DA 03-3508

October 31, 2003

**FURTHER COMMENT REQUESTED IN INVESTIGATION OF ALASCOM, INC. TARIFF FCC
NO. 11**

**PLEADING CYCLE ESTABLISHED**

**CC Docket No. 95-182**

**Comments Due: December 15, 2003**

**Reply Comments Due: January 9, 2004**

This Public Notice seeks further comment on Alascom, Inc.'s (Alascom)
Tariff FCC No. 11 for interstate switching and transport services
provided to other common carriers within the state of Alaska and between
Alaska and the continental United States.

Alascom filed its first Tariff FCC No. 11 on September 22, 1995, and
filed annual revisions to Tariff FCC No. 11 each year thereafter.[^1]
During this period, at least three parties, General Communication, Inc.
(GCI), ACS-Long Distance (ACS-LD) (formerly Alaska Telephone
Utility-Long Distance), and Alaska Network Services (ANS) (collectively,
Petitioners) filed petitions to reject or, in the alternative, suspend
some or most of Alascom's tariffs. The Bureau has suspended for one day
and set for investigation each of Alascom's annual tariff filings, based
on concerns regarding their lawfulness.[^2] Each yearly investigation
has been consolidated with the original investigation initiated in 1995.
Similarly, each year the Bureau imposed an accounting order requiring
Alascom to keep accurate account of all revenues collected pursuant to
Tariff FCC No. 11 in the event that the Commission ultimately determines
that refunds are required.[^3] The investigation is still pending, and
the accounting orders are still in effect. The next step in the
investigation is to issue a designation order. Events occurring since
the initiation of the investigation may have affected the positions of
the parties. Such events include changes in ownership of certain
Petitioners, an additional Bureau order regarding Alascom's Cost
Allocation Plan (CAP),[^4] and changes in the regulation of
telecommunications services in Alaska. An example of such a regulatory
change is the Commission's recent repeal of the Alaska "bush policy,"
which prevented construction of duplicate satellite earth station
facilities for providing telecommunications services in certain small,
remote Alaska communities.[^5] In order to prepare a designation order,
the Bureau now asks the parties to state their positions with respect to
Alascom's Tariff FCC No. 11, indicating whether these ensuing events
have affected their positions. Therefore, we request Petitioners and any
other party desiring to do so to state and support their positions with
respect to Alascom's Tariff FCC No. 11. We also provide an opportunity
for Alascom or any other party desiring to do so to reply to these
statements.

**BACKGROUND**

In 1994 the Commission established a new market structure for
telecommunications services in Alaska designed to end monopoly service
and "promote more competition, open entry, and improve efficiency . . .
."[^6] This *Market Structure Order* required Alascom to offer "common
carrier" services on a non-discriminatory basis at rates that reflect
the costs of the services.[^7] These Alascom common carrier services are
defined as "all interstate interexchange transport and switching
services that are necessary for other interexchange carriers to provide
services in Alaska up to the point of interconnection with each Alaska
local exchange carrier."[^8] The *Market Structure Order* further
required Alascom to establish two geographic rate zones and to allocate
the costs of providing service to these two zones pursuant to a cost
allocation plan (CAP) to be developed by Alascom and approved by the
Commission.[^9] The *Market Structure Order* described the two
geographic rate zones as "locations subject to facilities competition
(non-Bush) and . . . locations where Alascom has a facilities monopoly
(Bush)."[^10] The Commission adopted the two-rate-zone and CAP
requirements because the cost of providing service to bush areas was
substantially higher than the cost of providing service to non-bush
areas, thus providing Alascom a possible incentive to discriminate
against competitors or cross-subsidize competitive, non-bush services
with revenues from non-competitive bush services.[^11] Finally, the
*Market Structure Order* required Alascom to revise its common carrier
services tariff annually to reflect current costs.[^12]

