FOR IMMEDIATE RELEASE:                  NEWS MEDIA CONTACT: 
  November 2, 1999                             Mike Balmoris at (202) 418-0253
                                          Email: mbalmori@fcc.gov
                              
                   COMMON CARRIER ACTION
                              
Federal Communications Commission Adopts Rules APPLICABLE to THE
           SALE OF High-Speed Internet Services 
  
       Washington, D.C.   The Federal Communications Commission (FCC) took action
  today to promote the availability of broadband Internet access for residential and small
  business users.  In the Order, the Commission clarified that digital subscriber line services
  (xDSL) used to provide high-speed Internet service are not subject to the discounted
  resale obligations of the 1996 Telecommunications Act when sold in bulk to Internet
  Service Providers (ISPs).  The discounted resale obligations require ILECs to offer their
  retail telecommunications services to resellers at wholesale rates.  
  
       The Commission's actions will enable ISPs to buy DSL services in bulk from
  Incumbent Local Exchange Carriers (ILECs) to offer high-speed Internet services to
  consumers on a more cost-effective basis.  Consumers will ultimately benefit through
  lower prices and greater and more expeditious access to innovative, diverse broadband
  applications by multiple providers of advanced services. 
  
       The Commission further clarified that advanced telecommunications services sold
  directly to residential and business end-users are not exempt from the resale obligations of
  the Act. In a parallel proceeding, the Commission terminated its investigation of a Bell
  Atlantic tariff, which raised similar issues. 
  
       Action by the Commission on November 2, 1999, by Second Report and Order
  and Order Terminating Investigation.  Chairman Kennard and Commissioners Ness,
  Furchtgott-Roth, Powell and Tristani.
  
  
                                      -FCC-
  
  Report No. CC 99-51
  CC Docket Nos. 98-147, 99-201
  FCC Nos. 99-330, 99-331
  
  Common Carrier Bureau Contact:     Staci Pies, (202) 418-1580.