### **Before the** 

######## FEDERAL COMMUNICATIONS COMMISSION

**Washington, D.C. 20554**

In the Matter of )

)

Investigation of GTE System Telephone ) CC Docket No. 99-323

Companies, Transmittal No. 296 )

FCC Tariff No.1 and ) Transmittal No. 296

)

GTE System Telephone Operating Companies, )

Transmittal Nos. 1225 and 1226 )

FCC Tariff Nos. 1 and 2 ) Transmittal Nos. 1225, 1226

)

)

# ORDER

Adopted: March 14, 2000 Released: March 21, 2000

By the Commission:

1\. In this order, we terminate our investigation into the tariff
revisions described in the GTE System Telephone Companies (GSTC)
Transmittal No. 296 and GTE Telephone Operating Companies (GSTOC)
Transmittal Nos. 1225 and 1226.[^1] As discussed below, the issues have
been resolved and the investigation is moot.

2\. On October 8, 1999, the Commission issued the *Fifth Circuit
Implementation* *Order,*[^2] which complies with the Fifth Circuit's
decision[^3] to eliminate intrastate revenues from the contribution base
used to calculate universal service fund (USF) obligations. As a result
of that order, GTE's universal service contributions were reduced. Under
the Commission's rules, to the extent that GTE recovers its universal
service contributions in interstate access charges, it was required to
file tariffs reducing its access charges, correspondingly. GTE filed its
transmittals in accordance with the Commission's *Fifth Circuit
Implementation Order*. AT&T and MCI filed petitions to suspend and
investigate the GTE transmittals on the grounds that GTE incorrectly
computed its USF obligation by failing to annualize the contribution
level for November and December 1999 in its calculations. In a
subsequent order, the Competitive Pricing Division (Division) of the
Common Carrier Bureau found that AT&T and MCI raised a substantial
question of lawfulness that warranted suspension and investigation of
GTE's transmittals.[^4]

4\. Prior to the completion of the Division's investigation, GTE
submitted revised tariff material that reasonably resolves the issue
raised by AT&T and MCI.[^5] Transmittal Nos. 299, 1229, and 1230
correctly apply the new USF contribution factor and annualize the
contribution level for November and December 1999. For these reasons, we
determine that GTE has resolved the miscalculations with respect to its
USF contribution levels for November and December 1999. We therefore
conclude our investigation of GTE Transmittal Nos. 296, 1225, and 1226
because the issue related to whether GTE correctly calculated its USF
obligation has been resolved.

5\. Accordingly, IT IS ORDERED that, pursuant to Section 204(a) of the
Communications Act of 1934, as amended, 47 U.S.C. § 204(a), the
investigation of the tariff revisions described in GTE System Telephone
Companies Tariff FCC No. 1, Transmittal No. 296, and GTE Telephone
Operating Companies Tariff FCC Nos.1 and 2, Transmittal Nos. 1225 and
1226, IS TERMINATED.

> FEDERAL COMMUNICATIONS COMMISSION
>
> Magalie Roman Salas
>
> Secretary

[^1]: GSTC and GSTOC will be referred to as "GTE," collectively and
    Transmittal Nos. 296, 1225, 1226 will be referred to as "GTE
    transmittals," collectively.

[^2]: ^?^ *Federal-State Joint Board on Universal Service*, Sixteenth
    Order on Reconsideration in CC Docket 96-45, Eighth Report and Order
    in CC Docket no. 96-45, Sixth Report and Order in CC Docket no.
    96-262, (rel. Oct. 8, 1999) ¶¶ 15-18 (*Fifth Circuit Implementation
    O*r*der*).

[^3]: ^?^ *Texas Office of Public Utility Counsel v. FCC*, 183 F.3d 393
    (5^th^ Cir. 1999).

[^4]: *GTE Telephone Operating Companies Transmittal Nos. 1225 and 1226,
    FCC Tariff Nos. 1 & 2 and GTE System Telephone Companies,
    Transmittal No. 296, FCC Tariff No. 1*, CC Docket No. 99-323, Order,
    (rel. Oct. 29, 1999) (*GTE Suspension Order*).

[^5]: ^?^ *See* GTE System Telephone Companies, Transmittal No. 299, FCC
    Tariff No. 1; GTE Telephone Operating Companies Transmittal No.
    1229, FCC Tariff Nos. 1 & 2; GTE Telephone Operating Companies
    Transmittal No. 1230, FCC Tariff FCC No. 1.