FOR IMMEDIATE RELEASE:             NEWS MEDIA CONTACT:
  November 9, 2000                        Michael Balmoris 202-418-0253
                                Email:    mbalmori@fcc.gov
                              
 FCC PRIVATIZES STANDARDS-SETTING AND CERTIFICATION PROCESS
                  FOR TELEPHONE EQUIPMENT
                              
Action Signifies Commission's Efforts to Eliminate Unnecessary Regulations as
          Competition Increases in Telecom Markets
  
  Washington, D.C.   Today, the Federal Communications Commission (FCC) eliminated
  regulations governing the development of technical standards and certification procedures
  for telecommunications equipment, such as telephones, fax machines, or modems. 
  Specifically, the Commission privatized the process for establishing technical criteria for
  these products, referred to as customer premise equipment (CPE), and eliminated the
  requirement that manufacturers of CPE seek Commission approval of the equipment. 
  This action eliminates 125 pages of federal rules, leaving it to the telecommunications
  industry to self-regulate.
  
  The Report and Order adopted today, which is part of the Commission's second
  comprehensive biennial review of regulations to eliminate rules that are no longer
  necessary, reduces significantly the FCC's involvement in adopting technical criteria and
  approving CPE.  The Commission established these rules twenty-five years ago, in part,
  to facilitate a vibrant, competitive market for CPE, and to ensure that such equipment
  does not harm the telephone network.  The very success of the Commission's rules has
  fostered their elimination as the competition for CPE has matured to the point that
  detailed federal rules are no longer necessary.
  
  Currently, to establish technical criteria for new technologies, the FCC must
  conduct a full rulemaking proceeding.  The FCC also approves approximately 3,000 CPE
  applications per year, and typically it takes the Commission two to four weeks to review
  and approve a CPE application to ensure that the product meets the technical
  requirements that prevent harm to the telephone network.  
  
  Today's action, which privatizes both establishment of technical criteria and requirements
  for approval of CPE equipment, is expected to save manufacturers millions of dollars a
  year.  The privatization of this process is expected to bring innovative equipment to the
  marketplace faster, thereby increasing the choices available to consumers, without
  harming the telephone network and with a minimal federal role.
  
                        --  more --
  Once the Order adopted today becomes effective, equipment manufacturers and
  suppliers will be able to demonstrate conformity to the appropriate technical criteria
  either by seeking certification from a Telecommunications Certification Body (TCB), or
  by providing their own formal declaration of conformity to consumers and the
  Administrative Council for Terminal Attachment.  
  
  The Commission will continue to enforce the requirement that CPE not cause
  harms to the network.  In addition, our rules will continue to require that providers of
  telecommunications permit connection to the telephone network of any CPE that meets
  the technical criteria developed by industry.  Finally, aggrieved parties may request that
  the Commission conduct a de novo review of the technical criteria.
  
  Action by the Commission November 9, 2000, by Report and Order (FCC 00-
  400).  Chairman Kennard, and Commissioners Ness, Furchtgott-Roth, Powell and
  Tristani.
  
  CC Docket No. 99-216
  
                           -FCC-
  
  
  Common Carrier Bureau staff contacts:
  Susan Magnotti or Dennis Johnson at (202) 418-2320; TTY (202) 418-0484
  
                              
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          on the Commission's web site www.fcc.gov