Agenda Date:  May 30, 2000
Item Number:

Dockets:   UT-000248, UT-000257, UT-000258


Company Name: TeleDistance, Inc.
   Qwest Communications Corporation
   LCI International Telecom Corp.
   USLD Communications, Inc.
   Phoenix Network, Inc.

Staff:   Tani Thurston, Consumer Program Specialist
   Fred Ottavelli, Senior Policy Strategist
   Teri Wallace, Regulatory Specialist
   Tami Schultz, Regulatory Specialist
   Kristen Russell, Telecommunications Policy Specialist
   Penny Hansen, Public Involvement Coordinator
   Jacob Wexler, Telecommunications Policy Specialist
   Vicki Elliott, Consumer Affairs Manager

Recommendation:

Issue an Order in Docket UT-000248 approving the application and petition of 
TeleDistance, Inc., for registration as a telecommunications company and 
classification as a competitive telecommunications company.

Issue an Order in Docket UT-000257 approving the petition request for a waiver 
of 
WAC 480-120-139, Changes in local exchange and intrastate toll services.  

Take no action on Docket UT-000258, since applicants are competitively 
classified, no approval is required.

Discussion:

In order to comply with Section 271 of the Communications Act of 1934, as 
amended in 1996, Qwest Communications International, Inc. (Qwest),  must divest 
itself of all prohibited interLATA services prior to the consummation of its 
proposed merger with U S WEST Communications, Inc. (U S WEST).  The following 
filings were made to accomplish the divestiture in the state of Washington.

Docket UT-000248 is an application and petition to register and competitively 
classify TeleDistance, Inc. (TeleDistance), as a competitive telecommunications 
company in the state of Washington.  TeleDistance has filed an initial price 
list with the same rates, terms and conditions currently contained in the price 
lists of Qwest Communications Corporation (QCC), LCI International Telecom 
Corp. (LCI), USLD Communications, Inc. (USLD), and Phoenix Network, Inc. 
(Phoenix).  

Docket UT-000258 notifies the Commission of the assignment of selected assets 
and customers    from the Qwest subsidiaries’ QCC, LCI, USLD and Phoenix 
(collectively the Qwest Subs) to TeleDistance.  The Qwest Subs, are currently 
registered telecommunications companies in the state of Washington.  Prior to 
the U S WEST/Qwest merger Touch America, Inc., will purchase the stock of 
TeleDistance Holdings, Inc. (TD Holdings), a wholly owned subsidiary of  Qwest  
which holds all of the stock of TeleDistance.  Shortly before or after Touch 
America, Inc., acquires control over TD Holdings and TeleDistance the corporate 
name of TD Holdings will be changed to Touch America Services Holdings, Inc. 
(TA Holdings), and the corporate name of TeleDistance will be changed to Touch 
America Services, Inc. (TA Services).  The transactions described above are 
outlined in Attachments A and B. 

Docket UT-000257 is a request for a waiver of WAC 480-120-139  allowing Qwest 
Subs to switch customers to TeleDistance without customer authorization as 
required by this rule.  Under WAC 480-120-139, “Changes in local exchange and 
intrastate toll services,” TeleDistance cannot submit a change in a customer’s 
intrastate toll service without confirming the customer’s authorization in 
accordance with the requirements in this rule.  Staff feels waiver is 
consistent with the public interest.

TeleDistance and TA Services have agreed the customers will bear no charge for 
the transfer of their service to TeleDistance or for any ensuing change to 
another carrier of the customers’ choice within 60 days of the notice of the 
transfer.  TeleDistance and TA Services agree to maintain the customers’ 
existing rates, terms and conditions for a period of 90 days following the 
consummation of the stock transfer. 

Conclusion:

Staff recommends the Commission issue Orders in Dockets UT-000248 and 
UT-000257  registering TeleDistance as a competitive telecommunications company 
and  approving a waiver of WAC 480-120-139.

Attachments