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To: Ruffian who wrote (22838)	2/10/1999 11:14:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 152472

FCC Chief Says He Supports A Move to 'Caller Pays' System An INTERACTIVE JOURNAL News Roundup U.S. Federal Communications Commission Chairman William E. Kennard said that he supports ending the practice of having recipients of wireless-phone calls pay for the calls. Speaking at the Cellular Telecommunications Industry Association convention in New Orleans, Mr. Kennard said a move to "caller pays" could help make wireless-phone service a more effective competitor in local phone markets dominated by a single carrier, usually one of the Baby Bells. The statement pleased members of the wireless industry who have long argued that the charges cut down on wireless-phone use. "Caller pays" is standard practice in Europe and Asia, but not the U.S.; as a result, many U.S. users switch off their phones to avoid unwanted calls. A few companies have experimented with caller-pays in the U.S., such as by splitting the cost of incoming long-distance calls by making the caller pay the long-distance charge and the recipient pay a local-access fee. But there are hurdles to offering the service. One of the biggest is for mobile-phone companies to be able to keep track of each caller and bill him or her. Mr. Kennard also urged wireless carriers to try to beat a 2001 deadline for instituting systems that will locate callers using wireless phones to reach 911. Other commissioners speaking at the convention said the government should use a light hand when regulating the wireless industry, but added that regulation remains important. Commissioner Susan Ness said the government's enforcement power can be a weapon to advance competition. Regulators, for example, can crack down on dominant carriers that attempt to thwart competition, she said. Wireless carriers entering rural markets have argued, sometimes unsuccessfully, that they should receive the same subsidies as conventional carriers that provide service to impoverished or rural customers. While state regulators ultimately determine which carriers are eligible for subsidies, the federal government can work with state regulators to promote competition, commissioners said. "That is a long, long haul to get that untangled," said Commissioner Michael Powell. "There are people who are vested in every dollar." Mr. Powell praised the wireless industry for its competitiveness, but said the FCC is dissatisfied with the industry's response to questions about its readiness to deal with the Year 2000 problem. "We have not been satisfied with the Y2K response," Mr. Powell said, adding that the response from conventional phone companies has been much better. Overall, the wireless industry is highly competitive and "we need to get out of the way," said Commissioner Harold Furchtgott-Roth. The commission may review "caller pays" and other matters of interest to wireless companies this spring.