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(1) (a) (i) 1) a)R#: X4 6#} I. ` `  6#} (#`  6#}  6#} 2 v Z Times New Roman (TT)Times New Roman (Bold) (TT)Times New Roman (Italic) (TT)Times New Roman (Bold Italic) (TT)  pQXyy.C8*,gC\  P6QP.y.G8*,.G4  pQBBddBdBd<d<BBoodBBddBoBddzzzzzzzzzzBBBBozdddddddYYYYY8888dddddddndddddYd"5@^2BRdd$BBdq2B28dddddddddd88qqqYzoBNzoozzB8B^dBYdYdYBdd88d8ddddBN8ddddY`(`l2BB!BBPRBddYYYYYYzYzYzYzYB8B8B8B8ddddddddddYdddddoddYYYYYzYzYzYddddddPdBdBBBdNdz8zRdddBRoNoNNF2ZdBYddddd7>d<d<BBYYdBBddBYBdYzzzzBBBBqodYYYYYYYYYYY8888dddddddndddddddISSSSS/5S25S299IIS92@\"5@^2Boddȧ8BBdr2B28ddddddddddBBrrrdzNdzoȐB8BtdBdoYoYBdo8Bo8odooYNBodddYO,Oh2BB!BBPRBdodddddȐYYYYYN8N8N8N8oddddooooddoddddzodddYYYYYYddddooPoNoNBNodo8RoodȐYYoNoNNF2ldBddddddN;WBCBGI5I5SE\>WB_R\RLVJI]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]](1<d<d<BBoodBBddBoBddzzzzzzzzzzBBBBozdddddddYYYYY8888dddddddndddddYd2N8\1@5Rw7PC2,W XP\  P6QXP.x7UC2,PXU4  pQXyy.C8*,gC\  P6QP.zy.G8*,.G4  pQ{W!0(,h0\  P6QhP|I(!,,(\  P6Q,P}{,C8*,3C*f9 xQX~5PC2,3.MXP*f9 xQXXl6RC2,R XR9 xyQXXZZ"5@^2Nodd8BBdr2B28ddddddddddBBrrrdNdzzozzzB8BrdBddYdYBdo88d8odddNN8oYdYNF,Fr2BB!BBPRBdddddddYYYYYN8N8N8N8oddddoooozYddddzYdzddddYYYYYYddddooPdNdNBNdddz8zRoodNRoNoNNF2ddNdddddd5granted Accipiter, a newlyformed company, a Certificate of Convenience and Necessity to  xprovide local exchange service to portions of Maricopa and Yavapai Counties. US West  xCommunications, Inc. ("US West") had provided telephone service to portions of Accipiter's  X - x proposed service area. On November 14, 1996, the Division granted Accipiter a study area  xwaiver associated with Accipiter's purchase of the two exchanges previously operated by US  X - x West. \ z2 {O-  ԍxSee Accipiter Communications, Inc. and US West Communications, Inc., Petition for Waivers of Sections  x61.41(c)(2) and the Definition of "Study Area" Contained in the Part 36 AppendixGlossary of the Commission's  {O{-Rules, Memorandum Opinion and Order, 11 FCC Rcd 14962 (1996) (Order). The study area waiver was granted based on Accipiter's assertion that its planned  xzupgrades would improve customer service and that the estimated increase in high cost loop  xsupport draw would not have a substantial adverse impact on the high cost loop support  Xy-mechanism.D y2 {O-ԍxId. at 14966.D Accipiter commenced service to the two exchanges on December 7, 1996.  XK- ` x6.` ` In its Petition, Accipiter states that, as a new incumbent LEC, it lacks the historical  xcost data upon which to base high cost loop support distributions and, therefore, requests a waiver  xof Sections 36.611 and 36.612 to permit it to receive immediate high cost loop support. In the  x[absence of the requested relief, Accipiter will not receive any high cost loop support revenues  xfor up to two years as a result of the application of the high cost loop support distribution rules.  xyAs actual costs become known, Accipiter proposes to provide documentation to NECA and to  X-true up the payments it receives on a quarterly basis.? 0 2 yO"-ԍxPetition at 8.?  X- ` _x7. ` ` Accipiter argues that application of the Commission's rules in this instance would  xjbe contrary to the public interest because without an opportunity for immediate high cost loop"| ,7)7)qq2"  xzsupport, it would be compelled to elevate local rates, thereby discouraging subscriptions to  X-service and jeopardizing the future availability of service.B2 {Ob-ԍxId. at 78.B  X- IV. DISCUSSION à  X- ` x 8. ` ` Under Section 1.3 of the Commission's rules, we are required to grant waivers "if  X- xgood cause therefor is shown."DZ2 yO-ԍx47 C.F.R.  1.3.D As interpreted by the courts, this requires that a petitioner  xdemonstrate that "special circumstances warrant a deviation from the general rule and such a  X_-deviation will serve the public interest."_2 {O -  kԍxNortheast Cellular Tel. Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990); WAIT Radio v. FCC, 418 F.2d  yO -1153, 1159 (D.C. Cir. 1969); 47 C.F.R.  1.3.@ x  X1- ` x9.