NEWSReport No. GN 96-6 GENERAL ACTION April 12, 1996 COMMISSION GRANTS SECOND AND THIRD TELECOM ACT APPLICATIONS FOR UTILITY COMPANIES TO ENTER TELECOMMUNICATIONS The Commission today announced that it has granted two new applications to allow a public utility holding company to enter telecommunications markets, just a week after granting the first such application under the Act. The Commission granted the applications of Entergy Technology Company ("Entergy Technology") and Entergy Technology Holding Company ("Entergy Holding") for "exempt telecommunications company" ("ETC") status. By granting these applications, the Commission has again paved the way for new entry into telecommunications markets by a public utility holding company, recognizing that such entry could "significantly promote and accelerate competition in telecommunications services and deployment of advanced networks" and "result in lower prices and greater choice for consumers." The Commission also noted that granting such applications was consistent with the "explicit de-regulatory thrust of the Telecommunications Act of 1996." According to the applications, the ETCs intend to provide bulk communications capacity to other carriers, who in turn would resell such capacity to third parties. This long- haul capacity would be used for alternative or extended routing for fiber-based or wireless telecommunications, or to create backup or other redundancy for carriers' telecommunications networks. The ETCs also state that while their initial activities will encompass providing long-haul fiber capacity as described, they may also engage in providing other permitted services using both wired and wireless technology, including personal communications services ("PCS"), cable services, and data services. Entergy Technology and Entergy Holding will become associate companies of Entergy Corporation, a registered public utility holding company under the Public Utility Holding Company Act of 1935. Action by the Commission April 9, 1996, by Orders (FCC 96-162; 96-163). Chairman Hundt, Commissioners Quello, Ness, and Chong. -FCC- News Media contact: Audrey Spivack at (202) 418-0500 Office of General Counsel, Competition Division contacts: James W. Olson or Lawrence Spiwak at (202) 418-1870