DOCKET NO. UT-980416                                                  PAGE 1

BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



In the Matter of the Filing of  )
      ) DOCKET NO. UT-980416
U S WEST COMMUNICATIONS, INC. ) 
      )
for Approval of a New Digital  ) FIRST SUPPLEMENTAL ORDER 
Subscriber Line Service Offering ) DEFERRING EFFECTIVE DATE 
Denominated as “MegaBit Service” ) OF MEGASUBSCRIBER SERVICE
. . . . . . . . . . . . . . . . . . . . . . . . . . )  


BACKGROUND

  In the Commission’s Order Setting Banded Rate Provisions of MegaBit Services 
Tariff, With Conditions, entered on April 22, 1998, the Commission approved a 
revised tariff filed by U S WEST Communications, Inc. (“U S WEST”), for the 
Company’s proposed digital subscriber line service, which it calls “MegaBit 
Services.”  That approval was subject, inter alia, to the conditions agreed to 
by U S WEST and accepted by the Commission at its open meeting on April 22, 
1998.  

  Among the conditions to the approval was a two-phase roll out of the service 
as proposed by Commission Staff in a memorandum dated April 8, 1998, and agreed 
to by U S WEST both orally and by letter dated April 21, 1998.  That adopted 
condition included a requirement that the originally-planned June 19 roll out 
for MegaSubscriber Service be deferred if the Company is not reasonably able to 
satisfy all initial Internet Service Provider (“ISP”) orders for MegaCentral 
Service by the June 19, 1998, date.

  At the Commission’s open meeting on June 15, 1998, Commission Staff and the 
Washington Association of Internet Service Providers (“WAISP”) presented 
evidence that the conditions incorporated into the Commission’s earlier order 
were not met.  Specifically, Staff and WAISP presented compelling evidence that 
U S WEST has not fulfilled more than 85% of the orders for MegaCentral Service 
and would not satisfy all ISP orders by the originally planned June 19 roll 
out.  Pursuant to U S WEST’s response to Staff’s data request, as of 
June 12, 1998, the company had only installed the necessary central office 
equipment needed to provision MegaBit Service in four of its forty-two 
designated central offices.  Without this equipment, MegaBit Service cannot be 
provided.  In addition, U S WEST determined that only four of the initial 
thirty-two orders for MegaCentral Service would not require new construction 
and thus many of these orders would not be completed by the target date of June 
19, 1998. 

  Prior to making this filing, U S WEST knew the locations of Internet Service 
Providers located in its operating region.  The company also knew what 
facilities it had in place which would be available to fulfill projected orders 
for this service.  U S WEST should have been aware that additional interoffice 
facilities would be required to provide MegaBit Service prior to filing its 
proposed tariff in March.  The Commission’s previous order dated April 22, 
1998, set forth the conditions on which the tariff would become effective.  As 
described above, we believe that U S WEST has not met the necessary conditions 
under which it would be permitted to begin the second phase of the roll out for 
this service.


FINDINGS

  Therefore, the Commission finds as follows:

  1. The condition contained in our April 22 Order that U S WEST reasonably 
satisfy all orders of Internet Service Providers for MegaCentral Service prior 
to the planned roll out of MegaSubscriber Service has not been met and, 
therefore, the planned date for taking orders for MegaSubscriber Service of 
June 19, 1998, should be deferred.

  2. Based on the representation by U S WEST that 90% of the outstanding orders 
for MegaCentral Service will be completed by July 9, 1998, we find that a 
sufficient portion of those outstanding orders will be complete by that date so 
as to be consistent with the intent of our April 22 Order.


O R D E R

  THE COMMISSION ORDERS That U S WEST must not begin taking orders for its 
MegaSubscriber Service prior to July 9, 1998, consistent with the intent of our 
April 22 Order.

  DATED at Olympia, Washington, and effective this 18th day of
June 1998.


WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



      ANNE LEVINSON, Chair



      WILLIAM R. GILLIS, Commissioner