WPCO 2BPZCourier 10cpi|Y wx6X@8;X@HP LaserJet IIIHPLASIII.PRSx  @,\,-$RX@22-BovE|Y CG Times (Scalable)CG Times Bold (Scalable)"m+O6^;C]ddCCCdCCCCddddddddddCCȲY~~wCN~sk~CCCddCYdYdYCdd88d8ddddJN8ddddYYdYddddddCddddddddd8YYYYYY~Y~Y~Y~YC8C8C8C8ddddddddddYdddddsdYYYYYYYd~Y~Y~Y~YddddddddC8C8C8C8oNd~8~8~8~8~8dvddddJJJkNkNkNkN~8~8~8dddddddYYYd~8dJkN~8dddddCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCYQQddddddFddddFCChhd44ddzzdddwooChdF"Ȑdhd岲dCCȐzȲxCddodȐȅdCdYdsȐ]ȐȐȧzȐUwŐdȐYYCCCCѐz~ozoY~NYdYC8YooYdYzsdzdd~YYzozzzzNd88YYYzYzzzzCCdddddddzzzzzzzzzzzzzzzzzzzNNNNNNNdddddddddddddddddddd888888888888YYYYYYYYYYYYYYYYYYYzzzzzzzzzzzzzzzzzzzzCs~CzCddYCxa8DocumentgDocument Style StyleXX` `  ` 2pk]k3a4DocumentgDocument Style Style . a6DocumentgDocument Style Style GX  a5DocumentgDocument Style Style }X(# a2DocumentgDocument Style Style<o   ?  A.  21 v t   a7DocumentgDocument Style StyleyXX` ` (#` BibliogrphyBibliography:X (# a1Right ParRight-Aligned Paragraph Numbers:`S@ I.  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PleadingHeader for numbered pleading paperP@n   $] X X` hp x (#%'0*,.8135@8:><q*"xxxxWWxxxWWkkxxxtoc 5toc 5(` hp x (#X$X$` hp x (#toc 6toc 6)` hp x (#$ $ ` hp x (#toc 7toc 7* toc 8toc 8+` hp x (#$ $ ` hp x (#2H,Y@-wB.D/Ftoc 9toc 9,` hp x (#$`$`` hp x (#index 1index 1-` hp x (#P $P $` hp x (#index 2index 2.` hp x (#P $`P $`` hp x (#toa headingtoa heading/` hp x (#$$` hp x (#2!N0vI1lyI2I3Lcaptioncaption0 _Equation Caption_Equation Caption1 headerheader2` hp x (#!$ !$ ` hp x (#Right Par 7Right Par 73` hp x (#HP X`h!$HP X`h!$` hp x (#24SN5'OF`Oheading 3heading 34C9#XP\  P6QXP# #XP\  P6QXP#Style1Style15;1#&J\  P6Q&P##XP\  P6QXP##Xw P7[hXP#@4Before the`(#(#eă )FEDERAL COMMUNICATIONS COMMISSION .Washington, D.C. 20554 9 In the Matter of !(hh/5)  YH  ` `  !(hh/5 ) Petition of Fort Mojave (hh/5) Telecommunications, Inc., Gilahh/5) River Telecommunications, Inc., 5) San Carlos Telecommunications, hh/5) Inc., and Tohono O'odham Utility 5) Authority` `  !(hh/5)<Docket No. _______  Y ` `  !(hh/5)  X  for Designation as  !(hh/5)< Eligible Telecommunicationshh/5) Carriers Under the !(hh/5) Telecommunications Act of 1996hh/5)  Y  To:The Commission e,Petition for Designation as } 'Eligible Telecommunications Carriersă   X}  ` `  !FORT MOJAVE TELECOMMUNICATIONS, INC. ` `  !GILA RIVER TELECOMMUNICATIONS, INC. ` `  !SAN CARLOS TELECOMMUNICATIONS, INC. ` `  !TOHONO O'ODHAM UTILITY AUTHORITY `(#SStephen G. Kraskin `(#YSylvia Lesse `(#RMarci E. Greenstein `(#QKraskin & Lesse, LLP `(#G2120 L Street, N.W., Suite 520 `(#NWashington, D.C. 20037 `4(#W(202) 2968890 December 18, 1997(0*0*0*  X X e,Petition for Designation as  &Eligible Telecommunications Carriers of  &Fort Mojave Telecommunications, Inc., [ 'Gila River Telecommunications, Inc., %San Carlos Telecommunications, Inc. and )Tohono O'odham Utility Authority  Y_ e,(filed December 18, 1997)   Y 1 TABLE OF CONTENTS ă I.BACKGROUND`"(#d3 II.THE PUBLIC INTEREST WILL BE SERVED BY CONFIRMING TRIBAL DESIGNATION OF THE COMPANIES AS ETCS WITHIN THEIR RESPECTIVE INCUMBENT SERVICE AREAS`"(#d4 III.THE COMPANIES QUALIFY FOR ELIGIBLE TELECOMMUNICATIONS CARRIER DESIGNATION`"(#d7 A.` ` The Companies Meet ETC Requirements`"(#d7 B.` ` Exceptional Circumstances Warrant the Grant of ` ` Extensions of Time for Limited Purposes`"(#d8 IV.CONCLUSION``"(#c10 Attachments Attachment A: NECA Study Area DesignationppC Attachment B: (Declarations and Resolutions of ` `  !Fort Mojave Telecommunications, Inc. ` `  !Gila River Telecommunications, Inc. ` `  !San Carlos Telecommunications, Inc. ` `  !Tohono O'odham Utility Authority#0*0*0*     #Xw P7[hXP#@4Before the`(#(#eă )FEDERAL COMMUNICATIONS COMMISSION .Washington, D.C. 20554 9 In the Matter of !(hh/5)  XH  ` `  !(hh/5) Petition of Fort Mojave (hh/5) Telecommunications, Inc., Gilahh/5) River Telecommunications, Inc., 5) San Carlos Telecommunications, hh/5) Inc., and Tohono O'odham Utility 5) Authority` `  !(hh/5)<Docket No. _______  Y ` `  !(hh/5)  X  for Designation as  !(hh/5)< Eligible Telecommunicationshh/5) Carriers Under the !