**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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| Westgate Communications LLC d/b/a    |   |                            |
| WeavTel                              | * |                            |
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| Petition of Waiver of the Section    | ) |                            |
| 54.903 Interstate Common Line        | * |                            |
| Support Reporting Date               | * |                            |
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**ORDER**

**Adopted: August 25, 2008 Released: August 25, 2008**

Chief, Wireline Competition Bureau:

# INTRODUCTION

1.  In this order, we grant a request from Westgate Communications LLC
    d/b/a WeavTel (WeavTel), an eligible telecommunications carrier
    (ETC), for a waiver of section 54.903(a) of the Commission's
    rules.[^1] WeavTel seeks a waiver of the March 31, 2007, filing
    deadline required for receipt of Interstate Common Line Support
    (ICLS).[^2] For the reasons set forth below, we find that WeavTel
    has demonstrated that, in this unique circumstance, good cause
    warrants a waiver of section 54.903(a) of the Commission's rules.

# 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."[^3] Support shall be
    used "only for the provision, maintenance, and upgrading of
    facilities and services for which the support is intended."[^4] To
    implement this statutory requirement, the Commission has adopted
    various certification and data filing requirements.[^5]

3.  Pursuant to section 54.903 of the Commission's rules, rate-of-return
    carriers must file certain data with the Universal Service
    Administrative Company (USAC) to be eligible to receive ICLS.[^6]
    Annually, on March 31, rate-of-return carriers must submit to USAC
    projected data necessary to calculate the carrier's prospective
    ICLS.[^7] Until June 30, carriers can submit a correction to the
    projected data filed on March 31.[^8] Carriers are required to
    submit actual data to USAC annually on December 31.[^9] USAC uses
    the actual data to "true up" or make adjustments to a carrier's
    per-line ICLS to account for differences between the ICLS carriers
    received based on projected data, and the ICLS carriers are
    ultimately eligible for based on actual data.[^10]

4.  *[WeavTel's Petition for Waiver]{.underline}*. On July 9, 2007,
    WeavTel filed a request for waiver of section 54.903(a) of the
    Commission's rules to enable WeavTel to receive ICLS despite it
    having missed the March 31, 2007, deadline for rate-of-return
    carriers to file projected data.[^11] WeavTel did not file its
    projected data until June 27, 2007.[^12] WeavTel asserts that it
    missed the deadline because of procedural issues stemming from
    WeavTel's access to leased facilities.[^13] WeavTel argues that is
    in the public interest and good cause exits to grant its waiver
    request.[^14] Specifically, WeavTel argues that granting its waiver
    request would not burden USAC or harm any carriers because
    administration of ICLS involves "true-up" adjustments based on
    actual data that WeavTel will file in the future.[^15] WeavTel also
    asserts that its request is consistent with the underlying purpose
    of ICLS and, without ICLS support, WeavTel may have to discontinue
    service to two communities and curtail or reevaluate its network
    improvement plans.[^16]

# DISCUSSION 

5.  We find that WeavTel has demonstrated that there is good cause to
    waive section 54.903(a) of the Commission's rules.[^17] WeavTel
    promptly corrected its error by filing its data before June 30,
    2007, the deadline to file corrected projected data. Specifically,
    section 54.903(a)(3) provides carriers with the opportunity to
    update their March 31 filing until June 30.[^18] WeavTel filed the
    required data on June 27, 2007, within the window to adjust or
    correct projected data due on March 31, 2007.[^19]

6.  Granting WeavTel's waiver request will not harm the administration
    of ICLS because ICLS is ultimately based on actual data filed by
    carriers, rather than the projected data for which WeavTel missed
    the filing deadline.[^20] The actual data that will ultimately
    determine the amount of ICLS available to WeavTel is due on December
    31^st^.[^21] Granting WeavTel's waiver request will allow USAC to
    distribute ICLS to WeavTel now, based on projected data which USAC
    will later "true-up" with actual data.

7.  We find that WeavTel's circumstances are unique and emphasize that,
    going forward, we expect WeavTel to file the required information
    with USAC and the Commission by the applicable filing deadlines. We
    recognize that WeavTel did file the necessary data, albeit
    untimely.[^22] We remind carriers that it is their responsibility to
    ensure that their filings are timely received in the appropriate
    places, regardless of the time and method of their filings. Filers
    now have many options by which to file, including U.S. Mail, other
    sources of commercial delivery, facsimile, and electronic mail
    (e-mail). For instance, any carrier receiving funding from the
    high-cost universal service support mechanism may file timely via
    e-mail at
    [hcfilings@HCLI.universalservice.org](mailto:hcfilingd@HCLI.universalservice.org).
    Additional information regarding USAC's filing procedures and
    deadlines can be found at
    <http://www.usac.org/hc/tools/filing-tool/default.aspx>. We
    encourage filers to use any and all methods they deem necessary to
    ensure their filings are timely received.

# ORDERING CLAUSEs

8.  Accordingly, IT IS ORDERED, pursuant to sections 1, 4(i), 5(c), 214,
    and 254 of the Communications Act of 1934, as amended, 47 U.S.C. §§
    151, 154(i), 155(c), 214, and 254, and 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 54.903(a) of the Commission's
    rules, 47 C.F.R. § 54.903(a) filed by Westgate Communications LLC
    d/b/a WeavTel IS GRANTED.

9.  IT IS FURTHER ORDERED that, pursuant to 0.291(b)(1) of the
    Commission's rules, 47 C.F.R. § 0.291(b)(1) this order SHALL BE
    EFFECTIVE upon release.

