Bell Atlantic - NYNEX Statement on Access Reform and Universal Service

Bell Atlantic - NYNEX Statement on Access Reform and Universal Service

May 7, 1997

NOTE TO EDITORS: The FCC written orders on Universal Service, access reform and price caps are not yet available. However, the following observations are based on the discussion at this morning's FCC open meeting and other information a
vailable at this time.

On Access Charges:

"We fail to see how the FCC's access charge rate reductions are
justified, and we will read the full order to determine the impact on
all of our customers," said Tom Tauke, executive vice president,
NYNEX government affairs. "Still, the FCC has moved in the right
direction by setting a flat charge rather than a per minute charge to
cover the fixed costs of providing access service."

"The FCC has recognized our concerns and moderated the flat rate
changes in charges for business customers," said Edward D. Young
III, Bell Atlantic vice president - external affairs and associate
general counsel. "We are, however, disappointed that the FCC has
gone beyond the requirements of the Telecom Act by mandating lower
access charges rather than letting the market drive down prices."

On Universal Service:

"Based on what we know now, we generally support the direction taken by the FCC on Universal Service funding, but we remain concerned that several commissioners stated an intent to move to a much larger fund," said Tauke. "The Universal Se
rvice fund is sufficient to meet the objectives of the Telecom Act."

"Under the FCC plan, there is a clear mechanism to pay for connecting schools and libraries to online information resources like the Internet," said Edward D. Young III, Bell Atlantic vice president - external affairs and associate general couns
el. "The Commission also seems to have met the need to assure affordable rural telephone service without overburdening other telephone customers."