NEWSReport No.  CC 95-5                  COMMON CARRIER ACTIONJanuary 11, 1995

         DENIAL OF ACC COMPLAINT AGAINST YANKEE MICROWAVE UPHELD

     The Commission has upheld an action by the Common Carrier Bureau that denied a
complaint of ACC Long Distance Corp. ("ACC") against Yankee Microwave, Inc.
("Yankee").  The Commission did, however, clarify the legal basis for the Bureau's decision.

     ACC alleged that rates contained in a 1985 contract between Yankee, a non-dominant
specialized common carrier, and another carrier, Petricca Communications Systems, Inc.,
were patently unlawful under Sections 201(b) and 202(a) of the Communications Act.  Those
sections require that all charges in connection with interstate communications services be just
and reasonable and make it unlawful for a common carrier to discriminate unreasonably in
the provision of service.  ACC contended that Yankee violated these statutory provisions by
refusing to modify the contract to offer Petricca the same rates that had been offered to other
carriers.

     The Commission found that because the contract at issue was a private contract
between two carriers, modifications to such an agreement are governed by a doctrine
established by the Supreme Court in United Gas Pipe Line Co. v. Mobile Gas Service Corp.,
350 U.S. 332 (1956) ("Mobile"), and FPC v. Sierra Pacific Power Co., 350 U.S. 348 (1956)
("Sierra").  The Commission concluded that ACC had failed to satisfy the public interest
standard established by the Mobile-Sierra doctrine.  The Commission further found that even
if it applied a less exacting standard, ACC's showing still fell short of that required to
demonstrate that the rates in the contract were unreasonable or unduly discriminatory.

     The Commission also rejected a new argument raised for the first time in ACC's
application for review that Yankee should not be permitted to collect the Petricca Contract
rates because Yankee had violated Section 203(c) of the Communications Act by not tariffing
such rates.  The Commission concluded that Section 1.115(c) of its rules bars its
consideration of issues in an application for review that the Bureau has not had an
opportunity to review.

     The Commission also said that the Bureau appropriately held that any claims by ACC
for refunds or damages based on alleged overcharges in the Petricca contract were barred by
the statute of limitations contained in Section 415(b) of the Communications Act.  The
Commission further found that the Bureau did not rule that ACC's entire complaint,
including its requests for declaratory relief, was barred by Section 415(b) and did not rely on
that section in concluding that ACC's complaint as a whole should be denied.

                                  (over)

                                   - 2 -

     Action by the Commission December 23, 1994, by Memorandum Opinion and Order
(FCC 94-347).  Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong.

                                  - FCC -

     News Media contact: Rosemary Kimball at (202) 418-0500
     Common Carrier Bureau contact: Adrien R. Auger or Thomas Wyatt at (202) 418-
0960.