PUBLIC NOTICE Federal Communications Commission 1919 M St., N.W. Washington, D.C. 20554 DA 97-1145 June 2, 1997 APPLICATION FOR ALTERNATIVE SETTLEMENT RATE AGREEMENT UNDER FLEXIBILITY STANDARD ACCEPTED FOR FILING ISP-97-PDR-340 AT&T; AT&T Alascom AT&T, on behalf of itself and AT&T Alascom Inc. ("AT&T") has petitioned the Commission for a declaratory ruling that an alternative settlement arrangement negotiated with International Telecom Japan ("ITJ"), for services to and from Japan is permitted under the framework adopted by the Commission in the Flexibility Order. AT&T submits that the alternative arrangement will result in lower net settlement outpayments by AT&T to Japan, reduce call termination costs, and will move accounting rates to cost before the expiration of the Commission's proposed benchmark transition period. AT&T further submits that the alternative settlement arrangement will not present a potential for market abuse because the agreement binds ITJ, a secondary carrier in Japan, to make available the same terms and conditions to all U.S. carriers, continues ITJ's proportionate return obligations with respect to the delivery of its billed traffic to the U.S., and eliminates the risk of asymmetric arrangements. 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 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 oppositions 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-97-PDR-340. 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 -