$//Public Notice, GVNW, AAD 95-120, DA 95-2330//$ $/Petition for Declaratory Ruling Regarding Section 36.612(a)/$ Before the Federal Communications Commission Washington, D.C. 20554 PUBLIC NOTICE DA 95-2330 Released: November 24, 1995 GVNW, INC./MANAGEMENT PETITION FOR DECLARATORY RULING, OR ALTERNATIVELY, A WAIVER OF SECTION 36.612(a) OF THE COMMISSION'S RULES USF DATA COLLECTION AAD 95-12O Comment Date: December 18, 1995 Reply Date: January 4, 1996 On June 30, 1995, GVNW Inc./Management ("GVNW"), by its attorneys, filed a Petition for Declaratory Ruling by the Commission, or alternatively, a waiver of Section 36.612(a) of the Commission's rules regarding Universal Service Fund ("USF") data collection. GVNW seeks a ruling or waiver that will allow the USF Administrator to adjust the USF distributions of Local Exchange Carriers ("LECs") involved in mergers and acquisitions, immediately subsequent to the grant of a study area waiver, and the transfer of exchange(s) from the selling company to the buyer. GVNW states that it provides consulting and management services to numerous Independent Telephone Companies ("ITCs"), and that during the past several years, it has provided assistance to several ITC's that have acquired local exchange(s) from other carriers. In these cases, GVNW notes that even though the Commission may have approved a waiver of the study area boundary changes associated with the merger/acquisition transaction, the buying company has to wait, for up to 2 years, for any USF support payments that it may be entitled to receive. GVNW points out that pursuant to Sections 36.611 and 36.612, the National Exchange Carrier Association ("NECA"), as the USF Administrator, calculates the level of USF for all study areas based on historical data, including certain expenses, investment costs, and loop counts for a full 12 month period. GVNW says that NECA is reluctant to recalculate USF distributions to recognize study area changes because, in NECA's view, the Commission's rules do not permit it to do so. GVNW adds that this produces the anomalous result where USF support payments continue to be paid to the selling carrier for exchange(s) that it has sold, while the buying company is incurring the cost of operating the exchange(s), and not receiving any USF support. GVNW requests that the Commission direct NECA to recalculate USF distributions to recognize study area changes that become effective subsequent to the Commission's grant of a study area waiver. GVNW proposes that NECA recalculate the USF support payments based either on the buying company's annualized cost data and loops or on a combination of buying and selling company cost and loop data. Interested parties may file comments on this petition on or before December 18, 1995, and reply comments on or before January 4, 1996, with the Secretary, Federal Communications Commission, 1919 M Street, N.W., Room 222, Washington, D.C. 20554. Comments and reply comments should reference AAD 95-120. Four (4) copies of each comment and reply comment should also be sent to Robert Hall, Cost Analysis Branch, Accounting and Audits Division, Common Carrier Bureau, Room 812, 2000 L Street, N.W., Washington, D.C. 20554, and one (1) copy should be sent to the Commission's contractor for public service record duplication: International Transcription Service (ITS), 2100 M Street, N.W., Suite 140, Washington, D.C. 20037. Copies of the petition may be obtained from the Accounting and Audits Division's public reference room, Room 812, 2000 L Street, N.W., Washington, D.C. Copies are also available from ITS at (202) 857-3800. We will treat this proceeding as non-restricted for the purposes of the Commission's ex parte rules. See generally, 47 C.F.R. 1.1200-1.1206. For further information contact Robert Hall at (202) 418-0857. -FEDERAL COMMUNICATIONS COMMISSION-