FOR IMMEDIATE RELEASE: News Media Contact:

October 12, 2000 Meribeth McCarrick at (202) 418-0654

e-mail: mmccarri@fcc.gov

**FCC ACTS TO FOSTER TELECOMMUNICATIONS COMPETITION AND**

**CONSUMER CHOICE IN MULTIPLE TENANT ENVIRONMENTS**

Washington, DC -- The Federal Communications Commission took action
today furthering its ongoing efforts under the Telecommunications Act of
1996 to foster competition in local communications markets. The FCC
implemented measures to enhance the ability of competing
telecommunications providers to provide services to customers in
residential and commercial buildings or other multiple tenant
environments (MTEs).

In the Competitive Networks Notice of Proposed Rulemaking, the FCC
requested comment on the state of access to MTEs and on a variety of
potential measures to improve such access. Based on the extensive record
compiled in response to that Notice, today the FCC adopted several
measures to remove obstacles to competitive access in this important
portion of the telecommunications market.

The Commission noted that, while the adopted measures will help
significantly to advance competition and customer choice, they may well
be insufficient in themselves to secure a full measure of choice for
businesses and individuals located in MTEs. The FCC recognized that the
real estate industry has taken positive steps to facilitate tenant
choice of telecommunications providers by working towards the
development of best practices and model agreements. In particular, a
coalition of 11 trade associations representing over 1 million owners
and operators has committed to a best practices implementation plan
regarding these issues. The Commission stated it will closely monitor
these industry efforts and, if such efforts ultimately do not resolve
concerns regarding the ability of premises owners to unreasonably deny
competing telecommunications service providers access to customers in
MTEs, the FCC is prepared to consider taking additional action,
including adopting rules to ensure that competing telecommunications
service providers receive access to MTE premises.

In order to be prepared to take further action quickly, if necessary,
the FCC also adopted a Further Notice of Proposed Rulemaking.

[Actions Taken Today by the Commission]{.underline}:

-   First, the FCC forbade telecommunications carriers in commercial
    settings from entering into exclusive contracts with building
    owners, including contracts that effectively restrict premises
    owners or their agents from permitting access to other
    telecommunications service providers.

-   Second, the FCC established procedures to reduce competitive
    carriers' dependence on the incumbent local exchange carriers (LECs)
    to gain access to on-premises wiring, while at the same time
    recognizing the varied needs of carriers and building owners. These
    actions relate to the location of the demarcation point, which marks
    the end of LEC control over wiring and the beginning of the
    customer's or MTE owner's control. Under current law, the
    demarcation point may be located either at the minimum point of
    entry (MPE) to the MTE or further inside the premises. The FCC
    established procedures to facilitate moving the demarcation point to
    the MPOE at the building owner's request, and required incumbent
    LECs to timely disclose the location of existing demarcation points
    where they are not located at the MPOE.

-   Third, the FCC determined that under Section 224 of the
    Communications Act, utilities, including LECs, must afford
    telecommunications carriers and cable service providers reasonable
    and nondiscriminatory access to conduits and rights-of-way located
    in customer buildings and campuses, to the extent such conduits and
    rights-of-way are owned or controlled by the utility.

-   Fourth, the FCC extended to antennas that receive and transmit
    telecommunications and other fixed wireless signals its existing
    prohibition of restrictions that impair the installation,
    maintenance or use of certain video antennas on property within the
    exclusive use or control of the antenna user, where the user has a
    direct or indirect ownership or leasehold interest in the property.

    [Comment Sought in the Further Notice of Proposed
    Rulemaking:]{.underline}

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-   First, based upon review of the relevant authority, the FCCit
    appears that a sound argument can be ~~{made}~~ \[made recognized
    that a strong case can be made that it has the statutory authority
    to prohibit LECs from providing service to MTEs whose owners
    maintain a policy that unreasonably prevents competing carriers from
    gaining access to potential customers located within the MTE. Since
    the record contains few submissions in this regard, however, we
    hereby request comment on the following legal analysis of our
    statutory authority.

an MTE.

-   Second, in order to help inform a decision whether to implement such
    an obligation, the FCC sought to refresh the record on the status of
    the market for the provision of telecommunications services in MTEs,
    including the development of new access technologies, as well as on
    possible constitutional and implementation issues.

-   Third, the FCC asked whether today's prohibition on exclusive access
    contracts in commercial buildings should be extended to residential
    buildings, either in addition to or in lieu of a nondiscriminatory
    access requirement applicable to these premises, and whether it
    should prohibit carriers from enforcing exclusive access provisions
    in existing contracts in either commercial or residential MTEs.

-   Fourth, the FCC sought comment on whether it should proscribe
    carriers from entering into contracts that grant them preferences
    other than exclusive access, such as exclusive marketing or landlord
    bonuses to tenants that use their services, in some or all
    situations.

-   Fifth, the FCC sought additional comment on the definition of
    "right-of-way" in customer buildings for purposes of Section 224.

-   Finally, the FCC sought additional comment on whether it should
    extend its cable inside wiring rules to facilitate the use of home
    run wiring by telecommunications service providers where an
    incumbent cable provider no longer has a legal right to maintain its
    home run wiring in the building.

    Action by the Commission on October 12, 2000 by First Report and
    Order and Further Notice of Proposed Rulemaking in WT Docket No.
    99-217, Fifth Report and Order and Memorandum Opinion and Order in
    CC Docket No. 96-98, and Fourth Report and Order and Memorandum
    Opinion and Order in CC Docket No. 88-57 (FCC 00-366). Chairman
    Kennard, Commissioners Ness, Powell and Tristani with Commissioner
    Futchtgott-Roth dissenting and issuing a separate statement.

Wireless Bureau Contacts: Joel Taubenblatt at (202) 418-1513, e-mail:
jtaubenb@fcc.gov; or Lauren Van Wazer at (202) 418-0030, e-mail
lvanwaze@fcc.gov; TTY at (202) 418-7233.

WT Docket No. 99-217

CC Docket No. 96-98

CC Docket No. 88-57