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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 ) In the Matter of ) Transmittal No. 965 Long-Term Telephone Number ) CC Docket No. 99-35 Portability Tariff Filings of ) U S WEST Communications, Inc. ) MEMORANDUM OPINION AND ORDER Adopted: February 9, 1999 Released: February 9, 1999 By the Chief, Competitive Pricing Division: I. INTRODUCTION 1. In this Memorandum Opinion and Order, we suspend for one day and set for investigation the tariff filed by U S WEST Communications, Inc., (U S WEST) seeking to establish rates, terms, and conditions for the long-term number portability query service and end- user charges. U S WEST filed its tariff transmittal on January 26, 1999 with an effective date of February 10, 1999. On February 2, 1999, AT&T filed a petition to reject or suspend. On February 8, 1999, U S WEST filed its reply. The Bureau will issue a separate order designating issues for investigation. II. BACKGROUND 2. On May 12, 1998, the Commission issued the Third Report and Order, implementing section 251(e)(2) of the Communications Act of 1934, as amended, and promulgated rules governing long-term number portability cost recovery. The Commission determined in the Third Report and Order that incumbent LECs may recover their carrier-specific costs directly related to providing long-term number portability in two federal charges: (1) a monthly number portability charge to commence no earlier than February 1, 1999, that applies to end-users; and (2) a number portability query service charge that applies to carriers on whose behalf the incumbent LEC performs queries. The Commission delegated authority to the Common Carrier Bureau (Bureau) to determine appropriate methods for apportioning joint costs among portability and nonportability services and to issue any orders to provide guidance to carriers before they file their federal tariffs. 3. On December 14, 1998, the Bureau issued the Cost Classification Order, addressing the general standards by which incumbent LECs should identify the carrier-specific costs directly related to providing long-term number portability and discussing the methodologies for measuring the eligible number portability costs. The Bureau also provided guidance to the incumbent LECs on the allocation of the eligible costs among the number portability end-user, pre-arranged query, default query, and database query charges. Finally, the Bureau discussed the specific cost support the incumbent LECs must provide with their tariff filings. III. DISCUSSION 4. We find that U S WEST's long-term number portability tariff raises substantial questions of lawfulness and warrants an investigation of this tariff. These questions include, but are not limited to, the following: whether U S WEST's method of identifying eligible Operations Support Systems (OSS) costs is unreasonable; whether U S WEST's calculation of its overhead factors is unreasonable; whether U S WEST's overall level of costs for long-term number portability is unreasonable; and whether U S WEST's method for calculating its service delivery costs is unreasonable. Moreover, we find that AT&T's petition to suspend and investigate U S WEST's long-term number portability tariff raises questions of lawfulness, similar to those we identified, and further supports an investigation of this tariff. 5. The rate proposals and the issues raised in U S WEST's tariff filing for long-term number portability are novel and complex. This is the first time U S WEST has filed a tariff and supporting documentation for both query services and an end user charge. We are therefore unable at this time to limit our investigation to discrete rates or provisions of U S WEST's number portability filing. We will, accordingly, suspend U S WEST's tariff filing for one day and initiate an investigation into the lawfulness of the proposed tariff. The specific issues that will be the subject of the investigation will be identified in an upcoming designation order and may include, but may not be limited to, the issues identified in this Order. We may also, by order, identify discrete issues that do not warrant further investigation. IV. EX PARTE REQUIREMENTS 6. This investigation is a permit-but-disclose proceeding and subject to the requirements under section 1.1206(b) of the rules, 47 C.F.R.  1.1206(b), as revised. Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation must contain a summary of the substance of the presentation and not merely a listing of the subjects discussed. More than a one or two sentence description of the views and arguments presented is generally required. See 47 C.F.R.  1.1206(b)(2), as revised. Other rules pertaining to oral and written presentations are set forth in section 1.1206(b), as well. V. ORDERING CLAUSES 7. ACCORDINGLY, IT IS ORDERED that, pursuant to section 204(a) of the Communications Act of 1934, as amended, 47 U.S.C.  204(a), and through the authority delegated pursuant to sections 0.91 and 0.291 of the Commission's Rules, 47 C.F.R.  0.91 and 0.291, the tariff filed by U. S. West Communications, Inc., IS SUSPENDED for one day and an investigation IS INSTITUTED. 8. IT IS FURTHER ORDERED that, pursuant to sections 204(a) and 4(i) of the Communications Act of 1934, as amended, 47 U.S.C.  204(a) and 154(i), U. S. West Communications, Inc., SHALL KEEP ACCURATE ACCOUNT of all amounts received that are associated with the rates that are subject to this investigation. 9. IT IS FURTHER ORDERED that U S WEST Communications, Inc., MAY FILE a supplement advancing the currently scheduled effective date to February 9, 1999, and U S WEST Communications, Inc., SHALL FILE a supplement reflecting the one day suspension. For this purpose, we waive sections 61.58 and 61.59 of the Commission's rules, 47 C.F.R.  61.58, 61.59. Carriers should cite the "DA" number on the instant Order as the authority for the filings. 10. IT IS FURTHER ORDERED that U S WEST Communications, Inc., SHALL FILE this supplement no later than five business days from the release date of this Order. 11. IT IS FURTHER ORDERED that the petition to reject or suspend the Local Number Portability Tariff Filing IS GRANTED to the extent indicated herein and otherwise IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Jane E. Jackson Chief, Competitive Pricing Division Common Carrier Bureau