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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554


In the Matter of                )
                                )
Regulatory Treatment of LEC Provision)       CC Docket No. 96-149
of Interexchange Services Originating in the)
LEC's Local Exchange Area       )
                                )
and                             )
                                )
Policy and Rules Concerning the )        CC Docket No. 96-61
Interstate, Interexchange Marketplace)

                             ORDER 

Adopted:  March 24, 1998                    Released:  March 24, 1998
  
By the Chief, Common Carrier Bureau:

               1.   In the LEC Classification Order, which was released on April 18, 1997, the
Commission revised its regulatory treatment of Bell Operating Companies (BOCs) and
independent local exchange carriers (LECs) that provide domestic, interstate, interexchange, and
international services.  The Common Carrier Bureau issues this order to stay the April 18, 1998
deadline by which independent LECs currently providing in-region, interstate, interexchange
services on an integrated basis must comply with the Commission's requirement that they
provide these services through a separate affiliate.

          2.   In the LEC Classification Order, the Commission concluded that independent
LECs must provide in-region, interstate, interexchange services through a separate affiliate that
satisfies the Fifth Report and Order separation requirements.  The Commission recognized that
independent LECs providing these services on an integrated basis face greater costs of
complying with the Fifth Report and Order separation requirements than those already providing
such services on a separated basis.  Accordingly, the Commission allowed independent LECs
providing in-region, interstate, interexchange services on an integrated basis one year from the
date of release of the LEC Classification Order (i.e., until April 18, 1998) to comply with the
Fifth Report and Order separation requirements.  

          3.   Following the release of the LEC Classification Order, a number of petitioners
sought reconsideration of a variety of issues, including the decision to apply the Fifth Report and
Order separation requirements to independent LECs providing in-region, interstate,
interexchange services.  These petitions currently are under consideration by the Commission
and may not be decided by April 18, 1998, the deadline for compliance with the separate
affiliate requirement.  We find that it is in the public interest for the Commission to address and
resolve, prior to the deadline for compliance, petitioners' claim that this requirement should not
be applied to independent LECs, so such LECs need not incur compliance costs while the
possibility of changes to this requirement still exists.  Accordingly, we find good cause to stay
the date by which independent LECs providing in-region, interstate, interexchange services must
comply with the Fifth Report and Order separation requirements until 60 days after release of a
Commission reconsideration order addressing this issue.

               4.   Accordingly, IT IS ORDERED, pursuant to sections 4(i), and 303(r) of the
Communications Act of 1934, as amended, 47 U.S.C.  154(i), and 303(r), and section
1.429(k) of the Commission's rules, 47 C.F.R.  1.429(k), that the date by which independent
LECs providing in-region, interstate, interexchange services must comply with subsection (c) of
section 64.1903 of the Commission's rules, 47 C.F.R.  64.1903 (c), IS STAYED until 60 days
after the release date of the Commission's order on reconsideration in CC Docket Nos. 96-149
and 96-61.

                         FEDERAL COMMUNICATIONS COMMISSION
                         


                         A. Richard Metzger, Jr.
                         Chief
                         Common Carrier Bureau