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A. 1. a.(1)(a) i) a) I. 1. 1. a.(1)(a) i) a)#Xj\  P6G;WXP#  X4 vf #X\  P6G;P#Before the FEDERAL COMMUNICATIONS COMMISSION  yO'9Washington, D.C. 20554 #Xj\  P6G;WXP#у  Xb4#Xj\  P6G;WXP#  X4In the Matter of hhCq)pp  *  X4Request for Review byhhCq)  X4the Department of Education of thehhCq)  X4State of Tennessee of the Decision ofq)ppApplication No. 18132  X 4the Universal Service Administratorq) ` `  hhCq)  X 4Request for Review byhhCq)  X| 4Integrated Systems and Internet Solutions, Inc.)  Xe 4of the Decision of  hhCq)  XN4the Universal Service Administratorq)pp ` `  hhCq)  X 4Request for Review byhhCq)  X 4Education Networks of AmericahhCq)  X4of the Decision of hhCq)  X4the Universal Service Administratorq) ` `  hhCq)  X4FederalState Joint Board on Universal Service)ppCC Docket No. 9645 (#(#` `  hhCq)  X4Changes to the Board of DirectorshhCq)  Xh4of the National Exchange CarrierhhCq)ppCC Docket No. 9721  XQ4Association, Inc. hhCq)  X#' jORDER   X4Adopted:` ` September 30, 1999hhC qppReleased:  * September 30, 1999  X4 By the Deputy Chief, Common Carrier Bureau :  X'Ԋ I. INTRODUCTION  Xk!41. ` ` By this Order, we grant the request for waiver and extension of time filed by the Department of Education of the State of Tennessee (Tennessee). This Order will permit Tennessee to use until December 20, 1999, the universal service discounts it was awarded as a result of its successful appeal of the denial of its application by the Universal Service  X%4Administrator (USAC) until December 20, 1999.  X%'  >'M "&0*((PP%"Ԍ X' >'M II. BACKGROUND  X42.` ` On August 11, 1999, the Commission granted in part and denied in part the  X4requests for review filed by Tennessee and Education Networks of America (ENA).? {O4'ԍ See In the Matter of Request for Review by the Department of Education of the State of Tennessee of the Decision of the Universal Service Administrator, Request for Review by Integrated Systems and Internet Solutions, Inc., of the Decision of the Universal Service Administrator, Request for Review by Education Networks of America of the Decision of the Universal Service Administrator, FederalState Joint Board on  {OV'Universal Service, Changes to the Board of Directors of the National Exchange Carrier Association, Inc., CC  {O 'Docket Nos. 9645, 9721, Order, FCC 99216 (rel. August 11, 1999) (Tennessee Order).  The Commission found that Tennessee may receive discounts on Internet access service provided by ENA, but may not receive discounts on charges by ENA to Tennessee related to  Xv4components of the ConnecTEN network it previously owned, but sold to ENA.KvF? {Om 'ԍ Tennessee Order at para. 1.K The Commission required the Common Carrier Bureau (Bureau), through its oversight role, to work with USAC and Tennessee to implement its decision. The Commission stated that it expected Tennessee to provide USAC with the relevant information necessary to effectuate the Commission's decision, and expected the Bureau to monitor actively those activities to ensure that the Commission's decision was implemented expeditiously. Specifically, the Commission stated that a funding commitment decision letter must be delayed no longer than 10 working days from the receipt of information necessary to be provided by Tennessee to implement the Commission's decision. In addition, the Commission permitted the Bureau to waive any rules to the extent necessary to effectuate the Commission's decision in the  X4Tennessee matter.L? {O'ԍ Tennessee Order at para. 48.L USAC provided a funding commitment letter to Tennessee, consistent  Xy4with the Tennessee Order, on September 20, 1999.  XM4  3.` ` On September 17, 1999, Tennessee submitted a request for waiver and extension of time to allow it to use the universal service discounts awarded as a result of the  X4Tennessee Order for a period of 90 days after release of the funding by USAC's Schools and  X 4Libraries Division. & j ? {O%'ԍ See Letter from William K. Coulter, Coudert Brothers, to Irene Flannery, FCC (dated September 17, 1999)  {O'(Tennessee petition). In a letter filed pursuant to section 1.1206 of the Commission's rules, following an ex  {O 'parte meeting with Commission staff, Mr. Coulter also requested a waiver and a 90day extension of time. See Letter from William K. Coulter, Coudert Brothers, to Sonja Rifken, FCC (dated August 6, 1999).  