April 14, 1999


      CHAIRMAN KENNARD STATEMENT ON ALTERNATIVE SETTLEMENT
                    ARRANGEMENTS WITH MEXICO
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 -