$// Order; Nynex - Establish rate levels for BVS; Trans. 365; DA 95-257 //$
$/Section 0.291 Delegated Authority /$
TRANSMITTED FOR FCC RECORD ONLY

                                BEFORE THE
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C.  20554


In the Matter of                   )         DA 95-257
                              )
NYNEX Telephone Companies          )    Transmittal No. 365
                              )
Revisions to Tariff F.C.C. No. 1        )



                                   ORDER

     Adopted:  February 16, 1995;  Released:  February 17, 1995

                    
By the Acting Chief, Tariff Division, Common Carrier Bureau:
                                     
     1.   On January 24, 1995, the NYNEX Telephone Companies (NYNEX) filed
Transmittal No. 365 to establish common rate levels for Broadcast Video Services (BVS) offered
to its customers in New England and New York.  Specifically, NYNEX proposes to unify the
monthly recurring rate element for the BVS Video Bridging optional feature in the New England
Telephone (NET) and the New York Telephone Company (NYT) areas by repricing, within the
price cap regulations, the monthly per port bridging rate in effect in the NET area.  Transmittal
No. 365 is scheduled to become effective on February 21, 1995. 

     2.   BVS is currently offered under NYNEX Tariff F.C.C. No. 1 as a one-way
broadcast quality video service.  According to NYNEX, bridging is an optional feature of full-
time BVS that enables three or more customer designated-premises to be connected at NYNEX
hubs in a multipoint service configuration.  With the BVS bridging option, a port charge applies
for each service connection to the bridging devise.  NYNEX explains that this tariff filing
establishes a unified monthly BVS bridging rate of $99 per port for all NYNEX customers.

     3.   NYNEX states that the revisions in Transmittal No. 365 also comply with the
Commission's rules and policies governing price caps.  Previously, on January 11, 1995,
NYNEX submitted a letter to the Common Carrier Bureau (Bureau) revising its price cap
indices (PCIs) to conform with the Bureau's Order granting common carriers subject to price
cap regulation a sua sponte waiver of the rules to permit exogenous cost treatment of regulatory
fees imposed on them by Section 9 of the Communications Act of 1934, 47 U.S.C.  159, and
the Commission's implementing regulations.  NYNEX indicates that Transmittal No. 365
incorporates the revised PCIs as described in its January letter to the Bureau, and includes all
supporting information as required  by Section 61.49 of the Commission's rules, 47 C.F.R. 
61.49.

     4.   MCI Telecommunications Corporation (MCI) filed a petition to suspend and
investigate Transmittal No. 365 on January 31, 1995, and NYNEX  replied on February 2,
1995.  MCI  objects to the NYNEX proposal to treat the assessment of regulatory fees as
exogenous costs because it is based on the Bureau's Regulatory Fee Waiver Order, which it
believes is procedurally flawed and unlawful.  MCI Petition at 2.  MCI argues that the Bureau's
Regulatory Fee Waiver Order violates the Commission's existing rules requiring  local exchange
carriers to file for a waiver of the price cap rules for exogenous treatment of regulatory fees. 
Id. 

     5.    NYNEX replies that MCI does not object to the video rate elements that it is
introducing, but rather to the exogenous treatment of costs associated with regulatory fees.
NYNEX Reply at 2.  In this regard, NYNEX argues that MCI's petition should be denied
because it merely reiterates the arguments that MCI makes in its pending petition for
reconsideration of the Bureau's Regulatory Fee Waiver Order.  Id.  NYNEX asserts that the
Bureau's Regulatory Fee Waiver Order has not been stayed and remains in effect pending
reconsideration of that order.  Id.

     6.   The Tariff Division has reviewed the tariff filed by NYNEX.  We conclude that
no compelling argument has been presented that an investigation of this tariff is warranted at this
time.  

     7.   Accordingly, IT IS ORDERED that the petition to suspend and investigate
NYNEX Tariff F.C.C. Transmittal No. 365, filed by MCI Telecommunications Corporation IS
DENIED.


                             FEDERAL COMMUNICATIONS COMMISSION



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