WPC> 2BVTZ 3|P )6?xxxX?Xx6X@DQX@HP LaserJet 5Si rm 5-A520HL5R5A52.WRSx  @,,,v&}X@2@ ZPd3|P HP LaserJet 5Si rm 5-A520HL5R5A52.WRSx  @,,,v&}X@ X4#X\  P6G;P#X01Í ÍX01Í Í#Xj\  P6G;>_XP#Courier New (TT)Times New Roman (TT)Times New Roman (Bold) (TT)Times New Roman (Italic) (TT)2 vPpk6ka8DocumentgDocument Style StyleXX` `  ` a4DocumentgDocument Style Style . a6DocumentgDocument Style Style GX  a5DocumentgDocument Style Style }X(# 2g>vtYa2DocumentgDocument Style Style<o   ?  A.  a7DocumentgDocument Style StyleyXX` ` (#` BibliogrphyBibliography:X (# a1Right ParRight-Aligned Paragraph Numbers:`S@ I.  X(# 2D  <   a2Right ParRight-Aligned Paragraph Numbers C @` A. ` ` (#` a3DocumentgDocument Style Style B b  ?  1.  a3Right ParRight-Aligned Paragraph Numbers L! ` ` @P 1. ` `  (# a4Right ParRight-Aligned Paragraph Numbers Uj` `  @ a. ` (# 2 v 5   a5Right ParRight-Aligned Paragraph Numbers _o` `  @h(1)  hh#(#h a6Right ParRight-Aligned Paragraph Numbersh` `  hh#@$(a) hh#((# a7Right ParRight-Aligned Paragraph NumberspfJ` `  hh#(@*i) (h-(# a8Right ParRight-Aligned Paragraph NumbersyW"3!` `  hh#(-@p/a) -pp2(#p 2 /Tech InitInitialize Technical Style. k I. A. 1. a.(1)(a) i) a) 1 .1 .1 .1 .1 .1 .1 .1 Technicala1DocumentgDocument Style Style\s0  zN8F I. ׃  a5TechnicalTechnical Document Style)WD (1) . a6TechnicalTechnical Document Style)D (a) . 2=a2TechnicalTechnical Document Style<6  ?  A.   a3TechnicalTechnical Document Style9Wg  2  1.   a4TechnicalTechnical Document Style8bv{ 2  a.   a1TechnicalTechnical Document StyleF!<  ?  I.   2]3a7TechnicalTechnical Document Style(@D i) . a8TechnicalTechnical Document Style(D a) . Doc InitInitialize Document Stylez   0*0*0*  I. A. 1. a.(1)(a) i) a) I. 1. A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:d<d<CCYYdCCddCYCdYzzzzCCCCqodYYYYYYYYYYY8888dddddddnddddddd"5^.=K\\!==\g.=.3\\\\\\\\\\33gggQzzpf=Gpfzfpp=3=V\=Q\Q\Q=\\33\3\\\\=G3\\\\QX%Xc.====I=\\QQQQQzzQpQpQpQpQ=3=3=3=3\\\\\\\\\\Q\\\\\f\\QQzQzQpQpQpQ\\\\\I\=\===\G\fGN@.S\=Q\\\\\39\7\7==QQ\==\\=Q=7N=eegIjg\\j.=K\\!==\g.=.3\\\\\\\\\\33gggQzzpf=Gpfzfpp=3=V\=Q\Q\Q=\\33\3\\\\=G3\\\\QX%Xc=\Q\\=f===QQ@\=G=.=\\\\%\=3\g=\Ie77=jS.=79\Qzpppp====gf\QQQQQQzQQQQQ3333\\\\\\\e\\\\\\\"5^.=f\\3==\i.=.3\\\\\\\\\\==iii\zzpG\zpfzz=3=j\=\fQfQ=\f3=f3f\ffQG=f\\\QH(H_.====I=\f\\\\\QzQzQzQzQG3G3G3G3f\\\\ffff\\f\\\\pf\\\QQzQzQzQ\\\ffIfGfG=Gf\\fGN@.c\=\\\\\\7=\7\7==\\\==\\=\=7N=eeiIji\\j.=f\\3==\i.=.3\\\\\\\\\\==iii\zzpG\zpfzz=3=j\=\fQfQ=\f3=f3f\ffQG=f\\\QH(H_=\\\\=f===\\@\=G=.=\\\\(\=7\i=\Ie77=jc.=7=\\zzzzGGGGipf\\\\\\QQQQQ3333\f\\\\\e\ffff\f"5^2Coddȧ8CCdr2C28ddddddddddCCrrrdzNdzoȐC8CtdCdoYoYCdo8Co8odooYNCodddYO,Oh2CCCCPCdodddddȐYYYYYN8N8N8N8oddddooooddoddddzodddYYYYYdddooPoNoNCNoddȐoNNF2ldCdddddd"5^2CTdd+CCd2C28ddddddddddCCdzzzzCYozzdozzooN8NTdCddYdY8dd88Y8ddddNN8dYYYNP7Pl2CCCCPCddzdzdzdzdzdYzYzYzYzYC8C8C8C8dddddddddoYzddddoYdzdzdzdzdYYzYzYzYdddddPdCdCCCdYddNNF2idNdddddd7>d<d<CCoodCCddCoCddzzzzzzzzzzCCCCozdddddddYYYYY8888dddddddndddddYd6?xxxX"Xx6X@DQX@.3y.C8*XC\  P6QP .47PC2X>_XP\  P6QXP .52J=.XFL&J\  P6Q&Pl62N=.X(&N4  pQ&l77UC2X(9XU4  pQXl8y.G8*X(|G4  pQ.9W!0(Xh0\  P6QhP.:I(!X,(\  P6Q,P;{,C8*XEwC*f9 xQX5PC2XEGXP*f9 xQXX X4.b S4#&a\  P6G;FL&P# Federal Communications Commission`~(#c DA 991406 ă   yxdddy.J} X4{J(#\uf #X\  P6G;P#Before the à FEDERAL COMMUNICATIONS COMMISSION  yO'c7Washington, D.C. 20554 #Xj\  P6G;>_XP#у  XK4In the Matter of hhCq) ` `  hhCq)  X4FederalState Joint Board onhhCq)ppCC Docket No. 9645  X4Universal Service hhCq) ` `  hhCq)  X4ForwardLooking Mechanism hhCq)ppCC Docket No. 97160  X 4for High Support for hhCq)  X 4NonRural LECs hhCq)pp  X| 'j ORDER Đ\  X74Adopted: July 19, 1999hhCqppReleased: July 19, 1999 By the Acting Deputy Chief, Common Carrier Bureau:  X4 I. A. 1. a.(1)(a) i) a) A 1.(1)(a)(1)(a) i) a)1.