NEWSReport No. CC 97-11   COMMON CARRIER ACTION               March 25, 1997
                                       
         COMMISSION IMPLEMENTS ALARM MONITORING SERVICE PROVISIONS 
                   OF THE TELECOMMUNICATIONS ACT OF 1996 
                        (CC Docket No. 96-152)
                                     
          The Commission today released an Order that implements the alarm
   monitoring service provisions set forth in section 275 of the Telecommunications Act
   of 1996 (1996 Act).  Section 275 prohibits Bell Operating Companies (BOCs) from
   providing alarm monitoring service until February 8, 2001, although it exempts
   BOCs that were providing alarm monitoring service as of November 30, 1995. As
   defined in the 1996 Act, alarm monitoring is a service that uses a device located at a
   fixed premises to (1) receive signals from other devices located at the premises
   regarding a threat or emergency, and (2) transmit a signal to a remote monitoring
   center to alert a person of such threat or emergency.
    
          The Order concludes that Ameritech is the only BOC that qualifies for
   grandfathered treatment under section 275(b)(2) of the 1996 Act. The Order also
   finds that incumbent local exchange carriers (LECs), including BOCs, that provide
   basic telecommunications services or information services that are used by third
   parties to provide alarm monitoring services are not engaged in the provision of
   alarm monitoring service.  The Order concludes that an incumbent LEC provides
   alarm monitoring service if it operates the remote monitoring center or is engaged in
   the resale of alarm monitoring service, but not if it is merely providing the
   underlying transmission service, providing the customer premises equipment, or
   engaged in billing and collection for an alarm monitoring service company.  The
   Order recognizes, however, that there may be certain situations where a BOC is not
   directly providing alarm monitoring service, but its interests are so intertwined with
   the interests of an alarm monitoring service provider that the BOC itself may be
   considered to be "engaged in the provision" of alarm monitoring in contravention of
   section 275(a).  Therefore, the Order concludes, sales agency and marketing
   arrangements between a BOC and an alarm monitoring service company will be
   examined by the Commission on a case-by-case basis to determine whether they
   constitute provision of alarm monitoring service. 
   
   
                                  (over) 
   
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          In addition, the Order concludes that no rules are necessary at this time to
   implement the section 275(a)(2) restrictions on BOC acquisition of unaffiliated alarm
   monitoring entities or the nondiscrimination provisions of section 275(b)(1). The
   Order also finds that the Computer III/ONA requirements continue to govern the
   BOCs' provision of alarm monitoring services. 
          
          Action by the Commission March 21, 1997 by Second Report and Order
   (FCC 97-101).  Chairman Hundt, Commissioners Quello, Ness, and Chong.
   
                                   -FCC-
   
          News media contact:  Rochelle Cohen at (202) 418-0253.
          Common Carrier Bureau contacts:  Michelle Carey and Robert McDonald at
   (202) 418-1580.