NEWS
                                                         February 4, 1998
                                    
                                    
              STATEMENT OF FCC CHAIRMAN WILLIAM E. KENNARD 
                     ON BELLSOUTH'S 271 APPLICATION

     While BellSouth continues to make progress towards opening its local markets to
competition, the Commission was compelled by law to deny BellSouth's application because
it has not yet opened its markets markets as required by section 271.  BellSouth in Louisiana
proposed the same systems for delivering interconnection, unbundled elements, and switching
customers' service that the Commission previously found inadequate in the South Carolina
decision.  In an open market, customers must be able to exercise choice.  When a customer
signed up for BellSouth service, the ordering process worked without a hitch more than 80%
of the time.  But when a customer signed up for a competitor's service, the ordering process
worked without a hitch only 39% of the time.  I am confident that BellSouth can ultimately
address these concerns and I am committed to ensuring that the Commission works with
BellSouth and all interested parties as they attempt to do so.   

     In the three months since BellSouth filed its application for Louisiana, much progress
has been made.  We have benefitted from our experience in evaluating each 271 application,
and we have committed to engaging in a more productive and better-informed dialogue prior
to the time a BOC files its application.  Commission staff has already had extensive meetings
with the BOCs and other interested parties.  I am confident that future 271 applications will
reflect the benefits of these discussions.  I am committed to the goal of enhancing
competition in local and long distance markets, and I look forward to the day that we grant
the first 271 application.

                                  - FCC -