**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                     | * | CC Docket No. 96-45        |
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| Federal-State Joint Board on         | ) |                            |
| Universal Service                    | * |                            |
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| Cellular South Licenses, Inc.        |   |                            |
| Petition for Waiver of Section       | * |                            |
| 54.904(d) of the Commission's Rules  | * |                            |
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**ORDER**

**Adopted: March 29, 2007 Released: March 29, 2007**

By the Acting Deputy Chief, Wireline Competition Bureau:

# INTRODUCTION

1.  In this Order, we grant a request by Cellular South Licenses, Inc.
    (Cellular South), an eligible telecommunications carrier (ETC), for
    a waiver of section 54.904(d) the Commission's rules.[^1] Granting
    Cellular South's waiver request will allow it to receive universal
    service support as of September 23, 2004, the date the Mississippi
    Public Service Commission (Mississippi Commission) designated
    Cellular South as an ETC. For the reasons set forth below, we find
    that Cellular South has demonstrated that good cause warrants
    granting this waiver.

# BACKGROUND

2.  Section 254(e) of the Communications Act of 1934, as amended (the
    Act), provides that "only an eligible telecommunications carrier
    designated under section 214(e) shall be eligible to receive
    specific Federal universal service support."[^2] Section 254(e)
    states that support shall be used "only for the provision,
    maintenance, and upgrading of facilities and services for which the
    support is intended."[^3] To implement this statutory requirement,
    the Commission has adopted various certification and data filing
    requirements.[^4]

3.  Pursuant to section 54.904 of the Commission's rules, to receive
    Interstate Common Line Support (ICLS) an ETC must file a
    certification stating that all ICLS received by it will be used only
    for the provision, maintenance, and upgrading of facilities and
    services for which such support is intended."[^5] The certification
    must be filed with the Universal Service Administrative Company
    (USAC) and the Commission on the date that an ETC first files its
    line count information and thereafter on June 30 of each year.[^6]
    In 2005, the Commission concluded that "in order to provide
    universal service support to newly designated ETCs on a timely
    basis, ETCs shall be eligible for support as of their ETC
    designation date, provided that the required certifications and
    line-count data are filed within 60 days of the carrier's ETC
    designation date." [^7]

4.  *[Cellular South's Petition for Waiver]{.underline}.* On September
    23, 2004, the Mississippi Public Service Commission issued an order
    designating Cellular South as an ETC in non-rural areas of
    Mississippi.[^8] On November 12, 2004, Cellular South filed the
    certification required by 54.904(d) with the Commission and
    USAC.[^9] On August 9, 2006, Cellular South filed a petition for
    waiver of the 53.904(d) filing deadlines to enable it to receive
    ICLS support beginning on September 23, 2004, the date Cellular
    South was designated an ETC by the Mississippi Commission.[^10]

5.  Cellular South contends that good cause exists to waive the
    certification filing requirements of section 54.904(d) of the
    Commission's rules to permit Cellular South to receive ICLS support
    as of its ETC designation date.[^11] Cellular South argues that
    granting its waiver is in the public interest because it will
    further the Commission's goal of competitive neutrality and will
    allow Cellular South to improve its facilities.[^12] Finally,
    Cellular South argues that granting its waiver is consistent with
    Commission precedent and the Commission's 2005 decision to allow
    newly designated ETCs to receive support as of their ETC designation
    date, provided the ETC files the necessary filings within 60 days of
    the carrier's ETC designation date.[^13]

# DISCUSSION

6.  We find that Cellular South has demonstrated that there is good
    cause to waive section 54.904(d) of the Commission's rules in order
    to allow Cellular South to receive universal service support
    beginning on September 23, 2004, the date of Cellular South's
    designation as an ETC.[^14] Although Cellular South was required to
    file its certification by June 30, 2004, to receive ICLS support as
    of its ETC designation date, we find that strict enforcement of the
    filing deadline would unfairly penalize Cellular South and would not
    further the Commission's universal service goals.[^15]

