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 NEWS  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974).  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322 
 FOR  IMMEDIATE  RELEASE:  NEWS  MEDIA  CONTACT:  October  10,  2002  Maureen  Peratino  at  (202)  418-  0506 
 Audrey  Spivack  at  (202)  418-  0512 


 FEDERAL  COMMUNICATIONS  COMMISSION  BEGINS  REVIEW  OF  POLICIES  ON  INTERNATIONAL  CALLING 
 TO  ACHIEVE  GREATER  CONSUMER  BENEFITS 
 Washington,  D.  C.  –  Today,  the  Federal  Communications  Commission  (FCC)  adopted  a  Notice  of  Proposed  Rulemaking  (NPRM)  that  requests  comment  on  possible  reform  to  the 
 regulatory  framework  under  which  U.  S.  carriers  and  foreign  carriers  negotiate  for  commercial  agreements  to  exchange  traffic.  Since  the  Commission  adopted  in  1997  its  Benchmarks  Order, 
 the  average  U.  S.-  international  settlement  rate  has  fallen  from  $0.35  in  1997  to  $0.14  in  2001,  and,  correspondingly,  U.  S.  calling  prices  have  dropped  from  $0.67  in  1997  to  $0.33  in  2001. 
 Moreover,  number  of  U.  S.-  authorized  international  service  providers  has  grown  to  more  than  3900  and  there  are  more  than  4000  global  carriers  worldwide.  The  purpose  of  initiating  this 
 proceeding  is  to  consider  measures  to  permit  greater  benefits  to  U.  S.  consumers  in  the  form  of  lower  calling  prices  and  more  innovation  in  light  of  dramatic  changes  in  the  international 
 marketplace. 
 The  Commission  seeks  comment  in  the  NPRM  from  the  public  regarding  possible  reform  of  its  International  Settlements  Policy,  International  Simple  Resale  and  benchmarks  policies,  and 


 inquires  about  the  issue  of  foreign  mobile  termination  rates.  The  Commission’s  International  Settlements  Policy  (ISP)  is  designed  to  promote  lower  international  calling  rates  for  consumers 
 by  leveling  the  playing  field  for  U.  S.  carriers  in  their  negotiations  with  foreign  carriers.  The  Commission  requests  comment  and  information  on  whether  competition  in  the  U.  S.-  international 
 marketplace  is  such  that  the  ISP,  in  its  current  form,  is  sufficiently  targeted  to  address  today’s  market  concerns.  The  Commission  also  asks  whether,  under  various  options  described  in  the 
 NPRM,  removing  the  regulatory  restrictions  of  the  ISP  would  benefit  consumers  by  promoting  greater  competition,  while  still  preventing  any  anticompetitive  harm  from  foreign  carriers  and 
 otherwise  protecting  the  public  interest. 
 In  addition,  the  Commission  asks  for  comment  on  the  next  phase  of  the  Commission’s  settlement  rate  policies,  and  what,  if  any,  actions,  including  revising  its  International  Simple 


 Resale  and  benchmarks  policies,  the  Commission  should  consider.  Because  the  final  transition  period  for  benchmark  rates  will  soon  conclude,  the  Commission  is  exploring  whether  further 
 actions  may  be  appropriate. 
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 Finally,  consistent  with  the  Consumer  Alert  the  Commission  released  in  September,  the  NPRM  seeks  comment  on  whether  foreign  mobile  termination  charges  are  harming  U.  S. 
 consumers  and  competition.  Consumers  placing  international  calls  to  mobile  telephones  in  other  countries  may  incur  special  surcharges  on  their  bills  that  reflect  the  charges  for  termination  of 
 calls  to  foreign  mobile  networks.  The  NPRM  seeks  comment  on  ways  the  Commission  may  effectively  address  any  harm  to  consumers  and  competition  and  also  improve  consumer 
 awareness. 
 The  Commission  invites  parties  to  comment  on  these  proposals  and  on  any  other  relevant  issues,  including  the  adoption  of  safeguards,  transition  and  sunset  issues,  and  possible  reform  of 
 Commission  filing  and  reporting  requirements.  Comments  are  due  December  10,  2002.  Reply  comments  are  due  January  9,  2002. 


 Action  by  the  Commission  October  10,  2002,  by  Notice  of  Proposed  Rulemaking  (FCC  02-  285).  Chairman  Powell,  Commissioners  Abernathy,  Copps  and  Martin. 


 -FCC- 
 IB  Docket  Nos.  02-  324  and  96-  261 
 International  Bureau  Contacts:  Lisa  Choi  or  Gardner  Foster  (202)  418-  1460. 
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