Report No. DC-2622         ACTION IN DOCKET CASE              July 11, 1994


         COMMISSION ADOPTS NEW ALLOCATION PROCEDURES FOR UNROUTED
                  SHIP-TO-OVERSEAS INMARSAT TELEX TRAFFIC
                          (CC DOCKET NO. 88-245)

     The FCC has adopted new procedures concerning  the allocation
of unrouted ship-to-overseas telex traffic transmitted over  coast
earth stations accessing INMARSAT.  Specifically, under the new
rules, COMSAT, and other United States coast earth station
operators that provide service through INMARSAT space segment, will
not be required to utilize any particular allocation method for
distributing unrouted ship-to-overseas telex traffic.

     Ship-to-overseas telex traffic is telex traffic sent via the
INMARSAT space segment from a ship to a COMSAT or other coast earth
station in the United States, then carried over the facilities of
a U.S. carrier to a foreign destination.  Some of this telex
traffic is not routed by the shipboard originator to a particular
terminating carrier.  The present allocation method is a rotational
scheme that guarantees carriers an equal share in the distribution
of such unrouted traffic.   

     The Commission declined to mandate any allocation method which
would compel COMSAT and other U.S. coast earth station operators to
allocate unrouted ship-to-overseas telex traffic coast to
terminating carriers.  Instead, the Commission granted discretion
to the coast earth station operators to enter into flexible routing
arrangements to best serve the interests of their customers in
obtaining technically satisfactory service at the least cost.  The
Commission also encouraged any entity, including a terminating
carrier, to build and operate its own coast earth station to
provide INMARSAT service.

     Action by the Commission June 13, 1994, by Report and Order
(FCC 94-158).  Chairman Hundt, Commissioners Quello and Barrett,
with Commissioners Ness and Chong not participating.

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.
     Common Carrier Bureau contact: Joel Perlman at (202) 418-1485.