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                                                     DA 97-1435
                                                   July 9, 1997

                                 
   COMMISSION APPLIES "PERMIT BUT DISCLOSE" EX PARTE RULES TO 
        FORMAL COMPLAINT FILED BY WORLDCOM, INC. AGAINST 
       SOUTHWESTERN BELL TELEPHONE COMPANY ET AL. (E-97-13)


     On December 9, 1994, the Commission's Common Carrier Bureau ("Bureau") initiated an
investigation (CC Docket No. 94-97) into various local exchange carriers' ("LECs") tariffs
offering expanded interconnection through virtual collocation for special access and switched
transport services.  The Bureau stated that it was investigating the lawfulness of the LECs' cost
allocations, rate levels, rate structures, and terms and conditions of service.  See, e.g., Ameritech
Operating Companies, et al., CC Docket No. 94-97, Order, 10 FCC Rcd 1960 (Com.Car. Bur.
1994).  Pursuant to Subsection 1.206(a)(4) of the Commission's rules, 47 C.F.R.  1.1206(a)(4),
the Bureau's investigation into the virtual collocation tariffs is a  "permit-but-disclose"
proceeding.  In conjunction with the Commission's ex parte rules providing for disclosure of
permissible presentations, the staff has been engaged in discussions with parties to the virtual
collocation investigation for the purpose of obtaining information and exploring possible
resolutions of the issues raised in the investigation.  Summaries of any new information provided
by the parties in connection with these discussions are contained in the docket file.

     On March 18, 1997, Worldcom, Inc. ("Worldcom"), on behalf of its wholly-owned
subsidiary, MFS Communications Company, Inc., filed a formal complaint (E-97-13) against
Southwestern Bell Telephone Company ("Southwestern Bell"), et al., challenging Southwestern
Bell's charges and practices related to virtual collocation.  Based on our review, the Worldcom
complaint and the virtual collocation tariff investigation involve common issues relating to
Southwestern Bell's virtual collocation tariff.  Unlike the pending tariff investigation, however,
the formal complaint proceeding for ex parte purposes has been restricted as specified in
Subsection 1.1208 of the Commission's rules, 47 C.F.R.  1.1208.

     We believe that the public interest would best be served by ensuring that the tariff
proceeding and related discussions continue expeditiously with a minimum of disruption during
the pendency of the formal complaint.  Because the tariff and the complaint proceedings involve
common issues, however, we believe that the benefits of permitting discussions in the tariff
proceeding must be weighed against the public interest requirements of the formal complaint
process as an adjudicatory system.  In balancing these interests, the Bureau finds, pursuant to
Section 1.1200(a) of the Commission's rules, 47 C.F.R.  1.1200(a), that the public interest
would be served by making applicable to the formal complaint proceeding the permit-but-
disclose ex parte procedures that are applicable to nonrestricted proceedings under Section
1.1206 of the Commission's rules, 47 C.F.R.  1.1206.  These procedures permit interested
parties to make ex parte presentations to the Commission decisionmakers but require that these
presentations be disclosed in the record of the relevant proceeding.  Written ex parte
communications must be filed with the Secretary, while oral ex parte communications must be
summarized in writing and copies of the written summaries filed with the Secretary (with a copy
to the person or persons with whom the communication was made).  All ex parte filings must
also reference the appropriate file number or numbers.

     Therefore, as of the release date of this Public Notice, all parties making ex parte
presentations in either proceeding shall file any written ex parte presentations and summaries of
any oral ex parte presentations in both the tariff investigation and the formal complaint
proceeding, File No. E-97-13, in accordance with the procedures applicable to nonrestricted
proceedings set forth in Section 1.1206, 47 C.F.R.  1.1206.   

     Copies of the Worldcom/Southwestern Bell complaint and any subsequently-filed
documents in both of these proceedings, including ex parte materials, may be obtained from
International Transcription  Services, Inc., (ITS), Suite 246, 1919 M Street, N.W., Washington,
DC 20036, (202) 857-3822, or at 2025 M Street, NW, Room 6120, Washington, D.C. 20554.  

     For further information, contact Amy Glatter Goodman at (202) 418-0960 regarding the
formal complaint, or Paul D'Ari at (202) 418-1520 regarding the virtual collocation tariff
investigation.


     By the Chief, Enforcement Division, and the Chief, Competitive Pricing Division:

     FEDERAL COMMUNICATIONS COMMISSION