NEWSReport No. DC 95-97    ACTION IN DOCKET CASE              July 13, 1995


                    FCC SEEKS COMMENT ON INITIATIVES
                  TO INCREASE TELEPHONE SUBSCRIBERSHIP
                     (CC DOCKET NOS. 95-115, 80-286) 

     The FCC today opened a proceeding to explore a variety of initiatives to increase
telephone subscribership.  While telephone subscribership in the United States averages 94%,
certain segments of the population have much lower subscribership rates, and three states
have average subscribership rates below 90%.

     The Notice of Proposed Rulemaking (NPRM) adopted today seeks comment on ways
in which the market can work to reduce obstacles that prevent those who want telephone
service from being able to afford it and help those with service to maintain it.  The
Commission stated that its review of non-subscribership data and the reasons for non-
subscribership, together with the ever-broadening variety of services being offered, indicate
that a combination of measures may offer the best opportunity to enhance individuals' ability
to subscribe.  The NPRM seeks, in particular, information on ways wireless and cable
technologies can be used and will be available in the future to meet this goal.

     According to several recent studies, a large percentage of those disconnected from the
network once received telephone service.  The NPRM identifies potential alternatives to help
reconnect past subscribers disconnected for failure to pay long-distance charges and to help 
low-income subscribers stay connected.  To help keep these subscribers on the network, the
Commission is considering requiring Local Exchange Carriers (LECs) to offer interstate
long-distance blocking at reasonable rates, and seeks information on LECs' ability to offer
related services such as limiting interstate long-distance usage to preset monthly charges or
minutes of use.  Alternatively, the Commission is considering whether to prohibit LECs from
disconnecting local service based on nonpayment of interstate long-distance charges.

     To promote reconnection of former customers who face the obstacle of large deposits,
the Commission is seeking information on proposals to require carriers to adjust deposit
requirements for low-income subscribers if they agree to commensurate limitation of long-
distance service. 

 (over)
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     The NPRM also seeks comment on ways to connect schools and libraries to the
network.  In addition, the NPRM seeks comment on how the marketplace can operate to
make services such as voice mailboxes available to highly mobile low-income persons, and
whether Link Up assistance should be extended to cover such services for low-income
individuals not already telephone subscribers.

     Action by the Commission July 13, 1995, by Notice of Proposed Rulemaking (FCC
95-281).  Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong.  


                                   -FCC-

News Media contacts: Susan Lewis Sallet at (202) 418-1500.
Common Carrier Bureau contacts: Andrew Mulitz at (202) 418-0827, George Johnson at
(202) 418-0866, Tim Peterson at (202) 418-0847.