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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:  February  10,  2005  Mark  Wigfield,  202-  418-  0253 
 Email:  mark.  wigfield@  fcc.  gov 


 FCC  Moves  to  Replace  Outmoded  Rules  Governing  Intercarrier  Compensation 
 Seven  Comprehensive  Reform  Proposals  To  Be  Weighed 
 Washington,  D.  C.  –  The  Federal  Communications  Commission  today  took  steps  toward  replacing  the  outmoded  system  of  intercarrier  payments  in  the  telecommunications  industry  with 


 a  uniform  regime  suited  for  competitive  markets  and  new  technologies. 
 The  current  system  relies  on  per-  minute  intercarrier  payments  that  distinguish  between  different  types  of  carriers  and  services,  such  as  local  and  long-  distance,  or  wireless  and  wireline, 


 even  though  these  distinctions  often  have  no  bearing  on  the  cost  of  providing  service.  Furthermore,  new  technologies,  such  as  Internet  telephony,  and  new  service  offerings,  such  as 
 bundled  flat-  rate  packages,  have  eroded  these  distinctions. 
 Four  suggested  common  themes  for  reform  have  emerged  from  the  record  developed  in  the  Commission’s  2001  Intercarrier  Compensation  NPRM. 


 First,  any  approach  should  encourage  the  development  of  efficient  competition  and  the  efficient  use  of  and  investment  in  telecommunications  networks.  Second,  any  approach  must 
 preserve  universal  service  support,  which  ensures  affordable  rates  for  consumers  living  in  rural  and  high-  cost  areas.  Any  proposal  that  would  result  in  significant  reductions  in  intercarrier 
 payments  should  include  a  proposal  to  address  the  universal  service  implications  of  such  reductions. 


 Third,  any  approach  must  be  technologically  and  competitively  neutral.  Given  the  rapid  changes  in  telecommunications  technology,  new  rules  must  accommodate  continuing  change  in 
 the  marketplace,  provide  regulatory  certainty  and  not  impede  novel  technology.  Finally,  an  approach  that  requires  minimal  regulatory  intervention  and  enforcement  is  consistent  with  the 
 competitive  deregulatory  environment  of  the  1996  Telecommunications  Act.  Proposals  that  rely  on  negotiated  agreements  between  carriers  might  be  preferable  to  regimes  requiring  detailed 
 rules  and  regulations. 
 The  Commission  is  seeking  comment  on  seven  comprehensive  reform  proposals  submitted  by  the  industry  and  others  in  the  rulemaking.  Among  the  questions  the  Commission 
 will  examine  is  the  effect  any  change  will  have  on  consumers  and  the  universal  service  fund,  which  helps  provide  affordable  service  for  rural  and  low  income  Americans.  The  Commission 
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 Wireline  Competition  Bureau  Staff  Contact:  Victoria  Goldberg  –  (202)  418-  1520;  victoria.  goldberg@  fcc.  gov. 
 -FCC- 
 News  about  the  Federal  Communications  Commission  can  also  be  found 
 on  the  Commission’s  web  site  www.  fcc.  gov. 
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