BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION 

In the Matter of the Petition of 

Qwest Communications Corporation 
LCI International Telecom Corp.
USLD Communications, Inc.
Phoenix Network, Inc., and
TeleDistance, Inc.,

For Waiver of WAC 480-120-139.
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		DOCKET UT-000257
		
		ORDER GRANTING LIMITED WAIVER OF RULES

BACKGROUND

  On February 24, 2000, Qwest Communications Corporation, LCI International 
Telecom Corp., USLD Communications, Inc., and Phoenix Network, Inc., 
(collectively “the Qwest Subs”), and TeleDistance, Inc. (TeleDistance) jointly 
filed a petition requesting waiver of WAC 480-120-139 for the transfer of 
intralata and interexchange toll customers from the Qwest Subs to TeleDistance. 
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 
requirements in the rule.  

DISCUSSION

  In order to comply with Section 271 of the Communications Act of 1934, as 
amended in 1996, Qwest Communications International, Inc. (Qwest Inc.), 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 Qwest 
Subs are subsidiaries of Qwest, Inc.  Prior to the U S WEST/Qwest Inc., merger 
Touch America, Inc., will purchase the stock of TeleDistance Holdings, Inc. (TD 
Holdings), a wholly owned subsidiary of  Qwest Inc., 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).

  Upon the assignment of assets of the Qwest Subs to TeleDistance, the Qwest 
Subs customers will be transferred to TeleDistance without authorization from 
each customer. This request is limited specifically to this transference of 
Qwest Subs’ customer base to TeleDistance. Customer notices have been reviewed 
and will be mailed to all affected customers informing them of their options.  
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 customer’s choice within 60 days of the notice of the 
transfer.  TeleDistance and TA Services agreed to maintain the customers’ 
existing rates, terms and conditions for a period of 90 days following the 
consummation of the stock transfer.  

  This matter was brought before the Commission at its May 24, 2000,  regularly 
scheduled open meeting, recessed and continued on May 30, 2000. 

FINDINGS OF FACT 

  1.  Qwest Communications Corporation, LCI International Telecom Corp., USLD 
Communications, Inc., and Phoenix Network, Inc., and TeleDistance, Inc., are 
public service companies subject to the jurisdiction of this Commission under 
the provisions of chapter 80.36 RCW. 

  2.  The limited waiver of WAC 480-120-139 as described above, is reasonable 
and consistent with the public interest, and should therefore be approved. 
O R D E R 

  THE COMMISSION ORDERS: 

  After the effective date of this order, TeleDistance, Inc., is hereby granted 
a limited waiver of WAC 480-120-139, for the initial transfer of intralata and 
interexchange toll customers from Qwest Communications Corporation, LCI 
International Telecom Corp., USLD Communications, Inc., and Phoenix Network, 
Inc.

  DATED at Olympia, Washington, and effective this 30th day of May, 2000. 

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION 


    
     MARILYN SHOWALTER, Chairwoman 



     WILLIAM R. GILLIS, Commissioner