**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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| Sacred Wind Communications, Inc. | ** |                              |
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| and                              | *  |                              |
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| Qwest Corporation                | ** |                              |
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| Joint Petition for Waiver of the | *  |                              |
| Definition of "Study Area"       | *) |                              |
| Contained in Part 36,            | ** |                              |
| Appendix-Glossary of the         |    |                              |
| Commission's Rules               | *  |                              |
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| Sacred Wind Communications, Inc. | ** |                              |
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| Related Waivers of Parts 36, 54, | *  |                              |
| and 69 of the Communication's    | *) |                              |
| Rules                            | ** |                              |
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**ORDER**

**Adopted: August 27, 2008 Released: August 27, 2008**

By the Chief, Wireline Competition Bureau:

1.  In this order, we grant a request from Sacred Wind Communications,
    Inc. (Sacred Wind) to extend the timing of the waiver of sections
    36.611 and 36.612 of the Commission's rules granted to Sacred Wind
    in the *Sacred Wind Order*.[^1] The extension of this waiver will
    permit Sacred Wind, a new local exchange carrier (LEC) in New
    Mexico, to receive high-cost loop support based on projected costs,
    subject to true-up, until December 31, 2008.

2.  On August 15, 2006, the Wireline Competition Bureau (Bureau)
    released an order granting Sacred Wind waivers of sections 36.611
    and 36.612 and related Commission rules, so that Sacred Wind would
    be eligible to receive immediate high-cost universal service support
    and participate in the National Exchange Carrier Association (NECA)
    pools and tariffs.[^2] The Bureau found that special circumstances
    warranted a deviation from sections 36.611 and 36.612 of the
    Commission's rules, and that it was in the public interest to grant
    Sacred Wind's waiver request.[^3] Commission rules generally result
    in carriers without historical data, such as newly-established
    carriers like Sacred Wind, having to wait up to two years before
    they are able to receive any high-cost loop support payments.[^4] In
    the *Sacred Wind Order*, the Bureau found that delaying Sacred
    Wind's high-cost support would impair its ability to provide
    telecommunications services at affordable rates to unserved and
    underserved areas.[^5] Consistent with the limited instances where
    requests for waiver of sections 36.611 and 36.612of the Commission's
    rules have been granted, the Bureau also determined that delaying
    the timing of Sacred Wind's high-cost loop support could have the
    unintended effect of discouraging new carriers from extending
    service in unserved remote areas, thereby frustrating the statutory
    goal of promoting the provision of services at reasonable rates.[^6]

3.  Sacred Wind initially requested waiver of sections 36.611 and 36.612
    of the Commission's rules to enable it to receive high-cost loop
    support immediately upon commencement of operations in 2006.[^7]
    Sacred Wind expected to begin operations shortly after the end of
    the first quarter of 2006 and projected that it would receive \$2.1
    million in high-cost loop support for 2006, and that support would
    grow to approximately \$6.6 million in 2010.[^8] The Bureau granted
    Sacred Wind waiver of sections 36.611 and 36.612 for the remainder
    of 2006 and all of 2007, with the expectation that, after 2007, when
    Sacred Wind's historical cost data would be available, Sacred Wind
    would begin to receive support pursuant to the Commission's
    rules.[^9] Sacred Wind states that, because approval of the
    transaction by the New Mexico Public Regulatory Commission (New
    Mexico Commission) was delayed until December 15, 2006, only 15 days
    of network costs were incurred in calendar year 2006.[^10] Sacred
    Wind therefore requests an extension of its waiver of sections
    36.611 and 36.612 to the end of 2008.[^11] Sacred Wind asserts that,
    because actual costs for 2006, which are the basis for 2008
    high-cost support payments, were significantly less than
    anticipated, high-cost support for 2008 has been significantly
    diminished and, as a result, telecommunications services to
    underserved tribal and near-tribal areas will be delayed.[^12]

4.  Consistent with the Bureau's previous findings in the *Sacred Wind
    Order*, circumstances warrant grant of Sacred Wind's request to
    continue to waive sections 36.611 and 36.612 of the Commission's
    rules for an additional period.[^13] We find that it is in the
    public interest to extend the timing of that waiver to permit Sacred
    Wind to receive high-cost loop support based on projected costs
    through the end of 2008. We further find that an interruption in
    Sacred Wind's high-cost loop support would impair its ability to
    provide telecommunications services at affordable rates, and that
    such interruption would not further the goals of section 254 of the
    Communications Act of 1934, as amended (the Act).[^14] Pursuant to
    section 36.612 of the Commission\'s rules, we direct Sacred Wind to
    submit quarterly updates, so that NECA may determine whether
    adjustments for the 2006, 2007, and 2008 high-cost loop support
    amounts are necessary.[^15] High-cost loop support payments to
    Sacred Wind for periods subsequent to December 2008 will be based on
    historic data in accordance with the Commission's rules.[^16]

5.  Accordingly, IT IS ORDERED, pursuant to sections 1, 4(i), 5(c), and
    254 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151,
    154(i), 155(c), 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 waiver
    of sections 36.611 and 36.612 of the Commission\'s rules, 47 C.F.R.
    §§ 36.611 and 36.612, IS GRANTED, as described herein, to Sacred
    Wind Communications, Inc.