` ` In conjunction with the Commission's proceeding to select a forwardlooking economic cost mechanism for determining the level of federal high cost support that eligible  X4nonrural carriers will receive beginning J anuary 1, 2000, ' {O&4ԍ Federal State Joint Board on Universal Service, Report & Order, CC Docket No. 9645, 12 FCC Rcd  {O48776, 8888 (1997) (Universal Service Order), as corrected by FederalState Joint Board on Universal Service,  {O4CC Docket 9645, Errata, FCC 97157 (rel. June 4, 1997), appeal pending, Texas Office of Public Utility  {O4Counsel v. FCC, No. 9760421 (5th Cir. filed June 25, 1997). See also FederalState Joint Board on Universal  {ON4Service, Access Charge Reform, Seventh Report & Order and Thirteenth Order on Reconsideration in CC Docket No. 9645; Fourth Report & Order in CC Docket No. 96262; and Further Notice of Proposed Rulemaking, CC  {O4Docket Nos. 9645, 96262, FCC 99119 (rel. May 28, 1999) at para. 19 (High Cost Methodology Order). we request certain line count  X4information from nonrural local exchange carriers and holding companies.H ' {O[4ԍ See infra para. 7.H The requested information is necessary to enable the Commission to determine, on a timely basis, accurate  Xh4line counts for nonrural carriers to be used in the forwardlooking cost mechanism to estimate high cost support.   X#42. ` ` In the Universal Service Order, the Commission adopted a plan for universal service support for rural, insular, and high cost areas to replace longstanding federal subsidies to incumbent local telephone companies with explicit, competitively neutral federal universal"0*&&``"  X4service support mechanisms.w ' {Oy4ԍ Universal Service Order, 12 FCC Rcd at 88888951, paras. 199325.w Specifically, the Commission adopted the recommendation of the FederalState Joint Board on Universal Service (Joint Board) that an eligible carrier's level of universal service support should be based on the forwardlooking economic cost of constructing and operating the network facilities and functions used to provide the services  X4supported by the federal universal service support mechanisms.gZ ' {O'ԍ Universal Service Order, 12 FCC Rcd at 8888, para. 199.g  Xv43. ` ` Our plan to adopt a mechanism to estimate forwardlooking cost has proceeded in two stages. On October 28, 1998, the Commission completed the first stage of this  XH4proceeding with the selection of the model platform.H ' {O 'ԍ FederalState Joint Board on Universal Service, Fifth Report and Order, CC Docket Nos. 9645, 97160,  {O '13 FCC Rcd 21323 (1998) (Platform Order). The platform encompasses the aspects of the model that are essentially fixed, primarily assumptions about the design of the network and network engineering. We are in the process of completing the second stage of this proceeding with the selection of input values for the model, such as the cost of cables,  X 4switches, and other network components.R^ H ' {O'ԍ See FederalState Joint Board on Universal Service, ForwardLooking Mechanism for High Cost Support  {O'for NonRural LECs, Further Notice of Proposed Rulemaking, CC Docket Nos. 9645, 97160, FCC 99120 (rel.  {Oy'May 28, 1999) (Inputs Further Notice).R As part of this process, we find that specific line count information from nonrural local exchange carriers and holding companies is necessary to allow the Commission to accurately determine the level of federal high cost support.  X44. ` ` Purpose of Data Request. This data request is being issued to assist the Commission in implementing the forwardlooking economic cost mechanism used to estimate the amount of universal service support that will be provided to eligible nonrural carriers  XM4beginning January 1, 2000. ` `  X45. ` ` Carriers Subject to Data Request. The following nonrural local exchange  X 4carriers and holding companies must respond to this data request:^ ` n ' {O)'ԍ In the Universal Service Order, the Commission determined that nonrural carriers will begin to receive  {O'support based on forwardlooking economic cost on January 1, 1999. Universal Service Order, 12 FCC Rcd at 8889, 8927, paras. 