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 NEWS  News  Media  Information  202  /  418-  0500  TTY  202  /  418-  2555  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  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). 
 FOR  IMMEDIATE  RELEASE  MEDIA  CONTACT:  February  21,  2003  Jennifer  Manner  at  (202)  418-  2530 
 Email:  jmanner@  fcc.  gov 
 STATEMENT  BY  COMMISSIONER  KATHLEEN  Q.  ABERNATHY  ON  WHIPSAWING  DISPUTE  AFFECTING 
 THE  U.  S.-  PHILIPINES  ROUTE  (IB  DOCKET  NO.  03-  38) 


 On  February  7,  2003,  AT&  T  Corp.  and  WorldCom  Inc.  both  filed  petitions  requesting  that  the  Commission  take  action  to  protect  U.  S.-  international  carriers  and  U.  S. 
 consumers  from  alleged  “whipsawing”  behavior  occurring  on  the  U.  S.-  Philippines  route.  “Whipsawing”  is  a  form  of  anti-  competitive  behavior  that  involves  the  ability  of  foreign 
 carriers  to  obtain  unduly  favorable  terms  and  conditions  from  U.  S.-  international  service  providers  by  setting  competing  U.  S.  carriers  against  one  another.  Specifically,  in  this 
 proceeding,  AT&  T  and  WorldCom  allege  that  several  Philippines  carriers  have  blocked  the  traffic  of  U.  S.  carriers  for  their  refusal  to  agree  to  unilateral  rate  increases  which  has 
 resulted  in  significant  service  disruptions. 
 AT&  T  and  WorldCom  have  requested  that  the  FCC  take  action  to  protect  U.  S.  carriers  in  their  negotiations  on  the  U.  S.-  Philippines  route  from  whipsawing  and  prevent  further 
 network  disruptions  and  harm  to  U.  S.  consumers.  In  addition,  these  providers  have  requested  the  FCC  to  prohibit  U.  S.  carriers  from  making  payments  to  the  Philippines 
 carriers  until  international  service  on  this  route  is  fully  restored. 
 I  believe  this  is  an  urgent  matter  and  must  be  resolved  in  the  near  term.  Service  to  the  Philippines  has  been  disrupted  for  almost  a  month  for  many  consumers  and  U.  S. 
 carriers  are  being  financially  harmed  by  the  disruption. 
 I  am  pleased  the  International  Bureau  has  been  very  responsive  in  trying  to  resolve  the  dispute.  First,  the  Bureau  has  engaged  in  direct  discussions  with  the  Philippines 
 regulator  in  an  effort  to  find  a  solution.  Second,  the  Bureau  quickly  placed  the  AT&  T  and  WorldCom  Petitions  on  public  notice. 


 I  am  hopeful  that  when  the  comment  period  on  the  Petitions  concludes  at  the  end  of  next  week,  the  International  Bureau  will  act  expeditiously  to  review  the  record  in  this 
 proceeding  and  speed  Commission  action. 
 -  FCC- 
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