` ` It has been longstanding policy not to waive Sections 36.611 and 36.612 of the  X - xCommission's rules.Y D2 {O-  \ԍxSee GVNW Inc./Management for Declaratory Ruling, or Alternatively, a Waiver of Section 36.612(a) of  {O- xthe Commission's Rules USF Data Collection, Order, 11 FCC Rcd 13915 (1996) and TelAlaska Inc., and TelHawaii  xInc., Petition for Waiver of Sections 36.611, 36.612, and 61.41(c)(2) and the Definition of "Study Area" Contained  {Ok- xin the Part 36 AppendixGlossary of the Commission's Rules, Memorandum Opinion and Order, 12 FCC Rcd 10309 (1997).Y In fact, we have granted waivers of these sections only when a requesting  X - xcarrier proposes to serve or is serving previously unserved areas.& 2 {O-  ԍxSee Border to Border Communications, Inc., Petition for Waiver of Sections 36.611 and 36.612 of the  {Ox- xCommission's Rules, Memorandum Opinion and Order, 10 FCC Rcd 5055 (1995)) and South Park Telephone  {OB- xCompany, Petition for Waiver of Sections 36.611 and 36.612 of the Commission's Rules, Order, AAD 9741, DA 972730 (rel. Dec. 31, 1997). Although Accipiter asserts  xthat a portion of its service area was previously unserved, US West had provided service in the  xarea. In addition, allowing Accipiter to receive immediate high cost loop support would result  X - xin support for US West and for Accipiter for the same loops. 2 yOW-  >ԍxDuring the twoyear lag period, acquired exchanges continue to be associated with the selling LEC's study area and the high cost loop support payments continue to be paid to the selling LEC. Accipiter does not assert any  xspecial circumstances affecting it that were not faced by any of the numerous rural telephone  x\companies that have received study area waiver requests to obtain exchanges. As a result,  xAccipiter fails to demonstrate the special circumstances that would support the grant of a waiver of Sections 36.611 and 36.612. x  X4- ` x10.` ` We note that the Commission's high cost loop support distribution rules related to  xthe sale and acquisition of exchanges have been in place for many years. In negotiating the  xipurchase price of an exchange, therefore, it is incumbent upon the purchaser and the seller to take  xyinto consideration the necessary investments and future cash flows related to the sale. In fact,  xMin its initial study area waiver petition, Accipiter provided a description of its upgrades and  xextensions of service, but made no claim that its planned upgrades would be burdened by the"@,7)7)qq"  X- xapplication of Sections 36.611 and 36.612.2 {Oy-  ԍxOrder, 11 FCC Rcd at 1496514966. Accipiter proposed to install fiber optics and a digital host switch, equal access, SS7, voice mail, and wideband services. Thus, Accipiter could have, but failed, to request  xKa waiver for immediate high cost loop support at its first opportunity to do so. Because high cost  x=loop support receipts represent an important source of funds for the operation of an exchange  xwith high loop costs, the acquiring company would undoubtedly negotiate a lower price for the  xexchange if the high cost loop support payments were delayed than it would be willing to pay  x=if there were no delay. Because the selling company and the acquiring company negotiate the  xtransfer of an exchange with full knowledge of the Commission's rules that apply to the  xytransaction, we see no reason to waive the rules to compensate the acquiring company further.  xyConsequently, we conclude that Accipiter's request for immediate high cost loop support must be denied.  X -R  X -KV. ORDERING CLAUSE ĐTP  X -x11.` ` Accordingly, IT IS ORDERED, pursuant to Sections 1, 4(i), 5(c), 201, 202, 205, 218220, and 254 of the Communications Act of 1934, as amended, 47 U.S.C.  151, 154(i), 155(c), 201, 202, 205, 218220, and 254, and Sections 1.3, 0.91, and 0.291 of the Commission's rules, 47 C.F.R.  1.3, 0.91, and 0.291 that the Petition of Accipiter Communications, Inc. for Waiver of Sections 36.611 and 36.612 of the Commission's rules, 47 C.F.R.  36.611 and 36.612 IS DENIED. x x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Kenneth P. Moran x` `  hh@Chief, Accounting and Audits Division