NEWSReport No. DC 96-14      ACTION IN DOCKET CASE            February 14, 1996

               COMMISSION MOVES TO IMPLEMENT TELECOMMUNICATIONS 
ACT OF 1996 AND SEEKS COMMENT ON BOC PROVISION OF OUT-OF-REGION,
                      INTERSTATE, INTEREXCHANGE SERVICES
                             (CC DOCKET NO. 96-21)

     Less than one week after enactment of the Telecommunications Act of 1996, the
Commission has taken its third action towards implementing the new law.  The Commission
today proposed rules to facilitate the rapid entry of Bell Operating Companies' (BOCs) into
the "out-of-region" interstate, interexchange services market.  

     The Commission issued a Notice of Proposed Rulemaking seeking comment on its
tentative conclusion to allow affiliates of BOCs that provide out-of-region interstate,
interexchange service to be regulated as non-dominant carriers.  As non-dominant carriers,
these BOC affiliates would be able to begin offering service almost immediately upon filing
their tariffs.  The Commission also sought comment on its tentative conclusion that BOCs
that provide such out-of-region services directly should be regulated as dominant carriers.  In
seeking to facilitate entry by the BOCs into the provision of out-of-region interstate,
interexchange services, the Commission tentatively concluded that the separation
requirements currently applied to independent local exchange companies provide a useful
model upon which to base, on an interim basis, regulation of BOC provision of out-of-region
interstate, interexchange services.  

     The Commission tentatively concluded that, for now, if a BOC creates a separate
affiliate to provide out-of-region interstate, interexchange services, and if the affiliate
satisfies the conditions set forth in the Competitive Carrier Fifth Report and Order, then the
affiliate will be classified as a non-dominant carrier.  These conditions are that the affiliate
must: 1) maintain separate books of account; 2) not jointly own transmission or switching
facilities with the BOC LEC; and 3) obtain any BOC exchange telephone company services
at tariffed rates and conditions.  The Commission also tentatively concluded that, at least for
the present time, if a BOC directly, or through an affiliate that does not comply with the
separation requirements, provides out-of-region interstate, interexchange services, those
services will be regulated as dominant carrier offerings.




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     The Commission invites comment on its tentative conclusions regarding BOC
provision of out-of-region, interstate, interLATA and intraLATA services.  The Commission
stated that parties who disagree with these tentative conclusions should explain with
specificity their positions and offer alternative regulatory policies.

     Under an expedited pleading cycle, comments are due in this proceeding 21 days
from publication in the Federal Register, and reply comments are due 10 days from the date
set for filing comments.

     Action by the Commission February 14, 1996, by Notice of Proposed Rulemaking
(FCC 96-59).  Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong.


                                     -FCC-

     News Media contact: Mindy J. Ginsburg at (202) 418-1500.
     Common Carrier Bureau contacts: Melissa Waksman at (202) 418-0913, and Michael
H. Pryor at (202) 418-0495.