**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the matter of                 | *  | CC Docket No. 95-182         |
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| Investigation of Alascom, Inc.   | ** |                              |
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| Interstate Transport and         | *  |                              |
| Switching Services               | *) |                              |
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| Alascom, Inc. Transmittal No.    |    |                              |
| 1278                             | *  |                              |
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| Revisions to Tariff FCC No. 11   | ** |                              |
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**ORDER**

**Adopted: October 30, 2003 Released: October 30, 2003**

By the Chief, Pricing Policy Division, Wireline Competition Bureau:

# INTRODUCTION

1.  On September 26, 2003, Alascom, Inc. (Alascom) filed Transmittal No.
    1278 to revise its Tariff FCC No. 11 rates for switching and
    transport services provided to other common carriers within the
    state of Alaska and between Alaska and the continental United
    States. The proposed rates are scheduled to become effective on
    October 31, 2003. Under this transmittal, Alascom proposes to reduce
    its per minute transport and switching rates for service to
    intra-Alaska bush and non-bush locations (that is, between Alaska
    local exchange carrier offices and Alascom's switching center) and
    bush and non-bush transport rates for traffic between Alaska and the
    continental United States (that is, between Anchorage and Portland,
    Oregon). In this order we suspend the effectiveness of Transmittal
    No. 1278 for one day, impose an accounting order, set it for
    investigation, and consolidate the investigation of Transmittal No.
    1278 with the investigation of Alascom's original Tariff FCC No. 11,
    and all subsequent annual revisions to this original tariff.[^1]

# CONTENTIONS

2.  On October 14, 2003, General Communication, Inc. (GCI) filed a
    petition to suspend and investigate the above transmittal. GCI asks
    the Commission to suspend Alascom's Transmittal No. 1278, enter an
    accounting order, order an investigation of Alascom's proposed
    tariff, and consolidate this investigation with the pending
    investigation of Alascom's prior Tariff FCC No. 11 transmittals.[^2]
    GCI claims that Alascom's proposed rates are excessive and
    unjustified because Alascom has failed to identify any changes made
    to the Cost Allocation Plan (CAP) underlying its proposed rates to
    address "deficiencies" in the CAP that GCI alleges were identified
    in Alascom's *Petition for Waiver* of its annual tariff filing
    requirement.[^3] GCI further contends that, while Alascom's latest
    rates represent reductions from previous rates, Alascom has done
    nothing to narrow the gap between bush and non-bush switching rates.
    GCI claims that such a gap is unjustified because Alascom provides
    switching for both bush and non-bush areas through a single
    switching center in Anchorage.[^4] Finally, GCI claims that the lack
    of detail in Alascom's cost support makes it difficult to analyze
    the proposed rates, and urges the Commission to require Alascom "to
    provide the CAP, all cost models and its cost study in electronic
    format for full analysis."[^5]

3.  Alascom replies that GCI's criticisms of its tariff are unwarranted
    because it has expended considerable effort to comply with the
    Commission's directive to run the CAP model to the best of its
    ability.[^6] Alascom further claims that its latest proposed rates
    are based on actual capital expenditure and demand data rather than
    forecasts, providing them additional indicia of reliability.[^7]
    Finally, Alascom claims that "the FCC's original CAP analysis
    concluded that switching costs are higher in Bush locations."[^8]

# DISCUSSION

4.  We have reviewed the above transmittal, its supporting materials,
    *GCI's Petition*, and *Alascom's Opposition*. We find that
    Transmittal No. 1278 raises the same issues regarding rate level,
    rate structures, and terms and conditions of service as those
    identified in our prior suspension orders for Alascom's annual
    Tariff FCC No. 11 filings. We also find that Transmittal No. 1278
    raises questions regarding the adequacy of Alascom's cost support
    and the extent to which the rates, terms, and conditions in the
    proposed tariff comply with the Communications Act and relevant
    Commission orders. [^9] We conclude, therefore, that significant
    questions of lawfulness exist concerning Alascom's Transmittal
    No. 1278. Accordingly we suspend the provisions of Transmittal 1278
    for one day, set those provisions for investigation, and consolidate
    the investigation of Transmittal No. 1278 with the investigation
    initiated in the *Transmittal 790 Suspension Order*. Alascom's
    proposed rate changes in Transmittal No. 1278 will also be subject
    to an accounting order to facilitate any refunds that may later be
    necessary. Our accounting order will ensure that GCI and any other
    Tariff FCC No. 11 customers will be able to receive refunds of any
    amounts improperly charged should the Commission ultimately
    determine that Alascom's tariff is unlawful.

# *ex parte* requirements

5.  This investigation is a permit-but-disclose proceeding and is
    subject to the requirements of section 1.1206(b) of the Commission's
    rules, 47 C.F.R. § 1.1206(b), as revised. Persons making oral *ex
    parte* presentations are reminded that memoranda summarizing the
    presentations must contain a summary of the substance of the
    presentation 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. Other rules pertaining to
    oral and written presentations are also set forth in section
    1.1206(b).

