FOR IMMEDIATE RELEASE                   NEWS MEDIA CONTACT: 
April 16, 1999                          Emily Hoffnar 202/418-0253

Report No. CC 99-13                     

       COMMISSION ACTS TO EXPAND LOCAL TELECOMMUNICATIONS
                          COMPETITION 
        Seeks Comment on Unbundling of Network Elements

     The Commission today adopted a Second Further Notice of Proposed Rulemaking
(Notice) that seeks comment on what network elements incumbents must make available to new
entrants in the local telecommunications market. Through this proceeding, the Commission seeks
to clarify the rules of the road and reduce market uncertainty, clearing the way for more local
competition and, most importantly, more choices for consumers.

     The Commission adopted this Notice in response to the Supreme Court's recent decision
regarding the Commission's local competition rules.  In its decision, the Court upheld most of the
Commission's market-opening rules.  The Court's decision, however, requires the Commission to
reexamine the list of network elements that competitors are entitled to lease from incumbent local
telephone companies. 

     In the 1996 Act, Congress outlined three avenues for local competition:  construction of
new facilities, use of the incumbent telephone company's network elements, and resale.  Congress
included the second option because it recognized that many new entrants will not have
constructed entirely new local networks when they enter the market.  To exercise the network
elements option, competitors may lease network elements from the local incumbent telephone
company, such as the wires that connect each customer to the incumbent's switch.  Competitors
then can use these elements or combine them with their own facilities to provide customers with a
wide variety of choices. 
     
     The Notice adopted today seeks public comment on the network elements that incumbents
must make available to competitors.  The Notice states that the Commission strongly expects that
local loops -- the telephone wires that connect homes and businesses -- will be subject to the
unbundling requirements of the 1996 Act.  The Notice seeks comment on this and on the other six
network elements previously identified by the Commission.  In light of technological changes that
have occurred in the telecommunications marketplace since the enactment of the 1996 Act, the
Notice also asks whether any additional network elements should be made available to
competitors, including those used in the provision of advanced services.  

      The Notice tentatively concludes that the Commission should continue to identify a minimum
set of network elements that must be made available on a nationwide basis.  The Notice seeks
comment on this tentative conclusion and on a number of issues related to identification of unbundled
network elements on a nationwide basis.  The Notice seeks comment on the standard that should be
applied in deciding which network elements must be made available and on the criteria the
Commission and states should consider in determining whether a network element is subject to the
unbundling obligations of the 1996 Act. In addition, the Notice seeks comment on issues related to
whether the Commission should adopt a mechanism for removing particular elements from the
national list of elements.    

     Action by the Commission April 16, 1999, by Second Further Notice of Proposed Rulemaking
(FCC 99-70), Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani, with
Commissioners Furchtgott-Roth and Powell  issuing separate statements. 

                             -FCC-

COMMON CARRIER BUREAU CONTACTS:
Claudia Fox and Jake Jennings (202) 418-1580