After requiring certain revisions, the Bureau approved Alascom's CAP in
1995*.*[^13] Alascom filed its first common carrier services tariff with
rates produced by the CAP, Tariff FCC No. 11, in 1995. Petitioners
challenged the tariff, raising questions regarding its lawfulness, and,
therefore, the Bureau suspended the tariff, imposed an accounting order,
and instituted an investigation.[^14] The Bureau has similarly suspended
all of Alascom's subsequent annual Tariff FCC No. 11 revisions, imposed
accounting orders, instituted investigations, and incorporated each
year's investigation into the investigation of Alascom's original Tariff
FCC No. 11.[^15] This investigation is still pending. On January 7,
2003, Alascom filed a petition seeking a waiver of its obligation to
file a new Tariff FCC No. 11 for 2003, which had been due on November
27, 2002.[^16] Alascom contended in its waiver petition, among other
things, that the market for telecommunications services in Alaska had
become sufficiently competitive that a tariff for its common carrier
services was no longer needed to protect competition.[^17] On August 13,
2003, the Bureau denied Alascom's petition and required Alascom to file
its annual tariff revisions by September 26, 2003.[^18] The Bureau
stated that it would not make determinations regarding broad issues such
as the state of competition among providers of telecommunications
services in Alaska in response to a tariff waiver petition, noting that
Alascom had filed a separate petition to eliminate all of the conditions
imposed on it by the *Market Structure Order.*[^19] Alascom duly filed
its annual revision to its Tariff FCC No. 11 on September 26, 2003.[^20]
GCI filed a petition to suspend and investigate this tariff, to which
Alascom filed a reply.[^21] In a separate order, we suspended this
tariff for one day, imposed an accounting order, set it for
investigation, and consolidated the investigation of this tariff with
the overall investigation of all of Alascom's annual Tariff FCC No. 11
filings.[^22]

**CURRENT PROCEEDING**

The Bureau is inviting comment in this tariff investigation now in order
to prepare an order designating the issues to be investigated and
directing Alascom to provide additional information needed to complete
the investigation. Therefore, we request each interested party to
prepare a complete statement of its position with respect to all issues
that it contends demonstrate that Alascom's Tariff FCC No. 11 is
unlawful. We request these statements because, in the time that has
elapsed since Alascom filed its first Tariff FCC No. 11, certain of the
parties that challenged Alascom's early tariffs have changed ownership,
the Bureau has issued an additional order regarding Alascom's CAP, and
regulations concerning telecommunications services in Alaska have
changed. We seek to determine whether any of these ensuing developments
have resulted in any changes to the parties' positions. We also ask any
parties challenging Alascom's Tariff FCC No. 11 to describe in detail
the additional information, including cost support, that is necessary to
enable the Commission to complete the investigation and determine
whether or not Alascom's tariffs are lawful. We direct the parties in
their comments and reply comments to address only those issues relating
to whether Alascom's tariffs are lawful, rather than the need for a
tariff due to changes in competitive conditions in Alaska, which we will
address in our consideration of Alascom's *Petition for Elimination of
Conditions.*[^23] For the convenience of the parties and the Bureau, we
have scheduled the comment date for this Public Notice to coincide with
the deadline for filing petitions to reject or, in the alternative,
suspend and investigate, Alascom's Tariff FCC No. 11 for 2004, which is
due to be filed on November 28, 2003. Because we must make a
determination regarding the potential lawfulness or unlawfulness of this
tariff prior to January 1, 2004, however, Alascom must file any reply to
any such petitions by December 22, 2003. If Alascom or any other party
desires to respond to any broader tariff issues raised in any comments
filed in response to this Public Notice, they may file reply comments by
January 9, 2004.

**FILING PROCEDURES**

Comments in response to this Public Notice are due **December 15,
2003.** Reply Comments are due **January 9, 2004**. When filing
comments, please reference CC Docket No. 95-182. An original and four
copies of all comments should be addressed to Marlene H. Dortch,
Secretary, Federal Communications Commission, 445 12^th^ Street, SW,
Room TW-B204, Washington, DC 20554. A courtesy copy should be addressed
to Chief, Pricing Policy Division, Wireline Competition Bureau, 445 12th
Street, S.W., Room 5-A225, Washington, D.C. 20554, and e-mailed to
<julie.saulnier@fcc.gov>. A courtesy copy should also be addressed to
Qualex International, Portals II, 445 12th Street, S.W., Room CY-B402,
Washington, D.C. 20554, telephone (202) 863-2893, facsimile
202-863-2898, or sent via e-mail to [qualexint@aol.com]{.underline}.
Parties also are strongly encouraged to submit their comments via the
Internet through the Electronic Comment Filing System at
http://www.fcc.gov/cgb/ecfs/. Generally, only one copy of an electronic
submission must be filed. In completing the transmittal screen,
commenters should include their full name, Postal Service mailing
address, and the applicable docket number, which in this instance is CC
Docket No. 95-182. Parties may also submit an electronic comment via
Internet e-mail. To get filing instructions for e-mail comments,
commenters should send an e-mail to ecfs@fcc.gov, and should include the
following words in the body of the message: "get form." A sample form
and directions will be sent in reply.

