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             California Public Utilities Commission
505 Van Ness Avenue, Room 5301            San Francisco, CA 94102
CONTACT: Armando Rendon           April 26, 1995         CPUC-037
         415-703-1366                            (R./I._________)

     CPUC PROPOSES INTERIM RULES ON LOCAL PHONE COMPETITION

     The California Public Utilities Commission (CPUC) today
issued interim rules that as early as June could allow new firms
to compete in the local phone market while ensuring customers are
protected as well.
     Parties have until May 24 to comment on proposed rules
dealing with managing competition between new players in the
local phone market called competitive local carriers, or CLCs,
and existing local phone companies.  Some of the large long
distance companies and even some cable firms may vie for local
phone customers.
     The CLCs will be able to apply for authority to provide
local phone service as soon as the Commission votes out final
rules.  The earliest that vote can be expected is June 21.
     The guidelines that will govern CLC entry into the local
phone market are much the same as those governing the entry of
companies into competition for providing toll calls within the
state.  CLCs would be able to offer either certain service
components or handle the entire phone call from start to finish
at competitive rates.
     Specifically, the Commission identified six components of
the local phone network that competitors need to purchase in
order to offer local phone service.  In technical jargon, they
are: subscriber loops, line side ports, signaling links, signal
transfer points, service control points, and dedicated channel
network access connections.  These components will be priced and
made available through another concurrent proceeding.
     Consumer protections, such as complaint procedures, service
connections, billing, etc., would reflect current standards
                             -more-
followed by local phone companies.  Universal Lifeline Telephone
Service will continue to be provided by the local phone companies
until certain issues are resolved next year in a separate,
ongoing proceeding.
     For the time being, the proposed rules are limited to
Pacific and GTEC service areas.  Local competition for small and
mid-sized phone companies will be addressed later.
     In a related action, the Commission also ordered Pacific and
GTEC to offer "expanded interconnection," that is, allow rival
companies called Competitive Access Providers (CAPs) to carry the
intrastate portion of long distance and local toll calls between
the phone utilities' central offices and long distance carriers.
     Because many CAPs are companies which have already laid
fiber optic networks in most large metropolitan areas, they are
technically capable of running their own cable between the
utilities' central offices.  Following the Commission's ruling
today, CAPs will be able to connect lines either near the phone
companies' offices or within their premises.
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