July 17, 1997
                                  
                  FCC CHAIRMAN REED HUNDT CALLS ON
               CONGRESS TO PROTECT SPECTRUM LICENSES
                     FROM BANKRUPTCY LAW DELAYS
                                  
     FCC Chairman Reed Hundt today called on
Congress to protect spectrum licenses from being tied up in
bankruptcy delays.  Addressing the U.S. Hispanic Chamber
of Commerce's First Annual International Conference,
Hundt urged Congress "to make crystal clear to even the
most ingenious, pettifogging, perservering lawyers" that
provisions of the Bankruptcy Code "are not applicable to
any FCC license for which a payment obligation is owed,
do not relieve any licensee from payment obligations, and
do not affect the Commission's authority to revoke cancel,
transfer, or assign its licenses."

     Hundt said "We don't want to spend time and
resources debating this issue in chapter 11 reorganizations,
in chapter 7 bankruptcies, or even in our offices."  He said
Congressional action would "nip in the bud all legal
shenanigans about bankruptcy and the government's rights
to its licenses."  Hundt noted that the Administration has
written Congress to urge this, and that he will make the
same recommendation in a letter to Congress today. He
emphasized that the FCC doesn't agree with lawyers in the
private sector who claim that the Bankruptcy Code conflicts
with the statutory mandate to promote competition in
wireless services without administrative or judicial delay.

     In his luncheon remarks, Hundt also criticized
SBC's challenge to the FCC's recently adopted program to
connect schools and libraries to communications networks. 
Expressing confidence in the soundness and statutory basis
for the FCC's universal service program, Hundt said
"Millions of children will be ill-served if this lawsuit delays
this Congressionally-mandated program that will
dramatically improve education."

     Hundt also praised the World Trade Organization
Agreement on Basic Telecommunications Services. Praising
Mexico and Chile in particular, Hundt said that countries
around the world "are realizing the importance of
competition and private investment to an efficient and
widely accessible telecommunications network."  Hundt
predicted that "as countries open up to private investment
and competition, we will see dramatic improvements in
access by the dawn of the next millennium."

                                -FCC-