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                            Before the
                FEDERAL COMMUNICATIONS COMMISSION
                      Washington, D.C. 20554

In the Matter of                   )
                              )
Southwestern Bell Telephone        )    ASD 99-25 
Company's Permanent Cost Allocation     )         
Manual for the Separation of       )
Regulated and Nonregulated Costs        )

                             ORDER


Adopted:  April 12, 1999                Released:  April 12, 1999 

     By the Chief, Accounting Safeguards Division:

     1.   On March 29, 1999, SBC Telecommunications, Inc. filed revisions to Southwestern
Bell Telephone Company's (SWBT's) cost allocation manual (CAM) to reflect changes to SWBT's
time reporting procedures from positive time reporting to statistical time reporting.  Included in the
filing are revisions to Section VI, Cost Apportionment Table, and Section VII, Time Reporting
Procedures.

     2.   Absent a stay, revisions to the cost apportionment tables and time reporting
procedures specified in a CAM become effective 15 days following the submission of a revision.  In
this instance, however, we believe that SWBT's proposed revisions raise serious concerns, not only
as to how technicians' labor costs are to be allocated between regulated and nonregulated activities,
but also as to how these costs are to be recorded initially to the appropriate Part 32 accounts. 
Because of these concerns, we stay the effective date of these revisions until October 12, 1999.  

     3.   Accordingly, IT IS ORDERED THAT  the revisions to SWBT's CAM pertaining
to Section VI, Cost Apportionment Table and Section VII, Time Reporting Procedures, filed March
29, 1999 ARE STAYED until October 12, 1999. 



                              FEDERAL COMMUNICATIONS COMMISSION



                    

                              Kenneth P. Moran
                              Chief, Accounting Safeguards Division