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


In the Matter of                )
                                )
Revision to US West, Inc.'s     )  ASD File No. 98-95
Cost Allocation Manual          )  


                              ORDER

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

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

     1.   On October 16, 1998, US West, Inc. (US 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 "very high speed digital subscriber line" (VDSL) technology.  This technology allows US
West to use the distribution portion of existing local loop facilities to deliver cable television service and
local exchange services to subscribers.  As proposed, US 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.  US 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.  On October 30, 1998, we stayed the effective date of
the CAM revisions until December 31, 1998.

     3.   We have concerns with US West's proposed allocation of loop plant costs.  We note that
comments were filed on US West's CAM revisions in response to our Public Notice and we need
additional time to review the comments and prepare an order.  Therefore, we will stay the effective date of
these revisions until April 14, 1999.   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.

     4.   Accordingly, IT IS ORDERED, that the revisions to US West, Inc.'s Cost Allocation
Manual, filed October 16, 1998, ARE STAYED until April 14, 1999.


                              FEDERAL COMMUNICATIONS COMMISSION



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