Specifically, Tennessee requested a waiver of the September 30, 1999, deadline for receipt of nonrecurring services for the first year of the schools and libraries"X 0*''PPw"  X4universal service support mechanism? yOy'ԍ Section 54.507(d) of the Commission's rules requires schools and libraries "to file new funding requests for  {OA'each funding year." 47 C.F.R.  54507(d). In the Tenth Reconsideration Order, the Commission extended the date by which nonrecurring services had to be received in year one of the schools and libraries universal service  {O'support mechanism from June 30, 1999 to September 30, 1999. See FederalState Joint Board on Universal  {O'Service, CC Docket No. 9645, Tenth Order on Reconsideration, 14 FCC Rcd 5983, 5984, at para. 3 (1999)  {Og'(Tenth Reconsideration Order).  for a period of 90 days from the receipt of a funding  X4commitment letter to use the nonrecurring services eligible for support.EH? yO'ԍ Tennessee petition at 12. E  X' III.DISCUSSION  X4  X44.` ` Generally, the Commission's rules may be waived for good cause shown.=? yO'ԍ 47 C.F.R.  1.3.= As noted by the Court of Appeals for the D.C. Circuit, however, agency rules are presumed  X_4valid, and "an applicant for waiver faces a high hurdle even at the starting gate."#X\  P6G;P##Xj\  P6G;WXP#_h ? {Ox'ԍ #X\  P6G;P# WAIT Radio v. FCC, 418 F.2d 1153 (D.C. Cir. 1969), cert. denied, 409 U.S. 1027 (1972) (WAIT Radio). #Xj\  P6G;WXP#The Commission may exercise its discretion to waive a rule where the particular facts make strict  X14compliance inconsistent with the public interest. 1 ? {O'ԍ Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164 (D.C. Cir. 1990) (Northeast Cellular ). In addition, the Commission may take into account considerations of hardship, equity, or more effective implementation of overall policy  X 4on an individual basis.M  ? {O@'ԍ WAIT Radio, 418 F.2d at 1157.M Waiver is, therefore, appropriate if special circumstances warrant a deviation from the general rule, and such deviation would better serve the public interest than  X 4strict adherence to the general rule.U ? {O'ԍ Northeast Cellular, 897 F.2d at 1166.U#X\  P6G;P##Xj\  P6G;WXP# The test for whether Tennessee may be granted a waiver, therefore, is whether it has shown such special circumstances that warrant deviation  X 4from the Tenth Reconsideration Order's determination that discounts for nonrecurring services for year one of the schools and libraries universal service support mechanism must be used by September 30, 1999. We conclude that Tennessee has made that showing, and we grant its petition for waiver and extension of time until December 20, 1999.  X645.` ` Tennessee's situation raises the kind of particular facts and circumstances warranting waiver of the Commission's rules. It would be impossible for Tennessee to use  X4the discounts awarded to it in the Tennessee Order in the 10 days between its receipt from USAC of a funding commitment decision letter and the September 30, 1999, deadline for using discounts on nonrecurring services. Under these facts, we find that enforcement of the" 0*''PP" September 30, 1999, implementation deadline would be inconsistent with the public interest. Moreover, failure to grant Tennessee's petition would thwart the Commission's decision in the  X4Tennessee Order that Tennessee was eligible to receive discounts on the Internet access service provided by ENA. The Commission specifically directed the Bureau to waive any  X4rules to the extent necessary to implement the Tennessee Order.P ? {O'ԍ See Tennessee Order at para. 48.P Tennessee's petition for waiver of the September 30, 1999 deadline for receipt of nonrecurring services, therefore, is granted. In addition, Tennessee's petition to extend the deadline by 90 days after its receipt of a funding commitment decision letter (i.e., to December 20, 1999) is also granted.  X5416.` ` It is THEREFORE ORDERED, pursuant to section 4(i) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i) and sections 0.91, 0.291, and 1.3 of the Commission's rules, 47 C.F.R.  0.91, 0.291, and 1.3, that the Tennessee Department of Education's petition for waiver and extension of time IS GRANTED. ` `  FEDERAL COMMUNICATIONS COMMISSION  ` `  Lisa M. Zaina  X84` `  Deputy Chief, Common Carrier Bureau