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[Federal Register Volume 63, Number 111 (Wednesday, June 10, 1998)]
[Notices]
[Pages 31775-31776]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15495]

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FEDERAL COMMUNICATIONS COMMISSION

[CC Docket 96-45, 97-160; DA 98-1055; APD No. 98-1]

Forward-Looking Cost Studies for Universal Service Support; 
Request for Comments

Released: June 4, 1998.
    1. In the Universal Service Order, 62 FR 32862 (June 17, 1997), the 
Commission determined that federal universal service high cost support 
should be based on forward-looking economic cost.1 In this 
Public Notice, we seek comment on whether the cost studies submitted by 
individual states meet the Commission's specified criteria. In 
addition, we seek comment on Ameritech Michigan's request for waiver of 
the Commission's authorized ranges of economic lives and future net 
salvage percentages used to calculate depreciation expenses. Comments 
from interested parties are due on or before June 25, 1998, and reply 
comments are due on or before July 9, 1998.
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    \1\ Federal State Joint Board on Universal Service, Report & 
Order, CC Docket No. 96-45, 12 FCC Rcd 8776, 8899 paras. 224-25, 
(1997) (Universal Service Order) 62 FR 32862 (June 17, 1997).
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Background

    2. In the Universal Service Order, the Commission adopted a plan 
for universal service support for rural, insular, and high cost areas 
that will replace existing implicit federal subsidies with explicit, 
competitively neutral federal universal service support 
mechanisms.2 The Commission determined that, beginning 
January 1, 1999, non-rural carriers will receive support based on the 
forward-looking economic cost of providing the supported services. The 
Commission concluded that states could submit forward-looking economic 
cost studies as the basis for calculating federal universal service 
high cost support for non-rural carriers in lieu of using the federal 
mechanism selected by the Commission.3 The Commission 
adopted specific criteria to guide the states as they conducted those 
studies.4 In a Public Notice released February 27, 1998, the 
Commission stated its intent to review each cost study submitted by a 
state, along with all applicable comments, in determining whether the 
state cost study complies with the criteria established in the 
Universal Service Order.5
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    \2\ Universal Service Order, 12 FCC Rcd at 8888-8951.
    \3\ Universal Service Order, 12 FCC Rcd at 8912 para. 248.
    \4\ Universal Service Order, 12 FCC Rcd at 8913-8916 para. 250.
    \5\ State Forward-Looking Cost Studies for Federal Universal 
Service Support, CC Docket Nos. 96-45, 97-160, DA 98-217, Public 
Notice (rel. Feb. 27, 1998) at 1.
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Issues for Comment

    3. On May 26, 1998, the following states submitted forward-looking 
cost studies to be used in lieu of the federal mechanism for 
determining federal universal service high cost support: Hawaii, 
Illinois, Indiana, Kentucky, Louisiana, Michigan, Minnesota, Montana, 
Nebraska, North Carolina, Puerto Rico, and South Carolina. We seek 
comment on whether these cost studies meet the criteria specified in 
the Universal Service Order and, therefore, should be approved by the 
Commission for use in calculating federal support for non-rural 
carriers in rural, insular, and high cost areas in those states. To the 
extent that information and data relating to the state cost studies has 
been provided electronically to the Commission, it will be available 
for review via the Internet, beginning June 8, 1998, at http://www.fcc.gov/e-file/cost__studies.
    4. We also seek comment on the request for waiver filed by 
Ameritech Michigan relating to the cost study submitted for use in 
Michigan. Specifically, Ameritech Michigan requests that the Commission 
waive the requirement established in criterion 5 of the Universal 
Service Order that economic lives and future net salvage percentages 
used to calculate depreciation expenses must be within Commission 
authorized ranges.6 Ameritech notes that ``11 of the 15 
plant categories used in the [Michigan] universal service cost study 
fall outside the FCC life ranges.'' 7
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    \6\ Universal Service Order, 12 FCC Rcd at 8914 para. 250.
    \7\ Ameritech Request for Waiver filed May 26, 1998 at 1-2. The 
Michigan Public Service Commission noted that by approving the 
Ameritech Michigan study, it was neither explicitly or implicitly 
seeking a waiver of the criterion 5 requirement on behalf of 
Ameritech. In the matter of application of Ameritech Michigan, 
Before the Michigan Public Service Commission, Case No. U-11635 at 5 
(May 11, 1998).
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Procedure for Filing

    5. Comments should reference CC Docket Nos. 96-45, 97-160 and must 
include the DA number and APD number shown on this Public Notice. 
Interested parties must file an original and five copies of their 
comments with the Office of Secretary, Federal Communications 
Commission, Room 222, 1919 M Street, NW, Washington, DC 20554. Parties 
should send three copies of their comments to Sheryl Todd, Common 
Carrier Bureau, Federal Communications Commission, 2100 M. St, NW, 8th 
Floor, Washington, DC 20554. Parties should send one copy of their 
comments to the Commission's copy contractor, International 
Transcription Service, 1231 20th Street, NW, Washington, DC 20036.
    6. Commenters may also file informal comments or an exact copy of 
formal comments electronically via the Internet at [email protected]>. 
Only one copy of electronically-filed comments must be submitted. A 
commenter must note whether an electronic submission is an exact copy 
of formal comments on the subject line. A commenter also must include 
its full name and Postal Service mailing address in its submission.
    7. Parties are also asked to submit their comments and reply 
comments on diskette. Such diskette submissions are in addition to and 
not a substitute for the formal filing requirements addressed above. 
Parties submitting diskettes should submit them to Bryan Clopton of the 
Accounting Policy Division, Common Carrier Bureau, 2100 M Street, NW, 
8th floor, Washington, DC 20554. Such a submission should be on a 3.5 
inch diskette formatted in an IBM compatible form using WordPerfect 5.1 
for Windows or compatible software. The diskette should be submitted in 
``read only'' mode. The diskette should be clearly labelled with the 
party's name, proceeding, type of pleading (comment or reply comments) 
and date of submission. Each diskette should contain only one party's 
comments in a single electronic file. The diskette should be 
accompanied by a cover letter.

[[Page 31776]]

    8. Pursuant to Sec. 1.1206 of the Commission's Rules, 47 CFR. 
1.1206, this proceeding will be conducted as a permit-but-disclose 
proceeding in which ex parte communications are permitted subject to 
disclosure.
    9. For further information, please contact: Katie King, Accounting 
Policy Division, Common Carrier Bureau, (202) 418-7400.

Federal Communications Commission.
Lisa Gelb,
Chief, Accounting Policy Division.
[FR Doc. 98-15495 Filed 6-9-98; 8:45 am]
BILLING CODE 6712-01-P
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