**DA 07-1242**\
**March 12, 2007**

**PARTIES ASKED TO REFRESH RECORD REGARDING ORDER DESIGNATING ISSUES FOR
INVESTIGATION REGARDING GTE SALE OF SEVERAL LOCAL EXCHANGE PROPERTIES**

**PLEADING CYCLE ESTABLISHED**

**CC Docket No. 96-5; Transmittal Nos. 963, 146**

**COMMENTS DUE: April 11, 2007**\
**REPLY COMMENTS DUE: April 26, 2007**

The Wireline Competition Bureau (the Bureau) invites interested parties
to update the record pertaining to the Order Designating Issues for
Investigation regarding GTE's 1995 Annual Access filing (Designation
Order), in which the Bureau concluded that the exogeneous cost
adjustments to its price cap indexes that GTE proposed to reflect the
sale of several local exchange properties warranted further
investigation.[^1] The Designation Order requests information regarding
the method that should be used to determine exogenous adjustments to a
carrier's price cap index (PCI) following the sale of a local exchange,
and whether GTE's exogenous cost adjustments were adequately supported.

Since the Designation Order was released, carriers have sold multiple
local exchanges and made corresponding adjustments to their PCIs. As a
result, the record in this proceeding may not contain the most
comprehensive and recent information available to address the issues the
Bureau cited in the Designation Orders. Moreover, it may be that the
designated issues have become moot or outdated. For these reasons, the
Bureau requests that parties refresh the record with any new information
or arguments that may be relevant to the issues the Bureau designated.
Specifically, the Bureau is interested in how carriers have made
exogeneous cost adjustments to their PCIs for the sale of local
exchanges that occurred subsequent to 1995, and whether a dispute still
exists over the appropriate methodology that should be used. In
addition, the Bureau is interested as to whether carriers make upward as
well as downward exogenous adjustments to their PCIs and any explanation
as to why carriers would not or should not make upward adjustments. The
refreshed record will enable the Commission to undertake appropriate
action to resolve the Designation Order.

Interested parties may file comments refreshing the record on or before
**April 11, 2007**, and reply comments on or before **April 26, 2007**.
All pleadings are to reference **CC Docket No. 96-5**. All pleadings may
be filed using the Commission's Electronic Comment Filing System (ECFS)
or by filing paper copies.[^2] For ECFS filers, if multiple docket or
rulemaking numbers appear in the caption of this proceeding, filers must
transmit one electronic copy of the comments for each docket or
rulemaking number referenced in the caption. In completing the
transmittal screen, filers should include their full name, U.S. Postal
Service mailing address, and the applicable docket or rulemaking number.
Parties may also submit an electronic comment by Internet e-mail. To get
filing instructions, filers should send an e-mail to <ecfs@fcc.gov>, and
include the following words in the body of the message, "get form." A
sample form and directions will be sent in response.

Parties who choose to file by paper must file an original and four
copies of each filing. If more than one docket or rulemaking number
appears in the caption of this proceeding, commenters must submit two
additional copies for each additional docket or rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail (although we continue to experience delays in receiving U.S. Postal
Service mail). **Parties are strongly encouraged to file comments
electronically using the Commission's ECFS.**

Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail (although we continue to experience delays in receiving U.S. Postal
Service mail). All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.

-   The Commission's contractor will receive hand-delivered or
    messenger-delivered paper filings for the Commission's Secretary at
    236 Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The
    filing hours at this location are 8:00 a.m. to 7:00 p.m. All hand
    deliveries must be held together with rubber bands or fasteners. Any
    envelopes must be disposed of [before]{.underline} entering the
    building.

-   Commercial overnight mail (other than U.S. Postal Service Express
    Mail and Priority Mail) must be sent to 9300 East Hampton Drive,
    Capitol Heights, MD 20743.

-   U.S. Postal Service first-class, Express, and Priority mail should
    be addressed to 445 12^th^ Street, SW, Washington DC 20554.

People with Disabilities: To request materials in accessible formats for
people with disabilities (braille, large print, electronic files, audio
format), send an e-mail to <fcc504@fcc.gov> or call the Consumer &
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432
(tty).

All filings must be addressed to the Commission\'s Secretary, Marlene H.
Dortch, Office of the Secretary, Federal Communications Commission, Room
TW-A325, 445 12^th^ Street, SW, Washington, D.C. 20554. Parties should
also send a copy of their filings to Pamela Arluk, Pricing Policy
Division, Wireline Competition Bureau, Federal Communications
Commission, Room 5-A131, 445 12^th^ Street, SW, Washington, D.C. 20554,
or by e-mail to pamela.arluk@fcc.gov. Parties shall also serve one copy
with the Commission's copy contractor, Best Copy and Printing, Inc.
(BCPI), Portals II, 445 12th Street, SW, Room CY-B402, Washington, D.C.
20554, (202) 488-5300, or via e-mail to fcc@bcpiweb.com.

The original designation order and comments filed by the parties in CC
Docket Nos. 96-5 are available for public inspection and copying during
business hours at the FCC Reference Information Center, Portals II, 445
12^th^ St. SW., Room CY-A257, Washington, DC 20554. The documents may
also be purchased from BCPI, telephone (202) 488-5300, facsimile (202)
488-5563, TTY (202) 488-5562, e-mail <fcc@bcpiweb.com>. These documents
may also be viewed on the Commission's website at
<http://www.fcc.gov/cgb/ecfs>.

This matter shall be treated as a "permit-but-disclose" proceeding in
accordance with the Commission\'s *ex parte* rules.[^3] 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 generally is required.[^4] Other requirements pertaining to
oral and written presentations are set forth in section 1.1206(b) of the
Commission\'s rules.[^5]

For further information, contact Pamela Arluk of the Pricing Policy
Division, Wireline Competition Bureau at (202) 418-1520.

**-FCC-**

[^1]: 1*995 Annual Access Tariffs, GTE Telephone Operating Companies,
    GTE System Telephone Operating Companies*, Order Designating Issues
    for Investigation, CC Docket No. 96-5, Transmittal Nos. 963, 146
    (CCB rel. Jan. 23, 1996). The Common Carrier Bureau became the
    Wireline Competition Bureau in 2002 as part of organizational
    changes at the Commission. *See generally Establishment of the Media
    Bureau, the Wireline Competition Bureau and the Consumer and
    Governmental Affairs Bureau*, Order, 17 FCC Rcd 4672 (2002).

[^2]: *See Electronic Filing of Documents in Rulemaking Proceedings*, GC
    Docket No. 97-113, Report and Order, 13 FCC Rcd 11322 (1998).

[^3]: 47 C.F.R. § 1.1200 *et seq.*

[^4]: *See* 47 C.F.R. § 1.1206(b)(2).

[^5]: 47 C.F.R. § 1.1206(b).