NEWSReport No. 96-7        COMMON CARRIER ACTION             March 14, 1996

                COMMISSION AFFIRMS ITS RULING CONCERNING 
                BILLING OF FEDERAL SUBSCRIBER LINE CHARGE

     The Commission has affirmed its findings in the SLC Billing Order which addressed
the treatment, under Part 36 of the Commission's rules, of Other Billing and Collecting
("OB&C") expenses associated with the federal subscriber line charge.  In upholding its
earlier decision, which denied a petition for declaratory ruling filed by the National Exchange
Carrier Association, Inc. (NECA), the Commission denied the petition for reconsideration
filed jointly by NECA, ALLTEL Service Corp., Bell Atlantic Telephone Co., National
Association of Regulatory Utility Commissioners, and National Telephone Cooperative
Association.

     Previously, NECA had sought a ruling from the Commission that, if NECA's requests
were granted, would allow local exchange carriers to increase the share of OB&C expenses
attributed to federal subscriber line charges from 5 percent to as much as 33 percent. 
Specifically, NECA had sought a declaration that Part 36 of the Commission's rules permits
local exchange carriers to employ a user count methodology to segregate the federal
subscriber line charge billing expense from the remaining OB&C expenses. NECA had also
requested that the Commission find that the Common Carrier Bureau had improperly applied
a 5 percent cap on the portion of OB&C expenses that may be attributed to federal SLC
billing for ratemaking purposes. In addition, NECA had requested that it be directed to adjust
its Common Line pool by accepting, retroactive to January 1, 1989, exchange carrier reports
claiming an allocation for federal SLC billing expense exceeding 5 percent of total OB&C
expenses. The Commission rejected NECA's arguments.

     In examining the issues raised on reconsideration, the Commission found no reason to
change its earlier findings.

     Action by the Commission March 11, 1996, by Order on Reconsideration (FCC 96-
104). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong.

                                  - FCC -

     News Media contact: Rochelle Cohen at (202) 418-0500.
     Common Carrier Bureau contact: Chuck Needy at (202) 418-0855.