$// Bell Atl.; Order; ShortTerm DS3 Serv.; Trans. 697; DA 95-95 //$
$/ Section 0.291 Delegated Authority ?$
TRANSMITTED FOR FCC RECORD ONLY

                                Before the 
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C. 20554
                                           DA 95-95

In the Matter of     )
          )
Bell Atlantic        )     Transmittal No. 697
          )
Revisions to Tariff F.C.C. No.  1    )


                                   ORDER               

     Adopted: January 20, 1995     Released:January 20, 1995


     1.   On September 23, 1994, Bell Atlantic filed Transmittal No. 697 to introduce Short
Term DS3 Service.  Short Term DS3 Service is provided for a minimum period of 30 days and
the customer must place connect and disconnect orders for the service at the same time. 
Transmittal 697 is scheduled to take effect on January 21, 1995.  MCI Telecommunications
Corporation (MCI) filed a petition to reject or suspend and investigate Transmittal 697, and Bell
Atlantic filed a reply.

     2.   Bell Atlantic states that its Short Term DS3 Service will be provided only where
facilities permit and is subject to a full month's billing regardless of time in service.  Further,
special construction charges for nonreusable equipment or additional labor costs apply.  The
transmittal also provides that the same nonrecurring channel mileage charges apply as for month-
to-month DS3 service.  A separate and distinct rate, however, applies for the channel termination
of a short-term DS3 facility. According to Bell Atlantic, the costs associated with Short-Term
DS3 Services are based on existing DS3 channel termination costs adjusted to reflect periodic
utilization associated with a short term, temporary service.  Bell Atlantic applied a utilization
factor of 50 percent to adjust DS3 costs to reflect short term use of its facilities.  

     3.   MCI objects to the cost support material supplied by Bell Atlantic in Transmittal
697. According to MCI, Bell Atlantic is proposing to apply a new monthly channel termination
rate and existing DS3 installation charges to recover its costs for the service. MCI maintains,
however, that the costs of providing Short-Term DS3 Service are the same as those for providing
Bell Atlantic's DS3 Electrical Entrance Facilities. MCI contends that because the costs of
providing Short-Term DS3 Service are determined by applying a 50 percent utilization factor to
the costs of DS3 Electrical Entrance Facilities, this effectively doubles the cost of the former
service.  According to MCI, Bell Atlantic's utilization factor is critical to determining whether
its overhead cost recovery is consistent with the Commission's Rules. 

     4.   In response, Bell Atlantic asserts that there is only a 2 percent differential between
the rates for short term, as opposed to month-to-month DS3 service.  Bell Atlantic asserts that
the differential is more than justified by the difference in costs of providing Short-Term DS3
Service that involves lower utilization of the equipment installed and additional administrative
expenses.  Bell Atlantic states that it bases its calculations on the assumption that the equipment
will be used approximately 50 percent of the time, an assumption based on its experience with
other short-term services.

     5.   On January 20, 1995, Bell Atlantic filed Transmittal No. 735, to modify
Transmittal 697 to permit the Short Term DS3 customer to renew the service for 30 days or less,
provided that the request is received prior to the disconnect date of the initial service period.  Bell
Atlantic also increased the utilization factor from 50 to 67 percent and provided additional cost
support information with its new transmittal pursuant to Section 61.49 of the Commission's
Rules, 47 C.F.R.  61.49.

     6.   We have reviewed the tariff filed by Bell Atlantic, the tariff revisions, and all
related pleadings. Based on these submissions, we conclude that no compelling argument has been
presented that this tariff, as revised, is patently unlawful so as to warrant rejection or that an
investigation is warranted at this time.

     7.   Accordingly, IT IS ORDERED that the petition to reject, or to suspend and
investigate Bell Atlantic Tariff F.C.C. No. 1, Transmittal No. 697, filed by MCI
Telecommunications Corporation IS DENIED.

     8.   IT IS FURTHER ORDERED that Application No. 231, filed on January 20, 1995,
by Bell Atlantic IS GRANTED.  This will enable Bell Atlantic to file the tariff material requested
therein to become effective on not less than one day's notice.









     9.   IT IS FURTHER ORDERED that, for this purpose, Sections 61.58 and 61.59 of
the Commission's Rules, 47 C.F.R.  61.58, 61.59, are waived.  Bell Atlantic should cite the
"DA" number of the instant Order as the authority for this filing.


          FEDERAL COMMUNICATIONS COMMISSION




          Geraldine A. Matise
          Acting Chief, Tariff Division
          Common Carrier Bureau