Report No. CC-567         COMMON CARRIER ACTION     March 18, 1994 
        

     LITEL AWARDED DAMAGES FOR LEC VIOLATIONS OF THE COMMISSION'S RATE
     OF RETURN PRESCRIPTION FOR THE 1989-90 MONITORING PERIOD

     The Commission determined that LiTel Telecommunications
Corporation d/b/a LCI International (LiTel) has established that
several local exchange carriers (LECs) have violated the
Communications Act by earning in excess of the rate of return for
interstate access services prescribed by the Commission for the
period January 1, 1989 through December 31, 1990.

     LiTel had filed complaints against U S West Communications,
Inc. (U S West), Cincinnati Bell Telephone Company (CBT), and New
York Telephone Co. (NYT).

     The Commission awarded monetary damages, plus interest, for
the defendants' violations but allowed the defendants to offset
LiTel's damages to the extent that LiTel purchased access services
from the defendants during the period in question at rates that
produced earnings below the Commission's prescribed levels.  After
taking into account these offsets, CBT's and NYT's damages were
reduced to $0 and LiTel was awarded $54,311 plus interest from U S
West.

     Action by the Commission March 7, 1994, by Memorandum Opinion
and Order (FCC 94-51).  Chairman Hundt, Commissioners Quello and
Barrett.
     
                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 632-5050.
     Common Carrier Bureau contact: Colleen Heitkamp or Sally Novak
at (202) 632-4887.