FOR IMMEDIATE RELEASE                   NEWS MEDIA CONTACT:
July 14, 1999                                Emily Hoffnar 202/418-0253


   FCC ISSUES NOTICE OF PROPOSED RULEMAKING IN COMPREHENSIVE
                ACCOUNTING AND REPORTING REVIEW 

     Tuesday the Federal Communications Commission adopted a Notice of Proposed
Rulemaking ("Notice") in its Comprehensive Accounting and Reporting Review.   The review,
which is a collaborative effort between the FCC and state commissions, will lead to rule
changes that will eliminate or streamline accounting and reporting requirements.

     In the Notice, the Commission seeks comment on several deregulatory measures to the
accounting and reporting requirements for local exchange carriers.  Three of the most
significant streamlining proposals in the Notice are to eliminate a number of the accounts and
subaccounts that local exchange carriers are required to maintain under Part 32 of the
Commission's rules; to streamline the current requirement for annual independent audits; and 
to eliminate a substantial portion of data that local exchange carriers are required to report
through the mechanized reporting system ("ARMIS").

     If adopted, the proposals set forth in the Notice will reduce the total number of
accounts and subaccounts that a local exchange carrier must maintain by over 50%, and will
also result in streamlined ARMIS reporting for items related to those accounts.  The proposals
would also reduce the cost of audits by approximately one-third; and would reduce the burden
associated with the ARMIS Uniform System of Accounts Report by approximately one half.  

     Comments on this Notice are due August 23, 1999 and reply comments are due
September 9, 1999.

     Action by the Commission, July 13, 1999, by Report and Order (FCC 99-174).  Chairman
Kennard, and Commissioners Ness, Furchtgott-Roth, Powell, and Tristani, with Commissioner
Furchtgott-Roth issuing a statement.

COMMON CARRIER BUREAU CONTACTS:    Tim Peterson (202) 418-1575 
                              JoAnn Lucanik (202) 418-0873
Report No. CC 99-28
CC Docket No. 99-253
                            - FCC -