PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 1919 M STREET, N.W. WASHINGTON, D.C. 20554 News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet: http://www.fcc.gov ftp.fcc.gov Released: May 14, 1998 FCC GRANTS OVER 200 INTERNATIONAL SERVICE APPLICATIONS IN FIRST 90 DAYS OF NEW FOREIGN PARTICIPATION RULES The FCC's new rules dramatically liberalizing entry by foreign telecommunications carriers and investors into the U.S. telecommunications market took effect February 9, 1998. These new rules, adopted in response to the landmark 1997 World Trade Organization (WTO) agreement on basic telecommunication services, promise to increase competition significantly in the U.S. telecommunications market. When it adopted these new rules, the Commission stated that it would act within 90 days on all Section 214 applications except those that raise issues of "extraordinary complexity." The Commission has granted over two hundred applications to provide international service under the new rules. This action will yield substantial benefits for U.S. consumers by reducing prices, providing greater service options, and spurring technological innovation. The Commission's action over the past 90 days underscores the United States' leadership in opening global telecommunications markets to competition. The Commission acted swiftly to give effect to U.S. WTO commitments. These new FCC rules dispense with the Commission's effective competitive opportunities (ECO) policy in evaluating entities from WTO countries. The ECO policy, which had been in effect for all applicants prior to the adoption of the new rules, ordinarily required several months to process each application by a foreign telecommunications carrier to provide service in the U.S. market. Under the new rules, these procedures have changed radically. Since January 1998, the International Bureau has granted 26 applications from foreign telecommunications carriers to enter the U.S. market, including 13 applications from carriers that possess market power in their home market, which otherwise would have been subject to a lengthy ECO analysis. The Commission has also expanded its streamlined processing rules. Since January 1, 1998, the International Bureau has processed 217 Section 214 and 310(b)(4) authorizations under these rules, including many applications which would not have been streamlined under our old rules. Similarly, the Commission has made great progress in rapidly processing applications to provide switched services over private lines (ISR). Prior to adoption of the new rules, the International Bureau had only authorized the provision of ISR to five countries under the equivalency regime. Since the new rules were adopted, the Bureau has authorized the provision of ISR on an additional seven international routes, allowing ISR on routes that cover 35% of U.S. international traffic. The Commission also continues its efforts to encourage foreign countries to implement their WTO commitments and adopt pro-competitive regulatory policies. It is hosting a series of regulatory workshops for foreign telecommunications regulators from a range of countries. The workshops are designed to facilitate dialog and the sharing of information between regulatory authorities, with a goal of fostering development of pro-competitive regulatory policies in the regulators' national markets. Attached is a list of applications on which the FCC has yet to act because of Section 271 issues, unresolved issues pending in other Commission proceedings, or at the request of the applicant. PENDING INTERNATIONAL SECTION 214 APPLICATIONS The Commission has not yet issued orders acting on the applications for international Section 214 authority listed below because they raise issues of extraordinary complexity. An additional 90- day period for review is needed. See 47 C.F.R.  63.12. Section 271 Issues: File No. Applicant ITC-97-107 NYNEX Long Distance Company ITC-97-161 Pacific Bell Communications ITC-97-162 Pacific Bell Communications ITC-97-260 NYNEX Long Distance Company ITC-97-770 Southwestern Bell Communications Services, Inc. ITC-97-776 Southwestern Bell Communications Services, Inc. ITC-97-777 Southwestern Bell Communications Services, Inc. ITC-98-002 Bell Atlantic Communications, Inc. (BACI) & NYNEX Long Distance Company ITC-98-003 Bell Atlantic Communications, Inc. (BACI) & NYNEX Long Distance Company ITC-98-004 Bell Atlantic Communications, Inc. (BACI) & NYNEX Long Distance Company Held at request of applicant, or awaiting resolution of issues in separate Commission proceedings: File No. Applicant ITC-95-027 ACC Global Corp. ITC-96-318 Telefonica Larga Distancia de Puerto Rico Inc. ITC-96-373 Frontier Communications Service, Inc. ITC-96-372 Frontier Communications Service, Inc. ITC-97-138 Hong Kong Telecommunications (Pacific) Limited ITC-97-448 U S West Communications, Inc. ITC-97-450 IDB Mobile Communications, Inc. ITC-97-594 IDB Mobile Communications, Inc. ITC-98-089 Comsat Corporation ITC-98-103 Stratos Mobile Networks (USA), LLC For further information, contact Troy Tanner, Telecommunications Division, International Bureau, (202) 418-1470. - FCC -