PUBLIC SERVICE COMMISSION

Statutory Authority: 14 Delaware Code, Section 122(d) (14 Del. C. 122(d))

FINAL

PSC Regulation Docket 12 (Track III), Rules to Govern Payphone Services

BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF DELAWARE

IN THE MATTER OF THE |

INVESTIGATION AND ADOPTION |PSC

OF RULES TO GOVERN PAY PHONE | REGULATION

SERVICES WITHIN THE STATE | DOCKET 12

DELAWARE | (TRACK III)

ORDER NO. 4885

AND NOW, to wit, this 25th day of August, A.D. 1998;

WHEREAS, in the Telecommunications Act of 1996, Congress directed the Federal Communications Commission (“FCC”) to promulgate regulations to ensure fair compensation for pay phone service providers (“PSPs”) and to ensure competitive parity between independent PSPs and pay phone services provided by Bell operating companies. 47 U.S.C. 276;

AND WHEREAS, pursuant to the federal enactment , the FCC has issued two Orders (FCC 96-388 and FCC 96-439) directing a two-phase restructuring and deregulation of pay phone services;

AND WHEREAS, in light of the enactment of 47 U.S.C. 276 and the entry of the FCC’s implementing orders, the Commission decided, pursuant to 26 Del. C. Sections 210, 209, to investigate the repeal or revision of the Rules governing pay phone services and the possible adoption of new rules to govern such services within Delaware;

AND WHEREAS, by Order No. 4525, dated June 17, 1997, the Commission adopted a two-track approach for its investigation and rule-making concerning pay phone services in Delaware.

AND WHEREAS, having concluded Track I, the Commission’s designated Hearing Examiner, on July 22, 1998, filed his Track II Report with the Commission with the findings and recommendations concerning the issue of whether or not the Commission should adopt a state plan to implement, administer, and fund public interest pay phones (“PIPs”);

AND, the Commission having considered the recommendation in the Report of the Hearing Examiner, which is incorporated herein by this reference, and, by the affirmative vote of a majority of its members, approved that recommendation; now therefore,

IT IS ORDERED:

1. That the Commission hereby adopts in its entirety the July 22, 1998 Report of the Hearing Examiner, attached to the original hereof as Exhibit “A”.

2. That by so doing, the Commission finds and concludes that there is no identifiable need for a PIP program in Delaware at this time, thus adoption of PIP rules is unncessary.

3. The Commission reserves the jurisdiction and authority to enter such other or further Orders in this matter as may be deemed necessary or proper.

BY ORDER OF THE COMMISSION:

Chairman

Vice-Chairman

Commissioner

Commissioner

ATTEST:

Acting Secretary

2 DE Reg. 695 (10/01/98) (Final)