EXHIBIT 2

DESCRIPTION OF COMMON CARRIER REGULATION BY THE FEDERAL COMMUNICATIONS COMMISSION

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A stated purpose of the Communications Act of 1934, as amended, is the regulation of "interstate and foreign commerce in communication by wire and radio so as to make available, so far as possible, to all the people of the United States a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges * * " To carry out this purpose, every common carrier engaged in interstate or foreign communication is required to furnish such communication service upon reasonable request therefor; and, upon order of the Commission, to establish physical connections with other carriers, to establish through routes and charges applicable thereto and the divisions of such charges, and to establish and provide facilities and regulations for operating such through routes. In addition, the Commission may require any carrier to provide itself with adequate facilities for the expeditious and efficient performance of its service as a common carrier and to extend its line or to establish a public office. Also, no carrier may construct a new line or extension of line, acquire or operate any line, or extension thereof (with certain qualifications), without first obtaining from the Commission a certificate of public convenience and necessity. Carriers subject to the act are generally prohibited from discontinuing or otherwise curtailing service to a community without a certificate of public convenience and necessity from the Commission. It is a mandate of the act, which it is the duty of the Commission to enforce, that all charges, practices, classifications, and regulations for and in connection with interstate and foreign communication service shall be just and reasonable and nondiscriminatory. To implement this requirement, every common carrier subject to the act must file with the Commission public tariff schedules showing all of its charges and related classifications, practices, and regulations, and no carrier may make any charge not shown in effective tariff schedules so filed. Also, the Commission may suspend, for a period of 3 months, any new charge, classification, regulation, or practice filed with it in order to give the Commission an opportunity to hold a hearing on the matter. The act throws upon the carrier the burden of proof to show that any charge increased after the organization of the Commission (in 1934) is just and reasonable. In addition, the Commission is authorized, after a hearing, to prescribe just and reasonable charges, classifications, regulations, and practices to be observed by the carriers.

Common carriers which violate the act are liable to any person injured thereby for damages sustained, and any person claiming to be damaged by a common carrier subject to the act may either complain to the Commission or sue in any district court of the United States of competent jurisdiction.

In aid of the Commission's regulation of common carriers, it is given broad powers to prescribe the forms of any and all records, accounts, and memoranda to be kept by carriers subject to the act. Under this authority, the Commission has issued uniform system of accounts which must be followed by all the carriers fully subject to the Communications Act.

This Commission is also authorized to require annual reports from carriers subject to the act and from persons affiliated with any such carrier, and annual reports are required pursuant to this provision. Carriers subject to the act are required to file with the Commission copies of all contracts with other carriers, whether or not such other carriers are subject to the act, in relation to any traffic affected by the provisions of the act, and the Commission may require the filing of any other contracts of any carrier.

The Commission also regulates the interlocking of officer and director positions, it being unlawful for any person to hold the position of officer or director of more than one carrier subject to the act, unless such holdings shall have been authorized by order of the Commission. The Commission is also empowered to pass upon applications of telephone companies or of telegraph companies, respectively, for authority to merge.

It is provided that the Commission may inquire into the management of the business of all carriers subject to the act, and shall keep itself informed as to the manner and method in which the same is conducted, and as to technical developments and improvements in wire and radio communication and radio transmission of energy, to the end that the benefits of new inventions and developments may be made available to the people of the United States.

Provision is made in the Communications Act for the enforcement of the act and orders of the Commission thereunder, and penalties or forfeitures are provided for violations thereof.

The Commission also licenses common carrier radio operations under provisions of the Communications Act which apply generally to the licensing of radio transmissions.

In addition to the Communications Act, common carrier regulatory functions are exercised by the Commission pursuant to the Post Roads Act of 1866, which gives the Commission authority annually to fix rates for Government telegraph messages, and to the Submarine Cable Landing License Act of 1921, which requires that a license be secured from the President of the United States for the landing in the United States of submarine cables.

In fulfillment of the duties and responsibilities imposed on it by the above legislation, the Commission regulates the interstate rates for telephone and tele graph service within the United States, as well as rates for telephone and telegraph service between the United States and overseas and foreign points, whether such service be by wire or by radio. It regulates also the adequacy and quality of the communication services provided to the public, and the accounting performed by the carriers in connection with their operations. Such regulation calls for continuing surveillance of the rates, services, operations, and facilities of the carriers, in order to see to it that the interests of the public are protected and promoted.

EXHIBIT 3

HISTORY OF DELEGATION OF AUTHORITY BY THE FEDERAL RADIO COMMISSION AND THE FEDERAL COMMUNICATIONS COMMISSION

Listed below in chronological orders are the principal orders and minutes of the Federal Communications Commission which have delegated adjudicative or licensing authority to any individual commissioner, group of commissioners, or members of the Commission staff.

1. Under the Federal Radio Commission there was no delegation of power by the Commission, whatsoever. It sat en banc on all adjudications and passed on all licenses issued by the agency.

