FOR IMMEDIATE RELEASE                   NEWS MEDIA CONTACT:
July 1, 1999                                 Emily Hoffnar 202/418-0253

     INVESTIGATION PRODUCES LOWER NUMBER PORTABILITY CHARGES
 FOR CUSTOMERS OF AMERITECH, GTE, PACIFIC AND SOUTHWESTERN BELL
                                
                                
     Today the Commission took action to lower the charges consumers will pay for number
portability in the service territories of Ameritech Operating Companies, GTE System
Telephone Companies, GTE Telephone Operating Companies, Pacific Bell, and Southwestern
Bell Telephone Company.  The Commission further acted to ensure that carriers will not pay
for number portability queries, which provide key location routing information, in a particular
NXX until at least one number has been ported.  

     As required by Congress, local number portability allows consumers to change local
service providers without changing their telephone number in the process.  In a 1998 order,
the Commission permitted, but did not require, local telephone companies to recover some of
their costs of providing number portability through a monthly charge on consumers for five
years.  Ameritech, GTE System, GTE Telephone, Pacific, and Southwestern Bell filed number
portability tariffs in January 1999.  Ameritech sought to recover $639 million and proposed a
consumer charge of $0.41.  GTE System and GTE Telephone both sought to recover $487
million and proposed a $0.43 consumer charge.  Pacific proposed a consumer charge of $0.50,
based on its total claim of $747 million.  Southwestern Bell sought to recover $625 million and
proposed a consumer charge of $0.43.
    
     After determining that the carriers' number portability rates raised issues of lawfulness,
the Commission's Common Carrier Bureau instituted a five-month investigation.  Today's
Order terminates the investigation and lowers each company's consumer charges.  The
Commission prescribes a number portability consumer charge of $0.28 for Ameritech,
reducing the total amount Ameritech can recover by $83 million.  The Commission adopts the
revised filed number portability consumer charges of $0.36 for both GTE companies, which
resulted from a $28 million reduction in their number portability claims.  Similarly, the
Commission adopts Pacific's revised filed consumer charge of $0.34 and Southwestern Bell's
revised filed consumer charge of $0.33.  Pacific reduced the amount it sought to recover
through the federal number portability charge by $319 million and Southwestern Bell reduced
its claims by $154 million.  Finally, the Commission prescribes a query service charge for
Ameritech, and approves revised filed query service charges for Pacific and Southwestern
Bell.  The GTE companies did not file tariffs for query services.

     Congress directed local telephone companies to offer telephone number portability in
the Telecommunications Act of 1996.  Congress recognized that one of the major barriers to
competition was the inability of customers to switch from one telephone company to another
and retain the same telephone number.  Congress realized that customers would be reluctant to
switch to new telephone service providers if they were unable to keep their existing telephone
numbers in the process.  
 
     Today's action by the Commission is aimed at ensuring that the rates charged by the
local telephone companies are as affordable as possible, yet enable the local telephone
companies to recover the direct costs they incur in equipping their networks to provide number
portability service.  The Commission's decision represents an important step in the continuing
effort to promote competition in the local telephone market as mandated by Congress. 
Increased competition will ultimately produce higher quality services and lower prices for all
telephone services.  

Action by the Commission, July 1, 1999, by Memorandum Opinion and Order in CC Docket
No. 99-35 (FCC 99-158); Chairman Kennard, Commissioners Ness, Tristani, and Powell;
Commissioner Furchtgott-Roth dissenting and issuing at statement.

COMMON CARRIER BUREAU CONTACT:  Janet Sievert at (202) 418-1530.

Report No. CC 99-24      
CC Docket No. 99-35
                                
                            - FCC -