Report No.  CC 95-41   COMMON CARRIER ACTION                    August 2, 1995
     
                                                                                                                                     FCC AUTHORIZES ALASCOM TO TRANSFER DOMESTIC AND
     INTERNATIONAL LICENSES TO AT&T
     
                                The FCC has authorized the transfer of ownership of Alascom from Pacific
     Telecom Inc. to AT&T.  By this authorization, the Commission permits AT&T to
     acquire Alascom's current domestic and international authorizations, cable landing
     license, radio licenses and radio permits.  The Commission found the transfer to be in
     the public interest and compatible with the regulatory framework established  for
     Alaska by the Commission in 1994. The regulatory framework was intended to
     preserve universal service, allow continued integration of the cost structure for Alaskan
     interstate services into AT&T's nationwide rate structure, avoid significant shifts of
     costs from the interstate to the intrastate market, promote competition and encourage
     efficiency.  
     
          The FCC also granted Alascom a waiver of Section 61.41(c) of the
     Commission's Rules, the "all or nothing rule," which requires a company not subject
     to price cap rules to become subject to them if it merges with a company that is
     already subject to the price cap rules.  Thus, the newly owned Alascom entity will not
     be subject to price cap regulation, but will continue to file rate-of-return based rates
     for interstate switching and transport services offered to interexchange carriers.
     
          In addition, the Commission granted the application filed by Alascom for
     review of Alascom's Section 214 Authorization to acquire and operate a fiber optic
     cable system between Alaska and Oregon (the "Alaska Spur"). In the Authorization,
     the Commission had retained jurisdiction over the management decisions affecting the
     Alaska Spur in order to prevent possible anticompetitive use of the facility.  In the
     order released today, the Commission found that conditions in the Alaska
     telecommunications market as they affected the Alaska Spur had become more
     competitive such that this retention of jurisdiction was no longer necessary.
     
     
     
                                     (over)
     
     
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          Action by the Commission August 1,  1995, by Order and Authorization
      (FCC 95-334).  Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong.
     
      - FCC -
                                       
                                        News Media contact: Susan Lewis Sallet at (202) 418-1500.
     Common Carrier Bureau contact: Robert Kimball at (202) 418-2339.