7.  Cellular South did not receive its ETC designation until September
    23, 2004.[^16] Therefore, it could not have met the June 30, 2004,
    certification deadline. Shortly after Cellular South was designated
    an ETC, the Commission amended its rules to allow newly designated
    ETCs to receive universal service support as of the effective date
    of their ETC designation, provided that the necessary certifications
    and data are filed within 60 days of the ETC designation date.[^17]
    The Bureau has granted numerous petitions filed by newly designated
    ETCs who, like Cellular South, could not have met filing deadlines
    that occurred prior to their ETC designation date.[^18] We,
    therefore, conclude that waiver of section 54.904(d) of the
    Commission's rules is in the public interest and is consistent with
    previous waiver grants and the Commission's decision to allow newly
    designated ETCs to receive support of the carrier's designation
    date.

# ORDERING CLAUSEs

8.  Accordingly, IT IS ORDERED, pursuant to sections 1, 4(i), 5(c), 201,
    and 254 of the Communications Act of 1934, as amended, 47 U.S.C. §§
    151, 154(i), 155(c), 201, and 254, and pursuant to authority
    delegated under sections 0.91, 0.291, and 1.3 of the Commission's
    rules, 47 C.F.R. §§ 0.91, 0.291, and 1.3, that the petition for
    waiver of section 54.904(d) of the Commission's rules, 47 C.F.R. §
    54.904(d), filed by Cellular South Licenses, Inc. IS GRANTED.

9.  IT IS FURTHER ORDERED that, pursuant to authority delegated under
    sections 0.91, 0.291 and 1.102 of the Commission's rules, 47 C.F.R.
    §§ 0.91, 0.291, 1.102, this Order SHALL BE EFFECTIVE upon release.

> FEDERAL COMMUNICATIONS COMMISSION
>
> Renee R. Crittendon
>
> Acting Deputy Chief
>
> Wireline Competition Bureau

[^1]: Cellular South Licenses Inc. Petition for Waiver of Section
    54.904(d) of the Commission's Rules, CC Docket No. 96-45, filed
    August 9, 2006 (Petition); *see also* 47 C.F.R. § 54.904(d).

[^2]: 47 U.S.C. § 254(e).

[^3]: *Id.*

[^4]: *See* 47 C.F.R. §§ 54.307, 54.313, 54.314, 54.802(a), 54.809,
    54.903, 54.904.

[^5]: *See* 47 C.F.R. § 54.904.

[^6]: *See* 47 C.F.R. §§ 54.904(a) and (d). In the *MAG Order,* the
    Commission adopted a mechanism for accepting an untimely filed ICLS
    certification, whereby the carrier does not become eligible for ICLS
    until the second calendar quarter after the certification is
    untimely filed. *See* *Multi-Association Group (MAG) Plan for
    Regulation of Interstate Services of Non-Price Cap Incumbent Local
    Exchange Carriers and Interexchange Carriers*, CC Docket No. 00-256,
    *Federal-State Joint Board on Universal Service*, CC Docket No.
    96-45, *Access Charge Reform for Incumbent Local Exchange Carriers
    Subject to Rate-of-Return Regulation*, CC Docket No. 98-77,
    *Prescribing the Authorized Rate of Return for Interstate Services
    of Local Exchange Carriers*, CC Docket No. 98-166, Second Report and
    Order and Further Notice of Proposed Rulemaking in CC Docket No.
    00-256, Fifteenth Report and Order in CC Docket No. 96-45, and
    Report and Order in CC Docket Nos. 98-77 and 98-166, 16 FCC Rcd
    19613, 19688, para. 176 (2001) (*MAG Order*) (*subsequent history
    omitted*).

[^7]: *See Federal-State Joint Board on Universal Service*, Report and
    Order, CC Docket No. 96-45, 20 FCC Rcd 6371, 6411 (2005) ("*ETC
    Designation Order*").