(hh/5) Telecommunications Act of 1996hh/5)  Y  To:The Commission e,Petition for Designation as } 'Eligible Telecommunications Carriersă  Fort Mojave Telecommunications, Inc., Gila River Telecommunications, Inc., San Carlos Telecommunications, Inc. and Tohono O'odham Utility Authority ("Companies" or  Y! "Petitioners"),!Y Y #Xw P7[hXP#э The Companies are local exchange companies ("LECs") each of which holds a certificate of public convenience and necessity issued by their respective tribal authorities. Each of the Companies is considered a "rural telephone company" under the Telecommunications Act of 1996, Pub. L. No. 104104, 110 Stat. (1996) (the "1996 Act"). pursuant to Section 214(e)(6) of the Communications Act of 1934, as  Y amended,4Y Y% #Xw P7[hXP#э See 47 U.S.C.  214(e) ("Provision of Universal Service"); as amended (Pub. L.  Y& No. 105125 (1997)). and Sections 54.201207 of the RulesnY Yr( #Xw P7[hXP#э 47 C.F.R.  54.201207.n of the Federal Communications 0*0*0* Commission ("FCC" or "Commission"), respectfully petition the FCC to confirm or designate each of the Companies as the Eligible Telecommunications Carrier ("ETC") within their respective incumbent LEC service area. Each of the four Petitioners is subject to the jurisdiction of the governing body of a distinct federallyrecognized Indian tribe. These four governing bodies regulate the provision of telecommunications services within the respective tribal lands within the state of Arizona; the Arizona Corporation Commission does not assert jurisdiction over the Companies. Accordingly, each Petitioner is "a common carrier providing telephone exchange service and exchange access that is not subject to the jurisdiction of a State commission." Pursuant to Section 214(e)(6), therefore, Petitioners seek the Commission's designation as an ETC. Each of the Companies operates in a rural area and is eligible to receive cost recovery  Y from interstate mechanisms established to foster universal service,D_ Y ԍ San Carlos, which initiated service in August 1997, does not yet receive universal service funding because Section 36.611 of the Commission's Rules requires a full year's cost support data for determination of expense adjustments. The Commission has found San Carlos to be eligible for universal service funding. See Memorandum Opinion and Order, In the Matter of Petitions for Waivers Filed by San Carlos Apache Telecommunications Utility, Inc. and US WEST Communications, Inc., DA 961872, File No. AAD 9652 (rel. Nov. 8, 1996).D and the customers that each serves are the beneficiaries of the existing universal service cost recovery mechanisms. If the existing interstate universal service cost recovery sources were disrupted or abruptly terminated, the Companies (and the subscribers they serve) would face unnecessary disorder and shortfalls in their respective recovery of universal service costs, contrary to both Section 254 of the Communications Act of 1934, as amended, and the established Commission policies to promote universal service. As demonstrated herein, expeditious action in granting0*(( this Petition will allow the Companies to continue to receive uninterrupted interstate cost recovery support while assuring that the subscribers they serve continue to receive the benefits of quality telecommunications services at reasonable rates. In support thereof, the Companies show the following:  X I.BACKGROUND.  The FCC has adopted a number of cost recovery policies and mechanisms designed to promote and maintain universal service. These policies were established, in part, to promote network infrastructure investment in areas such as those served by the Companies that are characterized generally by higher cost to serve rural areas. In light of these policies, cost recovery mechanisms were also established in an effort to moderate the amount of cost to be recovered through basic, recurring charges to users, thereby assisting efforts to maintain reasonable basic rate levels. As a result of these policies and cost recovery mechanisms, the Companies have been able to invest in modern telecommunications networks and to provide quality telecommunications services at reasonable prices to their customers. Without