Report No. DC-2572        ACTION IN DOCKET CASE     March 8, 1994

         ONA AND NONDISCRIMINATION SAFEGUARDS TO BE APPLIED TO GTE
                            (CC DOCKET 92-256)

     The Commission has determined that GTE Corporation should be
subject to the same regulatory framework of Open Network
Architecture (ONA) and nondiscrimination safeguards that apply to
the Bell Operating Companies (BOCs).   Applying these requirements
to GTE will give enhanced service providers (ESPs) greater access
to unbundled services, thus facilitating the provision of
additional information age services and greater price competition. 

     Under this order, GTE is required to file an ONA plan within
nine months of the release of this order, file federal and state
ONA tariffs three months later, and implement ONA requirements and
nondiscrimination safeguards 15 months from the release of this
order.

     The Commission said that the benefits of applying ONA and
nondiscrimination safeguards to GTE substantially outweighed the
costs involved.  It noted that GTE is a very large company, with a
number of major service areas that resemble BOC territories.  

     The Commission also concluded that, based on the existing
record, GTE's voluntary ONA measures, while commendable, should not
exempt it from mandatory compliance with the BOC ONA requirements
and nondiscrimination safeguards.

     In the Computer III and ONA proceedings, the Commission
established a comprehensive regulatory framework of nonstructural
safeguards, including ONA requirements and nondiscrimination
safeguards, to govern the BOCs' participation in the enhanced
service marketplace. 

     The Commission said the BOC ONA regime which it is now
applying to GTE generates significant public interest benefits in
two major respects.  By imposing special obligations on these Local
Exchange Carriers (LECs) to respond to ESP needs by unbundling
existing basic services and providing new basic services, ONA
increases opportunities for all ESPs to develop new offerings, and
facilitates efficient ESP use of the regulated local exchange
network.  In particular, ONA ensures that ESPs and others are able
to purchase only the functionalities that they need and obtain
specific basic network functions necessary to provide their
services.  
                            (over)

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     The Commission's ONA requirements and nondiscrimination
safeguards also effectively guard against discrimination by these
LECs in their provision of basic services to ESPs.  These
protections facilitate use of the network in the provision of
enhanced services, thereby increasing the availability of
competitively provided enhanced services to consumers.

     Although the Commission initially did not require local
telephone companies other than the BOCs to comply with ONA
requirements and nondiscrimination safeguards, it stated that it
would reconsider this situation with regard to GTE once initial ONA
implementation by the BOCs was completed.  After gaining
substantial experience with the BOCs, the Commission has now
determined that extension of these requirements to GTE is
appropriate.

     Action by the Commission March 8, 1994, by Report and Order
(FCC 94-58).  Chairman Hundt, Commissioners Quello and Barrett.

                           - FCC -

      News Media contact: Rosemary Kimball at (202) 632-5050.
     Common Carrier Bureau contact: Peggy Reitzel at (202) 632-
1300; Rose Crellin at (202) 632-1292; Claudia Pabo at (202) 632-
4049; or Jim Schlichting at (202) 632-9342.