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 -