NEWS                                              U.S. Department of Treasury
                                                 Financial Management Service
                                                          401 14th Street, SW
                                                         Washington, DC 20227
NEWS    June 28, 1996
                                     
           FCC, TREASURY SIGN SERVICING AND COLLECTION AGREEMENT

     Today, the Federal Communications Commission (FCC) and the
U.S. Treasury Department's Financial Management Service (FMS)
signed an agreement for FMS to manage the portfolio of installment
payment loans resulting from the FCC's spectrum auctions. 

     FMS, a bureau of the Treasury Department, is the federal
government's financial manager.  The agency is responsible for
managing the government's cash flow, handling the collection and
disbursement of approximately $3 trillion in federal funds each year.  

     "The prompt, efficient, and fair collection of federal loans is an
important taxpayer issue," said FMS Commissioner Russell D. Morris. 
"FMS looks forward to managing the FCC's portfolio and providing first
rate customer service to the licensees."

     Under this agreement, FMS will be the primary customer service
contact on loan servicing and debt collection issues consistent with
their expertise in this area.  The FCC will continue to serve as the
primary contact on licensing issues and/or waiver requests.

     "We are putting financial management experts on the job of
helping us manage this portfolio of funds and freeing FCC staff to
develop pro-competitive telecommunications policies.  This is a smart
way for the government to do business," said Michele C. Farquhar,
Chief of the FCC's Wireless Telecommunications Bureau.

     Andy Fishel, Managing Director of the FCC, added "This is
reinventing government at work. We are delighted at the opportunity to
team with FMS and use their expertise to provide a cost-effective and
efficient mechanism to ensure prompt collection of the monies owed to
the American people."

     Initially, FMS will service installment payments for the
Specialized Mobile Radio Service (SMR), Broadband C-Block PCS, and
Multipoint Distribution System (MDS) auction winners.  However, both
FMS and the FCC anticipate that FMS will service all auction
installment loan payments.
     
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     The FCC provides installment payments to small businesses
participating in spectrum auctions.  The installment payments are
intended to help small businesses compete in the communications
industry by overcoming the number one barrier to entry these
businesses face -- access to capital.  FCC small business licensees have
received over $8.5 billion in installment financing.  
                                   -FCC-

News Media contact:                     Kara Palamaras at (202)
418-0654
Wireless Telecommunication Bureau contacts:       Jay Markley at (202)
418-0600 or Jerome                                Fowlkes (202)
418-0660
Office of Managing Director contact:         Regina Dorsey at (202)
418-1995
Financial Management Service Contact:        Yvonne Hall at (202)
874-6750