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THE PETITION ă  X_- ` x6.` ` GTA states that establishment of the Territory of Guam as a study area is an  x{administrative step that is necessary for GTA to become a fully compliant domestic local  xexchange carrier. In particular, GTA states that such a designation is required for GTA to  xKperform the cost studies needed to file tariffs and urges the Commission to respond expeditiously  X -so that GTA can file an access tariff that will be effective on July 1, 1997.I  ʓ yO-ԍxGTA Petition at 5.I  X - ` x7.` ` GTA supports its waiver request with an Order from the Public Utilities  xCommission Territory of Guam ("Guam PUC") stating that the Guam PUC has no objection to  X - xthe establishment of Guam as a study area.  j ʓ {O-ԍxId. at Exhibit 1. See Public Utilities Commission Territory of Guam, Order, Docket No. 84003, December 10, 1996. GTA states that there will be no adverse impact  xon the USF as a result of establishing Guam as a study area. GTA represents that its annual cost  x[per line is $266.15, as compared to the national average cost per line of $248.40. GTA therefore  xLstates that it will not be eligible for high cost assistance because its average cost per line does  XK- xnot exceed 115% of the national average cost per line.C K ʓ yO-ԍxGTA Petition at 7.C Finally, GTA requests that the  X4-Commission assign a "COSA" code for the Territory of Guam study area.5X4T ʓ yO9!-ԍx"COSA" is an acronym derived from Company Study Area. The code for the company study area is a unique identifier for that study area. COSA codes are identification codes to be used by companies when filing certain data with the Commission. 5 "t0*.%.%""G"Ԍ X- IV. COMMENTS  X- `  x8.` ` NTCA supports GTA's petition because it would enable GTA to file access charge  X- xOtariffs in accordance with the Commission's requirements.Dʓ yO4-ԍxNTCA Comments at 3.D NTCA states that GTA's  xparticipation in the NECA tariffs will benefit the public and GTA consumers by allowing GTA  X- x0to realize the benefits of efficiencies implicit in the NECA pools.:Xʓ {O-ԍxId.: NTCA also urges the  x.Commission to declare that GTA's request for a study area waiver is unnecessary because the  xCommission does not require a waiver when a separately incorporated company creates a study  XH- xarea for previously unserved territory.BHʓ {O -ԍxId. at 23.B NTCA argues that because Guam has never been  X1-included in a study area, it is tantamount to previously unserved territory.:1|ʓ {O^-ԍxId.:  X - ` x9.` ` Guam Cablecom asserts that Guam is not, and should not be declared, a study area  X - xbecause competition would be impaired.M ʓ yO-ԍxGuam Cablecom Comments at 2.M Contending that GTA's Petition stems in part from  xyGuam Cablecom's attempts to negotiate with GTA for interconnection with and resale of GTA's  xytelephone services, Guam Cablecom also asserts the following: (1) GTA is a financially thriving  xentity reaping monopoly profits from its monopoly position and the people of Guam need and  xdeserve the benefits of local exchange competition; (2) the Congressional intent of the 1996 Act  x-was to construe exemptions from competition narrowly to protect consumers in areas that cannot  xysupport multiple carriers, not to protect carriers per se; (3) GTA is an incumbent local exchange  XK-carrier ("ILEC"); and (4) GTA is subject to the Telecommunications Act of 1996.Kʓ {O-ԍxId. at 12. Telecommunications Act of 1996, Pub. L. No. 104104, 110 Stat. 56 (1996) ("1996 Act"). The 1996 Act amended the Communications Act of 1934.  X- ` x 10.` ` In its Reply, GTA states that its request for a waiver does not relate to the  X- xactivities of Guam Cablecom, but stems instead from the need for GTA to file access tariffs.@ ʓ yO -ԍxGTA Reply at 3.@  xNoting that Guam Cablecom's comments are irrelevant to the issues raised by the instant request  xfor a study area, GTA requests that the Commission refer these issues for proper consideration" 0*.%.%"""  X- xto the proceeding instituted by the Guam PUC's Petition for a Declaratory Ruling.$ʓ yOy-ԍxPetition of Guam Public Utilities Commission for Declaratory Ruling concerning Sections 3(37) and  {OA-251(h) of the Communications Act, Common Carrier Bureau Policy No. 9618 (filed August 13, 1996) ("Guam  {O -PUC Proceeding"). The proceeding considers whether GTA is an incumbent local exchange carrier and a rural telephone company within the meaning of the Act. GTA urges  xthat the Commission not condone this effort to prevent GTA from coming into compliance with  X-the Commission's requirements.Uʓ yO7-ԍxGTA Reply Comments at 3.U  X-#XP\  P6QcXP# V. DISCUSSION ăpp  Xv- ` x 11.