******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Hardy Telecommunications, Inc. Request ) for Extension of Waiver of the Four-Digit) NSD File No. 98-18 Carrier Identification Code (CIC)) Implementation Schedule ) ) ORDER Adopted: March 30, 1998 Released: March 30, 1998 By the Chief, Network Services Division, Common Carrier Bureau: I. INTRODUCTION 1. Carrier identification codes (CICs) are numeric codes that enable local exchange carriers (LECs) providing interstate interexchange access services to identify the interstate interexchange carrier (IXC) that the originating caller wishes to use to transmit its interstate call. LECs use the CICs to route traffic to the proper IXC and to bill for the interstate access service provided. CICs facilitate competition by enabling callers to use the services of telecommunications service providers either by presubscription or by dialing a carrier access code (CAC) which incorporates that carrier's unique Feature Group D CIC. Originally, CICs were unique three-digit codes (XXX) and CACs were five-digit codes incorporating the CIC (10XXX). 2. On April 11, 1997, in the CICs Second Report and Order, the Commission and the industry agreed to expand Feature Group D CICs from three to four digits as the supply of three- digit codes was exhausted. The industry agreed that as the expansion from three to four-digit CICs occurred, and as carriers replaced their five-digit CACs with seven-digit CACs, a transition, or permissive dialing period, was needed. On October 22, 1997, in the CICs Order on Reconsideration, the Commission created a "two-step" transition during which three and four- digit Feature Group D CICs co-exist. The CICs Order on Reconsideration mandated that all LECs providing equal access complete switch changes to recognize four-digit CICs by January 1, 1998, the end of the first phase. The second phase, which ends on June 30, 1998, is intended to allow interexchange carriers time to prepare their networks for, and educate their customers about, the replacement of three-digit CICs by four-digit CICs. After June 30, 1998, only four- digit CICs and seven-digit CACs will be recognized. The Commission also affirmed its decision in the CICs Second Report and Order not to grandfather the use of three-digit CICs and five-digit CACs that are in use during the transition. 3. Hardy Telecommunications Inc. (Hardy), a small, incumbent LEC serving rural areas of West Virginia, filed a petition for waiver of the CICs Second Report and Order's January 1, 1998 conversion deadline. Stating that it was technically infeasible for it to comply with the January 1, 1998, conversion deadline, Hardy requested an extension until April 30, 1998. In an Order released December 3, 1997, we found that Hardy had demonstrated the special circumstances meriting a waiver of the January 1, 1998, conversion deadline and we granted Hardy's request for extension of the deadline until April 30, 1998. 4. Hardy has filed a request to extend its waiver of the conversion deadline from April 30, 1998, until June 30, 1998. In this Order, we conclude that Hardy's request should be granted and we extend Hardy's switch conversion deadline for four-digit CIC capability to June 30, 1998. II. REQUEST FOR EXTENSION 5. Hardy requests an extension of its switch conversion deadline because the replacement switch that it purchased to allow its network to recognize and process four-digit CICs will not be installed until May 15, 1998. Hardy claims that unforeseen delays make compliance with the April 30, 1998, deadline infeasible. Hardy asserts that it entered into a purchase agreement with Siemens Stromberg-Carlson (Siemens) to purchase an EWSD switch that will accept four-digit Feature Group D CICs. Hardy explains that it learned from Siemens, in November 1997, that Hardy would have to modify or replace its standard racks, which hold switch components, to accommodate the physical space constraints of its central office. Hardy asserts that it was unable to confirm a purchase price for the new racks from Siemens until mid-January 1998. Consequently, Hardy could not submit the necessary documentation to assure compliance with the Rural Utilities Service (RUS) requirements regarding deployment of a new switch until mid- January 1998. 