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



In the Matter of                        )              
Request for Review by                   )
the Department of Education of the           )
State of Tennessee of the Decision of        )    Application No. 18132
the Universal Service Administrator          )
                                   )
Request for Review by                   )
Integrated Systems and Internet Solutions, Inc.   )
of the Decision of                      )
the Universal Service Administrator          )    
                                   )
Request for Review by                   )
Education Networks of America           )
of the Decision of                      )
the Universal Service Administrator          )
                                   )
Federal-State Joint Board on Universal Service    )    CC Docket No. 96-45 
                                        )
Changes to the Board of Directors            )
of the National Exchange Carrier             )    CC Docket No. 97-21
Association, Inc.                       )

                              ORDER
                                 
Adopted:  September 30, 1999                 Released: September 30, 1999

By the Deputy Chief, Common Carrier Bureau :

I.   INTRODUCTION

     1.   By this Order, we grant the request for waiver and extension of time filed by the
Department of Education of the State of Tennessee (Tennessee).  This Order will permit
Tennessee to use until December 20, 1999, the universal service discounts it was awarded as a
result of its successful appeal of the denial of its application by the Universal Service
Administrator (USAC) until December 20, 1999.  


II.       BACKGROUND

     2.   On August 11, 1999, the Commission granted in part and denied in part the
requests for review filed by Tennessee and Education Networks of America (ENA).  The
Commission found that Tennessee may receive discounts on Internet access service provided by
ENA, but may not receive discounts on charges by ENA to Tennessee related to components of
the ConnecTEN network it previously owned, but sold to ENA.  The Commission required the
Common Carrier Bureau (Bureau), through its oversight role, to work with USAC and Tennessee
to implement its decision.  The Commission stated that it expected Tennessee to provide USAC
with the relevant information necessary to effectuate the Commission's decision, and expected the
Bureau to monitor actively those activities to ensure that the Commission's decision was
implemented expeditiously.  Specifically, the Commission stated that a funding commitment
decision letter must be delayed no longer than 10 working days from the receipt of information
necessary to be provided by Tennessee to implement the Commission's decision.  In addition, the
Commission permitted the Bureau to waive any rules to the extent necessary to effectuate the
Commission's decision in the Tennessee matter.  USAC provided a funding commitment letter to
Tennessee, consistent with the Tennessee Order, on September 20, 1999.  

     3.   On September 17, 1999, Tennessee submitted a request for waiver and extension
of time to allow it to use the universal service discounts awarded as a result of the Tennessee
Order for a period of 90 days after release of the funding by USAC's Schools and Libraries
Division.  Specifically, Tennessee requested a waiver of the September 30, 1999, deadline for
receipt of non-recurring services for the first year of the schools and libraries universal service
support mechanism for a period of 90 days from the receipt of a funding commitment letter to
use the non-recurring services eligible for support.

III. DISCUSSION

     4.   Generally, the Commission's rules may be waived for good cause shown.   As
noted by the Court of Appeals for the D.C. Circuit, however, agency rules are presumed valid,
and "an applicant for waiver faces a high hurdle even at the starting gate."   The Commission may
exercise its discretion to waive a rule where the particular facts make strict compliance
inconsistent with the public interest.  In addition, the Commission may take into account
considerations of hardship, equity, or more effective implementation of overall policy on an
individual basis.  Waiver is, therefore, appropriate if special circumstances warrant a deviation
from the general rule, and such deviation would better serve the public interest than strict
adherence to the general rule.  The test for whether Tennessee may be granted a waiver,
therefore, is whether it has shown such special circumstances that warrant deviation from the
Tenth Reconsideration Order's determination that discounts for non-recurring services for year
one of the schools and libraries universal service support mechanism must be used by September
30, 1999.  We conclude that Tennessee has made that showing, and we grant its petition for
waiver and extension of time until December 20, 1999.

     5.   Tennessee's situation raises the kind of particular facts and circumstances
warranting waiver of the Commission's rules.  It would be impossible for Tennessee to use the
discounts awarded to it in the Tennessee Order in the 10 days between its receipt from USAC of
a funding commitment decision letter and the September 30, 1999, deadline for using discounts on
non-recurring services.  Under these facts, we find that enforcement of the September 30, 1999,
implementation deadline would be inconsistent with the public interest.  Moreover, failure to grant
Tennessee's petition would thwart the Commission's decision in the Tennessee Order that
Tennessee was eligible to receive discounts on the Internet access service provided by ENA.  The
Commission specifically directed the Bureau to waive any rules to the extent necessary to
implement the Tennessee Order.  Tennessee's petition for waiver of the September 30, 1999
deadline for receipt of non-recurring services, therefore, is granted.  In addition, Tennessee's
petition to extend the deadline by 90 days after its receipt of a funding commitment decision letter
(i.e., to December 20, 1999) is also granted.

     16.  It is THEREFORE ORDERED, pursuant to section 4(i) of the Communications
Act of 1934, as amended, 47 U.S.C.  154(i) and sections 0.91, 0.291, and 1.3 of the
Commission's rules, 47 C.F.R.   0.91, 0.291, and 1.3, that the Tennessee Department of
Education's petition for waiver and extension of time IS GRANTED.


                    FEDERAL COMMUNICATIONS COMMISSION

     

                    Lisa M. Zaina
                    Deputy Chief, Common Carrier Bureau