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 DA 97-943 

 Released: May 13, 1997


COMMISSION SEEKS COMMENT ON PETITION

                               OF AN INTER                 EXCHANGE CARRIER

TO COMPENSA     TE PAYPHONE PROVIDERS ON A PER-CALL BASIS

                               (CC Docket                     No. 96-128)



Comments Due:   June 3, 1997              
Reply Comments Due:  June 13, 1997   


 Telco Communications Group, Inc. (Telco) has petitioned the
Commission for a waiver of Section 64.1301 of the Commission's rules to
permit Telco to compensate payphone providers on per-call basis for the
entire interim compensation period, from November 6, 1996 through
October 6, 1997, provided by the Commission's Payphone Order.  

  In the Payphone Order, the Commission required that carrier-payors
track certain types of calls and compensate payphone service providers for
those calls on a per-call basis, as of October 7, 1997. As an interim
measure, the Commission required that carrier-payors with annual toll
revenues in excess of $100 million are required to pay payphone providers
a flat monthly rate of $45.85 in amounts proportional to each carrier-
payor's market share.  Telco is one of the carrier-payors required to
participate in this interim compensation mechanism.

  The Commission subsequently stated in the Reconsideration Order
that during the interim period individual carrier-payors and the payphone
service providers have the option of mutually agreeing to pay per-call
compensation for all or a portion of a particular carrier's share of the
interim flat rate.  The Commission further stated that before
implementing such an arrangement, a carrier-payor would have to petition
the Commission for a waiver of its flat-rate compensation obligations. 
Telco has petitioned the Commission for such a waiver. 

  In its petition, Telco states that, as applied to it, the interim
compensation requirement is "patently unfair" because Telco receives "an
extraordinarily small percentage of calls from payphones."  Telco
estimates, for example, that during the month of January, 1997, Telco
received less than one-half of one percent of its calls through payphones. 
Telco alleges that it currently has the technical capability to track and
compensate for  payphone calls by linking payphone call identifiers to a
payphone provider database, thereby allowing Telco to calculate on a
regular basis the amount owed each payphone provider.  It further states
that it has the capability to track payphone calls for the entire interim
period.  Telco, therefore, seeks Commission authority to pay payphone
service providers at a per-call rate of $.35 instead of paying its
proportional share of the monthly flat-rate, as set forth in the Payphone
Order, for the entire interim period of November 6, 1996 through October
6, 1997.  In support of its request, Telco asserts that the Common
Carrier Bureau granted similar waivers from the obligation to pay
compensation on a flat-rate basis for access code calls in another
proceeding.  
  Interested parties should file an original and four copies of
comments on Telco's petition by June 3, 1997, and of reply comments by
June 13, 1997, with the Secretary, Federal Communications Commission,
Room 222, 1919 M Street, N.W., Washington, D.C. 20554.  In addition,
one copy should be sent to Chief, Enforcement Division, Common Carrier
Bureau, Mail Stop 1600A, Room 6008, 2025 M Street, N.W., Washington,
D.C. 20554, and one copy should be sent to the Commission's contractor
for public service records duplication, International Transcription Service,
Inc. (ITS), 2100 M Street, N.W., Suite 140, Washington, D.C. 20037. 
Telco's petition will be available for public inspection during regular
business hours in the FCC Reference Room, Room 239, Federal
Communications Commission, 1919 M Street, N.W., Washington, D.C.
20554, or through ITS at 202/857-3800.       

  This proceeding will be treated as a non-restricted notice and
comment proceeding.  Ex parte presentations are permitted, except during
the Sunshine Agenda period, provided that they are disclosed as provided
in the Commission's rules.

  For further information, contact Greg Lipscomb or Michael Carowitz,
Enforcement Division, Common Carrier Bureau, 202/418-0960.

  
-- FCC --