PUBLIC NOTICE
 FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET, N.W.
       WASHINGTON, D.C. 20554DA 96-2103                          

News media information 202/418-0500     Fax-On-Demand  202/418-2830     Internet:  http://www.fcc.gov    ftp.fcc.gov

    UNION TELEPHONE COMPANY, INC. AND U S WEST COMMUNICATIONS,
INC.  FILED A PETITION FOR WAIVER OF SECTIONS 61.41(C)(D), 69.3(E)(11),
       AND THE DEFINITION OF "STUDY AREA" CONTAINED IN THE 
      APPENDIX-GLOSSARY OF PART 36 OF THE COMMISSION'S RULES
            AAD 96-120

     Released: December 13, 1996

Comment Date:  January 6, 1997 
 Reply Date:      January 16, 1997


     On November 22, 1996, Union Telephone Company, Inc. ("Union Telephone") and U S
WEST Communications, Inc. ("U S WEST") filed a 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 U S WEST
to alter the boundaries of its Wyoming study area as a result of selling one telephone exchange
containing 2,336 access lines to Union Telephone.  The requested waivers would also allow Union
Telephone to add the exchange to its existing Wyoming study area.  

     In addition, Union Telephone seeks a waiver of Section 61.41(c)(d) 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 rule
requires non-price cap companies, and the telephone companies with which they are affiliated, to
become subject to price cap regulation after acquiring a price cap company or any part thereof.  The
requested waiver would permit Union Telephone to continue operating under rate-of-return
regulation after acquiring the U S WEST exchange which currently is under price cap regulation. 
Finally, Union Telephone seeks a waiver of Section 69.3(e)(11) of the rules, if necessary, so that the
regulatory, tariff and pooling changes related to the proposed exchange acquisition may occur
immediately upon the closing of the transaction.  The Idaho Public Utilities Commission and the
Public Service Commission of Wyoming state that they do not object to the changes in the study area
boundaries caused by transferring the exchange from U S WEST to Union Telephone.

     Interested parties may file comments on the petition on or before January 6, 1997, and reply
comments on or before January 16, 1997, with the Secretary, Federal Communications
Commission, 1919 M Street, N.W., Room 222, Washington, D.C. 20554.  Comments and reply
comments should reference AAD 96-120.  Four (4) copies should also be sent to Adrian Wright,
Competitive Safeguards Branch, Common Carrier Bureau, 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 this waiver petition is opposed, it
will be treated as a restricted proceeding 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) 418-0840.

                FEDERAL COMMUNICATIONS COMMISSION