Report No. CC 98-35   COMMON CARRIER ACTION      October 22, 1998


Commission Takes Further Action to Ensure Fair and Efficient Administration of the
              Universal Service Support Mechanisms
                     (CC Docket No. 96-45)
                                

     The Commission today took further action to ensure that the universal service support
mechanisms operate fairly and equitably, particularly with respect to wireless telecommunications
carriers. In a Memorandum Opinion and Order and Further Notice of Proposed Rulemaking
adopted today, the Commission addressed the following four issues:

       First, the Commission provided wireless telecommunications providers with interim
guidelines for reporting their percentage of interstate wireless telecommunications revenues. The
amount of interstate revenues is used to determine a wireless carrier's contribution to the high cost
and low-income universal service support mechanisms.  Specifically, the Commission established
"safe-harbor" percentages that wireless carriers may use until adoption of final rules.  These "safe-
harbor" percentages will assist wireless carriers in allocating revenues between the interstate and
intrastate jurisdictions. 
       
       Second, the Commission asked for comment on establishing rules to deal with those
situations in which universal service contributors cannot derive the amounts of their intrastate and
interstate end-user telecommunications revenues readily from their books of account. 

       Third, the Commission asked for comment on the extent to which its universal service
rules facilitate the provision of supported services by service providers, such as wireless
telecommunications providers and cable operators, that historically have not provided services
eligible for federal universal service support.  The Commission asked for comment on the extent
to which such providers are, in fact, supplying services eligible for support and what additional
steps may be necessary to facilitate the participation of new providers and promote competition in
the universal service context.   

       Finally, the Commission asked for comment on how much, if any, local usage eligible
telecommunications carriers should be required to provide to customers as part of a "basic
service" package.  

                             - 2 -
                                
       Action by the Commission October 22, 1998, by Memorandum Opinion and Order and
Further Notice of Proposed Rulemaking (FCC 98-278).  Chairman Kennard, Commissioners
Ness, Powell and Tristani, with Commissioner Furchtgott-Roth approving in part, dissenting in
part and issuing a statement.

                             -FCC-
                                
       News media contact:  Rochelle Cohen at (202) 418-0253.
       Common Carrier Bureau contact:  Lori Wright at (202) 418-7391
       TTY: (202) 418-2555.