NEWSReport No. CC 97-17   COMMON CARRIER ACTION               April 11, 1997
                                      
            COMMISSION ESTABLISHES RULES PROMOTING EFFICIENT USE,
                   FAIR DISTRIBUTION OF TOLL FREE NUMBERS
                                      
     The Commission has adopted rules to promote the efficient use of toll free
numbers and to ensure that numbers are distributed in a fair, orderly, and equitable
manner. In an Order released today, the Commission found that warehousing,
hoarding, and brokering of toll free numbers are contrary to the public interest and
subject to sanction by the Commission, and took action to prevent such practices. In
addition, the Commission shortened the "lag times" under which certain numbers are
out of circulation and asked for comment on what entity should administer the toll
free database.  Certain related issues, including treatment of "vanity numbers," will
be addressed at a later date.

     To deter warehousing of toll free numbers, the Commission has required
Responsible Organizations (RespOrgs), the entities that manage toll free subscribers'
records in the toll free number database, to certify that they have a subscriber for
each toll free number they reserve in the database.  Further, the Commission
imposed a cap on the amount of numbers RespOrgs may have in reserved status.
The Commission concluded that the Communications Act authorizes it to penalize
toll free subscribers that hoard numbers.

     The Commission also concluded that the extended periods for which toll free
numbers remain out of service are unnecessary and inefficient, and it replaced the
current industry guidelines with rules that reduce these lag times.

     Saying that it expects to address these issues in a subsequent order, the
Commission declined at this time to adopt rules related to the treatment of vanity
numbers, including whether holders of vanity numbers should be granted a right of
first refusal for corresponding numbers in subsequently opened toll free codes.
Vanity numbers are telephone numbers for which the letters associated with the
number's digits on the telephone handset spell a name or word of value to the
number holder.

     Finally, the Commission adopted a Further Notice of Proposed Rulemaking
to seek further comment, in light of the Telecommunications Act of 1996, on what
party or entity should administer the toll free database.
     
     Action by the Commission April 4, 1997 by Second Report and Order and
Further Notice of Proposed Rulemaking (FCC 97-123).  Chairman Hundt,
Commissioners Quello, Ness, and Chong.

                                     -FCC-

     News media contact:  Rochelle Cohen at (202) 418-0253.
     Common Carrier Bureau contact:  Erin Duffy at (202) 418-2340.