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A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN\4  pG;7jC:,ynXj\  P6G;XP7nC:,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\\nBnnBmgg>Q\7"yyyy\njc\gnn\"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\\nBnnBsgg>\\7"yyyy\nlc\gnn\"i~'^#)0<8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""2"2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d"" K9)5#"i~'^'-5CCph---CK#-#%CCCCCCCCCC%%KKK;{`XX`SK``-3`Su``K`XKS``}``S-%-=C-;C;C;-CC%%C%hCCCC-3%CC`CC;@@H-#H=---#------C-C%`;`;`;`;`;uWX;S;S;S;S;-%-%-%-%`C`C`C`C`C`C`C`C`C`C`;`C`A`C`C`CKC`;`;`;X;X;XHX;`TS;S;S;S;`C`C`C`H`C`H`C-%-C---C]KHH`CS%S5S-S-S%`CO`C`C`C`Cu`X-X-X-K3K3K3KHS8S%S=`C`C`C`C`C`C}``HS;S;S;`CS-`CK3S-`CT#CC,,W]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN0PP0=C-;CCCCC%+eeC(+eeCe(--;;C..PCCPe0PP0OmmKK-;Cp("XXXXee{CePMHCKPPCH5!,),5\  P6G;,P\{,W80,%BZW*f9 xr G;X\5hC:,%rXh*f9 xr G;XX 6jC:,<̃Xj9 xOG;Xa$G,',مG\  P6G;Pd2 F\S>B^Ay.X80,ɒX\  P6G;Py.\80,>\4  pG;7jC:,ynXj\  P6G;XP 7nC:,\4  pG;7jC:,ynXj\  P6G;XP 7nC:,"  X4 !revised depreciation rates for its Kansas, Missouri, and Texas facilities.C {Oy' !k Ѝ See Letter from Richard G. Lindner, Vice President and Chief Financial Officer, Southwestern Bell Telephone, to Magalie R. Salas, Secretary, Federal Communications Commission, July 30, 1998. The Bureau staff  !reviewed the filing and determined that: (1) the proposed rates were based on the factors agreed  !to in the teleconference; (2) SBC did not propose, except for two accounts, to move its life  X4 !factors outside the prescribed ranges;{"C yO' ! ԍ For Account 2231, Radio Systems, SBC proposes 57 year projection lives to reflect its plans to replace all  ! of its radio systems by 2002. The prescribed range for Radio Systems is 915 years. During the teleconference,  !Q Kansas, Missouri, Texas, and the Bureau agreed with SBC's proposed life for Radio Systems. For Account 2212,  ! Digital Switching, SBC proposes a 14.5 projection life. The prescribed range is 1618 years. SBC proposed that  !; it be allowed to select a life outside the prescribed range to reflect the fact that digital switches are undergoing rapid  ! technological changes, evolving into switches that offer greater capacities than previous generations of digital  ! switches, and this has created higher interim retirements to accommodate new features and capture operational  !k efficiencies that are available with new technologies. During the teleconference, all parties except Kansas agreed with SBC's proposed life for Digital Switching.{ and (3) the proposed rates were calculated consistently with  X4our rules.N  C {OG'ԍ See 47 C.F.R.  32.2000(g).N  X4   Xv4 ( 5.` ` On August 26, 1998, the Bureau released a Public Notice seeking comments on  !SBC's proposed rates. Only Kansas submitted comments. Kansas agreed to the proposed rates  !Vwith the exception of Accounts 2212 and 2423. For those accounts, Kansas reserved judgment  !pending the resolution of a Kansas Commission proceeding in which those depreciation rates may  X 4be resolved for state ratemaking purposes.T  C {OO'ԍ See Kansas Commission comments at 1.T  X 4 ( 6.` ` Based on our review of the record, we find that SBC's proposed depreciation rates  !"were prepared in accordance with the Commission's depreciation prescription process and that  !Vthe proposed rates are reasonable and consistent with our rules and orders. We therefore adopt SBC's proposed rates as specified in the Appendix.  Xy4 ( 7.` ` In addition, SBC proposed that the revised rates become effective on January 1,  !1998. SBC's request is consistent with our rules that allow rates to be made retroactive to the  XK4 !beginning of the year in which the filing is made. KC {O!' !D ԍ  See The Prescription of Revised Percentages of Depreciation pursuant to the Communications Act of 1934,  {O!'as amended for: Alascom, Inc., et. al, 6 FCC Rcd 750 (1991).  