203, 273. By nonrural carriers, we mean those carriers that do not meet the definition of a "rural telephone company" in section 3(37) of the Communications Act. 47 U.S.C.  153(37). To the extent that a nonrural carrier meets the definition of a rural telephone company in certain of its study areas, we do not require submission of data with respect to those study areas. Section 3(37) provides that: XThe term "rural telephone company" means a local exchange carrier operating entity to the extent that such entity (#"m%0*&&[%"ԌXX` ` (A) provides common carrier service to any local exchange carrier study area that does not include either (#` XX` ` X (i) any incorporated place of 10,000 inhabitants or more, or any part thereof, based on the most recently available population statistics of the Bureau of the Census; or(# XX` ` X (ii) any territory, incorporated or unincorporated, included in an urbanized area, as defined by the Bureau of the Census as of August 10, 1993;(# XX` ` (B) provides telephone exchange service, including exchange access, to fewer than 50,000 access lines;(#` XX` ` (C) provides telephone exchange service to any local exchange carrier study area with fewer than 100,000 access lines; or(#` XX` ` (D) has less than 15 percent of its access lines in communities of more than 50,000 on the date of enactment of the Telecommunications Act of 1996. (#` ^ Aliant Communications"  0*&&``" Company, Ameritech, Anchorage Telephone Utility, Bell Atlantic, BellSouth, Cincinnati Bell, Frontier Corporation, GTE, North State Telephone Company, Puerto Rico Telephone Company, Roseville Telephone Company, Southern New England, Southwestern Bell, U S West, and United Telephone System.  X4/ FILING PROCEDURES ă   X_46. ` ` Instructions for Data Request. Respondents shall comply with this data request by responding to the questions in the attached spreadsheet using Excel software, version 7.0 or a prior version, and by providing other information in the format indicated in the data request. Respondents may obtain the attached spreadsheet from the Commission's Web site at  X 4 http://www.fcc.gov/ccb/universal_service . Because responses will be electronically compiled into a consolidated database, respondents should not insert, delete, or move any rows, columns, or text other than those that are necessary for a complete response. "Not applicable" responses should be designated by entering "NA" in the appropriate data cell and must be explained on a separate sheet of paper.   X{47.` ` Data Request.   XO4Question No. 1. This question seeks information on line counts based on voice equivalent channels.  X 4For the year ending December 31, 1998, indicate how many of each of the following lines there are for each wirecenter in each of your study areas: (a) business lines (column B);  (b) residential lines (column C); (c) special lines (column D);"k 0*&&``#"Ԍ(d) payphone lines (column E); and, (e) single business lines (column F).  X4For purposes of responding to Question No. 1, the following definitions apply:X ' yO'ԍ The definitions in items (a), (b), and (d), reflect those utilized in FCC Report 4308, the ARMIS Operating  yO'Data Report, Table III. The definition in item (e) reflects that utilized in FCC Report 4301, the ARMIS Annual Summary Report, Table II.:: (a) The term "business lines" is defined as voicegrade equivalent analog or digital switched access lines to business customers. When calculating the total of "business lines" include the following: X(i) Analog Single Line Business Access Lines (4 kHz or Equiv.) Includes single line business access lines subject to the single line business interstate end user common line charge, pursuant to section 69.104(h) of the Commission's rules excluding company official, mobile telephone/pagers and payphone lines. Payphone lines are to be reported separately as provided below.  X(ii) Analog Multiline Business Access Lines (4 kHz or Equiv.) Include &Zu s &Zu  the total of analog multiline business access lines subject to the multiline business interstate end user common line charge including PBX trunks, CentrexCU trunks, hotel/motel LD trunks and CentrexCO lines. Payphone lines are to be reported separately as provided below.  X(iii) Digital Business Access Lines (64 kbps or Equiv.) Includes all equivalent 64 kbps digital business access lines. To be classified as digital, the access lines must be terminated at the customer end as digital lines or be available for use by the customer digital lines. This will not include access lines from a digital switch if the lines themselves are not terminated at the customer's premises as digital lines. Payphone lines are to be reported separately as provided below.  (b) The term "residential lines" is defined as equivalent analog or digital switched access lines to residential customers. When calculating the total of "residential lines," include the following: X(i) Analog Residential Access Lines (4 kHz or Equiv.) Includes the total number of equivalent 4 kHz analog switched access lines to residential customers. "!0*&&`` "ԌX(ii) Digital Residential Access Lines (64 kbps or Equiv.) Includes all equivalent 64 kbps digital residential access lines. To be classified as digital, the access lines must be terminated at the customer end as digital lines or be available for use by the customer digital lines. This will not include access lines from a digital switch if the lines themselves are not terminated at the customer's premises as digital lines.  (c) The term "special lines" is defined as total special lines connecting an end user's premises to an interexchange carrier point of presence, including private lines provided by the local carrier which originate and terminate in the same LATA. When calculating the total of "special lines," include the following: X(i) Analog Special Lines (NonSwitched)(4 kHz or Equiv.) The total number of 4 kHz or equivalent analog special lines.  X(ii) Digital Special Lines (NonSwitched)(64 kbps or Equiv.) The total number of 64 kbps or equivalent digital special lines terminated at the customer location. Where DS3 or DS1 service is provided without individual 64 kbps circuit terminations, multiply the number of DS3 terminations by 672 and the number DS1 terminations by 24 when calculating the number of lines. In the above calculation, only use those DS1's and DS3's for which the customer is billed. Do not double count 64 kbps circuits associated with DS1 service where the 64 kbps circuits are customerderived.  (d) The term "payphone lines" is defined as lines that provide payphone service, i.e., total coin (public and semipublic) lines, including customer owned pay telephones. (e) The term "single business lines" is defined as single line business access lines subject to the single line business interstate end user common line charge, pursuant to section 69.104(h) of the Commission's rules, excluding company official, mobile telephone/pagers, offpremises extensions, and special access.  X 4Question No. 2. This question seeks information on line counts based on facilities. X  For the year ending December 31, 1998, indicate how many of each of the following lines there are for each wirecenter in each of your study areas:  (a) business lines (column B);  (b) special lines (column C).  When responding to this question, switched lines should only be counted as part of the"S%0*&&``e#" wire centers in which they are switched. When counting lines only the actual number of subscriber lines used to provide the service should be included, not the voice frequency equivalent. For example, DS1 service provided over two copper pairs should be counted as two subscriber lines. Foreign exchange lines or trunks should be counted as nonswitched in the wire center where the customer loop is located. Where switched lines are served via a concentrator or carrier system, the actual number of customer lines served should be counted, not the transmission channels at the wire center.   XH48. ` ` Confidential Information. If a respondent considers that its response to any portion of this data request constitutes confidential commercial or financial information, the respondent should comply with section 0.459 of the Commission's rules and should observe the following procedure: the respondent should complete the entire data request with the exception of those specific responses that are considered confidential information. This expurgated version should be filed and distributed in accordance with section 0.459 of the Commission's rules and the instructions found in "Responses to Data Request," below. The respondent should then duplicate