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PUBLIC
NOTICE

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


                                                   DA 97-239
                                         Released
January 31, 1997

                CCB/CPD No. 97-2
EXTENSION OF TIME GRANTED FOR PARTIES TO
SUBMIT COMMENTS IN RESPONSE TO COMMISSION
STAFF'S ANALYSIS OF COST PROXY MODELS

Comment Date:            February 13, 1997             
Reply Comment Date:  February 20, 1997            

  On January 9, 1997, the Commission Staff released a Staff
Analysis intended to stimulate discussion of criteria for the evaluation,
and use, of forward-looking cost proxy models in determining
universal service support payments, cost-based access charges, and
interconnection and unbundled network element pricing.   Also on
January 9, 1997, the Common Carrier Bureau ("Bureau") issued a
Public Notice seeking comment on issues raised in the Staff Analysis, 
and setting deadlines of February 3, 1997 for initial comments, and
February 14, 1997 for replies.  The Public Notice indicated that the
record gathered in response to the Staff Analysis might at a future date
be associated with the official record of certain pending rulemakings to
which it may be relevant and used to support Commission
determinations in those rulemakings.   See Federal-State Joint Board
on Universal Service, CC Docket No. 96-45, Access Charge Reform,
CC Docket No. 96-262, and  Implementation of the Local Competition
Provisions of the Telecommunications Act of 1996, CC Docket No. 96-
98.

  On January 24, 1996, Pacific Telesis Group, Sprint
Corporation, and U S WEST, Inc., ("Petitioners"), filed a Motion for
Extension of Time to File Comments in response to the Public Notice. 
For the reasons below, the deadlines for filing initial and reply
comments are being extended until February 13 and February 20,
1997, respectively.
     
  First, the Staff Analysis focused on models submitted
previously to the Commission, but the model sponsors have indicated
that these models will be superseded by newer versions to be released
by January 31, 1997, and by February 5, 1997.  These new models are
the Benchmark Cost Proxy Model ("BCPM"), to be submitted by
Petitioners, and Hatfield 3, to be submitted by AT&T and MCI. 
Additionally, another model, Dr. Ben Johnson's Telecom Economic
Cost Model, was filed in the universal service proceeding earlier this
month.  Inasmuch as the new models are intended to improve on the
earlier versions, it would be more efficient for commenters and
Commission staff to focus their efforts on evaluating the new models
instead of the superseded versions.  In addition, because the new
models are scheduled to be released shortly before and after the current
comment deadline, commenters will not be able to evaluate them at all
in comments here without an extension.

  The extension being granted is not the full period sought by
Petitioners.  We want to ensure that the responses filed to the Staff
Analysis are available for possible use by the Commission in acting by
May 8, 1997, on the recommendation of the Federal-State Universal
Service Joint Board.  Any longer extension could easily jeopardize
such use of the record.   

  Among other things, parties should address in their comments
whether, and to what extent, the new models:  (1) meet the criteria set
forth in the Staff Analysis; (2) improve on potential shortcomings of
the prior versions of the models. 

  For further information contact David Konuch, 202-418-0199,
or Brad Wimmer, 202-418-1847.