International Settlement Rates

On August 7, 1997, the Federal Communications Commission adopted a Report and Order that revises the Commission's international settlement rate benchmarks. The revisions will move settlement rates closer to the underlying costs of providing international termination services. The Commission took this action in light of the significant changes that have occurred in the global telecommunications market in recent years. The decision represents one of the steps in an ongoing effort by the Commission, many foreign governments, and multilateral organizations such as the International Telecommunication Union (``ITU'') and the Organization for Economic Cooperation and Development (``OECD'') to lower international telephony costs by reforming the international accounting rate system.