PUBLIC NOTICE
                                                                              
   Federal Communications Commission
   1919 M St., N.W.
   Washington, D.C. 20554

                                                                              
 $//Public Notice, US West and Accipiter Comm., Inc., Study Area and
 Price Cap Waivers, DA 96-473//$
 $/Part 36 Appendix-Glossary, Sect. 61.41(c)(2), 69.3(e)/$
 "Record Only"
                                                                              
        ACCIPITER COMMUNICATIONS, INC. AND US WEST COMMUNICATIONS, INC.
        FILED A PETITION FOR WAIVER OF SECTIONS 61.41(C)(2), 69.3(E) AND
         THE DEFINITION OF "STUDY AREA" CONTAINED IN APPENDIX-GLOSSARY
                      OF PART 36 OF THE COMMISSION'S RULES
                                   AAD 96-35
DA 96-473
Release Date:  March 29, 1996
Comment Date:  April 29, 1996
    Reply Date:   May 14, 1996 

On March 11, 1996, US West Communications, Inc. ("US West") and Accipiter
Communications, Inc. ("ACI") filed a joint petition for waiver of the definition of "study area"
as set forth in the Appendix-Glossary of Part 36 of the Commission's rules.  That definition
constitutes a rule freezing all study area boundaries.  The requested waivers would allow US
West to alter the boundaries of its Arizona study area when transferring a small portion (30
access lines) of two telephone exchanges from US West to ACI.  The requested waivers would
also allow ACI to establish a new Arizona study area.  ACI also seeks waiver of Section
61.41(c)(2) of the Commission's price cap rules, 47 C.F.R.  61.41, to exempt it from the price
cap "all or nothing" rule.  That waiver would permit ACI to operate under rate-of-return
regulation after acquiring the 30 access lines from US West that are currently under price cap
regulation.  Finally, US West and ACI request that the Federal Communications Commission
("Commission") expeditiously grant this request without requiring the submission of the detailed
information that the Commission has required when considering larger Part 36 study area waiver
requests.  In a letter dated March 6, 1996, the Arizona Corporation Commission states that it does
not object to the requested study area waivers.      

Interested parties may file comments on the joint petition on or before April 29, 1996,
and reply comments on or before May 14, 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 96-35.  Four (4) copies should also be sent to Adrian Wright,
Cost Analysis Branch, 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 purposes of the Commission's ex parte
rules.  See generally, 47 C.F.R.  1.1200-1.1206.  However, if the waiver petition is opposed
this proceeding becomes restricted under the Commission's ex parte rules.  See generally, 47
C.F.R.  1.1208-1.1216.  For further information contact Adrian Wright at (202) 418-0830.
                                     
                     FEDERAL COMMUNICATIONS COMMISSION