Interested parties who wish to file comments via hand-delivery are also
notified that the Commission will only receive such deliveries weekdays
from 8:00 a.m. to 7:00 p.m., via its contractor, Natek, Inc., located at
236 Massachusetts Avenue, NE, Suite 110, Washington, DC 20002. **The
Commission no longer accepts these filings at 9300 East Hampton Drive,
Capitol Heights, MD 20743.** Please note that all hand deliveries must
be held together with rubber bands or fasteners, and envelopes must be
disposed of before entering the building. In addition, this is a
reminder that the Commission no longer accepts hand-delivered or
messenger-delivered filings at its headquarters at 445 12th Street, SW,
Washington, DC 20554. Messenger-delivered documents (*e.g.*, FedEx),
including documents sent by overnight mail (other than United States
Postal Service (USPS) Express and Priority Mail), must be addressed to
9300 East Hampton Drive, Capitol Heights, MD 20743. This location is
open weekdays from 8:00 a.m. to 5:30 p.m. USPS First-Class, Express, and
Priority Mail should be addressed to the Commission's headquarters at
445 12th Street, SW, Washington, DC 20554. The following chart
summarizes this information:

+-----------------------------------+----------------------------------+
| **TYPE OF DELIVERY**              | > **PROPER DELIVERY ADDRESS**    |
+-----------------------------------+----------------------------------+
| Hand-delivered paper filings      | > 236 Massachusetts Avenue, NE,  |
|                                   | >                                |
|                                   | > Suite 110, Washington, DC      |
|                                   | > 20002 (Weekdays - 8:00 a.m. to |
|                                   | > 7:00 p.m.)                     |
+-----------------------------------+----------------------------------+
| Messenger-delivered documents     | > 9300 East Hampton Drive,       |
| (*e.g.*, FedEx), including        | >                                |
| documents sent by overnight mail  | > Capitol Heights, MD 20743      |
| (this type excludes USPS Express  | >                                |
| and Priority Mail)                | > (Weekdays - 8:00 a.m. to 5:30  |
|                                   | > p.m.)                          |
+-----------------------------------+----------------------------------+
| USPS First-Class, Express, and    | > 445 12^th^ Street, SW          |
| Priority Mail                     | >                                |
|                                   | > Washington, DC 20554           |
+-----------------------------------+----------------------------------+

***Ex Parte* Requirements**

This Public Notice is designated 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.[^24] Other rules pertaining to oral and written
presentations are also set forth in section 1.1206(b).

Interested parties should address any memoranda summarizing oral *ex
parte* presentations or written *ex parte* presentations in this
proceeding to Marlene H. Dortch, Secretary, Federal Communications
Commission, 445 12th Street, S.W., TW-B204, Washington, D.C. 20554.
Parties making either oral or written *ex parte* presentations also
should address copies of memoranda summarizing any oral *ex parte*
presentations or any written *ex parte* presentations to the Chief,
Pricing Policy Division, Wireline Competition Bureau, 445 12th Street,
S.W., Room 5-A222, Washington, D.C. 20554 and e-mail copies to
j[ulie.saulnier@fcc.gov]{.underline}. A courtesy copy also should be
addressed to Qualex International, Portals II, 445 12th Street, S.W.,
Room CY-B402, Washington, D.C. 20554, telephone (202) 863-2893.,
facsimile (202)-863-2898, or sent via e-mail to <qualexint@aol.com>.
Parties also are strongly encouraged to file copies of memoranda
summarizing oral *ex parte* presentations or any written ex parte
presentations via the Internet through the Electronic Comment Filing
System at http://www.fcc.gov/cgb/ecfs/.

For further information regarding this proceeding contact Julie
Saulnier, Pricing Policy Division, Wireline Competition Bureau, (202)
418-1530.

[^1]: *See, e.g.,* Alascom, Inc., Tariff FCC No. 11, Transmittal No. 790
    (filed Sept. 11, 1995).

[^2]: *Alascom, Inc., Tariff FCC No. 11,* *Transmittal No. 790,* CC
    Docket No. 95-182, Order, 11 FCC Rcd 3703 (Com. Car. Bur. 1995);
    *Transmittal No. 807,* CC Docket No. 95-182, Order, 11 FCC Rcd 10833
    (Com. Car. Bur. 1996); *Transmittal No. 852*, Order, 12 FCC Rcd 3646
    (Com. Car. Bur. 1997); *Transmittal No. 921,* Order, 13 FCC Rcd 187
    (Com. Car. Bur. 1997); *Transmittal Nos. 921, 937, 941 and 942*,
    Order, 13 FCC Rcd 4659 (Com. Car. Bur. 1998); *Transmittal No. 993,*
    Order, 13 FCC Rcd 25055 (Com. Car. Bur. 1998); *Transmittal No.
    1088*, Order, 15 FCC Rcd 6 (Com. Car. Bur. 1999); *Transmittal No.
    1184*, Order, 16 FCC Rcd 19 (Com. Car. Bur. 2000); *Transmittal No.
    1260*, Order, 17 FCC Rcd 24 (Com. Car. Bur. 2001).

