NEWSReport No. CC-588             COMMON CARRIER ACTION              October 5, 1994

             FIVE CARRIERS AUTHORIZED TO PROVIDE DIRECT
                 TELECOMMUNICATIONS SERVICES TO CUBA
                                  
     Today the Commission approved the applications of five U.S. carriers to provide
direct telecommunications services between the United States and Cuba.  The services
authorized include both switched voice and private line services.  The companies whose
applications were granted are WilTel International, Inc., MCI Telecommunications Corp.,
LDDS Communications, Inc., Sprint Communications Company L.P. and IDB WorldCom
Services, Inc.  Grant of these applications also will permit AT&T to improve its capability
to serve Cuba, because a new service agreement it entered into with its correspondent in
Cuba, EMTELCUBA, becomes effective upon grant of these applications.

     These are the first applications to be granted for direct voice service to Cuba since
Congress liberalized restrictions on telecommunications facilities and services between the
United States and Cuba in the Cuban Democracy Act of 1992 ("CDA"). The CDA
specifically authorized telecommunications facilities "in such quantity and of such quality
as may be necessary to provide efficient and adequate telecommunications services
between the United States and Cuba."  Until 1992, the Cuban Embargo Act of 1962
precluded U.S. carriers from upgrading telecommunications facilities and services between
the United States and Cuba.  Consequently those facilities, as well as the number of
carriers providing service on that route, have remained virtually unchanged for more than
thirty years.  Meanwhile, demand for calls from the United States to Cuba has increased
to the point where more than 60 million calls are attempted annually, with less than one
percent being completed.

     The Commission initially notified the applicants on July 29, 1994, that it would not
process their applications because they were not consistent with the policy guidelines
developed by the Executive Branch for U.S. carriers desiring to provide direct services to
Cuba. In particular, all five applicants proposed a $4.85 surcharge per call for collect calls
to be paid to the originating carrier. The Commission found the $4.85 per call surcharge
to be unreasonable and unjustified.  The Commission observed that the proposed surcharge
far exceeded the approximately $.60 average rate for all countries in the region and the
prevalent $1.00 rate for those countries having a surcharge.  Rather than return the
applications, however, the Commission gave the applicants another chance to renegotiate
the surcharge provision with EMTELCUBA.




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     The applicants have now renegotiated the surcharge provision, successfully reaching
a lower surcharge of $1.00 per call.  The Department of State notified the Commission on
October 3, 1994, that it found the new surcharge to be consistent with international norms
and practices, relevant ITU Recommendations, and current surcharge rates in the region. 
Upon its own review, the Commission found the $1.00 per call surcharge to be based on
costs and consistent with its International Settlements Policy.  Therefore, the Commission
determined that all five applications were fully consistent with the policy guidelines, and
that the public interest would be served by granting the applications.  


          Action by the Chief, International Facilities Division, October 4, 1994, by
Memorandum Opinion, Order, Authorization & Certification (DA 94-1098). 

                              - FCC -

     News Media contact: Audrey Spivack at (202) 418-0500.
     Common Carrier Bureau contact: Troy Tanner at (202) 418-1470.