NEWSReport No. CC 97-15   COMMON CARRIER ACTION                April 4, 1997
                                      
              COMMMON CARRIER BUREAU DENIES PENNSYLVANIA PUC'S
                   REQUEST FOR WAIVER OF 10-DIGIT DIALING
                             (CC Docket No. 96-98)

       The FCC's Common Carrier Bureau (the Bureau) has on delegated authority
denied the request of the Pennsylvania Public Utilities Commission (PaPUC) for
waiver of the 10-digit dialing requirement in areas affected by the proposed 412 area
code overlay. The PaPUC sought a waiver to permit 7-digit dialing in parts of
Pittsburgh and the surrounding metropolitan area that will be affected by the
proposed overlay. Noting that customers ultimately would pay the price for lack of
competition, the Bureau has found that granting such a waiver would undermine the
pro-competitive objectives of the 10-digit dialing requirement and create hardship for
new entrants to the Pittsburgh telecommunications market.

       On February 18, 1997, the PaPUC filed a petition for waiver of the FCC's
10-digit dialing requirement. The PaPUC asked for consideration on an expedited
basis because the implementation date for the overlay is May 1, 1997.  In its Petition,
the PaPUC contended that various factors, including future implementation of number
portability and other conditions in the Pittsburgh market, would overcome any anti-
competitive consequences that might otherwise have resulted from 7-digit dialing. 

        Stating that such a waiver would create dialing disparity in the area to be
affected by the overlay, which would be anti-competitive and against the public
interest, the Bureau has found the PaPUC has not shown good cause for granting a
waiver of the 10-digit dialing requirement. The Bureau therefore stated that 10-digit
dialing must be instituted by November 1, 1997.
               
       The FCC requires mandatory 10-digit dialing for all local calls in areas served
by overlays to ensure that local dialing disparity does not deter competition. 
Competitive local exchange carriers (LECs), most of which would be new entrants to
the market, would more often have to assign to their customers numbers in the new
area code while incumbent LECs would be more likely be able to assign customers
numbers in the old area code.  The competitive LECs' customers in the new overlay
code would have to dial 10 digits much more often than the incumbent LEC's customers in the old area code, thereby making it less attractive for customers
to switch to competitive LECs.
                
                Action by the Common Carrier Bureau April 3, 1997 by Order (DA 97-675). 

                                     -FCC-

                News media contact:  Rochelle Cohen at (202) 418-0253.
                Common Carrier Bureau contact:  Erin Duffy at (202) 418-1685 and Renee
                       Alexander at (202) 418-2497.