July 2, 1998

               STATEMENT OF WILLIAM E. KENNARD, 
      CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION, 
    ON RECEIPT OF THE UNIVERSAL SERVICE ADMINISTRATIVE CO.'S
                      REORGANIZATION PLAN

     Today I received the Universal Service Administrative Co.'s (USAC's) comprehensive
proposal to consolidate the Schools and Libraries Corporation (SLC) and the Rural Health Care
Corporation (RHCC) into one administrative entity.  I want to thank and commend USAC, SLC
and RHCC for their quick and thorough response to consolidate administration and to reduce costs
further while ensuring an efficient operation for universal service. 

     We immediately will put this plan out for public comment and will act quickly to get a new
administrative structure in place.  Further debates over universal service should be about policy
choices, not administrative structure.

                             - FCC -