NEWSReport No. DC 96-63    ACTION IN DOCKET CASE               July 1, 1996

        COMMISSION FINDS BOC DOMESTIC OUT-OF-REGION LONG-DISTANCE
               OPERATIONS NON-DOMINANT ON AN INTERIM BASIS
                           (CC Docket No. 96-21)

 The Commission today released an Order that relaxes the regulatory treatment for Bell
Operating Companies (BOC) that provide domestic, out-of-region, long-distance services
through an affiliate that complies with certain safeguards.  The Commission took this action
in response to the Telecommunications Act of 1996, which permitted BOCs, upon enactment,
to provide long-distance services originating outside of their in-region states.  This action will
facilitate the BOCs' prompt provision of out-of-region services by reducing the regulatory
requirements that, under existing Commission rules, would have applied to BOC provision of
such services.  This action is another step taken by the Commission to advance the pro-
competitive and deregulatory goals of the 1996 Act. 

 In the Order released today, the Commission determined, on an interim basis,  that
BOCs that meet certain, minimum safeguards may provide out-of-region interstate,
interexchange services pursuant to non-dominant carrier status.  These safeguards are the
same as those the Commission has long applied to independent local exchange company
(LEC) provision of interexchange services.  Under this approach, non-dominant treatment is
accorded to BOCs that provide out-of-region services through an affiliate that:  1) maintains
separate books of account; 2) does not jointly own transmission or switching facilities with
the BOC; and 3) obtains BOC tariffed exchange telephone company services at tariffed rates
and conditions.  By meeting these requirements, the BOCs will be freed from the rate
regulation and more stringent tariffing requirements that are imposed on dominant carriers. 
The Commission also, on an interim basis, concluded that, if a BOC provides out-of-region
interstate, interexchange services directly, or through an affiliate that does not comply with
the separation requirements, those services will be regulated as dominant carrier offerings.

 The Commission emphasized that the rules adopted in the Order are interim in nature. 
The Commission stated that it will establish final rules for BOC out-of-region, interstate,
interexchange services in another rulemaking proceeding (CC Docket No. 96-61) that was
initiated in March 1996. 

 Action by the Commission June 28, 1996, by Report and Order (FCC 96-288). 
Chairman Hundt, Commissioners Quello, Ness and Chong.

                                   -FCC-

 News Media contact:  Mindy J. Ginsburg at (202) 418-1500.
 Common Carrier Bureau contacts:  Michael Pryor and Melissa Waksman at 
 (202) 418-1580.