**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the matter of                 | *  | CC Docket No. 95-182         |
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| Investigation of Alascom, Inc.   | ** |                              |
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| Interstate Transport and         | *  |                              |
| Switching Services               | *) |                              |
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| Alascom, Inc. Transmittal No.    |    |                              |
| 1281                             | *  |                              |
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| Revisions to Tariff FCC No. 11   | ** |                              |
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**ORDER**

**Adopted: December 23, 2003 Released: December 23, 2003**

By the Chief, Pricing Policy Division, Wireline Competition Bureau:

# INTRODUCTION

1.  On November 25, 2003, Alascom, Inc. (Alascom) filed Transmittal No.
    1281 to revise its Tariff FCC No. 11 rates for switching and
    transport services provided to other common carriers within the
    state of Alaska and between Alaska and the continental United
    States. The proposed rates are scheduled to become effective on
    January 1, 2004. Under this transmittal, Alascom proposes to reduce
    its per minute transport and switching rates for service to
    intra-Alaska bush and non-bush locations (that is, between Alaska
    local exchange carrier offices and Alascom's switching center) and
    increase its per minute bush and non-bush transport rates for
    traffic between Alaska and the continental United States (that is,
    between Anchorage and an unspecified point in the continental United
    States). In this order we suspend the effectiveness of Transmittal
    No. 1281 for one day, impose an accounting order, set it for
    investigation, and consolidate the investigation of Transmittal No.
    1281 with the investigation of Alascom's original Tariff FCC No. 11,
    and all subsequent annual revisions to this original tariff.[^1]

# CONTENTIONS

2.  On December 10, 2003, General Communication, Inc. (GCI) and ACS-Long
    Distance (ACS-LD) filed petitions to suspend and investigate the
    above transmittal. They ask the Commission to suspend Alascom's
    Transmittal No. 1281, enter an accounting order, order an
    investigation of Alascom's proposed tariff, and consolidate this
    investigation with the pending investigation of Alascom's prior
    Tariff FCC No. 11 transmittals.[^2] GCI and ACS-LD claim that
    Alascom's proposed rates are unjustified because Alascom has
    admitted deficiencies in the Cost Allocation Plan (CAP) underlying
    its proposed rates in its petition for waiver of its annual tariff
    filing requirement.[^3] GCI also points to Alascom's acknowledgement
    that, "data problems affected the rate making process in certain
    past transmittals," and Alascom's commitment to "rectify such
    discrepancies with the relevant customer promptly."[^4] GCI further
    contends that Alascom has done nothing to narrow the gap between
    bush and non-bush switching rates. GCI claims that such a gap is
    unjustified because Alascom provides switching for both bush and
    non-bush areas through a single switching center in Anchorage.[^5]
    Finally, GCI claims that the lack of detail in Alascom's cost
    support makes it difficult to analyze the proposed rates, and urges
    the Commission to require Alascom "to provide the CAP, all cost
    models and its cost study in electronic format for full
    analysis."[^6]

3.  Alascom replies that it has used the CAP in compliance with the
    Commission's prescribed methodologies and devoted significant
    resources to ensuring the accuracy and completeness of its rate
    making process.[^7] Alascom further replies that there are no data
    reporting errors underlying the rates in Transmittal No. 1281.[^8]

# DISCUSSION

4.  We have reviewed the above transmittal, its supporting materials,
    *GCI's Petition*, *ACS-LD's Petition*, and *Alascom's Opposition*.
    We find that Transmittal No. 1281 raises the same issues regarding
    rate level, rate structures, and terms and conditions of service as
    those identified in our prior suspension orders for Alascom's annual
    Tariff FCC No. 11 filings. We also find that Transmittal No. 1281
    raises questions regarding the adequacy of Alascom's cost support
    and the extent to which the rates, terms, and conditions in the
    proposed tariff comply with the Communications Act and relevant
    Commission orders. We conclude, therefore, that significant
    questions of lawfulness exist concerning Alascom's Transmittal
    No. 1281. Accordingly, we suspend the provisions of Transmittal 1281
    for one day from its effective date, set those provisions for
    investigation, and consolidate the investigation of Transmittal No.
    1281 with the investigation initiated in the *Transmittal 790
    Suspension Order*. Alascom's proposed rate changes in Transmittal
    No. 1281 will also be subject to an accounting order to facilitate
    any refunds that may later be necessary. Our accounting order will
    ensure that GCI, ACS-LD, and any other Tariff FCC No. 11 customers
    will be able to receive refunds of any amounts improperly charged
    should the Commission ultimately determine that Alascom's tariff is
    unlawful.

# *ex parte* requirements

5.  This investigation is 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. Other rules pertaining to
    oral and written presentations are also set forth in section
    1.1206(b).

