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 STATEMENT  OF  COMMISSIONER  JONATHAN  S.  ADELSTEIN 
 Re:  International  Settlements  Policy  Reform;  International  Settlement  Rates;  IB  Dockets  No.  02-  234  and  96-  261 
 Today’s  decision  is  another  important  stage  in  the  evolution  of  our  policy  towards  international  settlement  rates.  In  1997,  the  Commission  took  the  noteworthy  step  of 
 adopting  a  benchmarks  policy  that  has  helped  to  significantly  reduce  U.  S.-  international  calling  prices  –  a  big  win  for  U.  S.  consumers,  particularly  those  who  recently  have 
 moved  to  this  country.  Seven  years  later,  the  international  termination  rates  for  a  large  number  of  routes  are  closer  to  cost-  based  than  ever  before.  Consequently,  we  now  are 
 able  to  modify  our  International  Settlements  Policy  (ISP)  to  exempt  a  significant  number  of  routes  from  the  ISP  and  to  allow  U.  S.  carriers  to  more  easily  negotiate  rates  for  those 
 routes  on  a  commercial  basis. 
 I  fully  support  this  effort  to  lift  the  ISP  from  competitive  routes.  This  is  such  a  positive  development,  and  one  that  justifies  the  Commission’s  1997  decision  to  spur  competition 
 through  policy  making.  I  have  said  before  that  where  competition  takes  hold  and  becomes  stable,  the  Commission  is  charged  with  taking  the  next  step:  deregulation.  But 
 they  are  two  sides  of  the  same  coin.  Without  one,  you  cannot  have  the  other. 
 Once  the  presence  of  meaningful  competition  allows  us  to  modify  or  repeal  rules  and  regulations,  we  cannot  walk  away  from  consumers.  In  this  case,  we  rightly  keep  in  place 
 a  number  of  safeguards  for  all  routes  such  as  maintaining  the  existing  benchmarks  and  preserving  the  “no  special  concessions”  rule.  Given  the  market  power  exerted  by  a 
 number  of  foreign  carriers,  these  safeguards  provide  a  necessary  backstop  to  protect  U.  S.  consumers  and  carriers. 


 Finally,  I  fully  support  our  announcement  today  to  launch  later  this  year  a  Notice  of  Inquiry  (NOI)  into  the  status  of  foreign  mobile  termination  rates.  I  recognize  that  this 
 announcement  may  not  be  welcomed  by  everyone,  but  I  think  we  do  a  disservice  to  American  consumers  if  we  do  not  continue  to  keep  a  close  eye  on  developments  in  this 
 important  segment  of  our  international  telecommunications  marketplace.  There  simply  is  too  much  at  stake  for  our  consumers  as  more  and  more  international  calls  are  made  to 
 relatives,  friends,  and  colleagues  who  are  using  wireless  phones. 
 An  NOI  is  the  best  way  the  Commission  has  to  gather  information  in  the  most  transparent  and  open  process  possible.  And  I  cannot  emphasize  enough  that  this  NOI  into  foreign 
 mobile  termination  rates  is  simply  just  that  –  an  inquiry.  I  have  not  prejudged  an  outcome  and,  indeed,  my  preferred  outcome  would  be  that  the  market  resolves  itself.  I 
 hope  the  record  ultimately  bears  this  out,  but  want  to  make  sure  we  keep  an  eye  on  it  in  the  meantime. 
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