these interstate policies and mechanisms, the Companies serving rural, higher cost tribal areas either would not have been capable of providing the advanced services that their respective subscribers enjoy today or would have been forced to provide services at much higher basic rates, or both. In compliance with the 1996 Act, the FCC and the FederalState Joint Board on universal service issues have been working to reformat these cost allocation and recovery mechanisms. Their efforts culminated in the FCC's May 8, 1997, decision on universal:&0*((  Y service which adopted many of the Joint Board recommendations. Yy ԍ See generally In the Matter of FederalState Joint Board on Universal Service, Report and Order, CC Docket No. 9645, FCC 97157, released May 8, 1997 ("Universal Service Order"). The Universal Service Order also prescribed a new set of universal service rules designed, in part, to yield approximately the same level of cost recovery for eligible LECs as that received today.  Yv Specifically, the existing high loop cost recovery support plan,ivK Yr ԍ See 47 C.F.R. Part 36, Subpart F Universal Service Fund.i interstate cost recovery of  YH central office switching equipment owned by smaller LECs,H Y ԍ See 47 C.F.R.  36.125 and 54.301 (known as interstate "weighted dialed equipment minutes" or "weighted DEM"). and Long Term SupportH Y ԍ See 47 C.F.R.  54.303. Long Term Support was designed to mitigate potential disparities in carrier common line access rates charged for smaller LECs. have now been restated in the FCC's rules. Consistent with the requirements of the 1996 Act, the FCC has transferred to the new reconstituted universal service fund the cost recovery previously reflected through these interstate mechanisms. Beginning January 1, 1998, Petitioners, which currently receive cost recovery from these mechanisms will be qualified to  Yb receive such universal service support only if they are designated by the FCC as an ETC.d b0  YC ԍ 47 C.F.R.  54.201(a)(1). In addition, only ETCs designated under these rules will be allowed to receive cost recovery support (or net support against funding obligations) pursuant to the health care provisions of the 1996 Act and the FCC's rules. See 47 C.F.R.   Y 54.201(a)(2). d  II.XTHE PUBLIC INTEREST WILL BE SERVED BY CONFIRMING TRIBAL DESIGNATION OF THE COMPANIES AS ETCS WITHIN THEIR  X RESPECTIVE INCUMBENT SERVICE AREAS. (# Petitioners request that the Commission designate each of the Companies as the ETC 0*((  Y within its respective incumbent LEC service area.  Yy #Xw P7[hXP#э Attachment A provides each Petitioner's study area designation. Such action is consistent with both the 1996 Act and the public interest.  The Companies provide local exchange and exchange access services in predominantly rural areas of Arizona; these services are integral to the achievement of universally available telecommunications services in Arizona. The commitment of the Companies to the provision of reasonably priced services is well known. Moreover, within their respective incumbent LEC service areas, the Companies provide ubiquitous telecommunications services to all that request service, each serving as the "carrier of last resort" in its service area. Absent Commission action designating the Companies as ETCs, the continuation of uninterrupted interstate cost recovery support will end as of January 1, 1998. In the absence of expeditious action, the public policy goal of ensuring that the Companies' subscribers continue to receive the benefits of reasonable basic rates and quality telecommunications services will be placed in jeopardy. Accordingly, expeditious Commission action is required by the public interest in order to ensure that the current interstate universal service support and the resulting benefits from these cost recovery programs are maintained in the tribal territories. Congress amended Section 214(e) of the 1996 Act by adding subsection 214(e)(6) for the express purpose of providing a means by which carriers not subject to state commission jurisdiction, and, specifically, carriers subject to sovereign tribal authority, may obtain ETC designation: XUnder the current universal service provisions of the Communications Act,h$y 0*(( only common carriers designated by the States are eligible to receive Federal universal service support. Unfortunately this policy ignores the fact that some common carriers providing service today are not subject to the jurisdiction of a State commission; most notably, some carriers owned or controlled by native Americans. Thus, many of these common carriers may lose Federal support on January 1, 1998, unless Congress takes action.  