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                           FINAL RULES

                   CODE OF FEDERAL REGULATIONS
                  TITLE 47 -- Telecommunications
                  Creates New Part 1, Subpart T

               EXEMPT TELECOMMUNICATIONS COMPANIES

 1.5000  Purpose.

     The purpose of part 1, Subpart T, is to implement Section 34(a) of the Public Utility
Holding Company Act of 1935, 15 U.S.C.  79 et seq., as added by Section 103 of the
Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996).



 1.5001  Definitions.

     (a)  For the purpose of this part, the terms "telecommunications services" and
"information services" shall have the same meanings as provided in the Communications Act of
1934, as amended; 
     (b)  Commission shall be defined as the Federal Communications
     Commission; and
     (c)  "ETC" shall be defined as an exempt telecommunications company.



 1.5002  Contents of Application and Procedure for Filing.

     (a)  A person seeking status as an exempt telecommunications company (applicant)
must file with the Commission with respect to the company or companies which are eligible
companies owned or operated by the applicant, and serve on the Securities and Exchange
Commission and any affected State commission, the following:
          (1)  A brief description of the planned activities of the company or companies
which are or will be eligible companies owned and/or operated by the applicant;
          (2)  A sworn statement, by a representative legally authorized to bind the
applicant, attesting to any facts or representations presented to demonstrate eligibility for ETC
status, including a representation that the applicant is engaged directly, or indirectly, wherever
located, through one or more affiliates (as defined in Section 2(a)(11)(B) of the Public Utility
Holding Company Act of 1935), and exclusively in the business of providing:
               (A)  Telecommunications services;
               (B)  Information services;
               (C)  Other services or products subject to the jurisdiction of the
                    Commission; or
               (D)  Products or services that are related or incidental to the provision
                    of a product or service described in paragraph (A), (B), or (C); and
          (3)  A sworn statement, by a representative legally authorized to bind the
applicant, certifying that the applicant satisfies Part 1, Subpart P, of the Commission's
regulations, 47 C.F.R.  1.2001, et seq., regarding implementation of the Anti-Drug Abuse Act
of 1988, 21 U.S.C.  862.



 1.5003  Effect of Filing.

     A person applying in good faith for a Commission determination of exempt
telecommunications company status will be deemed to be an exempt telecommunications
company from the date of receipt of the application until the date of Commission action pursuant
to  1.5004.



 1.5004  Commission Action.

     If the Commission has not issued an order granting or denying an application within 60
days of receipt of the application, the application will be deemed to have been granted as a matter
of law.



 1.5005  Notification of Commission Action to the Securities and Exchange Commission.

     The Secretary of the Commission will notify the Securities and Exchange Commission
whenever a person is determined to be an exempt telecommunications company.



 1.5006  Procedure for Notifying Commission of Material Change in Facts.

     If there is any material change in facts that may affect an ETC's eligibility for ETC status
under Section 34(a)(1) of the Public Utility Holding Company Act of 1935, the ETC must,
within 30 days of the change in fact, either:
     (a) apply to the Commission for a new determination of ETC status;
     (b) file a written explanation with the Commission of why the material change in facts
does not affect the ETC's status; or
     (c) notify the Commission that it no longer seeks to maintain ETC status.

 1.5007  Comments.

     (a)  Any person wishing to be heard concerning an application for ETC status may file
comments with the Commission within fifteen (15) days from the release date of a public notice
regarding the application, or such other period of time set by the Commission.  Any comments
must be limited to the adequacy or accuracy of the application.
     (b)  Any person who files comments with the Commission must also serve copies of
all comments on the applicant.
     (c)  An applicant has seven (7) days to reply to any comments filed regarding the
adequacy and accuracy of its application, or such other period of time as set by the Commission. 
Such reply shall be served on the commenters.