**DA 01-1168**

May 7, 2001

**Verizon and Citizens Communications Company**

**Petition for Waiver of Section 61.48(o)(2)**

**CCB/CPD 01-11**

**[Pleading Cycle Established]{.underline}**

**COMMENTS: May 14, 2001**

**REPLY COMMENTS: May 21, 2001**

On April 30, 2001, Verizon and Citizens Communications Company
(Citizens), by respective counsels, filed a petition requesting a waiver
to extend the provisions of Section 61.48(o)(2) of the Commission's
rules, 47 C.F.R. § 61.48(o)(2). Verizon and Citizens, prior to April 1,
2000, entered into a binding and executed contract of sale between
Verizon and Citizens of certain properties until all of the properties
are transferred to Citizens. Both companies expected the sales to be
completed during the 2000 tariff year (i.e., by June 30, 2001), choosing
to follow the methodology mandated in § 61.48(o)(2) and the rate
blending detailed in the Nakahata Letter of the *Sixth Report and Order
(CALLS Order*). [^1] The parties may not be able to close the
transaction by that date, because they are still waiting for approval of
the transfer by the California Public Utilities Commission.

Verizon and Citizens do not believe that a waiver request is needed to
continue using the Target Rate of \$0.0095 for the Average Traffic
Sensitive (ATS) rates for those properties in the 2001 annual filing, or
to use this rate after Citizens acquires the properties. The parties are
filing this waiver to eliminate any potential uncertainty about the
application of the Commission's price cap rules to this transaction.
Verizon and Citizens assert that by granting this waiver, the Commission
will avoid having the Target Rate for ATS minutes of use associated with
those properties reduced from \$0.0095 to \$0.0055 and be consistent
with the directions set forth in the *Calls Order* seeking to avoid rate
churn and customer confusion. The completion of the sales is anticipated
during the next tariff year.

This matter shall be treated as a "permit-but-disclose" proceeding in
accordance with the Commission's *ex parte* rules. *See* 47 C.F.R. §§
1.1200 and 1.1206. Persons making oral *ex parte* presentations are
reminded that memoranda summarizing the presentations must contain
summaries of the substance of the presentations and not merely a listing
of the subjects discussed. More than a one or two sentence description
of the views and arguments presented is generally required. *See* 47
C.F.R. § 1.1206(b). Other rules pertaining to oral and written *ex
parte* presentations in permit-but-disclose proceedings are set forth in
Section 1.1206(b) of the Commission's rules, 47 C.F.R. § 1.1206(b).

Interested parties may file comments no later than **May 14, 2001**.
Reply comments may be filed no later than **May 21, 2001**. When filing
comments, please reference the internal file number: **CCB/CPD No.
01-11.**

An original and four copies of all comments and reply comments must be
filed with the Office of the Secretary, Federal Communications
Commission, 445 -- 12^th^ Street, S.W., TW-A225, Washington, D.C. 20554.
In addition, one copy of each pleading must be filed with International
Transcription Services (ITS), the Commission's duplicating contractor,
at its office at 1231 -- 20^th^ Street, N.W., Washington, D.C. 20036,
and one copy with the Chief, Competitive Pricing Division, 445 -- 12^th^
Street, S.W., TW-A225, Washington, D.C. 20554.

For further information, contact Wanda M. Harris, Competitive Pricing
Division, Common Carrier Bureau, (202) 418-1530.

**- FCC -**

[^1]: CC Docket Nos. 96-262 and 94-1, *Sixth Report and Order, supra*.
    at ¶ 180, rel. May 31, 2000, FCC 00-103.