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GTE FILES PETITION IN FEDERAL APPELLATE COURT IN SAN FRANCISCO AGAINST FCC'S RESCISSION OF ITS CERRITOS OPERATING AUTHORITY AND WAIVER

 Claims First Amendment Rights are Denied
 IRVING, Texas, Nov. 22 /PRNewswire/ -- GTE filed a petition Friday,


Nov. 19, with the U.S. Court of Appeals for the Ninth Circuit in San Francisco, challenging the recent Federal Communication Commission (FCC) rescission of GTE's authority to operate a cable facility in Cerritos, Calif.
 "The FCC is precluding GTE from using its five years of experience in Cerritos, as well as its substantial financial investments, to provide enhanced, innovative video programming, either by itself, or with Apollo Cablevision, the local franchised CATV operator," said Geoff Gould, vice president-regulatory and government affairs for GTE Telephone Operations.
 The filing is based on the premise that the FCC -- by rescinding GTE's Cerritos operating authority and ordering its post-waiver compliance with the statutory video programming ban and its own affiliates rules -- denies GTE its constitutional rights of free speech. In addition, GTE is challenging both the statutory ban and the FCC's authority to make its definition of "affiliate" more restrictive than Congress has done in the Cable Act of 1984.
 GTE has been testing advanced video services in Cerritos under FCC operating authority and a five-year waiver granted in June 1989. On Nov. 9, 1993, the FCC issued an order rescinding both GTE's operating authority and waiver. In particular, the FCC found there was an unnecessary affiliation between GTE and the local cable company, arising as a result of a construction contract.
 GTE originally requested an FCC Section 214 operating authority to operate cable facilities in Cerritos for use by the franchised cable operator and by its affiliate to conduct marketing and technology tests in video, voice and data service.
 In 1989, the FCC ruled that a waiver was required, and in the public's interest, because of the technological and marketing innovations offered by the GTE Cerritos project and the potential public interest benefits to consumers. The National Cable Television Association (NCTA) opposed the project and sought judicial review of the FCC's decision.
 Eventually, the court remanded the decision, stating it had found good cause for the Cerritos testbed, but needed further explanation for the FCC waiver decision. But, the FCC, after lengthy evaluation, decided it should rescind both GTE's operating authority and waiver.
 GTE is the largest U.S.-based local telephone company and the second largest cellular-service provider in the United States. With $20 billion in revenues in 1992, the corporation is the fourth largest publicly owned telecommunications company in the world. GTE also is a leader in government and defense communications systems and equipment satellite and aircraft-passenger telecommunications, directories and telecommunications-based information services and systems.
 -0- 11/22/93
 /CONTACT: Dick Jones, GTE Telephone Operations, 214-718-6924 (after 6 p.m. CST, 214-931-5447); or Daniel Smith, GTE California 24-hour Newsline, 800-227-5556/


CO: GTE California ST: California, Texas IN: TLS SU:

MF-JL -- LA024 -- 6872 11/22/93 14:21 EST
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Publication:PR Newswire
Date:Nov 22, 1993
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