February 26, 1997


     Commissioner Chong Shares Her View of 
Telecommunications Trends and FCC Hot Topics with NARUC  
                        

     In a speech to the Communications Committee of the
National Association of Regulatory Utility Commissioners, FCC
Commissioner Rachelle Chong highlighted three
telecommunications trends -- increasing litigation, competitive and
technological neutrality, eliminating market entry barriers.  As to
hot topics, she discussed the upcoming universal service decision. 
She said that "Job One" needs to be getting basic
telecommunications service to all Americans, no matter where they
live, because without a basic communications link, advanced
telecommunications services won't be possible.

     As to trends, Chong noted a disturbing increase in
telecommunications litigation both at the state and federal level, and
cautioned that this may delay the competition that Congress
intended.  She warned that if the "players continue to file suit
against virtually every federal and state ruling, jurisdiction will be
taken out of the hands of us expert agencies, and will be put back in
the hands of dozens U.S. district and appeals courts."  Chong urged
the state regulators to counter this trend by working closely together
with the FCC "to put forward decisions that are generally consistent
in approach" and that enunciate a clear rationale for the benefit of
the courts. 

     In discussing whether the Commission should fund the
universal service program based only on interstate
telecommunications revenues or on both interstate and intrastate
revenues, Chong asked state commissioners to formulate their
positions on this issue "not only from a legal perspective on
jurisdiction, but [to also] give equal weight to the economic and
policy implications of a decision to rely solely on interstate
revenue."  

     She noted that a program funded on interstate revenues alone
would give the FCC little option but to contribute less federal
(interstate) dollars to support a particular state's low income
consumers, and consumers in rural and high-cost areas, but that
each state would have to make up any funding deficiency through its
own intrastate universal service mechanism.  She said, "if each state
has to pull its own universal service wagon, some states will have
heavier wagons than others.  But if we collectively pull the nation's
universal service wagon, it will be an easier job."

     Other hot topics that Chong said the FCC will grapple with
included access charges, internet issues, spectrum policy, and public
safety.