# ORDERING CLAUSES

6.  Accordingly, IT IS ORDERED that, pursuant to sections 204(a) and 205
    of the Communications Act of 1934, as amended, 47 U.S.C. §§ 204(a)
    and 205, and through the authority delegated pursuant to sections
    0.91 and 0.291 of the Commission's rules, 47 C.F.R. §§ 0.91 and
    0.291, the revisions to Alascom Inc.'s Tariff FCC No. 11 contained
    in Transmittal No. 1281 ARE SUSPENDED for one day from its effective
    date and an investigation of Transmittal No. 1281 IS INSTITUTED and
    incorporated with the investigation instituted in CC Docket No.
    95-182.

7.  IT IS FURTHER ORDERED that Alascom, Inc. SHALL FILE tariff revisions
    by January 8, 2004, to reflect this suspension. Alascom, Inc. should
    cite the "DA" number on the instant order as the authority for the
    filing.

8.  IT IS FURTHER ORDERED that, pursuant to sections 4(i) and 204(a) of
    the Communications Act of 1934, as amended, 47 U.S.C. §§154(i) and
    204(a), and through the authority delegated pursuant to sections
    0.91 and 0.291 of the Commission's rules, 47 C.F.R. §§ 0.91 and
    0.291, Alascom, Inc. SHALL KEEP ACCURATE ACCOUNT of all amounts
    received by reason of the rates that are the subject of this
    investigation.

9.  IT IS FURTHER ORDERED that the petitions to suspend and investigate
    Alascom, Inc.'s Transmittal No. 1281 filed by General Communication,
    Inc. and ACS-Long Distance ARE GRANTED to the extent indicated
    herein.

    FEDERAL COMMUNICATIONS COMMISSION

    Tamara L. Preiss

    Chief, Pricing Policy Division

    Wireline Competition Bureau

[^1]: Since Alascom filed its first Tariff FCC No. 11 in 1995, the
    Bureau has suspended each annual Tariff FCC No. 11, imposed an
    accounting order, and instituted an investigation. After instituting
    an investigation of Alascom's first Tariff FCC No. 11 in 1995, the
    Bureau consolidated the investigations of subsequent annual
    transmittals with this initial investigation. *See Alascom, Inc.,
    Tariff FCC No. 11,* *Transmittal No. 790,* CC Docket No. 95-182,
    Order, 11 FCC Rcd 3703 (Com. Car. Bur. 1995) (1996 rates)
    (*Transmittal No. 790 Suspension Order*); *Transmittal No. 807,* CC
    Docket No. 95-182, Order, 11 FCC Rcd 10833 (Com. Car. Bur. 1996)
    (also 1996 rates); *Transmittal No. 852*, Order, 12 FCC Rcd 3646
    (Com. Car. Bur. 1997) (1997 rates); *Transmittal No. 921,* Order, 13
    FCC Rcd 187 (Com. Car. Bur. 1997) (1998 rates); *Transmittal Nos.
    921, 937, 941 and 942*, Order, 13 FCC Rcd 4659 (Com. Car. Bur. 1998)
    (also 1998 rates); *Transmittal No. 993,* Order, 13 FCC Rcd 25055
    (Com. Car. Bur. 1998) (1999 rates); *Transmittal No. 1088*, Order,
    15 FCC Rcd 6 (Com. Car. Bur. 1999) (2000 rates); *Transmittal No.
    1184*, Order, 16 FCC Rcd 19 (Com. Car. Bur. 2000) (2001 rates);
    *Transmittal No. 1260*, Order, 17 FCC Rcd 24 (Com. Car. Bur. 2001)
    (2002 rates); *Transmittal No. 1278*, CC Docket No. 95-182, Order,
    DA 03-3454 (WCB rel. Oct. 30, 2003) (2003 rates).

[^2]: Alascom Inc., Transmittal No. 1281, Petition of GCI to Suspend and
    Investigate at 1, 5 (filed Dec. 10, 2003) (*GCI Petition*);
    Statement of Current Position of ACS-LD and Petition to Suspend and
    Investigate Transmittal No. 1281 at 3 (filed Dec. 10, 2003) (*ACS-LD
    Petition*).

[^3]: *GCI Petition* at 2-3; *ACS-LD Petition* at 4. *See also* *Alascom
    Petition for Waiver of Commission's Rules Regarding its Annual
    Tariff FCC No. 11,* WC Docket No. 03-18 (filed Jan. 7, 2003).

[^4]: *GCI Petition* at 3. *See also* Alascom, Inc, Tariff FCC No. 11,
    Transmittal No. 1281, Description and Justification at n.6.

[^5]: *GCI Petition* at 6-7.

[^6]: *Id.* at 7-8.

[^7]: Alascom Inc., Transmittal No. 1281, Opposition of Alascom to
    Petitions of GCI and ACS-LD to Suspend and Investigate at 2 (filed
    Dec. 17, 2003) (*Alascom Opposition*).

[^8]: *Id.* at 3.