PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 1919 M STREET, N.W. WASHINGTON, D.C. 20554 DA 96-1517 News media intonnation 202/418-0500 Fax-On-Demand 202/418-2830 Internet: nttp://www.fccTgovftp.fcc.gov TELALASKA, INC. AND TELHAWAII, INC. FILED A PETITION FOR WAIVER OF SECTIONS 36.611, 36.612, 61.41(C) AND THE DEFINITION OF "STUDY AREA" CONTAINED IN PART 36, APPENDIX-GLOSSARY OF THE COMMISSIONS RULES AAD 96-93 Released: September 11, 1996 Comment Date: September 26, 1996 Reply Date: October 7, 1996 On August 16, 1996, TelAlaska, Inc. ("TelAlaska") and TelHawaii, Inc. ("TelHawaii") filed a Petition for Expedited Waivers of three Commission rules. TelHawaii (a subsidiary of TelAlaska) seeks the waivers so that it may comply with the Hawaii Public Utility Commission's ("Hawaii PUC") mandate that TelHawaii provide telecommunications services as the carrier of last resort to the Ka'u area of Hawaii. First, TelHawaii (a newly formed company) seeks a waiver of the definition of "Study Area" as set forth in the Appendix-Glossary of Part 36 of the Commission's rules. That definition constitutes a rule freezing all study area boundaries, effective November 15,1984. The waiver would allow TelHawaii to establish a new study area containing a rural telephone exchange serving approximately 2,447 access lines in the Ka'u area of Hawaii. This area is presently served by an exchange that is owned and operated by GTE Hawaiian Tel, and according to the petition, this Commission would need to alter the boundaries of GTE Hawaiian Tel's study area to accommodate TelHawaii's request.1 The Hawaii PUC states that it fully supports a study area waiver for TelHawaii. Second, TelHawaii seeks a waiver of Sections 36.611 and 36.612. This waiver would provide TelHawaii with immediate Universal Service Fund ("USF") support monies effective with the transfer of GTE's assets to TelHawaii, and TelHawaii's commencement of service in the Ka'u area. Further, this waiver would /direct the National Exchange Carrier Association, Inc. ("NECA") to make these USF payments to TelHawaii based, first on estimated data and then based on a rolling annualized average of quarterly costs until such time as actual annual costs are available. 1 In a letter dated August 23, 1996, TelHawaii, through its attorneys Latham and Watkins, notified this Commission that on August 15, 1996, GTE Hawaiian Tel filed a Notice of Appeal with the Hawaii PUC. In the notice, GTE states that it seeks review by the Hawaii Supreme Court of the PUC's orders in this matter. In the same letter, TelHawaii also urged this Commission to place the petition on Public Notice, so that all interested parties can comment 10624 Finally, TelHawaii also seeks a waiver of Section 61.41(c) of the Commission's rules. Section 61.41(c) requires non-price cap companies, and the telephone companies with which they are affiliated, to become subject to price cap regulation after acquiring a price cap company or any part thereof. The requested waiver would permit TelHawaii to operate under rate-of-return regulation after acquiring the exchange which currently is under price cap regulation. Interested parties may file comments on the joint petition on or before September 26, 1996, and reply comments on or before October 7, 1996, with the Secretary, Federal Communications Commission, 1919 M Street, N.W., Room 222, Washington, D.C. 20554. Comments and reply comments should reference AAD 96-93. Four (4) copies should also be sent to Adrian Wright, Competitive Safeguards Branch, Common Carrier Bureau, and one (1) copy should be sent to the Commission's contractor for public service record duplication: International Transcription Service (ITS), 2100 M Street, N.W., Suite 140, Washington, D.C. 20037. Copies of the petition may be obtained from the Accounting and Audits Division's public reference rodm, Room 812, 2000 L Street, N.W., Washington, D.C. Copies are also available from ITS at (202) 857-3800. We will treat this proceeding as non-restricted for purposes of the Commission's ex pane rules. See generally, 47 C.F.R. §§ 1.1200-1.1206. However, if this waiver petition is opposed, it will be treated as a restricted proceeding under the Commission's ex pane rules. See generally, 47 C.F.R. §§ 1.1208-1.1216. For further information contact Adrian Wright at (202) 418-0830. FEDERAL COMMUNICATIONS COMMISSION 10625