# ORDERING CLAUSES

6.  Accordingly, IT IS ORDERED that, pursuant to sections 204(a) and 205
    of the Communications Act of 1934, as amended, 47 U.S.C. §§ 204(a)
    and 205, and through the authority delegated pursuant to sections
    0.91 and 0.291 of the Commission's rules, 47 C.F.R. §§ 0.91 and
    0.291, the revisions to Alascom Inc.'s Tariff FCC No. 11 contained
    in Transmittal No. 1278 ARE SUSPENDED for one day and an
    investigation of Transmittal No. 1278 IS INSTITUTED and incorporated
    with the investigation instituted in CC Docket No. 95-182.

7.  IT IS FURTHER ORDERED that Alascom, Inc. SHALL FILE tariff revisions
    within five business days of the release of this order to reflect
    this suspension. Alascom, Inc. should cite the "DA" number on the
    instant order as the authority for the filing.

8.  IT IS FURTHER ORDERED that, pursuant to sections 4(i) and 204(a) of
    the Communications Act of 1934, as amended, 47 U.S.C. §§154(i) and
    204(a), and through the authority delegated pursuant to sections
    0.91 and 0.291 of the Commission's rules, 47 C.F.R. §§ 0.91 and
    0.291, Alascom, Inc. SHALL KEEP ACCURATE ACCOUNT of all amounts
    received by reason of the rates that are the subject of this
    investigation.

9.  IT IS FURTHER ORDERED that the petition to suspend and investigate
    Alascom, Inc.'s Transmittal No. 1278 filed by General Communication,
    Inc., IS GRANTED to the extent indicated herein.

    FEDERAL COMMUNICATIONS COMMISSION

    Tamara L. Preiss

    Chief, Pricing Policy Division

    Wireline Competition Bureau

[^1]: Since Alascom filed its first Tariff FCC No. 11 in 1995, the
    Bureau has suspended each annual Tariff FCC No. 11, imposed an
    accounting order, and instituted an investigation. After instituting
    an investigation of Alascom's first Tariff FCC No. 11 in 1995, the
    Bureau consolidated the investigations of subsequent annual
    transmittals with this initial investigation. *See Alascom, Inc.,
    Tariff FCC No. 11,* *Transmittal No. 790,* CC Docket No. 95-182,
    Order, 11 FCC Rcd 3703 (Com. Car. Bur. 1995) (1996 rates)
    (*Transmittal No. 790 Suspension Order*); *Transmittal No. 807,* CC
    Docket No. 95-182, Order, 11 FCC Rcd 10833 (Com. Car. Bur. 1996)
    (also 1996 rates); *Transmittal No. 852*, Order, 12 FCC Rcd 3646
    (Com. Car. Bur. 1997) (1997 rates); *Transmittal No. 921,* Order, 13
    FCC Rcd 187 (Com. Car. Bur. 1997) (1998 rates); *Transmittal Nos.
    921, 937, 941 and 942*, Order, 13 FCC Rcd 4659 (Com. Car. Bur. 1998)
    (also 1998 rates); *Transmittal No. 993,* Order, 13 FCC Rcd 25055
    (Com. Car. Bur. 1998) (1999 rates); *Transmittal No. 1088*, Order,
    15 FCC Rcd 6 (Com. Car. Bur. 1999) (2000 rates); *Transmittal No.
    1184*, Order, 16 FCC Rcd 19 (Com. Car. Bur. 2000) (2001 rates);
    *Transmittal No. 1260*, Order, 17 FCC Rcd 24 (Com. Car. Bur. 2001)
    (2002 rates).

[^2]: Alascom Inc., Transmittal No. 1278, Petition of GCI to Suspend and
    Investigate at 1 (filed Oct. 14, 2003) (*GCI Petition*).

[^3]: *GCI Petition* at 3-4. *See also* *Alascom Petition for Waiver of
    Commission's Rules Regarding its Annual Tariff FCC No. 11,* WC
    Docket No. 03-18 (filed Jan. 7, 2003).

[^4]: *GCI Petition* at 7.

[^5]: *Id.* at 8.

[^6]: Alascom Inc., Transmittal No. 1278, Opposition of Alascom to
    Petition of GCI to Suspend and Investigate at 3-4 (filed Oct. 23,
    2003) (*Alascom Opposition*). While *Alascom's Opposition* refers to
    a Commission directive, we note that the order denying Alascom's
    waiver petition was issued by the Wireline Competition Bureau.
    *Alascom Petition for Waiver of Commission's Rules Regarding its
    Annual Tariff FCC No. 11,* WC Docket No. 03-18, Order, DA 03-2649
    (WCB Aug. 13, 2003).

[^7]: *Alascom Opposition* at 4.

[^8]: *Id.*

[^9]: *See* n.1, *supra.*