REED HUNDT
                                CHAIRMAN
                    FEDERAL COMMUNICATIONS COMMISSION
             FEDERAL-STATE JOINT BOARD ON UNIVERSAL SERVICE
                             APRIL 12, 1996
                             OPENING REMARKS

Welcome to the first meeting of the Federal State Joint Board on Universal Service in
Common Carrier Docket No. 96-45.  As you know, for the first time in history, with the
passage of the Telecommunications Act of 1996, Congress handed the FCC and the States a
mandate to assure universal service for all Americans.  Today's meeting will provide the Joint
Board members, as well as the public, the first opportunity to discuss these issues.  We have
gathered an extraordinary group of distinguished experts for today's meeting.  We are looking
forward to hearing from these experts and discussing these very important issues with them.

The new telecommunications law contains seven Universal Service principles.  We believe
that these principles are crucial to the continued success of our nation -- politically, socially,
and economically.  The 1996 Act directs that this Joint Board guarantee:
     1)  that we promote the availability of quality services at just, reasonable, and
     affordable rates;
     2)  that all regions of the country have access to advanced services;  
     3)  that there will be access for all low-income consumers as well as those in rural,
     insular, and high cost areas;
     4)  that all providers of telecommunications services contribute to ensuring universal
     service;
     5)  that there will be federal and state support mechanisms to preserve and advance
     universal service;
     6)  that all schools, classrooms, healthcare providers, and libraries have access to
     advanced telecommunications services; and 
     7)  finally, that we advance those additional principles needed to protect the public
     interest.

Congress intended that these principles be afforded equal weight and that satisfying them, as
a whole, be a major priority of the new law.  We intend to afford each of these principles
equal and urgent attention in our review of this proceeding.  We need to act decisively to
ensure that all of the entities identified in the Act reap the benefits of the anticipated dramatic
advances in telecommunications. 

This Joint Board also has a key role in making competition work.  But we will not be
successful if our overall policies translate to rate shocks for consumers.  We will not be
successful if our policies drive large numbers of people off the network.  We need to send a
message - loud and clear - that we are committed to promoting increased subscribership
levels.  It is my sincere hope that this Joint Board will to take the necessary steps to ensure
that people don't drop off of our national telecommunications network.

 (over)
                                    
                                    
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I also believe that this proceeding demonstrates the cohesive nature of the Act, that is, I
believe that this proceeding is closely related to both Section 251 (addressing interconnection)
and Section 706 (requiring the Commission to take all necessary action to ensure the
provision of advanced telecommunications capabilities to all Americans). 

Finally, this is a very special proceeding in several ways.  It will afford the FCC the
opportunity to work with the states both on a formal and an informal basis in carrying out
Congress' goals.  This proceeding gives us the opportunity to forge a partnership that will
establish the best policies to provide access to telecommunications for all segments of our
society.  The FCC has a strong commitment to working with the States on these issues.