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**DA 00-1431**

#  **Released: June 27, 2000**

**Competitive Pricing Division Extends Arizona Corporation Commission's
Waiver**

**Of Section 51.507(f) Deaveraging Requirement**

**CCB/CPD NO. 00-11**

# 

The Competitive Pricing Division of the Common Carrier Bureau extended
on June 26, 2000, the Arizona Corporation Commission's limited waiver of
section 51.507(f) of the Commission's rules until July 20, 2000. Section
51.507(f) requires state commissions to establish at least three
deaveraged rate zones for the pricing of UNEs.[^1]

The Federal Communications Commission promulgated section 51.507(f),
along with other local pricing rules, in the August 1996 *Local
Competition Order*.[^2] Starting in September 1996, the U.S. Court of
Appeals for the Eighth Circuit stayed and then vacated the Commission's
local pricing rules, including section 51.507(f), on the grounds that
the Commission lacked jurisdiction over local pricing.[^3] On January
25, 1999, however, the U.S. Supreme Court reversed the Eighth Circuit's
decision with regard to the Commission's local pricing authority.[^4]
Because the section 251 pricing rules had not been in force for more
than two years, the Commission delayed the effectiveness of section
51.507(f) until May 1, 2000, so that states would have time to
comply.[^5] The Common Carrier Bureau released an order April 28, 2000,
granting the Arizona Corporation Commission a limited waiver of section
51.507(f) until June 29, 2000.[^6] The Corporation Commission filed a
request for an extension of the limited waiver because, "due to internal
scheduling conflicts that cannot be avoided, the necessary ACC staff
will not be available for the Arizona Commission\'s June 27-28, 2000,
Open Meeting as originally contemplated."[^7]

Documents in CCB/CPD No. 00-11 are available for public inspection and
copying during regular business hours at the FCC Reference Information
Center, Portals II, 445 12^th^ Street, SW, Room CY-A257, Washington, DC,
20554. The documents may also be purchased from the Commission's copy
contractor, International Transcription Service, Inc. (ITS), 1231 20^th^
Street, NW, Washington, DC 20036, telephone 202-857-3800, facsimile
202-857-3805.

For further information, contact Neil Fried, at (202) 418-1530 (voice)
or (202) 418-0484 (TTY).

Action by the Deputy Chief, Competitive Pricing Division, Common Carrier
Bureau, FCC.

[^1]: *See* 47 C.F.R. 507(f).

[^2]: *See In re* Implementation of the Local Competition Provisions of
    the Telecommunications Act of 1996, CC Docket No. 96-98, *Report and
    Order*, 11 FCC Rcd. 15499 (1996).

[^3]: Iowa Utils. Bd. v. FCC, 96 F. 3d 1116 (8th Cir. 1996) (per curium)
    (temporarily staying the *Local Competition Order* until the filing
    of the court's order resolving the petitioners' motion for stay);
    Iowa Utils. Bd. v. FCC, 109 F.3d 418 (8th Cir.) (dissolving
    temporary stay and granting petitioners' motion for stay, pending a
    final decision on the merits of the appeal), *motion to vacate stay
    denied*, 117 S. Ct. 429 (1996); Iowa Utils. Bd. v. FCC, 120 F.3d 753
    (8th Cir. 1997) (vacating the Commission's pricing and combination
    rules).

[^4]: AT&T v. Iowa Utils. Bd., 119 S. Ct. 721, 733, 738 (1999).

[^5]: *See In re* Deaveraged Rate Zones for Unbundled Network Elements,
    CC Docket No. 96-98, *Stay Order*, 14 FCC Rcd. 8300, 8300-01 (1999);
    *In re* Federal-State Joint Board on Universal Service, CC Docket
    No. 96-45, Ninth Report & Order and Eighteenth Order on
    Reconsideration, 14 FCC Rcd. 20432, 20492-93 (1999).

[^6]: *See In re* Petitions for Waiver of the Section 51.507(f) UNE
    Deaveraging Requirement, CCB/CPD Nos. 00-07 -- 00-14, *Order*, DA
    00-956 (rel. April 28, 2000).

[^7]: *In re* Petitions for Waiver of the Section 51.507(f) UNE
    Deaveraging Requirement, Petition of the Arizona Corporation
    Commission, CCB/CPD No. 00-11*, Letter of June 15, 2000, from
    Maureen A. Scott, Legal Division Attorney, Arizona Corporation
    Commission, to Magalie Roman Salas, Secretary, Federal
    Communications Commission, Re: Petition for Extension of the Limited
    Waiver*.