Press Statement of Chairman William E. Kennard on Settlement Rate Enforcement for Cyprus and Kuwait (DA 99-1052, 1053)

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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
TTY: 202/418-2555

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).

FOR IMMEDIATE RELEASE:
June 3, 1999

PRESS STATEMENT OF CHAIRMAN WILLIAM E. KENNARD ON SETTLEMENT RATE ENFORCEMENT FOR CYPRUS AND KUWAIT
(DA 99-1052, 1053)

I commend today's action enforcing the Commission's 1997 Benchmarks Order. The goal of the Benchmarks Order was to reduce inflated settlement payments -- ultimately borne by U.S. consumers -- to more cost-based levels, and in so doing to reduce the cost of international service. In 1997 when the Commission issued the Benchmarks Order, U.S. carriers were paying $5.4 billion to foreign carriers to terminate U.S.-originated calls. At least 70% of this represented a pure above-cost subsidy by U.S. consumers of foreign carriers. Such subsidies are untenable in today's increasingly competitive global telecommunications market.

- FCC -

	NEWS
	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 TTY: 202/418-2555
	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).
	FOR IMMEDIATE RELEASE: June 3, 1999
	PRESS STATEMENT OF CHAIRMAN WILLIAM E. KENNARD ON SETTLEMENT RATE ENFORCEMENT FOR CYPRUS AND KUWAIT (DA 99-1052, 1053)
	I commend today's action enforcing the Commission's 1997 Benchmarks Order. The goal of the Benchmarks Order was to reduce inflated settlement payments -- ultimately borne by U.S. consumers -- to more cost-based levels, and in so doing to reduce the cost of international service. In 1997 when the Commission issued the Benchmarks Order, U.S. carriers were paying $5.4 billion to foreign carriers to terminate U.S.-originated calls. At least 70% of this represented a pure above-cost subsidy by U.S. consumers of foreign carriers. Such subsidies are untenable in today's increasingly competitive global telecommunications market. - FCC -