NEWS
   Report No. CC 96-18   COMMON CARRIER ACTION           October 1, 1996
   
   
             COMMISSION OPENS DOOR TO LOCAL COMPETITION IN 
                      BOGUE AND HILL CITY, KANSAS; 
          Issues Order Overturning Cities' Decision to Reject 
             Classic Telephone Inc.'s Franchise Application
                                    
                                          The Commission today released an Order that overturns the decisions of Hill
   City and Bogue, Kansas denying Classic Telephone Inc.'s applications for a local
   franchise to provide local telecommunications service.  The Commission concluded
   that these franchise denials violated Section 253 of the Communications Act (the
   Act).
   
        Section 253(a) of the Act generally bars State and local governments from
   imposing legal requirements that may prohibit or have the effect of prohibiting the
   ability of any entity to provide any interstate or intrastate telecommunication services. 
   The Commission's decision found that the decisions of Hill City and Bogue, on their
   face, violate Section 253(a) of the Act.  The Commission's action today is its first
   exercise of authority granted to it pursuant to Section 253 of the Act.
   
        In the Order released today, the Commission granted in part and denied in
   part Classic's Petition for Preemption, Declaratory Ruling, and Injunctive Relief. 
   The Commission concluded that the decisions by the Kansas municipalities of Hill
   City and Bogue, denying Classic's requests for a franchise to provide local telephone
   service, prevented Classic from providing telecommunications service in the local
   markets.  The Commission also found that Hill City and Bogue, in their decisions
   denying these franchises and pleadings in this proceeding, failed to provide sufficient
   evidence to show that their decisions comply with the Act.  Consequently, the
   Commission concluded that Section 253 preempts the decisions denying Classic's
   franchise applications. 
        
   
   
    (over)
                                    
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        In its Petition, Classic requested that the Commission:  preempt the franchise
   denials; direct these cities to issue all necessary franchises to Classic; and enjoin the
   cities from further interfering with Classic's provision of telecommunications services
   in those municipalities.
   
        The Commission concluded that section 253 preempts the cities' decisions
   denying Classic's franchise applications.  The Commission expects Hill City and
   Bogue to reconsider Classic's franchise requests expeditiously, i.e. within 60 days
   from today and in a manner consistent with the Commission's decision.  The
   Commission denied Classic's request for injunctive and other relief.
   
        Action by the Commission September 30, 1996, by Memorandum Opinion
   and Order (FCC 96-397).  Chairman Hundt, Commissioners Quello, Ness, and Chong
   (FCC 96-397).
   
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        News Media Contact:  Mindy J. Ginsburg at (202) 418-1500.
        Common Carrier Bureau Contact:  Staci L. Pies at (202) 418-2794