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PUBLIC NOTICE
FEDERAL COMMUNICATIONS COMMISSION  
1919 M STREET, N.W.
WASHINGTON, D.C. 20554                                 DA 98-2533

News media information 202/418-0500     Fax-On-Demand  202/418-2830     Internet:  http://www.fcc.gov    ftp.fcc.gov
                                
                                
 COMMON CARRIER BUREAU TO POST ON THE INTERNET MODIFICATIONS TO
            THE FORWARD-LOOKING ECONOMIC COST MODEL 
                 FOR UNIVERSAL SERVICE SUPPORT 

                   CC Docket Nos. 96-45, 97-160

                                   Released:  December 15, 1998
                                                               
     In the Platform Order released on October 28, 1998, the Commission adopted a forward
looking cost model to be used in determining federal universal service high cost support for non-
rural carriers.  In this Public Notice, the Common Carrier Bureau (Bureau) announces that it will
periodically post on the Commission's website, as necessary, an updated version of the forward-
looking economic cost model and a summary of any modifications or updates to the model.

     In the Platform Order, the Commission adopted the model "platform" to be used to
determine federal universal service high cost support for non-rural LECs.  The platform
establishes the aspects of the model that are essentially fixed -- primarily assumptions about the
design of the network and network engineering and fixed characteristics such as soil and terrain. 
The Commission noted that it will find opportunities to make technical improvements to the cost
model, both before implementation of the model for non-rural carriers on July 1, 1999 and on an
ongoing basis.  The Commission therefore delegated to the Bureau the authority to make
changes or direct that changes be made to the model as necessary and appropriate to ensure that
the platform of the federal mechanism operates as described in the Platform Order. 

     As contemplated in the Platform Order, Commission staff and interested parties have
continued to review the model to ensure that it operates as intended.  As a result, some
refinements have been made to the model platform adopted in the Platform Order.  In an effort to
keep the public informed of modifications and updates made to the forward-looking cost model
adopted in the Platform Order, and ensure that interested parties have access to the most current
version of the model, the Bureau will maintain on the Commission's website
(http://www.fcc.gov/Bureaus/Common_Carrier/Other/hcpm) the current version of the model and
a list of modifications that have been made to the model.  The list will provide a brief summary of
each modification to the cost model and will be updated on the first and third Tuesday of each
month, as necessary.  Updates to the documentation for the model will also be made on these
dates, as necessary.  The current documentation was updated on December 4, 1998. 
                                   
     For further information, please contact:  Katie King, Accounting Policy Division,
Common Carrier Bureau, (202) 418-7400.