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(1) (a) (i) 1) a)S H*_0F_8S\Eq 103_8S n6OMDefault Paragraph Font8S H*_0F_8S\Eww#PSP##PTP#"i~'^5>I\\>>>\g0>03\\\\\\\\\\33gggQyyrg>Frgygrr>3>T\>Q\Q\Q>\\33\3\\\\>F3\\\\QX%Xc>0cT>>>0>>>>>>>>\3QQQQQwyQrQrQrQrQ>3>3>3>3\\\\\\\\\\Q\Z\\\g\QQQyQyQycyQtrQrQrQrQ\\\c\c\>3>\>>>\gcc\r3rIr>r>r3\l\\\\y>y>y>gFgFgFgcrMr3rT\\\\\\crQrQrQ\r>\gFr>\t0\\=!=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n\\pBnnBmgg>Q\7"yyyy\njc\gnn\2( Ku K K "^V$"i~'^5>M\\>>>\}0>03\\\\\\\\\\>>}}}\rryrr>Qygyrr\grrggF3FM\>\\Q\Q3\\33Q3\\\\FF3\QyQQFI3Ic>0cM>>>0>>>>>>\>\3r\r\r\r\r\yyQrQrQrQrQ>3>3>3>3y\\\\\\\\\gQr\\\\gQ\r\r\r\r\yQyQycyQnrQrQrQrQ\\\c\c\>3>\>>>\\ccyQg3gBg>g;g3y\jy\y\\\yrFrFrF\F\F\FccgBg3gM\\\\\\ygcgFgFgF\g>y\\Fg>g\n0\\=(=WddddddddddddddddddddddddddddddddddddddddNBnnB_\F\\\\\\3;\7;\7>>gg\??n\\pBnnBb\\>g\7"yyyy\njc\}nn\"i~'^5>g\\>>>\g0>03\\\\\\\\\\>>ggg\yyrF\yrgyy>3>j\>\gQgQ>\g3>g3g\ggQF>g\\\QI(I_>0_j>>>0>>>>>>\>g3\\\\\QyQyQyQyQD3D3D3D3g\\\\gggg\\g\\\\pg\\\QQ_QyQyQyQyQ\\\_\gjF3FgF>Fgg__gy3ySy>yIy3ggg\\QQQgFgFgFg_y^y>yjgggggg_yQyQyQgy>ggFy>\0\\=2=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBa\>\\\\\\7>\7>\7>>\\\??n\\pBnnBsgg>\\7"yyyy\nlc\gnn\"i~'^ %,77\V%%%7>%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%%%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lCTn(nBB(A\\>>n%07\n!"IIIITTenn7TnB@;7>lBBn7y.X80,IX\  P6G;P7jC:, Xj\  P6G;XP7nC:,Xn4  pG;Xy.\80, [\4  pG;W!@(#,9h@\  P6G;hPH5!,,5\  P6G;,P\{,W80,%?W*f9 xr G;X\5hC:,%Xh*f9 xr G;XX2a=5,&a\  P6G;&P 2e=5,D&e4  pG;&P:% ,1J:\  P6G;JP \0_=5,% &_*f9 xr G;&XP=% ,FJ=4  pG;J2( X-    $ X-w  Federal Communications Commission`)(#5DA 982490 ă  yxdddy  1. 1. 1. a.(1)(a) i) a) 1. 1. a.(1)(a) i) a) vK#C\  P6QIP# #C\  P6QIP#Before the FEDERAL COMMUNICATIONS COMMISSION  yO}"Washington, D.C. 20554 ă  Xy-#XP\  P6Q XP#  S4-#&a\  P6G;&P#In the Matter of hh,V)  S -` `  hh,V)pp  S-BOC Petition for Waiver to Allow hh,V)  S-DSMI to Account for Toll Freehh,V)ppAAD 9431    S-Database Services hh,V)  S -T ORDER S -lU  S - Adopted: December 22, 1998V Released: December 22, 1998 By the Deputy Chief, Common Carrier Bureau:  S,-)] ŲI. INTRODUCTION   S-l 1. 1. a.(1)(a) i) a) 1. 1. 1. 1.(a)(i) 1) a)U  S-1.` ` On February 9, 1994, the Bell Operating Companies ("BOCs") filed a petition for  S-waiver of section 32.14 of the Commission's rules,Z yO- ԍ47 C.F.R.  32.14. Section 32.14 requires that regulated accounts shall include the investments, revenues,   and expenses associated with telecommunications products and services that are tariffed according to the requirements  {O-of Title II of the Communications Act of 1934, as amended. See generally 47 U.S.C.  201226. requesting that the revenues and expenses associated with the toll free dialing database be recorded solely on the books of Database Services Management, Inc. ("DSMI"), a whollyowned subsidiary of Bell Communications Research, Inc.  S<-("Bellcore"),sX< yO- jԍBellcore was established as a centralized services organization to provide technical and nontechnical support   hto the BOCs' provision of exchange and exchange access services. At the time of the Petition, each of the Regional Holding Companies ("RHCs") owned an equal interest in Bellcore.s and not on the BOCs' individual books of account. <  yO- ԍThe petitioners were the Ameritech Operating Companies ("Ameritech"), the Bell Atlantic Telephone   Companies ("Bell Atlantic"), BellSouth Telecommunications, Inc. ("BellSouth"), the NYNEX Telephone Companies   ("NYNEX"), Pacific Bell and Nevada Bell ("Pacific/Nevada"), Southwestern Bell Telephone Company ("Southwestern"), and U S West Communications, Inc. ("U S West").  S-2.` ` In an Order released on February 12, 1997, the Common Carrier Bureau ("Bureau")  S-granted the BOCs' requested waiver subject to certain conditions.  {OV$- zԍBOC Petition for Waiver to Allow DSMI to Account for Toll Free Database Services, Order, 12 FCC Rcd  {O %-1979 (Com. Car. Bur. rel. Feb. 12, 1997) ("Waiver Order"). On March 14, 1997, the BOCs  S-filed an Application for Review of the Order to the extent that it "appears to condition the waiver granted therein on a requirement that the BOCs refund any profit made in administering the central"tN  ,v)v)ZZO"  S-toll free dialing database."M} yOh-ԍApplication for Review at 1.M Beehive Telephone Company, Inc. ("Beehive") filed comments.X} yO- ԍBeehive describes itself as a "small, independent local exchange carrier operating in seven Utah counties."  {O-See Beehive Comments at 1. The BOCs jointly filed reply comments. For the reasons discussed below, we conclude that the waiver is moot and thus we rescind the waiver and dismiss the Application for Review.  S`-,u II. BACKGROUND ĐlU  S-3.` ` The toll free dialing database is the centralized national database system that permits coordinated assignment of toll free numbers, the modification of toll free customer records, and loading of toll free customer records into regional databases operated by incumbent local exchange  S-carriers ("LECs").f} {O -ԍWaiver Order, 12 FCC Rcd at 1980 para. 3.f Service providers that manage the records of their toll free customers, known as  Sp-"Responsible Organizations," gain access to the central database at the tariffed rate.QpD} {OT-ԍId. at 1980 para. 4.Q The BOCs have  SH -filed a joint tariff governing access to the toll free dialing database that has been in effect since 1993. H } {O-ԍSee Provision of Access for 800 Service, Order, 8 FCC Rcd 1423, 1427 para. 31 (1993). The Commission required a joint tariff because it recognized "the importance of ensuring that [access  S -to the database] is provided at reasonable rates and on nondiscriminatory terms," and because "the  S -proposed alternative mechanisms for achieving these goals" were untried.L h } {O-ԍId. at 1427 para. 29.L The BOCs created DSMI  S -to administer both this tariff and the database.  } {OB- ԍSee Toll Free Service Access Codes, Notice of Proposed Rulemaking, CC Docket No. 95155, 10 FCC Rcd 13692, 13705 para. 49 (1995). l  SX-/ III. DISCUSSION ĐlU  S-4. ` ` On November 14, 1997, Bellcore and its whollyowned subsidiary DSMI were sold to  S-Science Applications International Corporation ("SAIC"). T } {O- ԍ See Letter from Louise L. M. Tucker, Senior Counsel, Bellcore, to William Kennard, Chairman, FCC et  {O -al. (November 17, 1997). Bellcore is now a whollyowned  S-subsidiary of SAIC.; } {O#-ԍ Id.; As a result of the that transfer to SAIC, neither Bellcore nor DSMI are  S-affiliated with any of the BOCs.;B} {Or%-ԍ Id.; Although DSMI still provides daytoday administration of the database, the fact that it is no longer affiliated with the BOCs represents a material change in the"h ,''ZZ" circumstances underlying the waiver. Since the sale of Bellcore and DSMI, most expenses incurred in database administration have been paid from an account jointly administered by a management team comprised of representatives of each of the BOCs. The revenues and expenses are accounted for by a partnership owned by the BOCs. Because the circumstances underlying these transactions no longer warrant a waiver of section 32.14 of the Commission's rules, we conclude that the waiver is moot and we hereby rescind the waiver we previously granted to the BOCs concerning DSMI. Because the waiver is moot, we also dismiss the BOCs' Application for Review.  S-5.` ` Based on the nature of the underlying BOC partnership arrangement, each BOC must account for the joint administration of the 800 database in accordance with section 32.4999(e),  Sp-Contractual arrangements.tXp} yO - Nԍ47 C.F.R.  32.4999(e). Section 32.4999(e) requires that "charges and credits resulting from revenue   /settlement agreements or other revenue pooling arrangements associated with the provision of regulated telecommunications services shall be included in the appropriate revenue accounts."t Transactions conducted by the BOCs directly with DSMI or between BOCs, outside of the partnership arrangement, must be recorded on each BOC's books of account in accordance with our accounting rules in the same way that they account for transactions with other nonaffiliated entities.  S -  S - IV. ORDERING CLAUSESlU  SX- 6.` ` Accordingly, IT IS ORDERED that, pursuant to sections 4(i) and 4(j) of the Communications Act of 1934, as amended by the 1996 Act, 47 U.S.C.  154(i) and 154(j), the waiver of Section 32.14 of the Commission's rules granted on February 12, 1997 is MOOT and is RESCINDED as set forth above.  S-7.` ` IT IS FURTHER ORDERED that, pursuant to sections 4(i) and 4(j) of the Communications Act of 1934, as amended by the 1996 Act, 47 U.S.C.  154(i) and 154(j), the Application for Review filed by the Bell Operating Companies is DISMISSED as moot as set forth above. ` `  hh,FEDERAL COMMUNICATIONS COMMISSION x` `  hhYog R. Varma  S-x` `  hhDeputy Chief, Common Carrier Bureau#Xj\  P6G; XP#