March 5, 1997 COMMISSIONER CHONG PROMISES FCC WILL BE A TIGER ON WIRELESS ISSUES At the Cellular Telephone Industry Association's Annual Convention in San Francisco, Commissioner Rachelle Chong highlighted the progress that the Commission had made in 1996, the Chinese Year of the Rat, on interconnection, universal service and number portability. She said that what's "hot" for the wireless industry in 1997, the Chinese Year of the Ox, was cellular privacy, spectrum caps, public safety and spectrum policy. Chinese astrologists characterize the Year of the Rat as a fast-paced one, in which people are industrious and hardworking. Chong said that this was an apt description of the Commission in 1996, as it "scurried" to implement the Act in a way that will let "competition reign in the all telecom markets." With regard to interconnection, Chong said she had fought hard to ensure that the FCC's decision provided the wireless industry with some key interconnection rights, including the right to fair rates and reciprocal compensation. She acknowledged, however, that "FCC decisions are one thing; marketplace reality is another." Chong expressed concern that despite the FCC's clear rules and best intentions, wireless providers are having a difficult time getting all local exchange carriers to comply with the Commission's interconnection decision. She encouraged wireless providers who are having interconnection problems to alert the Commission. Chong noted that the Federal-State Joint Board had issued its recommended decision on universal service. The key to her support of that decision, she said, is the fact that these new rules are competitively and technologically neutral. She urged those wireless carriers interested in providing local loop service to "get involved in our current proxy model debate." Chong reported that the FCC's Wireless Facilities Siting Task Force has been actively working with the industry and with state and local agencies on siting issues. During 1996, the Commission also adopted rules for basic and enhanced 911 services. She said that the enhanced 911 call back and location information will help emergency assistance providers to save lives and safeguard property. (over) - 2 - She highlighted work by the Commission on twelve petitions seeking preemption of state or local regulation that parties claim constitute barriers to entry. Chong said, "I'm quite troubled by this trend of state action that may inhibit wireless licensees from providing service." She noted that the Commission has already issued two preemption decisions, which demonstrate the FCC's commitment to eliminating entry barriers where they exist. For 1997, the FCC's main priority will be to finish implementation of the 1996 Telecommunications Act. Responding to concerns of a PCS provider who gave the FCC a low score for following through on its decisions, she said that she had heard the message and wanted to improve that score. She predicted that the hot issues for 1997 will include cellular privacy, public safety, driving risks of mobile phones, CMRS spectrum caps and spectrum policy. With regard to cellular privacy, the Commissioner urged the FCC and the industry to work together to develop better privacy protection. She also encouraged the wireless industry to step up its public education efforts about safe driving habits. She said that she was making public safety one of her top priorities for 1997. She questioned whether we ought to retain the CMRS spectrum cap, given the increased competition in the wireless marketplace. With regard to spectrum policy, Chong stated that she wanted to move from doing spectrum on an ad hoc basis to developing a comprehensive spectrum policy statement that will guide future Commission decisions. She stated, "Like Commissioner Ness, I am confident that if we work together, we can put forward a sensible policy." Chong also saluted departing Wireless Telecommunications Bureau Chief Michele Farquhar, calling her a "Tiger" on wireless issues, and thanking her for her devoted service. - FCC -