Foreign Participation in the U.S. Telecommunications Market

On November 25, 1997, the Federal Communications Commission adopted a Report and Order that creates a new regulatory framework for international telecommunications. This action is a result of the recent World Trade Organization agreement on basic telecommunications services recently concluded wherein 69 countries, including the United States and virtually all of its major trading partners, agreed to open their markets for basic telecommunications services to competition from foreign carriers. Due to these changed circumstances, the Commission initiated a proceeding to revisit its rules governing foreign participation in the U.S. telecommunications market. In addition, the Commission's order addresses related issues raised in petitions for reconsideration of the Foreign Carrier Entry Order. The new rules will have significant benefits for consumers. Entry by foreign suppliers of telecommunications services will stimulate the U.S. market for international services, creating incentives for carriers to offer existing services at lower prices and adopt innovative new services to attract residential and small business customers. Further opening the U.S. market to foreign carrier entry, along with U.S. carrier entry into foreign markets, will allow carriers to capitalize on newly found efficiencies by offering one-stop shopping, which allows customers to have a single service provider in multiple markets, thereby reducing administrative costs to users. This final rule contains information collections subject to the Paperwork Reduction Act of 1995 (PRA), Pub. L. No. 104-13. It will be submitted to the Office of Management and Budget (OMB) for review under the PRA. OMB, the general public and other Federal agencies are invited to comment on the information collections contained in the final rule.