BEFORE THE WASHINGTON UTILTIES AND TRANSPORTATION COMMISSION




In the Matter of Request for  )  Comments of U S WEST
Comment on 1st Draft    )
Universal Service Rules  )
and Comments on Affordability )
______________________________)


 U S WEST submits these comments pursuant to the Commission’s Notice of Request 
for Comment on 1st Draft Universal Service Rules and Comments on Affordability 
dated August 21, 1998.  As previously stated, the Commission’s proposed rules 
should be consistent both with the Communications Act of 1934, ch. 652, 48 
Stat. 1064 (1934)(codified as amended at 47 U.S.C. § 151 et seq.) as amended by 
the Telecommunications Act of 1996,  P.L. 104-104, 110 Stat. 56 (1996) 
(hereinafter collectively referred to as the “Act”) and the Washington 
Telecommunications Act (Senate Bill 6622).  The proposed rules currently do not 
comply with either.  Specifically, the proposed rules: 

do not provide predictable support
I. are not competitively neutral 
II. unduly discriminate against registered intrastate telecommunications 
carriers
III. do not create an explicit funding source but rather continue implicit 
subsidies
do not contain the provisions necessary for the preservation and advancement of 
universal telecommunications service 
IV. support service beyond the basic services defined in section 1(7) of the 
Washington Telecommunications Act (Senate Bill 6622)

The Commission should direct its staff to significantly modify these proposed 
rules and prepare by the deadline mandated by Senate Bill 6622, a proposal for 
the state Legislature to consider that promotes investment in and the continued 
availability of affordable basic telephone service.  
U S WEST also respectfully requests that the Commission direct its staff to 
expand the proposed rule section - WAC 480-123-3XX  Eligible Telecommunications 
Carriers (ETC) to specifically include rule provisions that address the 
outstanding issue from Docket UT-961638, concerning the obligation of local 
exchange carriers who are not designated as the ETC for areas they currently 
serve, as well as for unserved areas. The Commission should also direct its 
staff to rewrite the rule sections that impose penalties not authorized by 
statute; which include WAC 480-123-240 Revenue Reports, and WAC 480-123-270 
Determination of Contribution.
 U S WEST appreciates the Commission’s invitation to comment on these important 
rules which are intended to maintain and advance affordable, universal basic 
telecommunications service. U S WEST also comments on the topics of affordable 
telecommunications service and appropriate outcome measures for the 
determination of success in maintaining and advancing affordable, universal 
basic telecommunications service.  Following are U S WEST’s comments which 
focus on areas where the proposed rules do not comply with federal and state 
law and contain suggested language necessary to bring the proposed rules into 
compliance.


I.  THE COMMISSION’S PROPOSED RULES PROVIDE LITTLE
OR NO BENEFIT TO U S WEST’S HIGH COST CUSTOMERS AND INCREASE THE BURDEN ON U S 
WEST’S CUSTOMERS THAT PROVIDE SUPPORT TO ITS HIGH COST CUSTOMERS TODAY.

While the final impact on U S WEST’s customers cannot fully be determined until 
the Commission makes other decisions on how its high cost mechanism will work, 
it is very probable that the Commission’s rules as proposed, will not provide 
support to      U S WEST”s high cost customers.  The proposed rules provide 
little or no relief to