NEWSReport No. CC 97-5                     COMMON CARRIER ACTIONFebruary 7, 1997

      COMMISSION IMPLEMENTS INFRASTRUCTURE SHARING PROVISION OF THE
                     TELECOMMUNICATIONS ACT OF 1996
                          (CC Docket No. 96-237)
                                                                      
                The Commission has adopted a Report and Order that implements section 259, the
infrastructure sharing provision of the Telecommunications Act of 1996.  Section 259 of the
1996 Act requires the Commission to adopt regulations to ensure that incumbent local
exchange carriers (LECs) make available to "qualifying carriers" public switched network
infrastructure, technology, information, and telecommunications facilities and functions.  The
rules adopted by the Commission will ensure that carriers that are eligible to receive universal
service support and that lack economies of scale and scope can provide evolving levels of
advanced telecommunications and information services in furtherance of their universal
service obligations. The Commission made clear that infrastructure obtained by a qualifying
carrier under section 259 may not be used to compete against the LEC providing that
infrastructure, but that qualifying carriers may utilize the interconnection provisions of section
251 in all cases.  The Commission noted that all parties, including non-qualifying competitive
carriers,  may avail themselves of the Commission's complaint process to prevent
anticompetitive outcomes from arising through section 259 arrangements. The Commission
also noted that its general authority pursuant to Title II of the Communications Act, as well as
the antitrust laws, exist to prevent any anticompetitve outcomes resulting from the unlawful
use of infrastructure sharing arrangements.

                The Commission declined to adopt specific definitions of the "public switched network
infrastructure, technology, information, and telecommunications facilities and functions" that
providing LECs must make available to qualifying carriers, instead permitting parties to
negotiate what infrastructure will be made available.  In the Report and Order, the
Commission set forth general rules and guidelines to implement section 259, stating that this
approach will encourage arrangements between LECs and qualifying carriers that are largely
the product of private negotiations.  The Commission noted that relying more heavily on
private negotiations is appropriate because the potentially unequal bargaining power between
qualifying and providing LECs is less relevant when the two parties are not using those
facilities to compete against each other. 




                                  (over)

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                The Commission stated that no incumbent LEC is excused from sharing its
infrastructure because of the size of the requesting carrier, its geographic location, or its
affiliation with a holding company.  A carrier otherwise qualifying under section 259(d) may
be entitled to request and share certain infrastructure and, at the same time, be obligated to
share the same or other infrastructure. 

                Action by the Commission February 6, 1997, by Report and Order (FCC 97-36). 
Chairman Hundt, Commissioners Quello, Ness, and Chong.

                                   -FCC-
                                      
                News Media contact: Rochelle Cohen at (202) 418-0253.
                Common Carrier Bureau contact: Tom Beers at (202) 418-0952.