Statement of Chairman William E. Kennard on the Current Dispute Between Telmex and U.S. Carriers

[ Text Version | WordPerfect Version ]

fcclogo NEWS

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

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).

February 25, 1998

STATEMENT OF CHAIRMAN WILLIAM E. KENNARD ON THE CURRENT DISPUTE BETWEEN TELMEX AND U.S. CARRIERS

"I applaud the steps that Mexico has recently taken to foster competition in its telecommunications market. However, I am very concerned about a number of issues that in my view are preventing vigorous competition between the U.S. and Mexico. First, I am deeply committed to achieving significant annual reductions in inflated settlement rates on the U.S.-Mexico route. The Commission applauds U.S. carriers' efforts to achieve such reductions as a way of bringing down the cost of international rates for consumers both here and abroad. Vigorous competition on this route also requires a rapid phasing-out of the 58% surcharge which the incumbent carrier Telmex currently imposes on competitors. It is imperative that the Mexican authorities act to eliminate that surcharge quickly. Finally, on both sides of the border, we must move to a regulatory regime that embraces carriers' ability freely to negotiate the most economically rational agreements for terminating each other's traffic."

- FCC -

	NEWS
	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
	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).
	February 25, 1998
	STATEMENT OF CHAIRMAN WILLIAM E. KENNARD ON THE CURRENT DISPUTE BETWEEN TELMEX AND U.S. CARRIERS
	"I applaud the steps that Mexico has recently taken to foster competition in its telecommunications market. However, I am very concerned about a number of issues that in my view are preventing vigorous competition between the U.S. and Mexico. First, I am deeply committed to achieving significant annual reductions in inflated settlement rates on the U.S.-Mexico route. The Commission applauds U.S. carriers' efforts to achieve such reductions as a way of bringing down the cost of international rates for consumers both here and abroad. Vigorous competition on this route also requires a rapid phasing-out of the 58% surcharge which the incumbent carrier Telmex currently imposes on competitors. It is imperative that the Mexican authorities act to eliminate that surcharge quickly. Finally, on both sides of the border, we must move to a regulatory regime that embraces carriers' ability freely to negotiate the most economically rational agreements for terminating each other's traffic." - FCC -