Before the

Federal Communications Commission

Washington, D.C. 20554

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| In the Matter of                 | )  | File No. EB-03-MD-004        |
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| Qwest Corporation,               | )  |                              |
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| Complainant,                     | )  |                              |
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| v\.                              | )  |                              |
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| Cable & Wireless USA, Inc., and  | )  |                              |
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| U.S. South Communications, Inc., | )  |                              |
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| Defendants.                      | )  |                              |
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ORDER

Adopted: June 23, 2004 Released: June 24, 2004

By the Chief, Market Disputes Resolution Division, Enforcement Bureau:

1.  On February 28, 2003, Qwest Corporation ("Qwest") filed with this
    Commission a formal complaint against Cable & Wireless USA, Inc.
    ("Cable & Wireless") and U.S. South Communications, Inc. ("U.S.
    South") pursuant to section 208 of the Communications Act of 1934,
    as amended (the "Act"), 47 U.S.C. § 208.[^1] The Complaint alleged,
    *inter alia*, that Cable & Wireless and U.S. South violated sections
    276 and 201(b) of the Communications Act[^2] and the Commission's
    rules[^3] by failing to pay compensation for each completed
    "dial-around" call carried by Cable & Wireless and U.S. South that
    originated on Qwest's payphones.

2.  On December 15, 2003, counsel for Cable & Wireless notified the
    Commission that Cable & Wireless had filed a petition in the United
    States Bankruptcy Court for the District of Delaware for protection
    under Chapter 11 of the United States Bankruptcy Code.[^4] Cable &
    Wireless' bankruptcy notification further stated that, pursuant to
    section 362 of the Bankruptcy Code,[^5] such filing resulted in the
    automatic stay of the above-captioned matter with respect to Cable &
    Wireless.[^6] Qwest did not object to Cable & Wireless' invocation
    of the automatic stay. Consequently, Qwest did not continue to
    prosecute its claims against Cable & Wireless in this proceeding.

3.  On April 2, 2004, Qwest and U.S. South notified the Commission that
    they had resolved their dispute.[^7] On June 21, 2004, Qwest and
    U.S. South filed a joint request to dismiss the Complaint as to U.S.
    South.[^8] The Joint Request states that Qwest and U.S. South have
    entered into a settlement agreement as to the claims against U.S.
    South, and requests that the Commission dismiss with prejudice all
    claims against U.S. South.[^9]

4.  We are satisfied that dismissing the Complaint as to U.S. South will
    serve the public interest by promoting the private resolution of
    disputes and by eliminating the need for further litigation and
    expenditure of further time and resources of the parties and this
    Commission.

5.  With respect to the remaining claims in the Complaint against Cable
    & Wireless, we convert the formal complaint to an informal complaint
    until the automatic stay in Cable & Wireless' bankruptcy proceedings
    terminates and/or expires.[^10] This conversion is done for internal
    administrative purposes only, and does not affect the rights and
    obligations of any party.[^11] Either party may convert the informal
    complaint back to a formal complaint by filing and serving a motion
    requesting such action within sixty (60) days after notice of
    termination or expiration of the automatic stay in Cable & Wireless'
    bankruptcy proceedings, rather than filing an entirely new formal
    complaint.[^12]

6.  Accordingly, IT IS ORDERED, pursuant to sections 4(i), 4(j), and 208
    of the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i),
    154(j), and 208, and sections 1.3, 1.716-18, and 1.720-1.736 of the
    Commission's rules, 47 C.F.R. §§ 1.3, 1.716-18, 1.720-36, and the
    authority delegated in sections 0.111 and 0.311 of the Commission's
    rules, 47 C.F.R. §§ 0.111, 0.311, that Qwest's and U.S. South's
    Joint Request for Dismissal With Prejudice as to U.S. South IS
    GRANTED.

7.  IT IS FURTHER ORDERED, pursuant to sections 4(i), 4(j), and 208 of
    the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i),
    154(j), and 208, and sections 1.3, 1.716-18, and 1.720-1.736 of the
    Commission's rules, 47 C.F.R. §§ 1.3, 1.716-18, 1.720-36, and the
    authority delegated in sections 0.111 and 0.311 of the Commission's
    rules, 47 C.F.R. §§ 0.111, 0.311, that Qwest's claims against U.S.
    South ARE DISMISSED WITH PREJUDICE.