` ` The Common Carrier Bureau clarified on July 16, 1996, that a separately  xincorporated company may create a study area for a previously unserved territory without  XH- xrequesting a waiver.n\HDʓ yO=-ԍxRequest for Clarification Filed by the National Exchange Carrier Association, Inc. Concerning the  {O-Definition of "Study Area" Contained in Part 36 AppendixGlossary of the Commission's Rules, Memorandum  {O-Opinion and Order, 11 FCC Rcd 8156, 8160 (Com. Car. Bur. 1996).n We find that as a territory that has been served by GTA since 1973, Guam does not fall within this exception from our waiver requirements.  X - ` x 12.` ` GTA proposes to participate in the NECA tariffs as a cost company.0Z h ʓ {O-ԍxSee Petition to Participate in NECA. "Cost companies" are those ILECs that receive compensation for the use of their facilities in originating and terminating telecommunications services on the basis of their actual  yO-costs.0 GTA's  xinterstate costs provide the basis for rate development information provided to NECA and for  xldefining settlement amounts it will receive from NECA. To participate in the NECA tariff  xLprocess as a cost company, GTA must apply the Commission's jurisdictional separations rules  X - xto determine its interstate costs.I ʓ yO-ԍx47 C.F.R. Part 36.I These rules require a carrier to separate its costs between the  X- xystate and interstate jurisdictions by study area._ʓ {O[-ԍxSee, e.g., 47 C.F.R.  36.121(c)._ Therefore, we find it necessary to establish a  xMstudy area for GTA's service territory in Guam so that it may participate in interstate access tariffs.  X4- ` x 13.` ` The study area freeze was adopted to prevent companies from disaggregating and  xrecombining study areas, and portions thereof, to increase interstate revenue requirements, and  xcompensation, through the manipulation of study area boundaries. We conclude, based on the"0*.%.%"" "  xrecord before us, that authorizing a new study area that merely encompasses GTA's existing  xservice area will not compromise the Commission's reasons for freezing the study area  xboundaries. We also find that our threepronged standard for study area waivers has been met  xin the following ways: first, there will be no adverse impact on the USF because, as GTA claims,  X- xit will not be eligible for high cost assistance;Yʓ {O-ԍxSee discussion supra  7.Y second, the Guam PUC does not object to  X- xcreation of the study area;:Zʓ {O-ԍxId.: and third, the public interest supports creation of the study area  Xv- x<because the geographical designation is necessary for compliance with the Commission's rules.Zvʓ {O -ԍxSee discussion supra  12.Z  xWe therefore authorize a new study area coterminous with the geographic boundaries  x.encompassing the Territory of Guam. We also assign COSA code "GUMI" for the purpose of GTA's ARMIS, Form 492A, and Tariff Review Plan filings.  X - ` &x 14.` ` Guam Cablecom argues that grant of a study area waiver would be anti xcompetitive. It fails, however, to provide any support for this allegation. Guam Cablecom raises  xadditional issues that are beyond the scope of this proceeding. We will address these issues in  X -the Guam PUC Proceeding.P ~ʓ {O-ԍxSee supra note 22. P  X -  X- VI. ORDERING CLAUSES ă  Xd- ` `x15.` ` Accordingly, IT IS ORDERED, pursuant to Sections 1, 4(i), 5(c), 201 and 202 of  xthe Communications Act of 1934, as amended, 47 U.S.C.  151, 154(i), 155(c), 201 and 202,  xMand Sections 0.91, 0.291, and 1.3 of the Commission's rules, 47 C.F.R.  0.91, 0.291, and 1.3,  xthat the Request for Declaratory Ruling of the Guam Telephone Authority to authorize the establishment of a study area encompassing the Territory of Guam IS GRANTED.  X- ` `x16.` ` Accordingly, IT IS ORDERED, pursuant to Sections 1, 4(i), 5(c), 201 and 202 of  xthe Communications Act of 1934, as amended, 47 U.S.C.  151, 154(i), 155(c), 201 and 202,  xkand Sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R.  0.91 and 0.291 that GTA"0*.%.%""R"  SHALL USE COSA Code "GUMI" in its filings with this Commission. x x` `  hhFEDERAL COMMUNICATIONS COMMISSION  X_- x` `  hhKenneth P. Moran x` `  hhChief, Accounting and Audits Division x` `  hhCommon Carrier Bureau