NEWSReport No. DC-594     COMMON CARRIER ACTION           December 23, 1994

          DAMAGES AWARDED FOR LEC VIOLATIONS OF RATE OF RETURN
                              PRESCRIPTION

     In response to complaints filed by several long distance carriers, the Commission has
determined that 21 local exchange carriers (LECs) have violated the Communications Act by
earning in excess of the rate of return for interstate access services prescribed by the
Commission for the period January 1, 1989, through December 31, 1990. 

     The complainants, with the LECs about whom they complained in parenthesis, are
American Network Exchange et al. (Pacific Bell); Cable&Wireless et al. (GTE California,
GTE Florida, GTE North - Indiana, Michigan, Missouri and Wisconsin, GTE Northwest,
Contel West Rate Group, Contel East/South Rate Group, New York Telephone, BellSouth,
Ameritech, US WEST);  Call-America (US WEST); LDDSMetromedia Communications
(United Telephone Company of Florida, United Telephone System - Midwest, Centel -
Texas, Centel - Virginia, Cincinnati Bell); MCI Telecommunications Corp.  et al. (New
York Telephone, BellSouth, Ameritech, East Ascension Telephone Co., Cincinnati Bell,
Southwestern Bell);  and WilTel, Inc. (Pacific Bell).

     The Commission awarded monetary damages, plus interest, for the defendants'
violations but allowed the defendants to offset the complainants' damages to the extent that
the complainants purchased access services from the defendants during the period in question
at rates that produced earnings below the Commission's prescribed levels.  After taking into
account these offsets,  the Commission has ordered the LECs to pay monetary damages
amounting to $3,435,968, exclusive of interest.  The highest single damages award is against
US West in the amount of $926,779.  US West is also liable in the aggregate for
$1,236,709, the highest aggregate damages awarded against any defendant in this proceeding.

     Action by the December 23, 1994, by Memorandum Opinion and Order (FCC 94-
339).  Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong.

                                  - FCC -

     News Media contact: Susan Lewis Sallet and Maureen Peratino at (202) 418-0500.
     Common Carrier Bureau contacts: Donna N. Lampert at (202) 418-1500 and Colleen
Heitkamp at (202) 418-0960.