NEWS                                                         August 2, 1996
                                                                           
                    STATEMENT OF CHAIRMAN REED HUNDT
                  REGARDING NARUC LETTER ON 271 PROCESS


     I applaud the action taken by the NARUC to develop innovative, reasonable, and
uniform procedures for analyzing Bell Operating Company compliance with the "checklist"
under section 271.  The procedure contemplated by NARUC  would give states the
appropriate time to reach conclusions on all relevant issues before the FCC conducts its 90-
day "rocket docket" review of any Bell petitions for entry into long distance.
 
     I also believe that NARUC's action further demonstrates our new federal-state
partnership.  Instead of drawing lines based on where traffic goes, the states and the FCC
will be crafting reasonable allocations of responsibility that reflect administrative
convenience, efficiency, and marketplace realities. One such allocation of responsibility is the
wise Congressional decision to require the FCC to consult with the state commission to
verify compliance with the checklist as part of process of considering Bell entry into long
distance.

     I am confident that in the course of such verification each state deliberating on the
issue of entry will be aware of the impact of its review on consumers, investment, and
competition in their jurisdiction. To further that deliberation, I believe that states will craft
procedures that are open and public, expeditious but deliberate, permit adversary contests and
lead to reasoned fact-finding and legal conclusions based on an ample written record.  We at
the FCC need that kind of record to facilitate our own review of the Bell entry decision, to
give appropriate consideration to states' findings, and to make a record that we can rely on
here that will satisfy any court that reviews our entry decision. 

  -FCC-