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Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
News media information 202 / 418-0500
Fax-On-Demand 202 / 418-2830
Internet: http://www.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).

April 14, 1999


Yesterday's action by the International Bureau approving AT&T's and MCI WorldCom's proposed alternative settlement arrangements with Mexican carriers is designed to lower calling prices and increase the choices available to consumers on the U.S.-Mexico route. These alternative settlement arrangements, if permitted to be implemented in Mexico, would provide significant benefits to those making calls between the U.S and Mexico by allowing U.S. carriers to carry traffic between the United States and Mexico outside of the traditional settlement arrangement that is a legacy of the monopoly era.

In response to requests from Mexican carriers, the Mexican regulator, COFETEL, has recently taken important steps to review current policies that prohibit the implementation in Mexico of these alternative settlement arrangements and international simple resale (ISR). I believe the current prohibitions hinder competition on the U.S.- Mexico route. Allowing pro-competitive alternative settlement arrangements such as these, and allowing ISR, would send an important signal to the world that true competition exists on the U.S.-Mexico route.

- FCC -