1996 (1996 Act), Congress amended the Act by, among other things, adding section 254 to the Act. Section 254(e) provides that, after the effective date of the Commission's regulations implementing section 254, "only an eligible telecommunications carrier designated under section 214(e) shall be eligible to receive specific Federal universal service support." Section 214(e)(1) requires that to be designated an eligible telecommunications carrier a common carrier must, throughout its service area: (1) offer all of the services designated for support by the Commission pursuant to section 254(c) "either using its own facilities or a combination of its own facilities and resale of another carrier's services . . .;" and (2) "advertise the availability of such services and the charges therefor through media of general distribution." Section 214(e)(2) states that, [a] State commission shall upon its own motion or upon request designate a common carrier that meets the requirements of paragraph (1) as an eligible telecommunications carrier for a service area designated by the State commission. On May 8, 1997, the Commission released the Universal Service Order implementing section 254 of the Act. 3. On December 1, 1997, Congress amended the Act to add subsection (e)(6) to section 214 of the Act. New section 214(e)(6) requires the Commission, upon request, to designate ETCs providing telephone exchange service and exchange access that are not subject to the jurisdiction of a state commission. Section 214(e)(6) provides: In the case of a common carrier providing telephone exchange service and exchange access that is not subject to the jurisdiction of a State commission, the Commission shall upon request designate such a common carrier that meets the requirements of [section 214(e)(1)] as an eligible telecommunications carrier for a service area designated by the Commission. The Commission established the procedures that it would use to implement the Amendment in a public notice released on December 29, 1997. 4. The Salt River Pima-Maricopa Indian Community (Salt River Community) is a federally recognized Indian tribe that is self-governing. The Salt River Community is located in Arizona. Saddleback is a division of the Salt River Community. Saddleback is a common carrier providing telephone exchange service, and exchange access in the Salt River Community. On June 2, 1998, Saddleback requested that the Commission designate Saddleback as an ETC within the Salt River Community. 5. The Commission issued a public notice seeking comments on the petition, and the National Telephone Cooperative Association (NTCA) responded with comments in support thereof. DISCUSSION 6. We view section 214(e)(6) as calling for a two part analysis to determine whether to grant the Petition. We must find in the first part that Saddleback is not subject to the jurisdiction of the Arizona Corporation Commission (ACC). The second part requires an examination of Saddleback's compliance vel non with the ETC requirements of section 214(e)(1), for a service area designated by the Commission. For the reasons that follow, we designate Saddleback as an ETC for the Salt River Community. 7. In the absence of evidence to the contrary, we accept the petitioner's representation of its status as a carrier not subject to the jurisdiction of a state commission. The 214(e)(6) Public Notice required carriers seeking designation from the Commission, pursuant to section 214(e)(6), to provide certification and a brief statement of the supporting facts demonstrating that the petitioner is not subject to the jurisdiction of a state commission. In addition, the 214(e)(6) Public Notice directed petitioners to provide copies of their petitions for designation to the appropriate state commissions. Saddleback's petition states that it is "subject to the jurisdiction of the Salt River, a distinct federally-recognized Indian tribe," and that "the ACC does not assert jurisdiction over Saddleback." To further support its claim, Saddleback attaches to its petition a letter from the ACC in which the ACC states that it has no jurisdiction over the services provided by Saddleback on the reservation. Although the ACC was notified of Saddleback's petition, it did not submit comments in this proceeding. Moreover, no party challenges the petitioner's assertion that it is not subject to the jurisdiction of a state commission. Accordingly, we find that the petitioner is not subject to the jurisdiction of a state commission for purposes of section 214(e)(6), and, therefore, we may, pursuant to our delegated authority, designate Saddleback as an ETC. 8. Section 214(e)(1) requires that to be designated an ETC a common carrier must, throughout its service area: (1) offer all of the services designated for support by the Commission pursuant to section 254(c) "either using its own facilities or a combination of its own facilities and resale of another carrier's services . . .;" and (2) "advertise the availability of such services and the charges therefor through media of general distribution." The record documents Saddleback's provision of the services designated for support by the Commission, using a combination of its own facilities and resale of another carrier's services. It also establishes that Saddleback properly advertises its charges and the availability of its services. Therefore, based upon the record before us, we find that Saddleback meets the requirements of section 214(e)(1). 9. Section 214(e)(5) states that, "[i]n the case of an area served by a rural telephone company, 'service area' means such company's 'study area' unless and until the Commission and the States . . . establish a different definition." In the 214(e)(6) Public Notice, the Commission directed petitioners that meet the definition of a rural telephone company to identify their study areas. Saddleback asserts that it is a rural telephone company pursuant to section 3(37) of the Act, and identifies its study area as the Salt River Community. Based upon these uncontested facts, we designate the Salt River Community as Saddleback's service area. 10. Pursuant to section 5301 of the Anti-Drug Abuse Act of 1988, no applicant is eligible for any new, modified, or renewed instrument of authorization from the Commission, including authorizations issued pursuant to section 214 of the Act, unless the applicant certifies that neither it, nor any party to its application, is subject to a denial of federal benefits, including Commission benefits. This certification must also include the names of individuals specified by section 1.2002(b) of the Commission's rules. Saddleback has provided certification consistent with the requirements of the Anti-Drug Abuse Act of 1988. We, therefore, find that Saddleback has satisfied the requirements of the Anti-Drug Abuse Act of 1988, as codified in sections 1.2001- 1.2003 of the Commission's rules. ORDERING CLAUSES 11. Accordingly, IT IS ORDERED that, pursuant to the authority contained in section 214(e)(6) of the Communications Act and section 0.291 of the Commission's rules, 47 U.S.C.  214(e)(6) and 47 C.F.R.  0.291, Saddleback Communications IS DESIGNATED AN ELIGIBLE TELECOMMUNICATIONS CARRIER. Such designation is effective immediately. 12. IT IS FURTHER ORDERED that a copy of this Memorandum Opinion and Order SHALL BE transmitted to the Universal Service Administrative Company consistent with the Bureau's Public Notice, DA-1892 (rel. Sept. 29, 1997). James D. Schlichting Deputy Chief, Common Carrier Bureau