PUBLIC NOTICE
                                                                         
                                        Federal Communications Commission
                                                         1919 M St., N.W.
                                                   Washington, D.C. 20554


__________________________________________________________________________________________
                                                                              
                                                                    DA 98-93  
                                       
                                       
McLeodUSA, Inc., Seeks Commission Determination of "Exempt Telecommunications Company" Status Under the Public Utility
                             Holding Company Act 
    of 1935, as Added by Section 103 of the Telecommunications Act of 1996

                                        
      January 20, 1998


 On January 16, 1998, McLeodUSA, Inc., pursuant to Section 34(a)(1) of the Public Utility Holding Company Act of 1935 ("PUHCA"),
as added by Section 103 of the Telecommunications Act of 1996, Pub. L. No. 104-104, filed an application requesting a Commission
determination that it is an "exempt telecommunications company" ("ETC").  McLeodUSA, Inc. is a publicly owned company.  IES Investments,
which owns 16.3% of McLeod's outstanding shares, is a wholly-owned subsidiary of IES Diversified, Inc., which is a wholly-owned subsidiary of
IES Industries, Inc., an exempt public utility holding company as that term is defined in PUHCA.

 Persons wishing to file comments regarding the adequacy or accuracy of the application of McLeodUSA, Inc. must do so no later than
February 4, 1998.   All comments should also be served on the applicant.  Reply comments must be filed no later than February 11, 1998. 
All filings concerning any of the matters referenced in this Public Notice should refer to File No. ETC-98-2.  The application will be available for
public inspection Monday through Friday in Room 658, 1919 M St., N.W., Washington, D.C.  Copies may be purchased by calling International
Transcription Services, Inc., (ITS) at (202) 857-3800.  For further information regarding this application, contact Lawrence Spiwak in the
Competition Division of the Office of General Counsel at (202) 418-1870.

By the Associate General Counsel, Competition Division, Office of General Counsel.   

-FCC-