2. Order No. 1, of the Federal Communications Commission, issued July 17, 1934, created three divisions of three commissioners each, as follows:

Division No. 1-Broadcast

Division No. 2-Telegraph

Division No. 3-Telephone

The Chairman of the Commissian was a member of all three divisions. All matters not delegated to one of the three divisions were reserved for action by the full Commission.

3. Commission Order No. 20, dated October 13, 1937, dissolved and abolished the divisions effective November 15, 1937.

4. Commission Order No. 27, dated November 17, 1937, delegated to Commissioner Sykes authority to take final action on certain emergency broadcast applications and delegated to Commissioner Brown authority to act on certain emergency common carrier and safety services applications.

5. By Order No. 28, dated November 29, 1937, the Commission authorized various commissioners, to be appointed from time to time by the Commission, and certain members of the Commission staff to act for the Commission on certain specified matters as follows:

Paragraph 1.-Secretary : Authorized to act on all applications for operator licenses, amateur station licenses, and ship station licenses.

Paragraph 2.-Chief engineer: Authorized to act on matters affecting technical operation of stations, such as operation without an approved frequency monitor, operation with temporary antenna system, and approval of types of equipment.

Paragraph 3.-Commissioner: Authorized to act on applications for aeronautical, aircraft, geophysical, motion picture, airport, aeronautical point to point, municipal and State police, marine relay, marine fire, and emergency and special emergency radio facilities.

Paragraph 4.-Commissioner: Authorized to act on licenses to cover construction permits, extension of construction permits, modifications for changes

in equipment, install frequency control, auxiliary equipment, operating power, special temporary authorizations, modification of license to change name, relocation locally of a studio, control point or transmitter site, and applications for relay broadcast stations.

Paragraph 5.-Commissioner: Authorized to act on all radio matters in Alaska (except broadcast operators, amateurs, and ships).

Paragraph 6.-Commissioner: Authorized to act on wire certificates.
Paragraph 7.-Commissioner: Authorized to act on tariff matters.

Paragraph 8.-Commissioner: Authorized to act on motions, pleadings, and related matters of procedure and on matters relating to withdrawals, dismissals, or defaults of applications.

6. Order No. 28 was subsequently amended to add to the matters delegated in the order various additional items, follows:

Paragraph 7.-February 21, 1938: Added requests for extension of time to file annual reports.

Paragraph 1.—March 30, 1938: Added aircraft station licenses.

Paragraph 2.-April 13, 1938: Added four items relating to technical operations.

Paragraph 3.-August 30, 1938: Forestry applications added.

From January 1938 through July 1939 a series of Commission orders were issued designating specific commissioners to act on the items set out in paragraphs 3 to 8 of Order No. 28.

7. On July 13, 1939, the Commission repealed Order No. 28 and adopted Administrative Order No. 2, which continued in effect the delegations contained in Order No. 28, with slight revisions, and added authority for the chief accountant to act on certain tariff matters.

8. On July 26, 1939, the Commission amended administrative order No. 2 to authorize the secretary to enter final orders in docket cases following issuance of uncontested proposed findings, and to make certain other minor decisions.

9. On October 31, 1939, the Commission again amended Administrative Order No. 2, effective December 1, 1939, to provide for the creation of "the Administrative Board," consisting of the chief engineer, chief accountant, general counsel and secretary, which was authorized to act on all of the matters heretofore referred to individual Commissioners, except motions matters and special temporary broadcasting authorizations which continued to be handled by individual Commissioners designated for those purposes by the Commission. Various minor amendments of the subjects delegated to the administrative board by this order were adopted from time to time until June 6, 1946.

10. On August 27, 1946, the Commission repealed Administrative Order No. 2 and adopted the new part I of the Commission's Rules and Regulations required by the Administrative Procedure Act, to be effective September 11, 1946. Pursuant to section 3 (a) (1) of the act the Commission listed in subpart B its various delegations of authority. These rules delegated to the secretary, chief engineer, chief accountant, and general counsel (individually and in various combinations) authority to act on all of the matters previously delegated to the administrative board, plus certain other matters not previously delegated. In addition the delegation of authority to the motions Commissioner was continued and provisions were made for delegation of specific authority from time to time to Boards of Commissioners, to act on behalf of the Commission when it is impossible to convene a quorum of the Commission. A copy of subpart B of part I of the rules is attached hereto.

11. In addition to these instances of official delegation the Commission in April 1941 established a telephone committee of two (later expanded to three) Commissioners to act for the full Commission in all hearings, conferences, and investigations of certain major matters of policy and regulation in the telephone field. In August 1944 a telegraph committee of three Commissioners, and representatives of the law, engineering, and accounting departments, was set up to conduct an investigation looking toward the possible revision of the telegraph rate structure, with instructions to draw up such proposals as they may deem advisable and to report their recommendations to the full Commission.

12. In addition, there have been other minor Commission orders delegating certain limited powers to members of the Commission or the staff, particularly administrative orders 2A-2G and 3A-31, which provided for action by the staff in certain emergency cases during the war, or by less than a quorum of the Commission, where a quorum is unavailable for some reason.