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



In the Matter of                        )
                                   )    
BOC Petition for Waiver to Allow             )
DSMI to Account for Toll Free           )    AAD 94-31 
Database Services                       )


                             ORDER

     Adopted:  December 22, 1998           Released:   December 22, 1998

By the Deputy Chief, Common Carrier Bureau:

                       I.    INTRODUCTION

     1.   On February 9, 1994, the Bell Operating Companies ("BOCs") filed a petition for waiver
of section 32.14 of the Commission's rules, requesting that the revenues and expenses associated with the
toll free dialing database be recorded solely on the books of Database Services Management, Inc.
("DSMI"), a wholly-owned subsidiary of Bell Communications Research, Inc. ("Bellcore"), and not on the
BOCs' individual books of account.

     2.   In an Order released on February 12, 1997, the Common Carrier Bureau ("Bureau")
granted the BOCs' requested waiver subject to certain conditions.  On March 14, 1997, the BOCs filed an
Application for Review of the Order to the extent that it "appears to condition the waiver granted therein on
a requirement that the BOCs refund any profit made in administering the central toll free dialing
database."  Beehive Telephone Company, Inc. ("Beehive") filed comments.  The BOCs jointly filed reply
comments.  For the reasons discussed below, we conclude that the waiver is moot and thus we rescind the
waiver and dismiss the Application for Review.

                       II.    BACKGROUND

     3.   The toll free dialing database is the centralized national database system that permits
coordinated assignment of toll free numbers, the modification of toll free customer records, and loading of
toll free customer records into regional databases operated by incumbent local exchange carriers
("LECs").  Service providers that manage the records of their toll free customers, known as "Responsible
Organizations," gain access to the central database at the tariffed rate.  The BOCs have filed a joint tariff
governing access to the toll free dialing database that has been in effect since 1993.  The Commission
required a joint tariff because it recognized "the importance of ensuring that [access to the database] is
provided at reasonable rates and on nondiscriminatory terms," and because "the proposed alternative
mechanisms for achieving these goals" were untried.  The BOCs created DSMI to administer both this
tariff and the database.
                                
                       III.    DISCUSSION

     4.   On November 14, 1997, Bellcore and its wholly-owned subsidiary DSMI were sold to
Science Applications International Corporation ("SAIC").  Bellcore is now a wholly-owned subsidiary of
SAIC.  As a result of the that transfer to SAIC, neither Bellcore nor DSMI are affiliated with any of the
BOCs.  Although DSMI still provides day-to-day administration of the database, the fact that it is no
longer affiliated with the BOCs represents a material change in the circumstances underlying the waiver. 
Since the sale of Bellcore and DSMI, most expenses incurred in database administration have been paid
from an account jointly administered by a management team comprised of representatives of each of the
BOCs.  The revenues and expenses are accounted for by a partnership owned by the BOCs.  Because the
circumstances underlying these transactions no longer warrant a waiver of section 32.14 of the
Commission's rules, we conclude that the waiver is moot and we hereby rescind the waiver we previously
granted to the BOCs concerning DSMI.  Because the waiver is moot, we also dismiss the BOCs'
Application for Review.  

     5.   Based on the nature of the underlying BOC partnership arrangement, each BOC must
account for the joint administration of the 800 database in accordance with section 32.4999(e), Contractual
arrangements.  Transactions conducted by the BOCs directly with DSMI or between BOCs, outside of the
partnership arrangement, must be recorded on each BOC's books of account in accordance with our
accounting rules in the same way that they account for transactions with other non-affiliated entities. 

                    IV.     ORDERING CLAUSES

     6.   Accordingly, IT IS ORDERED that, pursuant to sections 4(i) and 4(j) of the
Communications Act of 1934, as amended by the 1996 Act, 47 U.S.C.  154(i) and 154(j), the waiver of
Section 32.14 of the Commission's rules granted on February 12, 1997 is MOOT and is RESCINDED as
set forth above.

     7.   IT IS FURTHER ORDERED that, pursuant to sections 4(i) and 4(j) of the
Communications Act of 1934, as amended by the 1996 Act, 47 U.S.C.  154(i) and 154(j), the
Application for Review filed by the Bell Operating Companies is DISMISSED as moot as set forth above.



                         FEDERAL COMMUNICATIONS COMMISSION



                         Yog R. Varma
                         Deputy Chief, Common Carrier Bureau