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                                Before the
                     Federal Communications Commission
                          Washington, D.C. 20554

In the Matter of                     )
                                     )
PUERTO RICO TELEPHONE COMPANY        )           WT Docket No. 96-162
                                     )           
Request for Temporary Waiver of the  )                 
Commission's Rules to Establish Competitive)
Service Safeguards for Local Exchange Carrier)
Provision of Commercial Mobile Radio Services)
                                     

                                  ORDER


        Adopted:  February 10, 1998                Released:  February 10, 1998

By the Chief, Commercial Wireless Division, Wireless Telecommunications Bureau:

  1.  On January 16, 1998, Puerto Rico Telephone Company ("PRTC") filed a Petition for
Temporary Waiver ("Petition") requesting that the Commission grant a temporary waiver of the
requirement in section 20.20(a) of the Commission's rules that incumbent local exchange carriers establish
a separate affiliate for provision of in-region broadband Commercial Mobile Radio Service ("CMRS"). 
Section 20.20 is scheduled to take effect on February 11, 1998.  For the reasons discussed below, we
hereby grant PRTC a sixty (60) day extension to establish a separate affiliate for the provision of in-
region broadband CMRS. 
 
  2.  In the Petition, PRTC states that it is in the process of complying with section 20.20(a) by
restructuring its operations to create a separate affiliate.  According to PRTC, such reorganization will
have significant federal tax consequences.  Because the Puerto Rico Federal Relations Act generally
exempts Puerto Rican corporations from complying with federal tax laws, PRTC requests a temporary
suspension of the separate affiliate requirement to enable PRTC to learn how the Internal Revenue Service
("IRS") will treat the proposed reorganization for federal tax purposes.  On November 3, 1997, PRTC
requested a private letter ruling from the IRS on the federal tax consequences of a restructuring plan
being considered by PRTC.  After consultation with the IRS Staff, PRTC filed an amended request on
December 24, 1997.  PRTC states, however, that it does not expect to receive a final ruling from the
IRS before the February 11 effective date of Section 20.20(a).  PRTC therefore requests a temporary
waiver of section 20.20(a) until sixty days after the IRS issues a final ruling on its request.

  3.  In light of the fact PRTC has shown reasonable diligence in seeking IRS guidance on the tax
consequences of its restructuring, and has not yet received an IRS ruling on its request, we find good
cause exists to grant PRTC a temporary waiver.  We grant PRTC's waiver request to the extent that
PRTC will not be required to establish a separate subsidiary for the provision of in-region broadband
CMRS by February 11, 1998, the effective date of section 20.20.  PRTC is still required to comply with
the other requirements of section 20.20, however, and must not discriminate against other CMRS
providers in the provision of interconnection or otherwise cross-subsidize its provision of CMRS. 
Without more information regarding the amount of time that will be required to obtain an IRS ruling, we
are not persuaded that an indefinite waiver is appropriate.  Therefore, we grant PRTC an additional sixty
(60) days from February 11, 1998 to establish a separate affiliate for provision of in-region broadband
CMRS. If the IRS has not ruled on PRTC's request in that time frame, PRTC is free to file a
supplemental waiver request, but we express no opinion on the disposition of such a request.  We also
require that PRTC notify the Commission of any further response it receives from the IRS to its private
letter ruling request. 
  
  4.  Accordingly, IT IS ORDERED, that, pursuant to sections 4(i) of the Communications Act of
1934, as amended, 47 U.S.C  154(i), authority delegated by section 0.331 of the Commission's rules,
47 C.F.R  0.331, and pursuant to section 1.3 of the Commission's rules, 47 C.F.R.  1.3, the Petition
for Temporary Waiver filed by Puerto Rico Telephone Company, on January 16, 1998, IS GRANTED,
to the extent provided herein.


        FEDERAL COMMUNICATIONS COMMISSION



        David L. Furth
        Chief, Commercial Wireless Division
        Wireless Telecommunications Bureau