PUBLIC NOTICE
FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET, N.W.
WASHINGTON, D.C. 20554                                           DA 97-2138

News media information 202/418-0500     Fax-On-Demand  202/418-2830     Internet:  http://www.fcc.gov    ftp.fcc.gov
                                                  Released: October 3, 1997

                                     

                    UNITED STATES TELEPHONE ASSOCIATION
                      FILES PETITION FOR RULEMAKING
                                    
                         PUBLIC COMMENT INVITED


       On September 16, 1997, the United States Telephone Association ("USTA") filed a
petition for rulemaking requesting the Commission to amend Part 32 of its rules to allow
carriers to record revenues from all nonregulated activities as nonregulated operating revenue
in Account 5280, Nonregulated operating revenue.

       In its Payphone Order (see Payphone Order, CC Docket No. 96-128, FCC 96-388 (rel.
Sept. 20, 1996)), the Commission required local exchange carriers, subject to its joint cost
rules, to classify their payphone operations as nonregulated for Part 32 accounting purposes. 
The Commission further directed all carriers required to file cost allocation manuals to use
only Account 5010, Public telephone revenue, to record revenues from nonregulated payphone
service (see Payphone CAM Order, DA 97-1244 (rel. Jun. 13, 1997)).  USTA states that as
currently written, Part 32 of the Commission's rules requires that whenever a regulated service
is deregulated, revenues from the newly-deregulated service must be recorded in the
preexisting regulated account rather than in Account 5280, the account designated for
nonregulated operating revenue.  USTA submits that this outcome was never intended and
that Part 32 of the Commission's rules should be amended to preclude it.  USTA also
proposes that Account 5010 be eliminated in its entirety as a result of the deregulation of
payphone services.

       Parties may file comments on the petition for rulemaking no later than November 3,
1997.  Replies should be filed by November 17, 1997.  Comments should reference file
number AAD 97-104.  A copy of each pleading should be sent to Debbie Weber, FCC,
Common Carrier Bureau, 2000 L Street, N.W., Suite 812, Washington, D.C. 20554 and the
International Transcription Service (ITS), 1231 20th Street, N.W., Washington, D.C. 20036. 
Copies are available for public inspection and copying in the Accounting and Audits Division
Public Reference Room at 2000 L Street, N.W., Suite 812, Washington, D.C. 20554.  Copies
are also available from ITS, (202) 857-3800.

       For further information contact Debbie Weber at (202) 418-0812.