[^8]: Petition at 1.

[^9]: *Id*. at 2.

[^10]: *Id*. at 1.

[^11]: *Id*. at 3-7.

[^12]: *Id*. at 3-5.

[^13]: *Id*. at 4-7.

[^14]: Generally, the Commission's rules may be waived for good cause
    shown. 47 C.F.R. § 1.3. The Commission may exercise its discretion
    to waive a rule where the particular facts make strict compliance
    inconsistent with the public interest. *Northeast Cellular Telephone
    Co. v. FCC*, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (*Northeast
    Cellular*). In addition, the Commission may take into account
    considerations of hardship, equity, or more effective implementation
    of overall policy on an individual basis. *WAIT Radio v. FCC*, 418
    F.2d 1153, 1159 (D.C. Cir. 1969); *Northeast Cellular*, 897 F.2d at
    1166. Waiver of the Commission's rules is therefore appropriate only
    if special circumstances warrant a deviation from the general rule,
    and such deviation will serve the public interest. *Northeast
    Cellular*, 897 F.2d at 1166. Moreover, in demonstrating whether a
    waiver is warranted, the burden of proof rests with the petitioner.
    *Tucson Radio, Inc. v. FCC*, 452 F.2d 1380, 1382 (D.C. Cir. 1971).

[^15]: *See Grande Communications, Inc. Petition for Waiver of Sections
    54.307 and 54.314 of the Commission's Rules and Regulations*, Order,
    CC Docket 96-45, 19 FCC Rcd 15580, 15584-15585, paras. 9-10
    (Telecom. Access Policy Div. 2004) ("*Grande Communications Inc.
    Order*")

[^16]: Petition at 1.

[^17]: *ETC Designation Order*, 20 FCC Rcd at 6411, para. 92; 47 C.F.R.
    § 54.314(d)(6).

[^18]: *See, e.g., West Virginia Public Service Commission, Request for
    Waiver of State Certification Requirements for High-Cost Universal
    Service Support for Non-Rural Carriers*, Order, CC Docket No. 96-45,
    16 FCC Rcd 5784 (2001) (granting a waiver of the October 1
    certification filing deadline); *Federal-State Joint Board on
    Universal Service, RFB Cellular, Inc., Petitions for Waiver of
    Sections 54.314(d) and 54.307(c) of the Commission's Rules and
    Regulations*, Order, CC Docket No. 96-45, 17 FCC Rcd 24387 (Wireline
    Comp. Bur. 2002) (granting a waiver of the October 1 certification
    filing deadline); *Guam Cellular and Paging, Inc., Petition for
    Waiver of Section 54.314 of the Commission's Rules and Regulations,*
    Order, CC Docket No. 96-45, 18 FCC Rcd 7138 (Telecom. Access Policy
    Div. 2003) (granting a waiver of the October 1 certification filing
    deadline); *Midwest Wireless Iowa, L.L.C. Petition for Waiver of
    Sections 54.313(d) and 54.314(d) of the Commission's Rules and
    Regulations*, 19 *FCC* Rcd 10484 (Telcom. Access Policy Div. 2004)
    (granting a waiver of the April 1 certification filing deadline);
    *Grande Communications Inc. Order,* 19 FCC Rcd 15580 (granting a
    waiver of the January 1 certification filing deadline); *The
    Telecommunications Access Policy Division of the Wireline
    Competition Bureau Grants Petitions Requesting Waiver of Various
    Filing Deadlines Related To the Universal Service Program*, Public
    Notice, CC Docket No. 96-45, 21 FCC Rcd 9143 (Telecom. Access Policy
    Div. 2006) (granting fourteen petitions for waiver to allow newly
    designated ETCs to receive funding as of their designation date);
    *MTA Communications Inc. d/b/a/ MTA Wireless Petition for Waiver of
    Section 54.314 of the Commission Rules*, 22 FCC Rcd 964 (Wireline
    Comp. Bur. 2007).