[^3]: *See, e.g.,* *Alascom, Inc., Tariff FCC No. 11,* *Transmittal No.
    807,* CC Docket No. 95-182, Order, 11 FCC Rcd 10833 (Com. Car. Bur.
    1996).

[^4]: *Alascom, Inc. Cost Allocation Plan for the Separation of Bush and
    Non-Bush Costs,* AAD 94-119, Memorandum Opinion and Order on
    Reconsideration and Order Approving Cost Allocation Plan, 12 FCC Rcd
    1991 (Com. Car. Bur. 1997).

[^5]: *Policy for Licensing Domestic Satellite Earth Stations in the
    Bush Communities of Alaska,* IB Docket No. 02-30, RM No. 7246,
    Report and Order, FCC 03-197 (rel. Aug. 12, 2003).

[^6]: *Integration of Rates and Services for the Provision of
    Communications by Authorized Common Carriers between the Contiguous
    States and Alaska, Hawaii, Puerto Rico, and the Virgin Islands*, CC
    Docket No. 83-1376, Memorandum Opinion and Order, 9 FCC Rcd 3023
    (1994) (*Market Structure Order*). *See also* *Integration of Rates
    and Services for the Provision of Communications by Authorized
    Common Carriers between the Contiguous States and Alaska, Hawaii,
    Puerto Rico and the Virgin Islands,* CC Docket No. 83-1376, Final
    Recommended Decision, 9 FCC Rcd 2197 (Jt. Bd. 1993) (*Final
    Recommended Decision*).

[^7]: *Market Structure Order,* 9 FCC Rcd at 3023*.*

[^8]: *Id.* at 3023, n.5.

[^9]: *Id.* at 3023.

[^10]: *Id.*

[^11]: *Id.* at 3023. *See also Final Recommended Decision*, 9 FCC Rcd
    at 2205-06.

[^12]: *Market Structure Order*, 9 FCC Rcd at 3027. Current Commission
    rules require Alascom to file its annual tariff revisions, to become
    effective on the first day of each calendar year, on at least 35
    days' notice. 47 C.F.R. § 61.58(e)(3).

[^13]: *Alascom, Inc. Cost Allocation Plan for the Separation of Bush
    and Non-Bush Costs,* Order, 10 FCC Rcd 9823 (Com. Car. Bur. 1995).

[^14]: *Alascom, Inc. Tariff FCC No. 11,* *Transmittal No. 790,* CC
    Docket No. 95-182, Order, 11 FCC Rcd 3703 (Com. Car. Bur. 1995);
    *Alascom, Inc. Tariff FCC No. 11, Transmittal No. 807,* CC Docket
    No. 95-182, Order, 11 FCC Rcd 10833 (Com. Car. Bur. 1996).

[^15]: *Transmittal No. 852*, Order, 12 FCC Rcd 3646 (Com. Car. Bur.
    1997); *Transmittal No. 921,* Order, 13 FCC Rcd 187 (Com. Car. Bur.
    1997); *Transmittal Nos. 921, 937, 941 and 942*, Order, 13 FCC Rcd
    4659 (Com. Car. Bur. 1998); *Transmittal No. 993,* Order, 13 FCC Rcd
    25055 (Com. Car. Bur. 1998); *Transmittal No. 1088*, Order, 15 FCC
    Rcd 6 (Com. Car. Bur. 1999); *Transmittal No. 1184*, Order, 16 FCC
    Rcd 19 (Com. Car. Bur. 2000); *Transmittal No. 1260*, Order, 17 FCC
    Rcd 24 (Com. Car. Bur. 2001).

[^16]: *Alascom Petition for Waiver of Commission's Rules Regarding its
    Annual Tariff FCC No. 11,* WC Docket No. 03-18 (filed Jan. 7, 2003).

[^17]: *Id.* at 5-7.

[^18]: *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).

[^19]: *Id.* at 7. *See also* *AT&T Corp. and Alascom Inc. Petition for
    Elimination of Conditions*, CC Docket No. 00-46 (filed Mar. 10,
    2000) (*Petition for Elimination of Conditions*).

[^20]: Alascom, Inc., Tariff FCC No. 11, Transmittal No. 1278 (filed
    Sept. 26, 2003).

[^21]: Alascom, Inc., Tariff FCC No. 11, Transmittal No. 1278, Petition
    of GCI to Suspend and Investigate (filed Oct. 10, 2003); Opposition
    of Alascom to Petition of GCI to Suspend and Investigate (filed Oct.
    23, 2003).

[^22]: *Alascom, Inc., Tariff FCC No. 11, Transmittal No. 1278,* CC
    Docket No. 95-182, Order, DA 03-3454 (WCB Oct. 30, 2003).

[^23]: *See* n.19*, supra*.

[^24]: *See* 47 C.F.R. §1.1206(b)(2), as revised.