6.  IT IS FURTHER ORDERED, pursuant to sections 1, 4(i), 5(c), and 254
    of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151,
    154(i), 155(c), and 254, and sections 0.91 and 0.291 of the
    Commission\'s rules, 47 C.F.R. §§ 0.91 and 0.291, that Sacred Wind
    Communication, Inc. is required to submit quarterly updates pursuant
    to section 36.612 of the Commission's rules, 47 C.F.R. § 36.612, for
    calendar years 2006, 2007, and 2008.

7.  IT IS FURTHER ORDERED, pursuant to section 1.102(b) of the
    Commission's rules, 47 C.F.R. § 1.102(b), that this order SHALL BE
    EFFECTIVE upon release.

    FEDERAL COMMUNICATIONS COMMISSION

    Dana R. Shaffer

    Chief

    Wireline Competition Bureau

[^1]: Sacred Wind Communications, Inc., Petition for Expedited Extension
    of Waiver of Sections 36.611 and 36.612 of the Commission's Rules,
    CC Docket No. 96-45 (filed Apr. 30, 2008) (Extension Petition);
    *Sacred Wind Communications, Inc. and Qwest Corporation, Joint
    Petition for Waiver of the Definition of "Study Area" Contained in
    Part 36, Appendix-Glossary of the Commission's Rules Sacred Wind
    Communications, Inc. Related Waivers of Parts 36, 54, and 69 of the
    Communication's Rules*, CC Docket No. 96-45, Order, 21 FCC Rcd 9227
    (Wireline Comp. Bur. 2006) (*Sacred Wind* *Order*). The Wireline
    Competition Bureau (Bureau) released a public notice on May 16,
    2008, seeking comment on Sacred Wind's Extension Petition. *See*
    *Comment Sought on the Petition of Sacred Wind Communications, Inc.
    for the Extension of Waiver of Sections 36.611 and 36.612 of the
    Commission's Rules*, CC Docket No. 96-45, Public Notice, 23 FCC Rcd
    7956 (Wireline Comp. Bur. 2008). The National Indian
    Telecommunications Institute filed comments in support of Sacred
    Wind's petition.

[^2]: *See Sacred Wind Order*, 21 FCC Rcd 9227.

[^3]: *See id.* at 9233-34, paras. 14-16. Sacred Wind was established in
    2004 to provide advanced and basic telecommunications services to
    the Navajo people on both reservation lands and nearby lands in the
    state of New Mexico. Sacred Wind acquired approximately 2,300 access
    lines from Qwest in 2006. *See id*. at 9227-28, para. 2.

[^4]: Carriers generally do not receive high-cost loop support based on
    historical cost data until the beginning of the second calendar year
    after the costs are incurred, because the data are not submitted by
    carriers until seven months after the end of a calendar year (i.e.,
    July 31), and NECA requires time to analyze the data and make the
    necessary nationwide calculations. 47 C.F.R. § 36.611.

[^5]: *See* *Sacred Wind Order*, 21 FCC Rcd at 9234, paras. 15-16.

[^6]: *See id*. at 9233-34, para. 15.

[^7]: *See* Sacred Wind Communications, Inc. and Qwest Corporation,
    Joint Petition for Waiver of the Definition of "Study Area"
    Contained in Part 36, Appendix-Glossary of the Commission's Rules,
    Related Waivers of Parts 36, 54, and 69 of the Communication's
    Rules, CC Docket No. 96-45, at 20 (filed Mar. 30, 2006) (Study Area
    Waiver Petition).

[^8]: *See* Extension Petition at 4; Study Area Waiver Petition at 11.

[^9]: *Sacred Wind Order*, 21 FCC Rcd at 9234, para. 16; *supra* note
    Error: Reference source not found.

[^10]: *See* Extension Petition at 4-6. The Extension Petition indicated
    that the New Mexico Commission approved Sacred Wind's certificate of
    convenience and necessity on December 15, 2006. *See* *id*. at 4.
    Sacred Wind subsequently clarified, however, that, on that date, the
    New Mexico Commission approved Sacred Wind's application for
    transfer of rural extension liability and approval of Sacred Wind's
    line extension tariff. Sacred Wind further clarified that the
    transfer of assets from Qwest to Sacred Wind could not occur until
    transfer of the rural extension liability was approved, and Sacred
    Wind could not commence service until the tariffs were approved.
    *See* Letter from Martin L. Stern, Attorney for Sacred Wind
    Communications, Inc., to Marlene Dortch, Secretary, Federal
    Communications Commission, CC Docket No. 96-45 (dated Aug. 8, 2008).

[^11]: *See* Extension Petition at 5.

[^12]: *Id*.

[^13]: *Sacred Wind Order*, 21 FCC Rcd at 9233-34, paras. 14-16.

[^14]: Section 254(b) of the Act provides, among other things, that
    consumers in rural, insular, and high-cost areas should have access
    to telecommunications services at rates that are "reasonably
    comparable to rates charged for similar services in urban areas." 47
    U.S.C. § 254(b)(3).

[^15]: *See* 47 C.F.R. § 36.612.

[^16]: *See* 47 C.F.R. §§ 36.611, 36.612.