NEWSReport No. DC 96-88    ACTION IN DOCKET CASE         September 17, 1996
                                     
        FCC DENIES MOTIONS FOR STAY OF ITS INTERCONNECTION RULES 
              (CC  Docket No. 96-98; CC Docket No. 95-185)
                                    
       The Federal Communications Commission has denied the joint motion for stay filed
by GTE Corporation (GTE) and the Southern New England Telephone Company (SNET) and
the motion for stay filed by U S West, Inc. (U S West) of its rules implementing the local
competition provisions of the Telecommunications Act of 1996. 

       In denying these motions for stay, the Commission did not find that relief was
justified under the four-part test for evaluating requests for such relief.  Specifically,
petitioners failed to demonstrate: (1) that they are likely to prevail on the merits; (2) that they
will suffer irreparable harm if a stay is not granted; (3) that other interested parties will not
be harmed if the stay is granted; and (4) that the public interest favors the grant of a stay. 
       
       In addition to the petitioners' failure to satisfy the four-part test, the Commission stated
that "the circumstances of this specific case particularly militate against the grant of [the
petitioners'] motions." The Commission noted that, while ordinarily parties seeking to stay the
effectiveness of an FCC order or rule seek to maintain the status quo until a reviewing
authority can sort out the issues and render its decision on the merits, this was not the case
here.  Under the terms of the 1996 Act, many voluntary negotiations for private
interconnection agreements and state-supervised arbitrations that are now under way will be
completed before the end of the year.  Accordingly, the Commission found that it was
important that the regulations established in the First Report and Order not be stayed while
negotiation and arbitration proceedings are taking place.

       Action by the Commission September 16, 1996, by Order (FCC 96-378). Chairman
Hundt, Commissioners Quello, Ness, and Chong.

                                  - FCC -

       News Media contact: Mindy Ginsburg at (202) 418-1500.
       Common Carrier Bureau contact: David Konuch at (292) 418-1520