Remarks of Commissioner Rachelle Chong
             at the Joint Board Meeting on Universal Service
                                    
                             April 12, 1996



    It is a great pleasure to attend my first meeting as a member of this new
universal service Joint Board.  I join my colleagues in welcoming our panelists to
Washington D.C. 

    This Joint Board was established pursuant to the direction of Congress. 
     Congress was very specific in Section 254(a) about the scope of our tasks:

     First, define the services that will be supported by federal universal service
     support mechanisms.  

      Second, define those support mechanisms; and third, recommend changes
     to Commission regulations to implement the universal service directives of the     
     
     1996 Act.

     Third, recommend changes to Commission regulations to implement the
     universal service directives of the 1996 Act.

     It is my hope that our panelists will focus on the first two tasks, and share with
us what services they believe ought to be provided and what support mechanisms are
necessary to support those services.

     From my point of view, I would like our panelists to focus more on forward-
looking universal service proposals.  I would rather hear about how we ought to
formulate our future universal service system to reflect the shift away from the
monopoly model of telecommunications to a deregulatory, pro-competitive model.    

     If you suggest particular basic services, I have another request.  Congress
directed this Joint Board to consider four specific criteria in defining which services we
propose as universal services.  So when you discuss these basic services, please tell
me how they meet the following four criteria:

     First, the service is "essential to education, public health or public safety;"

     Second, the service has, through "the operation of market choices by
     customers," been subscribed to by "a substantial majority of residential
     customers;"

     Third, the service is being deployed in public telecom networks by telecom
     carriers; and 

     Fourth, the service is consistent with the public interest, convenience and
     necessity.

     If the service you propose does not meet all the four criteria, please tell me why
you still think the service ought to be included.  

     Now, I note that Congress recognized the telecommunications industry is
dynamic in nature.  In Section 254(c), Congress told the Commission to take into
account advances in telecommunications and information technology. So, when
making proposals about what basic universal services ought to be offered, it would be
useful if you address how Congress' contemplated universal service as "an evolving
level of telecommunications services." 

      Finally, Congress has directed this Joint Board to base our recommended
policies on seven principles set forth in Section 254(b), so I would like our panelists to
address how their proposals meet these principles:

     1.  Quality services at just, reasonable and affordable rates; 

     2.  Access to advanced services provided in all regions of the nation; 

     3.  Access for low income consumers and consumers in rural, insular and high
     cost areas to telecommunications service, including interexchange service and
     advanced services that are reasonably comparable to those services and rates
     offered in urban areas;

     4.  Equitable and nondiscriminatory contributions by all providers of
     telecommunications services;

     5.  Specific and predictable support mechanisms;

     6.  Access to advanced telecom services by schools, health care and libraries;

      7.  Other principles that the Joint Board finds to be necessary and appropriate
     for the protection of the public interest.  


     That is my  personal focus for today.  Thank you again for coming.