NEWS                                                       February 7, 1995

         FCC BUDGET OF $223,600,000 PROPOSED FOR FISCAL YEAR 1996

     The Federal Communications Commission is proposing a fiscal year 1996 budget of
$223,600,000 and a staffing level of 2,271 full-time equivalents (FTEs).  This represents no
increase in FTEs from the previous year and an increase in the funding level of $38,368,000. 
  
     The increase in funding level includes $8,268,000 for increases in fixed costs (for such
items as inflation and mandatory pay raises), $5,000,000 for automation enhancements and
$25,100,000 for the initial costs associated with the planning and design for a consolidated
headquarters facility. 

     Despite the $38 million budget increase, the FCC has proposed that the regulatory fees
remain at the $116 million level and that the increase come from direct appropriations.  

     The Commission continues to rely on automation and working "smarter" to regulate the
huge telecommunications marketplace by fostering competition, encouraging economic growth
"reinventing" the agency itself to ensure it is set up in the most efficient manner for succeeding
in its task.  

     The Commission pursues these goals with three principles in mind - choice, opportunity
and fairness.  Consumers must have the widest variety of services and service providers from
which to choose; all Americans should be able to participate in the communications revolution;
and firms should not be able to exercise market power to charge excessive prices or engage in
unfair or discriminatory trade practices.

     The FCC is moving now to promote the development of competitive networks and new
innovate services by fostering local competition, preventing bottlenecks that impede the
transmission of information and the reform of spectrum management.

     An adequately funded FCC will serve the public good. As telecommunications technology
continues to evolve, the FCC must be able to facilitate the industry's growth while protecting
the public interest.  Addressing these complex issues requires that the Commission maximize the
capability of its highly-trained and experienced workforce by providing it with the necessary
infrastructure and technical tools.

                                  - FCC -

     Contact: Maureen Peratino at (202) 418-0500.