NEWSReport No. CC 95-53    COMMON CARRIER ACTION             September 22, 1995

                      FCC EXTENDS THE EFFECTIVE DATE
                       OF THE INTERIM TRANSPORT RULES

     The Commission has extended the effective date of the interim transport rules,
designed to more closely align transport rates with the manner in which local exchange
carriers (LECs) incur the costs of providing interexchange transport service.  The
Commission developed and implemented these rules over the course of several orders in
order to encourage more efficient usage and deployment of telecommunications networks and
to foster full and fair competition in the long distance market.  The Commission also
dismisses in part and grants in part MCI's petition regarding the Third Reconsideration Order
in this proceeding.

     In the Memorandum Opinion & Order announced today, the Commission decided that
the interim transport rate structure rules should be retained beyond October 1995.  In
addition, the Commission dismisses as moot an MCI request for clarification regarding the
implementation of a rate adjustment that LECs were permitted to request by March 31, 1995,
but which no LEC sought by that deadline.  Finally, in an earlier order in this proceeding,
the Commission had clarified that, while the LECs may offer volume and term discounts on
transport services under certain conditions under the pricing flexibility rules, those rules do
not contemplate growth or percentage discounts.  MCI asked the Commission to clarify that
this does not preclude LECs from seeking waivers to offer percentage or growth discounts if
the LEC can show that the discounts are cost-based.  In this item, the Commission grants the
requested clarification, noting that a LEC may seek a waiver under the Commission's normal
waiver standards.

     Action by the Commission September 22, 1995 by Fourth MO&O on Reconsideration
(FCC 95-404).  Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong.

                                  - FCC -

News Media contact: Susan Lewis Sallet at (202) 418-1500.
Common Carrier Bureau contact: David L. Sieradzki at (202) 418-1576.