GTE asks Appeals Court to review FCC's universal service order.

WASHINGTON--(BUSINESS WIRE)--June 25, 1997--GTE Corp. today filed a petition for review of the FCC's universal service order in the U.S. Court of Appeals for the Eighth Circuit.

"GTE is challenging the FCC's universal service order because that order fails to ensure that quality services will be provided at affordable prices to customers in rural and poor areas," said GTE's Executive Vice President and General Counsel William P. Barr. "The FCC's methodology systematically understates the amount of universal service support needed to service high-cost areas. Far from being competitively neutral, the FCC order invites cherry-picking and threatens to undermine affordable phone service. GTE's appeal is intended to ensure that the FCC acts in a manner consistent with the Telecommunications Act of 1996.

"We agree with the FCC that the universal service order is closely related to the First Report and Order on interconnection that is currently under review in the Eighth Circuit, and we look forward to the Eighth Circuit's review of this order," Barr said.

Contrary to published reports, GTE has taken no position regarding a challenge to the schools and libraries provisions of the FCC's universal service order.

CONTACT: GTE

Bob Bishop, 202/463-5206

Pager: 800/706-1719

Internet: bbishop@dcoffice.gte.com