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)


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     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 -