PUBLIC NOTICE
 FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET, N.W.
       WASHINGTON, D.C. 20554DA 97-1230

News media information 202/418-0500     Fax-On-Demand  202/418-2830     Internet:  http://www.fcc.gov    ftp.fcc.gov
                                
   RURAL TELEPHONE SERVICE COMPANY, INC. AND UNITED TELEPHONE
COMPANY OF KANSAS FILED A PETITION FOR WAIVER OF SECTION 61.41(C)
 AND THE DEFINITION OF "STUDY AREA" CONTAINED IN THE APPENDIX-
         GLOSSARY OF PART 36 OF THE COMMISSION'S RULES
                           AAD 97-73

                                         Released:  June 13, 1997

Comment Date:  July 3, 1997
 Reply Date:      July 14, 1997

     On May 29, 1997, Rural Telephone Service Company, Inc. ("Rural") and United Telephone
Company of Kansas ("United") 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, effective November 15, 1984.  Rural and United seek to alter
the boundaries of their existing Kansas study areas to reflect the sale of the Quinter and Wakeeney
exchanges from United to Rural.

     In addition, Rural seeks a waiver of Section 61.41(c) 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 Rural to continue operating under rate-of-return regulation after acquiring the United
exchanges which currently are under price cap regulation.  The petitioners submitted a letter from
the Kansas Corporation Commission indicating that it does not object to the changes in the study
area boundaries caused by transferring the exchanges from United to Rural.    

     Interested parties may file comments on the petition on or before July 3, 1997, and reply
comments on or before July 14, 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 97-73.  Four (4) copies should also be sent to Adrian Wright, Competitive
Safeguards Branch, Common Carrier Bureau, Room 257, 2000 L Street, N.W., Washington, D.C.
20554, 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 permit-but-disclose proceeding 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.  For further information contact Adrian Wright at (202)
418-0840.
                                 
                FEDERAL COMMUNICATIONS COMMISSION