We hereby set the effective date of these  X44rates as January 1, 1998.R 4rC {OW$'ԍ See 47 C.F.R.  43.43(e).R " ,N(N(ZZ "  X4< IV. ORDERING CLAUSES ă  X4 ( 8.` ` ACCORDINGLY IT IS ORDERED, pursuant to Sections 4(i), 201205 and 220(b)  !of the Communications Act of 1934, as amended, 47 U.S.C. Sections 154(i), 201205 and 220(b),  !that the percentages of depreciation set forth in the Appendix to this Order ARE PRESCRIBED, effective January 1, 1998.  XH49.` ` IT IS FURTHER ORDERED that this Order is effective upon release. ` `  ,hh]FEDERAL COMMUNICATIONS COMMISSION ` `  ,hh]Magalie Roman Salas ` `  ,hh]Secretary " ,N(N(ZZ "  X'f STATEMENT OF  COMMISSIONER HAROLD FURCHTGOTT-ROTH c  X4 Re:XThe Prescription of Revised Percentages of Depreciation Pursuant to the  W4Communications Act of 1934, as amended, for Southwestern Bell Telephone  (# I support today's Order revising the depreciation rate for Southwestern Bell Telephone. I write separately to express my continued concern with the Commission's micromanagement of LECs in general. The Commission's authority to prescribe depreciation rates for LECs is a mere vestige of outdated rate of return regulation. I note that the Commission has initiated a proceeding to review the depreciation rules, along with many of its other detailed accounting regulations, in the context of its biennial review proceedings. I await anxiously the opportunity to address more fully these issues and the circumstances under which dominant LECs should be accorded a simpler form of price cap regulation. In today's increasingly competitive telecommunications marketplace, the Commission should be focusing its efforts on transitioning to this more competitive environment. The amount of detailed information and regulatory scrutiny required under our current price cap rules is inordinate and should be reduced. This seemingly anachronistic regulatory regime should be reformed to provide further pricing flexibility, eliminating altogether such relics as the lowend adjustment. I am becoming increasingly convinced that the current regulatory mechanisms and certainly the level of detail are no longer necessary in today's increasingly competitive marketplace. We must develop a more forward-looking blueprint to guide the transition from regulation to competition. As I have stated previously, regulation is merely designed, to the extent possible, to replicate a competitive marketplace, but any form of regulation is an imperfect surrogate for full-fledged competition. I believe the Commission must consider even further deregulation as these cumbersome regulations become unnecessary. "f ,N(N(ZZ#"  aE#G\  P6G; مP#X` hp x (#%'0*,.8135@8:8.3&J`L_28.4  aEfX'` hDLx (#%'0*,.8135@8:4.6JX27.1  aE2411''POLE LINES  ,hh]J 13.4JND-155J92.1JX12.2  aEX2421''AERIAL CABLE-METALLIC ,hh]J 10.7JD-49J67.9JX]7.6  aE2421''AERIAL CABLE-NONMETAL ,hh]J 15.0JD-25J17.6JX]7.2  aE2422''UG CABLE-METALLIC ,hh]J 12.4JD-16J58.5JX]4.6  aEJ2422''UG CABLE-NONMETAL ,hh]J 15.2JD-10J26.1JX]5.5  aE2423''BURIED GABLE-METALLIC ,hh]J 11.1JD-13J56.6JX]5.1  aE2423''BURIED CABLE-NONMETAL ,hh]J 14.5JD-10J24.3JX]5.9  aE<2424''SUBMARINE CABLE  ,hh]J 14.5JD-2J15.9JX]5.9  aE2426''INTRABLDG NETWORK GABLE-METALhh]J 11.9JD-17J73.4JX]3.7  aE2426''INTRABLDG NETWORK CABLE-NONMEThh]J 11.6JD-10J19.3JX]7.8  aE.2431''AERIAL WIRE  ,hh]J6  4.5JD-79J179.0JX]0.0  aE2441''CONDUIT SYSTEMS  ,hh]J 33.0JD-10J25.9JO]2 5 The figures in Columns B, C, and D are percentages of gross book costs. @ The amortization amount for the Aerial Wire Account ordered in FCC 96-22 released January 26. 1996 is continued.  yO^"'# X\  P6G;ɒP#