COMMISSION NEWS

ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON STREET
PHOENIX, AZ 85007

TO: EDITORS, NEWS DIRECTORS

DATE: July 9, 1998

FOR: IMMEDIATE RELEASE

CONTACT: Perry Baker (602) 542-0844


Federal Communications Commission Appoints Top Corporation Commission Official to National Panel

Phoenix, AZ - Arizona Corporation Commission Chairman (ACC) Jim Irvin today announced that the Federal Communications Commission (FCC) has named the Commission's Executive Secretary, Jack Rose, to its national Rural Task Force (RTF) on telecommunications deregulation.

"This is a great honor for Arizona and I am pleased that the FCC has recognized the talent and leadership abilities of Mr. Rose on cutting-edge issues," said Irvin. "This appointment gives Arizona the chance to lead and shape the national debate on this issue, as well as giving us access to valuable information that can help our own rural citizens."

Rose, who as Executive Secretary serves as the Commission's chief executive officer, will serve on the federal panel that will "provide valuable assistance in identifying issues unique to rural carriers and analyze the appropriateness of proxy cost models for rural carriers." (FCC Report and Order on Universal Service).

Specifically, the RTF will consider whether a forward-looking economic cost mechanism for rural carriers should have different platform design features and values than the mechanism adopted for non-rural carriers.

In Arizona, the advent of telecommunications deregulation will mean the replacement of the current system of cross-subsidies with a Universal Service Fund to provide support for high cost areas.

"This is a complex issue and one that will mean major changes to the way rural telecommunications are structured," said Rose. "Deregulation of local phone service will provide many benefits for Arizona consumers, but it is absolutely essential that rural consumers not be left behind. Unless national policy recognizes the unique characteristics of rural areas, those consumers will see substantial increases in their phone bills. I view my role on the RTF as being an advocate for rural telephone users."

Rose has been with the ACC since June of 1997. He has served as an elected member of the Mohave County Board of Supervisors, and is a graduate of Yale University and Harvard Law School.