NEWSReport No. CC 97-46   COMMON CARRIER ACTION              August 20, 1997

          Commission Affirms With Minor Modifications Decision to 
      Eliminate Tariff Filing Requirements for Long Distance Carriers 

       The Commission generally affirmed its previous decision to eliminate tariff
filing requirements for interstate, domestic, long distance services provided by
nondominant long distance carriers, with two limited exceptions. In response to
petitions for reconsideration and clarification of the Report and Order that the
Commission adopted last year in this proceeding, the Commission concluded that it is
in the public interest to allow long distance carriers to file tariffs (1) for dial-around
1+ services and (2) for the first 45 days of service to customers that select or change
their long distance carriers by contacting their local telephone companies. In addition,
the Commission eliminated the requirement that nondominant long distance carriers
make publicly available information concerning the rates and terms of their offerings.


       The Commission exercised its forbearance authority under the
Telecommunications Act of 1996 in ruling last year that nondominant long distance
carriers would not be permitted to file tariffs for their interstate domestic long
distance services. The Commission found that replacing tariffs with contracts between
carriers and customers would foster increased competition in the long distance
market. The 1996 decision signified a further step in the Commission's ongoing
efforts to deregulate markets subject to substantial competition. The Commission has
repeatedly concluded that competition, not regulation, produces the maximum
benefits for consumers, carriers, and the nation's economy.

       In an Order on Reconsideration released today, the Commission modified its
rules to give carriers the option of filing tariffs for dial-around 1+ services (interstate,
domestic, interexchange direct-dial services to which consumers obtain access by
dialing a carrier's access code) because long distance carriers cannot reasonably
establish enforceable contracts with casual callers in these circumstances. The
Commission also concluded that carriers may file tariffs for the first 45 days of long
distance services in cases where consumers contact their local telephone companies to
initiate long distance service or change their long distance carriers. In such cases,
long distance carriers may be unable immediately to establish contracts with
consumers.

       The Commission eliminated the requirement that nondominant long distance
carriers publicly disclose the rates and terms of their offerings because it found the
pro-competitive benefits of eliminating this requirement, such as the decreased risk of
tacit price coordination, outweigh any potential adverse effects. The Commission
emphasized that its decision to eliminate the public disclosure requirement in no way
signals a departure from its commitment to ensuring that carriers adhere to the rate
integration and rate averaging requirements pursuant to section 254(g) of the 1996
Act. To that end, the Commission affirmed its rules that require nondominant long
distance carriers to certify annually that they are in compliance with their obligations
under section 254(g) and to maintain price and service information on all of their
interstate, domestic, long distance services that they must make available to the
Commission upon request.  

       Finally, the Commission noted that its earlier detariffing Order is currently
stayed by the United States Court of Appeals for the District of Columbia Circuit
pending judicial review. As a result, the Order on Reconsideration released today is
also stayed until the Court issues its determination on the merits of the appeal of the
detariffing Order.

       Action by the Commission August 15, 1997 by Order on Reconsideration
(FCC 97-293).  Chairman Hundt, Commissioners Quello and Chong, with
Commissioner Ness dissenting in part and issuing a separate statement.

                                     -FCC-

       News media contact: Rochelle Cohen at (202) 418-0253.
       Common Carrier Bureau contact: Susan Launer at (202) 418-1580.