*Pages 1--4 from  Microsoft Word - 32148*
 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  9,  2003  Michael  Balmoris  at  (202)  418-  0253 
 FEDERAL-  STATE  JOINT  CONFERENCE  ON  ACCOUNTING  ISSUES  SUBMITS  PROPOSED  MODIFICATIONS  TO  FCC  ACCOUNTING  RULES 
 Washington,  D.  C.  –  Today,  the  Federal-  State  Joint  Conference  on  Accounting  Issues  (Joint  Conference)  submitted  a  series  of  recommendations  for  proposed  modifications  to  the 
 FCC’s  accounting  rules. 
 On  September  5,  2002,  the  FCC  established  the  Joint  Conference  to  provide  a  forum  for  an  ongoing  dialogue  between  the  FCC  and  the  states  in  order  to  ensure  that  regulatory 
 accounting  data  and  related  information  filed  by  carriers  are  adequate,  truthful,  and  thorough.  The  FCC  appointed  FCC  Commissioners  Kevin  J.  Martin  and  Michael  J.  Copps  as  the  Federal 
 representatives  to  the  Joint  Conference.  The  FCC  appointed  Commissioners  Diane  Munns  of  Iowa,  Nancy  Brockway  of  New  Hampshire,  Terry  Deason  of  Florida,  Rebecca  A.  Klein  of 
 Texas,  and  Loretta  Lynch  of  California  to  represent  the  state  commissions. 
 Commissioner  Kevin  J.  Martin  said,  “I  would  like  to  commend  my  state  and  Federal  colleagues  for  their  commitment  to  resolving  regulatory  accounting  issues  and  to  thank  them  for 
 their  hard  work  in  developing  these  recommendations.  Telecommunications  issues  are  difficult  and  complex.  My  colleagues  on  the  Joint  Conference  brought  a  wealth  of  experience  and  a 
 thoughtful  approach  to  dealing  with  these  issues,  and  I  believe  the  Commission  and  the  public  have  benefited  tremendously  from  their  contributions  and  hard  work.” 


 From  October  16,  2002  to  October  6,  2003,  the  Joint  Conference  studied  accounting  issues  in  the  telecommunications  industry.  The  Joint  Conference’s  work  culminated  in  a  45-  page 
 report  recommending  changes  to  the  FCC’s  Part  32  Uniform  System  of  Accounts,  its  accounting  rules  governing  transactions  between  certain  affiliates  of  incumbent  local  exchange  carriers 
 (LECs),  and  its  related  reporting  requirements.  For  example,  the  Joint  Conference  recommends  that  the  Commission  include  additional  detail  about  the  costs,  revenues,  and  expenses  of 
 incumbent  local  exchange  carriers  (LECs)  to  reflect  changes  in  the  telecommunications  industry.  In  addition,  the  Joint  Conference  recommends  that  the  Commission  adopt  additional  safeguards 
 to  protect  consumers  and  competition  when  incumbent  LECs  deal  with  their  affiliates.  The  Joint  Conference  requests  the  Commission  initiate  a  Notice  of  Proposed  Rulemaking  and  consider 
 adopting  its  recommendations  as  rules.  -more- 
1
 The  Joint  Conference  Report  is  publicly  available  in  WC  Docket  No.  02-  269.  A  summary  of  the  Joint  Conference  recommendations  is  attached  to  this  press  release. 
 -FCC- 
 Action  by  the  Federal-  State  Joint  Conference  on  Accounting  Issues,  October  9,  2003.  Commissioner  Martin  and  Commissioner  Copps  issuing  statements. 


 Joint  Conference  Staff  Contact:  Anthony  Dale  at  (202)  418-  2260,  email:  Anthony.  Dale@  fcc.  gov. 
 WC  Docket  No.  02-  269 
2