NEWS          Press Statement by Commissioner James H. Quello

              In re:  Progress and Freedom Foundation Report

                               May 31, 1995

     The Progress and Freedom Foundation Report reflects the well considered opinions of
a group of intellectual visionaries who are ten years ahead of themselves.  It requires further
thoughtful review.  At this time, its proposal for restructuring the FCC is too drastic and
impractical.

     Perhaps many of the Report's proposals, particularly the personnel reductions, could be
implemented at some time in the future when competition replaces the need for regulation.  This
will come with the eventual establishment of a multi-channel, multi-faceted communications
information highway offering consumers a variety of competitive choices for communication
services.  Although we at the FCC are working toward that goal, we are not there yet.

     Furthermore, before plans to drastically restructure the FCC can be considered,
decisionmakers should first consider the number of FCC rulemakings it will take to implement
proposed Congressional action that would fully open the communications marketplace to
competition.  For example, implementation of the 1992 Cable Act was the most resource-
intensive undertaking in recent FCC history, requiring 27 rulemakings.  If Congress passes that
now-pending telecommunications legislation, it has been estimated that 70-80 new FCC
rulemakings would be required.

     Thus, the proposed present legislation could impose resource requirements upon the FCC
far exceeding those imposed by the 1992 Cable Act.

     At this time, I suggest the following:

     1.  Let's first see what Congress eventually legislates and what detailed regulatory
requirements are entailed.

     2.  Let's conduct a realistic audit of the FCC's current resource allocation and take
further practical steps to eliminate duplication, unnecessary work, and consolidate agency
administration, wherever possible.

     3.  Above all, we must keep an open mind to the proposition that regulation in any
administration has a historic tendency to feed upon itself and requires periodic review.

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