NEWS
	Federal Communications Commission 445 12th Street, S.W. Washington, D.C. 20554	News media information 202 / 418-0500 Internet: http://www.fcc.gov TTY: 1-888-835-5322
	This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
	FOR IMMEDIATE RELEASE: September 13, 2001 NEWS MEDIA CONTACT: Michael Balmoris 202-418-0253 Email: mbalmori@fcc.gov
	FCC INITIATES PROCEEDING TO REVIEW SEPARATE AFFILIATE RULES FOR INCUMBENT INDEPENDENT LOCAL PHONE CARRIERS
	Washington, D.C. - Today, the Federal Communications Commission (FCC) adopted a proposal to reexamine rules pertaining to the provisioning of in-region, interexchange services by incumbent independent local exchange carriers (LECs). Incumbent independent LECs are non-Bell Operating Company LECs and are typically small and often rural carriers with less than 2% of the nation's access lines. Incumbent independent LECs are permitted under the Communications Act to provide in-region, long distance service without demonstrating compliance with the competitive checklist of section 271. These carriers currently provide such long distance services subject to certain safeguards intended to prevent them from engaging in anti- competitive behavior. For example, incumbent independent LECs providing facilities- based, in-region, long distance service must do so through a separate corporate affiliate. Incumbent independent LECs providing in-region, long distance service exclusively through resale, however, must do so through a separate corporate division, rather than a separate affiliate. Today's action seeks comment on several issues related to the provisioning of in- region, interexchange services by incumbent independent LECs, including the following: A series of threshold questions to develop a more complete record, including, the number of incumbent independent LECs providing in-region, long distance service and how many of these are facilities-based versus resale. Whether or not the benefits of the separate affiliate requirement outweigh the regulatory and economic costs involved. Possible alternative safeguards, including proposals for applying the separate affiliate requirement to a more limited category of incumbent independent LECs. -FCC- CC Docket No. 00-175 Action by the Commission September 13, 2001, by Notice of Proposed of Rulemaking (FCC 01-261). Chairman Powell and Commissioners Abernathy, Copps, and Martin. Common Carrier Bureau Staff Contact: Jessica Rosenworcel at 202-418-1580 News about the Federal Communications Commission can also be found on the Commission's web site www.fcc.gov.