News media information 202 / 418-0500 Fax-On-Demand 202 / 418-2830 Internet: http://www.fcc.gov ftp.fcc.govPUBLIC NOTICE Federal Communications Commission 1919 M St., N.W. Washington, D.C. 20554 DA 98-1391 July 15, 1998 APPLICATION FOR ALTERNATIVE SETTLEMENT RATE AGREEMENT UNDER FLEXIBILITY STANDARD ACCEPTED FOR FILING ISP-98-PDR-327 Telegroup; Telegroup Japan KK Telegroup Inc. ("Telegroup") has petitioned the Commission for a declaratory ruling that an alternative settlement arrangement between Telegroup and its affiliate in Japan, Telegroup Japan KK ("Telegroup Japan" ) for international switched services to and from the Japan is permitted under the framework adopted by the Commission in the Flexibility Order. Telegroup submits that the alternative arrangement will reduce its net settlement payment to Japan, reduce the call termination rate to 3› in both countries, and allow for lower calling prices. Telegroup stipulates that Japan is a member of the World Trade Organization. Telegroup argues that Telegroup Japan is a nondominant carrier and does not possess market power, and less than 25 percent of the traffic in each direction will be affected by the agreement. It argues further that the arrangement will promote market oriented pricing and competition between the United States and Japan. Pursuant to Section 64.1002 of the Commission's rules, the application listed above will be deemed granted 21 days after the date of this public notice and the applicant may implement the alternative settlement arrangement on the 28th day, unless the application is formally opposed within the meaning of Section 1.1202 of the Commission's Rules, or the Commission has informed the applicant in writing, within 21 days of the date of this public notice, that the application may not serve the public interest and that implementation of the proposed alternative settlement arrangement must await formal action on the petition. If objections or comments are filed, the applicant may file a response within 5 days of the time for filing an opposition has expired. In these instances, the application will be acted upon only by formal written order of the Commission, and the proposed alternative settlement arrangement may not be implemented except in accordance with such an order. In accordance with Section 1.51(c) of the Commission's rules, an original and four copies of all pleadings must be filed with the Acting Secretary at the above address. In addition, one copy of each pleading must be filed with (1) International Transcription Services (ITS), the Commission's duplicating contractor, at its office at 2100 M Street, N.W. Suite 140, Washington, D.C. 20037; and (2) the International Reference Room, International Bureau, Room 102, 2000 M Street, N.W., Washington, D.C. 20554. All filings should refer to File No. ISP-98-PDR-327. Copies of the application and any subsequently filed documents in this matter may be obtained from ITS, 2100 M Street, N.W., Suite 140, Washington, D.C. 20037, (202) 857-3800. Such documents are also available for public inspection and copying during normal reference room hours in the International Reference Room, 2000 M Street, N.W., Room 102, Washington, D.C. 20554. For further information, contact Ken Stanley, Telecommunications Division, International Bureau, (202) 418-1486. - FCC -