NEWSReport No. CC 97-9               COMMON CARRIER ACTION    March 6, 1997

                     FCC ADDRESSES ISSUES REGARDING
                LONG-TERM NUMBER PORTABILITY METHODS AND
                     THE SCHEDULE FOR IMPLEMENTATION
                                     
     In the First Memorandum Opinion and Order on Reconsideration in CC Docket No.
95-116, adopted March 6, 1997, the Commission generally affirmed, with a few
modifications, its rules governing the deployment of telephone number portability. 
Telephone number portability refers to the ability of residential and business consumers to
retain their telephone numbers when switching from one local telephone service provider to
another.

     The provision of number portability is one of the obligations that the 1996 Act
imposes on all local exchange carriers in order to promote a pro-competitive, deregulatory
national telecommunications policy framework.  Congress recognized that number portability
will lower barriers to entry and promote competition in the local exchange marketplace by
enabling customers to switch to a new local service provider without having to change their
telephone numbers.  Once number portability is implemented, consumers will be able to
select a local telephone company based on service, quality, and price, rather than on a desire
to keep a particular telephone number.

     The Commission affirmed its conclusion that Query on Release (QOR) is not an
acceptable long-term number portability method, because QOR violates the statutory
requirement that consumers be able to retain their numbers without impairment of quality,
reliability, or convenience when switching from one telecommunications carrier to another. 
Specifically, the Commission stated that QOR results in degradation of service by imposing
additional post-dial delay only on calls ported to new carriers.  Furthermore, if any network
reliability problems were to arise as a result of QOR, they would disproportionately affect
consumers who port their numbers.  The Commission further concluded that Location
Routing Number (LRN) is consistent with the statutory definition of number portability.  The
Commission also noted that, so far, all state commissions that have selected a method 
for implementing number portability -- including California, Colorado, Georgia, Illinois,
Maryland, New York, and Ohio -- have specifically ordered LRN as the preferred method.  



                                  (over)


                                   - 2 -


     In addition, the Commission extended the deadlines for completion of deployment of
long-term number portability for Phases I and II of its deployment schedule for wireline
carriers.  These extensions will provide carriers more time to conduct testing prior to initial
implementation.  Deployment in Phase I will now take place from October 1, 1997, through
March 31, 1998.  Deployment in Phase II will take place from January 1, 1998, through
May 15, 1998.  The Commission also modified and clarified certain implementation
requirements relating to the implementation of number portability by wireline carriers.  In
particular, the Commission, drawing on the experience of certain state commissions that are
currently involved in the deployment of number portability, concluded that wireline carriers
may limit deployment within the 100 largest MSAs to switches for which another carrier has
made a specific request for the provision of number portability.  The Commission said this
approach will permit LECs to target their resources where number portability is needed, thus
fostering efficient deployment and network planning and testing, as well as reducing costs
and lessening demands on software vendors. 

     The Commission affirmed and clarified its number portability implementation
schedule for wireless carriers.  Specifically, the Commission clarified that by June 30, 1999,
cellular, broadband PCS, and covered SMR providers need to offer number portability only
in the 100 largest MSAs, and only for service areas for which they receive requests for
number portability.  By June 30, 1999, these CMRS providers must also be able to support
nationwide roaming for those customers that switch from one service provider to another.
     
     Action by the Commission March 6, 1997, by First Memorandum Opinion and Order
on Reconsideration (FCC 97-74).  Chairman Hundt, Commissioners Quello, Ness, and
Chong.

                                   -FCC-

News Media contact: Rochelle Cohen at (202) 418-0253.
Common Carrier Bureau contacts: Jeannie Su or Linda Kinney at (202) 418-1580.