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: March 14, 2002 NEWS MEDIA CONTACT: Michael Balmoris 202-418-0253 Email: mbalmori@fcc.gov
	FCC LAUNCHES PROCEEDING TO EXAMINE FEES CHARGED CONSUMERS FOR SWITCHING THEIR LONG DISTANCE CARRIER Commission Seeks to Ensure that Charges are Reasonable
	Washington, D.C. - Today, the Federal Communications Commission (FCC) initiated a proceeding to examine the Commission's policies related to fees charged consumers for changing their presubscribed interexhange carrier, or long distance carrier. Presubscribed interexchange carrier-change charges (PIC-change charges) currently are subject to a $5 safe harbor within which a PIC-change charge is considered reasonable. The $5 maximum cap was established by the FCC in 1984. The PIC-change charge can be a significant cost to consumers. Most local exchange carriers (LECs) charge the $5 maximum permitted under the safe harbor, and currently long distance carriers typically pick up the cost of the PIC-change as an incentive to win new customers. On May 16, 2001, the Competitive Telecommunications Association (CompTel) petitioned the Commission to initiate a rulemaking proceeding to revise its policies governing the PIC-change charge. Today's Order and Notice of Proposed Rulemaking grants that petition and seeks comment on the Commission's policies for regulating PIC- change charges. With today's action, the Commission seeks to ensure that PIC-change charges appropriately reflect the current costs of this function and that the charge is not an impediment to competition. Accordingly, the Notice adopted today seeks comment on, among other issues, the following: Whether to base the PIC-change charge on an examination of carrier costs or whether the Commission can rely on market forces to ensure reasonable rates. Whether to take non-cost factors into account in determining a reasonable PIC-change charge. Whether to establish a national safe harbor, whether carriers should submit individualized cost support with their tariffs, or whether the Commission should review rates solely through enforcement processes. -FCC- Docket No.: CC 02-53 Action by the Commission March 14, 2002, by Order and Notice of Proposed Rulemaking (FCC 02-79). Chairman Powell and Commissioners, Abernathy, Copps, and Martin. Bureau Staff Contact: Jennifer Mckee at 202-418-1520 News about the Federal Communications Commission can also be found on the Commission's web site www.fcc.gov.