the filed computer disks and paper copies, add the confidential data, and return one full confidential copy to Gene Fullano, Accounting Policy Division, Common Carrier Bureau, Federal Communications Commission, 445 12th Street, SW, Room 5B550, Washington, DC 20554. Each confidential disk and paper copy must be clearly marked "Confidential." In addition, the confidential disks and paper copies must be accompanied by a completed copy of the "Designation of Confidential Information" form attached to these instructions. The "Designation of Confidential Information" form must be signed by an authorized corporate officer or agent, and must list by question number all of the data responses considered confidential commercial or financial information. For each such response, indicate the reason for withholding the information from public inspection, and the facts on which those reasons are based. Copies of the "Designation of Confidential Information" form must also be filed and distributed with the expurgated data response, in accordance with the instructions found in "Responses to Data Request," below.  Xg49. Protective Order. Information submitted pursuant to this data request will be treated in accordance with the Protective Order adopted by the Commission in this  X;4proceeding. ; ' {O'ԍ See FederalState Joint Board on Universal Service, Protective Order, CC Docket Nos. 9645, 97160, 13 FCC Rcd 13910 (1998). Notwithstanding the provisions of Article 9 of the Protective Order, for purposes of this data request, information designated as "Confidential Information" pursuant to the terms of the Protective Order shall be delivered to an Authorized Representative of a Reviewing Party, as those terms are defined for purposes of the Protective Order. Such material shall be sent by first class mail, Federal Express or its equivalent within five business days of receipt of a request for such material.  X"410. ` ` Public Reporting Burden. We have estimated that each response to this""" 0*&&`` " collection of information will take, on average, 112 hours. Our estimate includes the time to read the instructions, look through existing records, gather and maintain the required data, and actually complete and review the form or response. If you have any comments on this estimate, or how we can improve the collection and reduce the burden it causes you, please write the Federal Communications Commission, AMDPERM, Washington, D.C. 20554, Paperwork Reduction Project (30600902). We also will accept your comments via the  Xv4Internet if you send them to jboley@fcc.gov. Please DO NOT SEND COMPLETED  X_'DATA REQUEST RESPONSES TO THIS ADDRESS.  X1411.` ` OMB Approval. Approved by OMB, 30600902, Expires 1/31/2000, Burden hour per respondent: 112 average. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the agency displays a currently valid control number.  X 412. ` ` Questions. Any questions regarding the data request or problems in completing it should be communicated to Gene Fullano 2024187400, GFullano@fcc.gov.  X}413. ` ` Responses to Data Request. Responses must be submitted on or before July  Xh430, 1999 . For a response to be complete, it must include a paper copy of the completed Excel spreadsheet and an electronic copy of the completed Excel spreadsheet on one or more 3.5" computer diskettes. Respondents should create a separate electronic file for each study area for each year requested and name each file so that the files can be identified and sorted by study area and year. A signed original and a complete paper copy of each respondent's response and one copy of information in the prescribed electronic format shall be filed with the Office of the Secretary, Federal Communications Commission, 445 12th Street, S.W.,  X4Washington, DC 20554. Two complete paper copies, and two copies of information in the  X4prescribed electronic formats, shall be transmitted to Sheryl Todd, Accounting Policy Division, Common Carrier Bureau, Federal Communications Commission, 445 12th Street, SW, Room 5A523, Washington, DC 20554. One paper copy and one copy of information in the prescribed