> FEDERAL COMMUNICATIONS COMMISSION
>
> Dana R. Shaffer
>
> Chief
>
> Wireline Competition Bureau

[^1]: Westgate Communications LLC d/b/a WeavTel Petition of Waiver of
    the Section 54.903 Interstate Common Line Support Reporting Date, CC
    Docket No. 96-45 (filed July 9, 2007) (Petition); 47 C.F.R. §
    54.903.

[^2]: Petition at 1.

[^3]: 47 U.S.C. § 254(e).

[^4]: *Id.*

[^5]: *See, e.g.*, 47 C.F.R. §§ 54.307, 54.313, 54.314, 54.802(a),
    54.809, 54.903, 54.904.

[^6]: 47 C.F.R. § 54.903.

[^7]: 47 C.F.R. § 54.903(a)(3).

[^8]: *Id*.

[^9]: 47 C.F.R. § 54.903(a)(4).

[^10]: *Id*.; *see also Multi-Association Group (MAG) Plan for
    Regulation of Interstate Services of Non-Price Cap Incumbent Local
    Exchange Carriers and Interexchange Carriers; Federal-State Joint
    Board on Universal Service; Access Charge Reform for Incumbent Local
    Exchange Carriers Subject to Rate-of-Return Regulation; Prescribing
    the Authorized Rate of Return for Interstate Services of Local
    Exchange Carriers*; 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, 19684-85, paras. 166-176
    (2001)](http://web2.westlaw.com/find/default.wl?rp=%2Ffind%2Fdefault.wl&vc=0&DB=4493&SerialNum=2001936091&FindType=Y&ReferencePositionType=S&ReferencePosition=19688&AP=&rs=WLW8.03&vr=2.0&fn=_top&mt=Communications&sv=Split)
    (*MAG Order*) (subsequent history omitted).

[^11]: Petition at 1. WeavTel also submitted supplemental information.
    *See* Letter from Richard Weaver, Manager of Operations, WeavTel, to
    Marlene Dortch, Secretary, Federal Communications Commission, CC
    Docket No. 96-45 (filed Dec. 17, 2007) (asserting that without a
    waiver, WeavTel will no longer be able to serve Stehekin and Holden
    Village, Washington); Letter from Richard Weaver, Manager of
    Operations, WeavTel, to Marlene Dortch, Secretary, Federal
    Communications Commission, CC Docket No. 96-45 (filed Dec. 26, 2007)
    (WeavTel December 26 *Ex Parte* Letter) (explaining why WeavTel
    missed the March 31, 2007, filing deadline).

[^12]: Petition at 1.

[^13]: WeavTel December 26 *Ex Parte* Letter.

[^14]: Petition at 3-7.

[^15]: *Id*. at 5-6.

[^16]: *Id*.; WeavTel December 26 *Ex Parte* Letter.

[^17]: 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. The Commission sought comment on
    WeavTel's petition and did not receive any comments opposing
    WeavTel's petition. *See Comment Sought on Petitions Requesting
    Waiver of Various Filing Requirements Related to the Universal
    Service Program*, CC Docket No. 96-45, Public Notice, 22 FCC Rcd
    14,005 (Wireline Comp. Bur. 2007).

[^18]: 47 C.F.R. § 54.903(a).

[^19]: Petition at 1; 47 C.F.R. § 54.903(a).

[^20]: *See* 47 C.F.R. § 54.903(a)(4). To ensure ICLS is distributed in
    a "predictable manner without significant lag in the distribution of
    support to rate-of-return carriers," the Commission requires USAC to
    collect and use projected data instead of waiting until actual cost
    data is available. *See MAG Order*, 16 FCC Rcd at 19683, para.
    164*.* USAC applies a "true-up" to determine differences between
    projected data and actual data. *Id*. at 19684-19695, paras.
    166-169. True-ups ensure that carriers eventually receive ICLS that
    reflects their actual costs. *Id*. at 19684, para. 166.

[^21]: On March 31, 2007, WeavTel was required to submit projected data
    for the upcoming funding year, July 1, 2007 through June 30, 2008.
    *See* 47 C.F.R. § 54.903(a)(3). Unlike projected data, which is
    filed on a funding year basis, actual data is submitted for each
    calendar year. Pursuant to section 54.903(a)(4), rate-of-return
    carriers must submit to USAC, no later than December 31, actual data
    for the prior calendar year. 47 C.F.R. § 54.903(a)(4). Accordingly,
    on December 31, 2008, WeavTel will be required to submit actual data
    for January 1, 2007 through December 31, 2007, including the July 1,
    2007 through December 31, 2007 portion of the funding year, and on
    December 31, 2009, WeavTel will be required to submit actual data
    for January 1, 2008 through December 31, 2008, including the January
    1, 2008 through June 30, 2008 portion of the funding year.

[^22]: Petition at 1. Generally, rate-of-return carriers meet the
    projected data deadlines for receipt of ICLS. The majority of
    rate-of-return carriers are members of the National Exchange Carrier
    Association's (NECA) common line pool. *MAG Order*, 16 FCC Rcd at
    19683, para 165. These carriers are already required to submit
    similar projected data to NECA and can rely on NECA to develop and
    file their projected data. *Id*. at 19682, n. 428. Also,
    rate-of-return carriers do not have an incentive to miss the
    deadlines for receipt of projected data because it would delay their
    receipt of ICLS. *Id*. at 19683, para 164 (finding that without the
    use of projected data, support could be delayed for more than a
    year).