NEWSReport No. DC 96-45    ACTION IN DOCKET CASE               May 17, 1996

           COMMISSION INITIATES PROCEEDING TO CLARIFY CUSTOMER
        PROPRIETARY NETWORK INFORMATION PROVISIONS OF TELECOM ACT
                            (CC Docket 96-115)
                    (CC Docket Nos. 90-623 and 92-256)

       In response to requests from telecommunications companies, the Commission has
initiated a proceeding to clarify the provisions of the Telecommunications Act of 1996 that
govern the use of telecommunications customer information.  In a Notice of Proposed
Rulemaking (NPRM) released today, the Commission took steps to respond to issues raised
by the telecommunications industry about the customer proprietary network information
(CPNI) provisions of the new law.  The 1996 Act defines CPNI as information that relates to
the quantity, technical configuration, type, destination, and amount of use of a
telecommunications service by customers that is obtained by telecommunications carriers by
virtue of the carrier-customer relationship, including billing information.

       Section 222 of the 1996 Act establishes CPNI requirements, effective upon enactment,
for all telecommunications carriers.  The Act provides that, except as required by law or with
customer approval, a telecommunications carrier in possession of individually identifiable
CPNI may only use, disclose or permit access to that CPNI to provide the telecommunications
service from which the CPNI is derived, or services necessary to provide such service,
including publishing directories.  The law establishes three exceptions to this blanket
prohibition.  A telecommunications carrier may use individually identifiable CPNI to: (1)
initiate, render, bill and collect for telecommunications services; (2) protect the carrier's rights
or property or to protect users and other carriers from fraudulent, abusive, or unlawful use of
telecommunications services; or (3) provide inbound telemarketing, referral, or administrative
services to a customer, for the duration of the call, if the customer initiated the call and
approves of the use of CPNI to provide such service.  In addition, carriers are required to
disclose individually identifiable CPNI to any person designated by the customer upon
receiving the customer's affirmative written request.

       The 1996 Act specifies that a telecommunications carrier that provides telephone
exchange service must provide subscriber list information on a timely and unbundled basis,
under nondiscriminatory and reasonable rates, terms and conditions, to any person upon
request for the purpose of publishing directories.  Subscriber list information is defined as any
information identifying the listed names of subscribers and their telephone numbers,
addresses, or primary advertising classifications that the carrier or an affiliate has published or
accepted for publication in any directory format.

       The 1996 Act also provides that a local exchange carrier (LEC) may not record or use
in any fashion the occurrence or content of calls received by providers of alarm monitoring
services for the purposes of marketing such services on behalf of the LEC, or any other
entity.  The law requires the Commission to establish within six months of enactment any
regulations necessary to enforce the provisions concerning LEC use of alarm monitoring
service call information.  In order to meet this statutory deadline, the Commission has
proposed an expedited pleading cycle and page limits on comments and replies in this
proceeding. 

       In the NPRM the Commission seeks comment on the appropriate interpretation of the
term "telecommunications service" as it applies to CPNI under the new law.  The
Commission seeks comment on whether the statute permits carriers to obtain oral approval
from customers for use of their CPNI for purposes other than those specifically set out in
Section 222, or whether such approval must be in writing.  The Commission seeks comment
on how to ensure that subscriber list information is provided in accordance with the statutory
requirements.  The Commission seeks comment on what procedures LECs should develop to
ensure adequate protection of information regarding calls received by alarm monitoring
service providers.  The Commission asks commenters to address the costs and benefits of any
rules it might adopt.

       In a related Order also released today, the Commission terminated an inquiry regarding
CPNI initiated by the Common Carrier Bureau in March 1994.  The Commission also
disposed of several pending petitions for reconsideration that raise issues concerning CPNI, on
the grounds that these issues have been superseded by the statutory CPNI provisions.

       Comments are due on:          June 11, 1996
       Reply comments are due on:    June 26, 1996

       Action by the Commission May 16, 1996, by Notice of Proposed Rulemaking (FCC
96-221).   Chairman Hundt, Commissioners Quello, Ness, and Chong.  Action by the
Commission May 16, 1996, by Order (FCC 96-222). Chairman Hundt, Commissioners Quello,
Ness, and Chong. 

                                   -FCC-

       News media contact:  Mindy Ginsburg at (202) 418-1500.
       Common Carrier Bureau contacts: Radhika Karmarkar at (202) 418-1628 and 
               Blaise Scinto at (202) 418-1380.