NEWS                                                   September 28, 1998

      STATEMENT OF CHAIRMAN WILLIAM KENNARD ON FCC'S QWEST DECISION

     In the 1996 Act, Congress said that the Bell Operating Companies are not permitted
to offer long distance service to their local customers until they have opened their local
markets to competition.  Entry into the long distance market is the incentive that Congress
used to encourage the Bells to open their local markets.  As long as the Bell Companies keep
their local networks closed and thus remain the sole source for local service, it makes no
sense to reward them by allowing them to become the sole source for a combined package of
local and long distance as well.
     
     We can't trade the short term convenience of one-stop shopping for long-term
monopolies. That wouldn't be right for consumers and it's not what the law requires.
     
     It's important to note that our ruling does not prohibit consumers from getting the
same long distance rates from Qwest that the Bells sought to offer under the business
arrangements in question.  Consumers can get the same deal directly from Qwest.  
     
     Now we all need to focus on opening the local markets so that we can bring the full
benefits of fair competition to all consumers in the manner Congress intended.

     
                                  - FCC -