NEWS
   Report No. CC 97-2    COMMON CARRIER ACTION         January 13, 1997
   
                               FCC SEEKS COMMENT ON ELIMINATION OF SECTION 214
   APPLICATIONS FOR EXTENSIONS OF LINES UNDER THE
   TELECOMMUNICATIONS ACT OF 1996
   (CC DOCKET NO. 97-11)
               
          The Commission took another step in de-regulating the telecommunications
   marketplace and continued its implementation of the Telecommunications Act of
   1996 (the 1996 Act).  In a Notice of Proposed Rulemaking released today, the
   Commission tentatively concludes that carriers should no longer be required to seek
   Section 214 approval from the Commission before expanding phone services to
   consumers within any new geographic area they are otherwise eligible to serve. 
   Under the rules proposed in the NPRM, carriers would no longer need Commission
   certification before constructing, acquiring, operating, or transmitting services over an
   extension of any line of communication. 
   
          Under Section 402(b)(2)(A) of the 1996 Act, Congress exempted carriers' line
   "extensions" from the requirements of Section 214.  In this NPRM, the Commission
   proposes to define such an extension as "any line that allows the carrier to expand its
   service into geographic territory in which it is eligible to serve, but that its network
   does not currently reach."  Under this definition, the Commission tentatively
   concludes that carriers would no longer need to seek Commission authorization
   before expanding their lines of communication into any new geographic area they are
   otherwise eligible to serve.  
   
          Previously, carriers were required under Section 214 of the Communications
   Act of 1934 to obtain Commission certification that the extension was consistent with
   the public convenience and necessity.  The NPRM distinguishes between "extensions"
   and "new" lines, and tentatively concludes that "new" lines will remain subject to the
   requirements of Section 214.
   
   
   
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          In addition, the Commission proposes to forbear from applying its remaining
   Section 214 authority to carriers who may be subject to price-cap regulation, average
   schedule carriers, and domestic, nondominant carriers offering local or long-distance
   services on "new" lines.  The NPRM tentatively concludes that, with respect to these
   classes of carriers, the conditions for forbearance contained in Section 10 of the
   Communications Act are met in that: (1) enforcement is not necessary to ensure that
   the charges, practices, classifications, or regulations by, for, or in connection with a
   carrier or service are just and reasonable and not unjustly or unreasonably
   discriminatory; (2) enforcement is not necessary to protect consumers; and (3)
   forbearance is consistent with the public interest because it would promote
   competitive market conditions and enhance competition among providers of
   telecommunications services.
   
          The Commission also proposes substantial streamlining of the Section 214
   application process for domestic, dominant, rate-of-return carriers, and for service
   discontinuance.  In this NPRM, the Commission proposes eliminating two reporting
   requirements contained in Sections 63.03(e) and 63.04(c) of the Commission rules
   relating to small projects and temporary or emergency service.
   
          Comments relating to the streamlining of Section 214 and the implementation
   of Section 420(b)(2)(A) of the 1996 are due on February  24, 1997 and replies on
   March 17, 1997.
   
          Action by the Commission, January 9, 1997, by Notice of Proposed
   Rulemaking (FCC 97-6). Chairman Hundt, Commissioners Quello, Ness and Chong.
   
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          News Media Contact:  Jodie Buenning at (202) 418-1500.
          Common Carrier Bureau Contact:  Marty Schwimmer at (202) 418-2334 or
          Richard R. Cameron at (202) 418-1529.