electronic format shall be transmitted to the Commission's copy contractor, International Transcription Service, 1231 20th Street, N.W., 8th floor, Washington, DC 20036. "& 0*&&``"   X46 ORDERING CLAUSE ă   X414. ` ` Accordingly, pursuant to sections 5(c), 201205, 220(c), 254 and 403 of the Communications Act of 1934, as amended, 47 U.S.C.  155(c), 201205, 220(c), 254, and 403, and sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R.  0.91 and 0.291, it is HEREBY ORDERED that Aliant Communications Company, Ameritech, Anchorage Telephone Utility, Bell Atlantic, BellSouth, Cincinnati Bell, Frontier Corporation, GTE, North State Telephone Company, Puerto Rico Telephone Company, Roseville Telephone Company, Southern New England, Southwestern Bell, U S West, and United Telephone System shall complete the attached Line Count Data Request in the prescribed formats, and file their  X 4responses to the data request with the HCommission by July 30, 1999. ` `  hhCFEDERAL COMMUNICATIONS COMMISSION   ` `  hhCLisa M. Zaina ` `  hhCActing Deputy Chief, Common Carrier BureauH"b 0*&&``"   X4 DESIGNATION OF CONFIDENTIAL INFORMATION \ I hereby certify that the information designated as confidential in the attached response(s) to this Data Request is protected by ___________________ (name of company) as confidential or financial information:  X 4SIGNATURE: ___________________________pp  *xxX   X 4TITLE:` `  ___________________________  X 4ADDRESS:` `  ___________________________ ` `  ___________________________  XK4TELEPHONE: ___________________________  X4FAX:` `  ___________________________ On a separate sheet of paper, please list the responses designated confidential, by chart number and column letter, a statement of the reasons for withholding the information from the public record, and the facts on which those reasons are based. ` `  hhCqApproved by OMB ` `  hhCq30600902 ` `  hhCqExpires 01/31/2000 ` `  hhCqBurden hour per respondent: 112 average. "h$ 0*&&``""  X4  s STATEMENT OF COMMISSIONER HAROLD FURCHTGOTT-ROTH ă  V4Re: FederalState Joint Board on Universal Service, ForwardLooking Mechanism for High  V4Support for NonRural LECs; (CC Docket Nos. 96-45, 97-160). Today, the Common Carrier Bureau releases an Order "requesting" certain information  Xv4from fifteen local exchange carriers. "v ' yO'ԍDespite the Bureau's characterization of this Order as a "request," I note that the ordering clause of this  {O'Order reveals that, indeed, carriers may not decline. See FederalState Joint Board on Universal Service, ForwardLooking Mechanism for High Support for NonRural LECs, at para. 14 ("it is HEREBY ORDERED that [certain local exchange carriers] shall complete [the attached data request].") I write to state my objection to the continued placement of demands on local exchange carriers for the purposes of developing a complex, universal service model that few people understand. I have repeatedly objected to the Commission's adoption of any federal model. I believe that the model platform is not suited to accurately estimate the costs of an efficient local exchange carrier to provide universal service. As I have indicated previously, the regulation of markets through models is inherently inequitable. Regulation based on accounting rules or even simpler rules may provide -- at any moment in time -- a less accurate portrayal of a competitive market than an economic cost model potentially could. Simpler rules such as accounting rules, however, are far more transparent to the world, are not easily corrupted, are easily appealed, and provide a greater degree of market certainty and stability. As an economist, I have spent much of my professional life building and evaluating economic models; I do not believe that a hypothetical proxy model can or should be used to determine the cost -- whether actual or forward- looking -- of providing service to every individual, including those located in the most remote regions of our country. Today, at the eleventh hour, we discover the need for additional information. How many more massive data requests do we need to bring the model to completion?