Report No. DC-2618        ACTION IN DOCKET CASE     June 17, 1994

                GRANT OF STRUCTURAL RELIEF TO BOCS UPHELD
                    (CC DOCKETS 90-623, 88-2, PHASE I)

     The Commission has upheld the Common Carrier Bureau's action
granting petitions by the Bell Operating Companies (BOCs) for
removal of the structural separation requirement pursuant to the
BOC Safeguards Order.

     The BOC Safeguards Order stated that the structural
separation requirement applicable to the BOCs' provision of
enhanced services would be removed for each BOC when it files a
notice informing the Commission that it is technically prepared
to offer its Open Network Architecture (ONA) services, it has
effective federal tariffs for each of its initial interstate ONA
services, and it has filed state tariffs for each of its initial
intrastate ONA services.  Over a period of nine months, each of
the BOCs filed  notice certifying its compliance with the above
criteria.  The Common Carrier Bureau subsequently issued orders
granting structural relief for each BOC. 

     The Newspaper Association of America (NAA) filed
applications for review of six of the Bureau's orders granting
structural relief to Bell Atlantic, US West, Ameritech,
Southwestern Bell, Pacific Bell, and BellSouth.  

     The Commission rejected NAA's arguments that the Bureau's
decision to remove the structural separation requirement
conflicted with established ONA and Computer III policy.  The
Commission also rejected NAA's arguments that the Bureau's
application of the three criteria for structural relief should be
overturned or reversed.  Finally, the Commission rejected NAA's
argument that  structural relief should be deferred pending
review of the BOC Safeguards Order.  

     The Commission concluded that the Bureau acted appropriately
and within the scope of its authority in removing the
restrictions and that there was no need to defer relief pending
appellate review and deny the public the benefits of enhanced
services pending the court's decision. 

                                  (over)

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     Action by the Commission June 13, 1994, by Memorandum
Opinion and Order (FCC 94-163).  Chairman Hundt, Commissioners
Quello and Barrett with Commissioners Ness and Chong not
participating. 

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     News Media contact: Rosemary Kimball at (202) 418-0500.
     Common Carrier Bureau contacts: Peggy Reitzel at (202) 632-
1300; Gary Phillips at (202) 632-4048 and Jim Schlichting at
(202) 632-9342.