STATEMENT OF CHAIRMAN MICHAEL K. POWELL
                              
                       April 19, 2001
  
     Re:  Implementation of the Local Competition Provisions in the Telecommunications Act
     of 1996, CC Docket No. 96-98; Intercarrier Compensation for ISP-Bound Traffic,
     CC Docket No. 99-68
  
  
       Today's Order is an important step in resolving a highly complex issue that has led
  to much industry turmoil and to market uncertainty.  While the fundamental questions
  presented have been difficult and the subject of much debate, the Commission's reasoning
  rests on solid legal analysis, and a careful and comprehensive evaluation of many
  competing views.  I am confident that the Order fully and fairly responds to the questions
  raised by the Court of Appeals.  
  
  Equally important, the Order provides a fair interim transition that balances the
  conflicting interests of incumbent local exchange carriers, new entrants, and other
  interested parties, while sharply reducing the potential for regulatory arbitrage and the
  incentive for uneconomic entry.  Thus, the Order preserves the vibrant and competitive
  telecommunications marketplace that benefits ISPs and their customers.  
  
  While concluding that this traffic is the subject of federal jurisdiction, we look
  forward to our continued collaboration with the States as we move away from regulatory
  answers in favor of long-term market-based solutions.  I am pleased that the Order today,
  together with the broader Notice on Intercarrier Compensation, sets us well on our way.