September 19, 1996
For Immediate Release

                                    
              Commissioner Chong Sees Wireless Industry As
                                    
         Well-Positioned to Survive the New World of Competition

       San Francisco -- Speaking at Personal Communications Industry Association's PCS '96
Conference in San Francisco, FCC Commissioner Rachelle Chong called the post-
Telecommunications Act of 1996 a "new world" in which competition will be brutal.  She
stated that the wireless industry is well positioned to survive in the new world, given that the
industry has always embraced and thrived on competition.

       Commissioner Chong urged wireless carriers to learn the "ins and outs" of the FCC's
recent Interconnection order.  First, she noted that this order may bring wireless carriers lower
interconnection rates, an area in which she acknowledged that wireless industry players may
have suffered past discrimination by some local telephone companies and states.   She also
urged wireless companies to take advantage of new opportunities to go head-to-head with the
local telephone company and compete in the local loop.  

       The Commissioner acknowledged that some wireless companies were disappointed that
pursuant to the 1996 Act and the FCC's interconnection order, the states will become
reinvolved with Commercial Mobile Radio Service (CMRS) in the interconnection area.       
"I fully understand and appreciate the unique multi-state nature of commercial mobile radio
service," she stated.  "I am concerned that the state-by-state arbitration process may prove
unduly burdensome, cause delay or otherwise inhibit your industry's growth.... I personally
will not hesitate to exercise our jurisdiction if the circumstances warrant."

       On the issue of number portability, she noted that it is crucial to a wireless providers'
ability to compete head-to-head with the local telephone companies and each other.  She said
that the FCC's July order will require local telephone companies to begin to implement
number portability technology in the top 100 MSAs no later than October 1997, with full
deployment by the end of 1998.  She noted that cellular, broadband PCS and certain SMR
providers also have this obligation.

       On the issue of siting, Commissioner Chong highlighted new Section 704 of the Act,
in which Congress confirmed that jurisdiction over siting of wireless facilities remains with
the local agencies, subject to five important limitations.  She encouraged carriers to become
familiar with these five limitations on a local agency's discretion.  For example, she noted
that local agencies cannot prohibit wireless services, they cannot unreasonably discriminate
between providers of personal wireless services, they must act on permit requests in a
reasonable amount of time, any denials must be in writing and be supported by substantial
evidence in a written record, and that local agencies are prohibited from regulating the
placement of wireless facilities based on the environmental effects of RF emissions.  

       She noted that one uniform national RF emissions standard ought to make wireless
facilities siting faster and less controversial.  She emphasized that the new hybrid approach of
the FCC's new RF emissions guidelines is broadly supported by the federal agencies charged
with the protection of public health.  She urged the industry to use the new Siting Fact Sheets
available on the Wireless Bureau's homepage to educate local agencies about the RF emission
guidelines and to explain that the FCC has imposed safeguards to ensure that the RF emission
guidelines are fully complied with.  

       Commissioner Chong also discussed a "spate of petitions" filed recently at the FCC
seeking preemption of certain state and local regulations imposed on CMRS providers.  One
sought to overturn an Oregon state tax on a PCS licensee, while another sought preemption of
a Minnesota ordinance that imposes conditions that FCC licensees must meet before providing
services.  She said that she is "troubled" by this trend of state action inhibiting wireless
licensees from providing service, and pointed to Sections 332 and 253 of the Communications
Act which clearly establish that states and local governments cannot regulate the rates or
entry of CMRS providers and cannot impose barriers of entry.  She said the FCC would look
carefully at these controversial state and local regulations and see if they have the effect of
restricting the provision of services by mobile providers, or of disproportionately affecting the
wireless industry as opposed to wired telephone providers.  

       She praised PCIA's Foundation for its LifePage program which provides pagers and
paging service to organ transplant patients awaiting donors.  She urged wireless providers to
consider getting involved in providing telecommunications service to the nation's schools.