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                                Before the
                     Federal Communications Commission
                          Washington, D.C. 20554



In the Matter of Policy and Rules Concerning  )
the Interstate, Interexchange Marketplace     )
      )
Implementation of Section 254(g) of the )     CC Docket No. 96-61
Communications Act of 1934, as amended  )
                                     
                                     
                                 ERRATUM


   Adopted:  October 28, 1997Released:  October 28, 1997

By the Acting Chief, Common Carrier Bureau:

1.       This Erratum corrects paragraph 68 in the Order on Reconsideration in the above
captioned docket, which was released by the Commission on August 20, 1997.  Policy and
Rules Concerning the Interstate, Interexchange Marketplace; Implementation of Section
254(g) of the Communications Act of 1934, as amended, CC Docket No. 96-61, Second
Report and Order, FCC 97-293 (rel. August 20, 1997) (Order on Reconsideration).  This
error was corrected prior to publication of the Order on Reconsideration in the Federal
Register.  

2.       The following paragraph replaces paragraph 68 in the Order on Reconsideration. 
Paragraph 68 now reads as follows:

68.  Upon further examination, we agree with Ad Hoc Users Committee that we can more
narrowly tailor our information disclosure requirement.  We therefore grant Ad Hoc Users
Committee's petition and eliminate the public disclosure requirement for individually-
negotiated service arrangements.  We find that the disclosure of the rates, terms, and
conditions of individually-negotiated service arrangements cannot be justified on the basis of
the need to enforce the rate averaging requirements of section 254(g).  This is because the
Commission decided to "forbear from applying Section 254(g) to such arrangements,
consistent with the intent of Congress, to the extent necessary."  The Commission
continues to require carriers to ensure that individually-negotiated service offerings are
available to all similarly-situated customers, regardless of their geographic location.  There
are several means to ensure that nondominant interexchange carriers make individually-
negotiated service arrangements available to all similarly-situated customers without a public
disclosure requirement.  Market forces generally will ensure that nondominant interexchange
carriers that lack market power do not charge rates, or impose terms and conditions, for
interstate, domestic, interexchange services that are unjustly or unreasonably
discriminatory.  Specifically, if a nondominant interexchange carrier could profit from
selling an interstate, domestic, interexchange service at one price to one customer and
attempted to sell the same service at an unjustly or unreasonably discriminatory price to a
similarly-situated customer, that customer would purchase services from other facilities-based
nondominant interexchange carriers that could profit from selling the same services to that
customer at the lower market price.  Moreover, we can remedy any carrier conduct that
violates the requirement that carriers make individually-negotiated service arrangements
available to all similarly-situated customers through the section 208 complaint process.  In
addition, we will be able to investigate carriers' compliance with our rules through the
requirement adopted in the Second Report and Order that interexchange carriers maintain
price and service information on all of their interstate, domestic, interexchange services and
make this information available to the Commission upon request.  Thus, eliminating public
disclosure for individually-negotiated service arrangements will not hinder enforcement of the
requirement that carriers make such services available to all similarly-situated customers, and
will also decrease the regulatory burden on nondominant interexchange carriers and deter
tacit price coordination.


                            FEDERAL COMMUNICATIONS COMMISSION



                            A. Richard Metzger, Jr.
                            Acting Chief, Common Carrier Bureau