XS. 1354 corrects this problem by permitting a common carrier that is not subject to State authority to be designated by the Federal Communications Commission as eligible to receive Federal universal service support. S. 1354 will apply to only a limited number of carriers, but to these carriers'  Y customers, its impact will be significant.s   Y| #Xw P7[hXP#э Rep. Bliley, Nov. 13, 1997, H10807.s  The legislative history of the amendment clearly demonstrates that the legislation was intended to address directly Petitioners' circumstances to enable their continued participation in the cost recovery mechanisms that foster affordable telecommunications service in high cost areas. The FCC recognizes the sovereign authority of tribal councils, and has exhibited "a proper respect both for tribal sovereignty itself and for the plenary authority of Congress." In the Matter of AB Fillins, Petition for Declaratory Ruling, Memorandum Opinion and Order at para. 18 (rel. Aug. 1, 1997)(citation omitted). Pursuant to their respective tribal constitutions, the tribal councils have authorized operation of the telecommunications carriers that are the subject of this petition, having granted to each Certificates of Convenience and Necessity to provide telecommunications services. Each Company affirms that it meets the  Y requirements for ETC designation.i y Y$ ԍ See Resolutions and Declarations provided as Attachment B.i * 0*(( III.THE COMPANIES QUALIFY FOR ELIGIBLE TELECOMMUNICATIONS CARRIER DESIGNATION A.` ` The Companies Meet ETC Requirements As demonstrated below, each Company satisfies the requirements (or qualifies for waiver or an extension of time pursuant to FCC rules) for ETC designation. Accordingly, the public interest would be promoted by grant of ETC status to each Petitioner. ^Under applicable federal rules, an ETC must offer the following services: 1)` ` voice grade access to the public switched network;(#` X2)X` ` access to free of charge "local usage" defined as an amount of minutes of use of exchange service;(#` X3)X` ` dual tone multifrequency signaling or its functional equivalent;(#`  4)` ` singleparty service or its functional equivalent;(#`  5)` ` access to emergency services;(#`  6)` ` access to operator services;(#`  7)` ` access to interexchange service;(#`  8)` ` access to directory assistance; and(#`   YN X9)X` ` toll limitation services for qualifying lowincome consumers.E N Y ԍ 47 C.F.R.  54.101(a)(1).E(#` Qualified ETCs must offer these services either using their own facilities or a combination of  Y their own facilities and the resale of services of another facilities based carrier.Gy Y# ԍ 47 C.F.R.  54.201(d)(1). G An ETC must also advertise the availability of, and the prevailing prices for, the list of universal *0*((  Y services throughout the area in which it is designated as an ETC.O Yy ԍ See 47 C.F.R.  54.201(d)(2).O Each Petitioner provides voice grade local exchange and interexchange access services utilizing its respective facilitiesbased network. Each Petitioner offers singleparty touchtone service, access to operator services and directory assistance, and access to local usage free of usage charges. In addition, the Companies currently utilize standard subscriber notification and public notice procedures, and will advertise the availability and cost of universal service elements. The Companies submit that the advertising requirement is therefore satisfied because the combination of customer notification, marketing and advertising are consistent with the advertising requirement. X` hp x (#%'0*,.8135@8: