PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 1919 M STREET, N.W. WASHINGTON, D.C. 20554 DA 99-228 News media information 202/418-0500 Fax-On-Demand 202/418-2830 TTY 202/418-0484 202/418-0485 Internet: http://www.fcc.gov ftp.fcc.gov Released: January 22, 1999 ALLTEL Corporation Petitions for Waiver of Section 61.41 of the Commission's Rules Pleading Cycle Established CCB/CPD NO. 99-1 COMMENTS: February 21, 1999 REPLY COMMENTS: March 8, 1999 On January 15, 1999, ALLTEL Corporation (ALLTEL) filed a petition requesting that the Commission waive sections 61.41(c)(1), (2) and (d) of the Commission's rules, 47 C.F.R.  61.41(c)(1), (2) and (d), and any other necessary provisions of its rules, to permit the continued regulation of the ALLTEL incumbent local exchange companies as rate-of-return companies following its merger transactions with Aliant Communications Inc. (Aliant), and to permit the Aliant subsidiary, Aliant Communications Co., to convert to rate-of-return regulation following the merger. In its Petition, ALLTEL states that it is a diversified telecommunications and information services company headquartered in Little Rock, Arkansas and provides telephone service to approximately 1.8 million access lines in 14 states. ALLTEL further states that it offers no services in Nebraska. ALLTEL also states that Aliant, a diversified telecommunications company headquartered in Lincoln, Nebraska provides local and long distance services to Lincoln and 22 counties in southeast Nebraska. ALLTEL further states that Aliant serves approximately 285,000 access lines or approximately 29 percent of Nebraska's total access lines. ALLTEL states that there is no geographic overlap of any services offered by ALLTEL and Aliant. ALLTEL asserts that grant of its Petition would serve the public interest by enabling improved and expanded services to be provided to current Aliant customers, and will enhance Aliant's and ALLTEL's ability to compete in the rapidly evolving telecommunications marketplace. Specifically, ALLTEL argues that the combined resources of the two companies will enhance their ability to offer both expanded and innovative services and will encourage continued investment in new technologies. ALLTEL further argues that the wireless and fiber optic facilities base of ALLTEL and Aliant increases customer opportunities for "one-stop- shopping" and will enable the combined company to offer improved and advanced services as well as to tailor services to customers' requirements. In addition, ALLTEL argues that the merger of the two companies will permit them to realize significant economic, marketing, and technical service efficiencies which will increase their ability to continue providing high quality, competitively priced telecommunications services and to compete in the marketplace. ALLTEL maintains that none of the concerns that led the Commission to adopt its rules to prevent anticompetitive behavior when a price cap and a rate-of-return company merge or one such company acquires the other are raised by the proposed merger. ALLTEL further maintains that price cap regulation would be inappropriate because the merged company would not have the economies of scope and scale enjoyed by the larger local exchange companies for which the price cap system was primarily designed. This matter shall be treated as a "permit-but-disclose" proceeding in accordance with the Commission's ex parte rules. See 47 C.F.R.  1.1200, 1.1206. Persons making oral ex parte presentations are reminded that memoranda summarizing the presentations must contain summaries of the substance of the presentations and not merely a listing of the subjects discussed. More that a one or two sentence description of the views and arguments presented is generally required. See 47 C.F.R.  1.1206(b). Other rules pertaining to oral and written ex parte presentations in permit-but-disclose proceedings are set forth in section 1.1206(b) of the Commission's rules, 47 C.F.R.  1.1206(b). Interested parties may file comments no later than February 21, 1999. Reply comments may be filed no later than March 8, 1999. When filing comments, please reference the internal file number: CCB/CPD 99- 1. An original and four copies of all comments and reply comments must be filed with the Commission's Secretary, Magalie Roman Salas, Office of the Secretary, Federal Communications Commission, 445 - 12th Street, S.W., TW-A325, Washington, D.C. 20554. In addition, one copy of each pleading must be filed with International Transcription Services (ITS), the Commission's duplicating contractor, at its office at 1231 - 20th Street, N.W., Washington, D.C. 20036, and one copy with the Chief, Competitive Pricing Division, 1919 M Street, N.W., Room 518, Washington, D.C. 20554. For further information, contact Renee Terry, Competitive Pricing Division, Common Carrier Bureau, (202) 418-1520. - FCC -