LETTERS ON CURRENT ISSUES
[Text only of letters sent from the Commerce Committee Democrats]

November 14, 1997

The Honorable William Kennard
Chairman
Federal Communications Commission
1919 M Street, N.W.
Washington, DC 20554

Dear Chairman Kennard:

Congratulations on your recent confirmation as Chairman of the Federal Communications Commission. I look forward to working with you and your colleagues on telecommunications issues within the jurisdiction of the House Commerce Committee.

I understand the new Commission will hold its first open meeting on November 25th, at which time you plan to adopt an Order with rules to implement the World Trade Organization agreement reached earlier this year. I also understand that AT&T has proposed including, as part of the Order, a condition requiring all new and existing international resale authorizations held by U.S. carriers with foreign affiliates to comply with the international accounting rate benchmarks on a substantially accelerated time schedule than was adopted recently by the Commission in its final rule.

As you know, I strongly supported the Commission's efforts to encourage lower international settlement rates, and express no view at this time on the merits of the AT&T proposal. However, I am concerned that such a condition may have unintended effects, including the possibility that U.S. carriers will be forced out of the international resale market. Such a result presumably would have an adverse effect on U.S. jobs and on competition in the U.S. international long distance market in general.

To allay my concerns, I would appreciate your response to the following questions:

  1. Has the Commission evaluated the effect of the AT&T proposal on:

    a) the viability of existing U.S. carriers in the international resale market;
    b) competition in the international resale market in general; and
    c) U.S. jobs in the telecommunications industry?

    If so, please summarize these evaluations and include all supporting materials.

  2. If the Commission has not fully evaluated each of these issues, I would observe that it may not have sufficient information at this time on which to determine the merits of the AT&T proposal. Would you agree with this assessment?

Thank you for your consideration of these issues. I would appreciate your response by November 21, 1997.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER

cc: Commissioner Furchtgott-Roth
Commissioner Ness
Commissioner Powell
Commissioner Tristani


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