[Federal Register Volume 60, Number 108 (Tuesday, June 6, 1995)]
[Notices]
[Pages 29848-29849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13381]



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FEDERAL COMMUNICATIONS COMMISSION

[DA 95-1092]


Applications for Review on Responsible Accounting Officer Letter 
25 (``RAO Letter 25'')

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This notice invites comments on applications filed for review 
of Responsible Accounting Officer Letter 25 (April 19, 1995, 60 FR 
19591).
    The Commission on November 7, 1994, issued the Video Dialtone 
Reconsideration Order (``VDT Recon Order''). In that Order, the 
Commission reaffirmed its basic video dialtone framework adopted in the 
Second Report and Order, and, among other things, required carriers 
offering video dialtone to establish two sets of subsidiary accounting 
records to capture the wholly dedicated and shared video dialtone 
investment, expense and revenue. The VDT Recon Order also requires 
carriers to file a summary of these subsidiary accounting records with 
the Commission on a quarterly basis. The Commission delegated to the 
Common Carrier Bureau the authority to define the content and format of 
both the subsidiary accounting records and the quarterly reports, and 
to provide accounting guidance where necessary for uniform 
classification of video dialtone investment, expense and revenue. 
Finally, the VDT Recon Order required carriers to file revisions to 
their cost allocation manuals (``CAMs'') to reflect the provision of 
video dialtone service. On April 3, 1995, the Accounting and Audit 
Division issued RAO Letter 25 setting forth specific guidance on the 
requirements for accounting classifications, subsidiary records, and 
amendments to CAMs for carriers that provide video dialtone service.

DATES: Comments are due May 30, 1995. Reply comments are due June 9, 
1995.

ADDRESSES: Federal Communications Commission, 1919 M Street, NW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:
Kim Yee, Common Carrier Bureau, Accounting and Audits Division, (202) 
418-0810.

SUPPLEMENTARY INFORMATION:

Bell Atlantic Telephone Companies, BellSouth Telecommunications, Inc., 
GTE Service Corporation, Southwestern Bell Telephone Company, US West 
Communications, Inc., and National Telephone Cooperative Association 
File Applications for Review of Responsible Accounting Officer Letter 
25

Public Comments Invited

    On May 3, 1995, Bell Atlantic Telephone Companies (``Bell 
Atlantic''), BellSouth Telecommunications, Inc. (``BellSouth''), GTE 
Service Corporation (``GTE''), Southwestern Bell Telephone Company 
(``Southwestern''), US West Communications, Inc. (``US West'') and 
National Telephone Cooperative Association (``NTCA'') filed with the 
Commission separate Applications for Review of Responsible Accounting 
Officer Letter No. 25 (RAO Letter 25), which was issued by the Common 
Carrier Bureau under delegated authority on April 3, 1995 (DA 95-703). 
RAO Letter 25 provides guidance on video dialtone accounting to local 
exchange carriers that receive Section 214 authorizations to provide 
video dialtone service. It sets forth specific guidance on the 
requirements for accounting classifications, subsidiary records, and 
amendments to cost allocation manuals (``CAMs'') for LECs that provide 
video dialtone service.
    Bell Atlantic, BellSouth, Southwestern Bell and US West state that 
RAO Letter 25 exceeds the scope of the Bureau's delegated authority. 
Bell Atlantic, GTE, Southwestern Bell, BellSouth and US West contend 
that RAO Letter 25 creates a new product-specific or cost-of-service 
type of accounting system that is contrary to the Commission's existing 
Part 32 rules and that it is too costly to implement. BellSouth and 
Southwestern Bell state that RAO Letter 25 incorrectly classified the 
asynchronous transfer mode (``ATM'') equipment as circuit equipment. 
BellSouth, GTE and US West also claim that the CAM revisions required 
by RAO Letter 25 are unnecessary. In addition, GTE also states that RAO 
Letter 25 conflicts with FCC rules and policies for retirement of 
investments and depreciation and income tax calculations. All 
petitioners request the Commission to revise or modify the RAO Letter 
25. Finally, BellSouth and NTCA request the Commission to rescind the 
letter.
    Ex Parte Rules--Non Restricted Proceeding. This is a non-restricted 
notice and comment proceeding. Ex Parte presentations are permitted, 
provided that they are disclosed as provided in Commission Rules. See 
generally 47 C.F.R. Sections 1.1202, 1.1203, and 1.106(a).
    Parties may file comments on the Applications for Review no later 
than May 30, 1995. Replies should be filed by June 9, 1995. Comments 
should reference AAD 95-68. A copy of each pleading should be sent to 
Kenneth Ackerman and Daniel Gonzalez, Common Carrier Bureau, 2000 L 
Street, NW., Room 812, Washington, DC 20554, and the International 
Transcription Service (ITS), 2100 M Street, NW. Suite 140, Washington, 
DC 20037, (202) 857-3800. Copies of the Applications for Review and any 
comments will be available for public inspection and copy in the 
Accounting and Audits public reference room, 2000 L Street, NW., Room 
812, Washington, DC Copies are [[Page 29849]] also available from ITC. 
For further information contact Kenneth Ackerman, or Daniel Gonzalez 
(202) 418-0810.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 95-13381 Filed 6-5-95; 8:45 am]
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