NEWS                                              February 27, 1996

             FCC RELEASES NEW TELEPHONE SUBSCRIBERSHIP REPORT
       LOW INCOME HOUSEHOLDS LESS LIKELY TO HAVE TELEPHONE SERVICE

     The FCC today released its latest report on telephone subscribership levels in the
United States.  Statistics for November 1995 indicate that 93.9% of all households in the
United States have a telephone.  While the report found that overall subscribership rates are
up from November 1994, they are still below the maximum of 94.2% reached in 1993.  The
report also continues to show substantially lower subscribership levels for low income
households as well as significant differences by state, race, age, household size, and
employment status.

     In November 1995, the telephone subscribership rate was only 75.0% for households
with annual incomes below $5,000, while the subscribership rate for households with
incomes over $60,000 was 99.1%.  The statistics may seem obvious, but they also point to a
significant problem.  The increasing importance of the public switched network in connecting
households to the economy means an increasing disconnect from the economy for those not
on the network, making it harder for those households to escape poverty.

     By state, the penetration rates for November 1995 ranged from 86.7% in New
Mexico to 97.7% in Utah.  Households headed by a white person had a penetration rate of
95.0%, while those headed by a black person had a penetration rate of only 86.7% and those
headed by a person of Hispanic origin have a penetration rate of only 85.8%.  By age,
penetration rates ranged from only 85.0% for households headed by a person under 25 to
96.3% for households headed by a person between 60 and 69.  The penetration rate for
unemployed adults was 89.2%, while the penetration rate for employed adults was 95.7%.

     This report is updated every four months and is available in the Common Carrier
Bureau's Public Reference Room, 5th floor, 1919 M Street, NW.  Copies may be purchased
by calling International Transcription Service at (202) 857-3800.  This report can also be
downloaded [file name: SUBS1195.ZIP] from the FCC-State Link computer bulletin board,
which can be reached directly at (202) 418-0241.  The FCC-State Link can also be reached
by using a gateway feature available through FedWorld, which can be reached via direct dial
access at (703) 321-3339, via internet telnet access (fedworld.gov), or via the World Wide
Web (http://www.fedworld.gov).

                                  - FCC -

For further information, contact Alexander Belinfante at (202) 418-0944.