8.  IT IS FURTHER ORDERED, pursuant to sections 4(i), 4(j), and 208 of
    the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i),
    154(j), and 208, and sections 1.3, 1.716-18, and 1.720-1.736 of the
    Commission's rules, 47 C.F.R. §§ 1.3, 1.716-18, 1.720-36, and the
    authority delegated in sections 0.111 and 0.311 of the Commission's
    rules, 47 C.F.R. §§ 0.111, 0.311, that Qwest's formal complaint
    against Cable & Wireless is converted to an informal complaint, and
    that the formal complaint and answer filed in the above-captioned
    proceeding satisfy sections 1.716-17 of the Commission's rules, 47
    C.F.R. §§ 1.716-17.

9.  IT IS FURTHER ORDERED, pursuant to sections 4(i), 4(j), and 208 of
    the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i),
    154(j), and 208, and sections 1.3, 1.716-18, and 1.720-1.736 of the
    Commission's rules, 47 C.F.R. §§ 1.3, 1.716-18, 1.720-36, and the
    authority delegated in sections 0.111 and 0.311 of the Commission's
    rules, 47 C.F.R. §§ 0.111, 0.311, that the file number for the
    informal complaint is EB-02-MDIC-0038.[^13]

10. IT IS FURTHER ORDERED, pursuant to sections 4(i), 4(j), and 208 of
    the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i),
    154(j), and 208, and sections 1.3, 1.716-18, and 1.720-1.736 of the
    Commission's rules, 47 C.F.R. §§ 1.3, 1.716-18, 1.720-36, and the
    authority delegated in sections 0.111 and 0.311 of the Commission's
    rules, 47 C.F.R. §§ 0.111, 0.311, that the period within which the
    informal complaint may be converted back to a formal complaint under
    sections 1.717-18 of the Commission's rules, 47 C.F.R. §§ 1.717-18,
    shall end sixty (60) days after notice of termination or expiration
    of the automatic stay in Cable & Wireless' bankruptcy proceedings,
    unless extended by further order.

11. IT IS FURTHER ORDERED, pursuant to sections 4(i), 4(j), and 208 of
    the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i),
    154(j), and 208, and sections 1.3, 1.716-18, and 1.720-1.736 of the
    Commission's rules, 47 C.F.R. §§ 1.3, 1.716-18, 1.720-36, and the
    authority delegated in sections 0.111 and 0.311 of the Commission's
    rules, 47 C.F.R. §§ 0.111, 0.311, that the docket established in the
    above-captioned formal complaint proceeding shall be transferred in
    its entirety to the newly established informal complaint docket.

12. IT IS FURTHER ORDERED, pursuant to sections 4(i), 4(j), and 208 of
    the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i),
    154(j), and 208, and sections 1.3, 1.716-18, and 1.720-1.736 of the
    Commission's rules, 47 C.F.R. §§ 1.3, 1.716-18, 1.720-36, and the
    authority delegated in sections 0.111 and 0.311 of the Commission's
    rules, 47 C.F.R. §§ 0.111, 0.311, that either party, or the
    Commission on its own motion, may, upon a showing of good cause,
    move for an extension of the re-conversion date

> FEDERAL COMMUNICATIONS COMMISSION
>
> Alexander P. Starr
>
> Chief, Market Disputes Resolution Division
>
> Enforcement Bureau

[^1]: Formal Complaint, File No. EB-03-MD-004 (Filed Feb. 28, 2003)
    ("Complaint").

[^2]: 47 U.S.C. §§ 276, 201(b).

[^3]: 47 C.F.R. §§ 64.1300, *et seq.*

[^4]: Letter from Jennifer M. Kashatus, Counsel for Cable & Wireless, to
    Anthony J. DeLaurentis, Attorney, MDRD, File No. EB-03-MD-004 (filed
    Dec. 15, 2003) ("Stay Letter").

[^5]: 11 U.S.C. § 362.

[^6]: *Id.*; Stay Letter.

[^7]: Joint Request of Qwest and U.S. South to Extend Briefing Schedule
    Due to Settlement, File No. EB-03-MD-004 (filed Apr. 2, 2004).

[^8]: Joint Request For Dismissal With Prejudice As To U.S. South, File
    No. EB-03-MD-004 (filed June 21, 2004) ("Joint Request").

[^9]: *Id.*

[^10]: On June 22, 2004, Commission staff advised counsel for Qwest and
    counsel-of-record for Cable & Wireless by telephone that the
    Commission would be taking this action, and neither party filed any
    objections with the Commission to this approach.

[^11]: This action also does not affect the relation-back provision of
    section 1.718 of the Commission's rules with respect to Qwest's
    prior informal complaint in this matter.

[^12]: In the event that the informal complaint is converted back to a
    formal complaint, it will proceed under its current file number,
    File No. EB-03-MD-004.

[^13]: This informal complaint file number is the same number assigned
    to Qwest's original informal complaint, which Qwest timely converted
    to a formal complaint in this proceeding.