Report No. CC-565          COMMON CARRIER ACTION             March 10, 1994


             FCC CLARIFIES AND AMENDS REVIEW ORDER CONCERNING
                        NYNEX'S ENTERPRISE SERVICE

     The Commission has clarified and amended its Review Order
concerning NYNEX's Enterprise Service.

     Enterprise is provided largely over fiber-optic facilities,
and includes certain automated network management features such as
remote monitoring and provisioning.  Enterprise uses a bundled
multiplexer on a customer's premises to derive 24 DSO channels from
a DS1 circuit.  The 24th channel is used for communications with
the central office multiplexer to provide the automated network
management features, including remote monitoring and provisioning.

     On January 21, 1993, the FCC's Common Carrier Bureau granted
NYNEX a limited waiver of the prohibition against bundling of
customer premises equipment (CPE) to enable NYNEX to offer
Enterprise DSO service.  The Bureau, however, declined to apply the
multiplexer exception to that prohibition established in Computer
II.  The order limited the waiver to situations where a customer
subscribed to 22 or fewer Enterprise DSO channels at one location.

     The Commission, however, released a November 29, 1993 order
which overturned the Bureau's waiver order and directed NYNEX to
either: 1) withdraw Enterprise service; or 2) revise its offering
to provide service on an unbundled basis and publish standards for
multiplexer interconnection and interoperation as required by the
Commission's network disclosure rules.  In either case, the
Commission allowed the Bureau's waiver to remain in effect for
existing interstate customers for a 12-month transition period. 
Customers taking only intrastate service were not permitted to add
interstate circuits.

     On appeal, the United States Court of Appeals for the District
of Columbia granted NYNEX a stay of the Commission's Review Order. 
The Commission requested and was granted a remand on January 26,
1994.


                                  (over)




                                    -2-

     In the instant proceeding, the Commission amended the interim
provisions of its November 29 order.  Specifically, the Commission
will: 1) permit NYNEX to fill orders that were pending on the date
of release of this order; 2) permit purely intrastate customers of
Enterprise service to add interstate circuits; and, 3) limit
marketing activities by NYNEX to service offerings that comply with
the requirements of this order.  The Commission rejected NYNEX's
petition for waiver of the six-month network disclosure period
during which the unbundled service may not be offered.  Finally,
the Commission dismissed as moot NYNEX's request for stay with the
FCC because the court has ruled on the same issues.  This order is
effective when the Court lift's the stay.  

     Action by the Commission March 7, 1994, by Memorandum Opinion
and Order (FCC 94-53).  Chairman Hundt, Commissioners Quello and
Barrett.

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 632-5050.
     Common Carrier Bureau contact: Andrew Mulitz and Greg Vogt at
(202) 632-6917.