NEWS                                               June 12, 1998


        STATEMENT OF CHAIRMAN WILLIAM KENNARD ON FCC ADOPTION OF
        PLAN TO REFORM SCHOOLS AND LIBRARIES DISCOUNT PROCEDURES

       Today the Commission took a number of actions to put the
e-rate initiative on solid footing before a single dime is spent. 
We've made sure the neediest kids get Internet access, we've
reorganized the administrative structure by combining two
corporations into one, we've reduced overhead by lowering CEO
salaries.  I'm also proposing "truth-in-billing" to require
carriers to tell consumers the whole truth about their phone
bill.  The truth is, long-distance rates have never been lower
and the e-rate will not cause any consumer's rates to increase.  

       Today's actions respond as fully as possible to the
concerns voiced by Congress, yet reflect my unshakable commitment
to implementing the Telecommunications Act's directive
that schools, libraries, and rural health centers are afforded
access to communications.

       My grandfather made sure my father received an education,
and that resulted in education and opportunities for me.  The
e-rate is about providing our children an education that will
unlock opportunities in the future. 

       This Nation has an obligation to make sure our neediest
kids have an on-ramp to the network that leads to tomorrow's
opportunities.  

       I hope our actions will allow us to get past the
controversies, distractions, and false choices, and focus on the
promise that communications holds for education, for communities,
and for rural health care. 

                                  - FCC -