May 21, 1998

        STATEMENT OF FCC CHAIRMAN WILLIAM KENNARD ON U S
                 WEST/AMERITECH/QUEST AGREEMENT
                                
     There has been much attention in the press recently concerning arrangements by which U
S WEST and Ameritech have agreed to market within their territories the long distance services
of Qwest Communications Corporation.  Commission staff are in the process of reviewing these
arrangements.  In order to help us in our review, I have  asked the Chief of the Common Carrier
Bureau and the General Counsel to request that U S WEST, Ameritech and Qwest submit to the
Commission all contracts governing the terms and conditions of these arrangements, as well as
any future modifications or amendments to those contracts.  

     There have been suggestions that prior Commission precedents clearly address these
specific types of arrangements.  I do not believe that is the case.  The Commission has not had
occasion to evaluate these precise arrangements.  The Commission will continue to review these
arrangements to determine whether they are consistent with the Telecommunications Act and
Commission precedent.

                             - FCC -