*Pages 1--2 from  Microsoft Word - 46419.doc*
 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  24,  2005  Mark  Wigfield,  202-  418-  0253 
 Email:  mark.  wigfield@  fcc.  gov 


 FCC  Resolves  Dispute  Over  Wireless  Service  in  Rural  Areas 
 Agency  Action  Bars  Future  Wireless  Termination  Tariffs 
 Washington,  D.  C.  –  The  Federal  Communications  Commission  today  resolved  a  dispute  over  how  local  wireline  companies  get  paid  to  complete  calls  from  wireless  carriers. 


 The  FCC  denied  a  petition  filed  by  a  coalition  of  wireless  carriers  asking  the  agency  to  find  that  state  wireless  termination  tariffs  filed  by  local  exchange  carriers,  or  LECs,  were  illegal. 
 These  tariffs  set  the  rates  paid  by  a  wireless  company  to  terminate  a  wireless  call  on  a  LEC’s  network  in  the  absence  of  a  negotiated  rate. 


 On  a  prospective  basis,  however,  the  Commission  amended  its  rules  to  prohibit  such  tariffs  in  the  future.  Furthermore,  existing  state  wireless  termination  tariffs  will  no  longer  apply 
 under  the  amended  rules.  Wireless  carriers  and  incumbent  LECs  will  instead  be  required  to  negotiate  interconnection  agreements.  Such  negotiated  agreements  between  carriers  are  more 
 consistent  with  the  pro-  competitive  process  and  policies  of  the  1996  Telecommunications  Act. 
 The  FCC  acknowledged  that  some  LECs  have  had  difficulty  collecting  compensation  from  wireless  providers  because  they  were  not  required  to  negotiate  interconnection  agreements 


 or  submit  to  arbitration  before  state  commissions.  In  light  of  its  decision  to  prohibit  the  use  of  tariffs,  the  FCC’s  new  rules  compel  wireless  providers,  on  request,  to  negotiate  interconnection 
 agreements  with  LECs  in  good  faith  and  submit  to  arbitration  by  state  commissions. 
 Disputes  over  intercarrier  payments  for  wireless  traffic  in  rural  areas  have  increased  dramatically  over  the  past  few  years.  In  some  cases,  the  disputes  have  threatened  service 


 disruptions. 
 The  disputes  have  arisen  in  part  because  wireline  and  wireless  providers  define  their  local  calling  areas  differently.  The  current  system  of  intercarrier  compensation  doesn’t  easily 


 reconcile  this  disparity.  The  Commission  is  in  the  process  of  reforming  the  system  in  an  ongoing  rulemaking  proceeding. 


 Action  by  the  Commission,  February  17,  2005,  by  Declaratory  Ruling  and  Report  and  Order  (FCC  05-  42).  Chairman  Powell,  Commissioners  Abernathy,  Copps,  Martin  and  Adelstein. 
1
 Wireline  Competition  Bureau  Staff  Contact:  Victoria  Goldberg,  (202-  418-  7353,  victoria.  goldberg@  fcc.  gov. 
 Wireless  Telecommunications  Staff  Contact:  Peter  Trachtenberg,  (202)-  418-  7369,  peter.  trachtenberg@  fcc.  gov. 


 -FCC- 
 News  about  the  Federal  Communications  Commission  can  also  be  found 
 on  the  Commission’s  web  site  www.  fcc.  gov. 
2