6. Hardy notes that it has maintained extensive informal contacts with Siemens' staff from November 1997, through February 1998, in an effort to expedite the process and to have the switch in service prior to the expiration of Hardy's waiver on April 30, 1998. Hardy expects the EWSD switch to be shipped by Siemens on March 13, 1998, and installed by May 15, 1998. According to Hardy, it would be unduly burdensome for it to alter its acquisition process for the EWSD switch and associated equipment. Moreover, Hardy argues that it would be inequitable if its customers were required to bear additional costs which might result from an abrupt change in its plans. Based on these circumstances, Hardy requests a limited extension of its waiver, from April 30, 1998, until June 30, 1998, to deploy the EWSD switch necessary to provide four- digit CIC capability. III. DISCUSSION 7. An applicant for waiver must demonstrate that special circumstances warrant a deviation from the general rule and that such deviation will serve the public interest. In evaluating Hardy's request for extension of its waiver, we have weighed the following factors: Hardy's diligence in attempting to upgrade its switches within the timeframe provided under the original waiver; the impact of availability of products required to accomplish the upgrade on Hardy's ability to meet the original waiver deadline; and the impact of an extension of the conversion deadline on the IXCs served by Hardy's switches and on customers' ability to reach IXCs through CAC dialing. 8. We find that the request for extension of waiver filed by Hardy demonstrates the special circumstances meriting a grant of the extension. First, Hardy has diligently worked to replace its switches by the April 30, 1998, deadline. Hardy began the RUS process to deploy a switch with four-digit CIC capability in early 1997, after learning that its current switch could not be upgraded to accept four-digit CICs. Hardy maintained extensive contacts with representatives of Siemens and sought to expedite shipment and installation of the switch and associated equipment prior to the expiration of Hardy's waiver on April 30, 1998. 9. Second, we conclude that Hardy has demonstrated that the products needed to accomplish the upgrade of its network are not readily available from switch manufacturers and that this fact has significantly affected its ability to meet the original April 30, 1998, deadline. Hardy states that the EWSD switch, purchased because it will accept four-digit Feature Group D CICs, is scheduled to be installed by May 15, 1998. Hardy asserts that it would be unduly burdensome to alter the switch acquisition process that it began in early 1997 to obtain a switch enabling it to provide the four digit CIC function. Moreover, Hardy concludes that it would be inequitable for its customers to bear the economic burdens imposed by denial of the waiver. 10. Third, we find that the impact of an extension of the conversion deadline on the IXCs and customers served by Hardy does not outweigh the burden on Hardy that would be imposed by a denial of its request for further extension. We recognize that the grant of Hardy's extension will eliminate the time we provided for IXCs to prepare their networks and to educate their customers, as anticipated by the two-step transition created in our Order on Reconsideration. We, however, find that the technical and economic burden that would be imposed upon Hardy by denial of its request for extension of the conversion deadline outweighs the burden the IXCs served by Hardy and on the ability of Hardy's customers to reach IXCs through CAC dialing. In addition, we note that only IXCs that have been issued a four-digit CIC (who cannot currently receive CAC calls originating with the LECs' customers) will be affected by grant of the waiver. Hardy's network can, and will continue to, accept CAC calling for IXCs with three-digit CICs until the transition ends on June 30, 1998. 11. We find that the amount of additional time requested by Hardy, from April 30, 1998, until June 30, 1998, to be reasonable. On June 30, 1998, the permissive dialing period will end. The grant of Hardy's requested waiver will not affect or interfere with the end of the permissive dialing period on June 30, 1998. We conclude, as noted above, that the burden on Hardy that would be imposed by a denial of the extension outweighs the burden to IXCs and their customers. Thus, we grant Hardy's request for extension of the waiver extending the conversion deadline from April 30, 1998, to June 30, 1998. 12. In granting Hardy's request for an extension of its waiver, we note that any further extension, even for the slightest amount of time, will cause disruption to callers if all equal access LEC end offices are not converted to recognize four-digit CICs once the permissive dialing period has ended. Thus, we will scrutinize closely any request for further extension and will only grant an extension upon a clear demonstration of compelling circumstances. Finally, we emphasize that LECs to whom we grant conversion extensions must comply with the Commission's intercept message requirement described in the CICs Order on Reconsideration. IV. ORDERING CLAUSES 12. IT IS ORDERED, pursuant to Section 1.3 of the Commission's rules, 47 C.F.R.  1.3, and authority delegated in Section 0.91 of the Commission's rules, 47 C.F.R.  0.91, and Section 0.291 of the Commission's rules, 47 C.F.R.  0.291, that the Petition for Limited Waiver of Hardy Telecommunications Inc., IS GRANTED, by extending for it the switch conversion deadline for four-digit CIC capability from April 30, 1998, until June 30, 1998. FEDERAL COMMUNICATIONS COMMISSION Geraldine A. Matise Chief, Network Services Division Common Carrier Bureau