AT&T completes initial steps to offer local phone service

Business Wire, March 4, 1996

NEW YORK--(BUSINESS WIRE)--March 4, 1996--AT&T Chairman Robert E. Allen today announced that the company has passed its first milestone toward being able to offer customers local phone service in all 50 states.

When the Telecommunications Act of 1996 was signed into law Feb. 8, AT&T committed to begin the process of providing local service in every state by March 1. That commitment has now been met with filings at state commissions in all 50 states.

"We're creating a `new' AT&T that customers can rely on to meet their needs for communications, on-line and home entertainment services," Allen said. "Local service is a key element of the anytime, anywhere services we'll be bringing customers."

Already, AT&T has announced ambitious plans in the on-line services market -- with its AT&T WorldNet (sm) Service -- and in home entertainment, with its plans to bring customers the benefits of DIRECTV. And millions of customers already benefit from the company's Worldwide Intelligent Network -- which gives people access to the information and people they need anytime, anywhere -- and from the country's largest wireless network.

By mid-March, Allen said, AT&T will initiate negotiations with the regional Bell and other major local phone monopolies on the terms for connecting with their phone networks.

AT&T plans to enter the $90 billion local telephone market as early as this summer so it can offer consumers and businesses innovative packages of local, long distance, wireless, on-line and entertainment services.

Allen said AT&T's first priority will be to strike agreements with the local exchange companies, as required by the Telecommunications Act of 1996, to gain access to the use of their monopoly facilities. If AT&T can reach agreements within the timeframe indicated in the law, Allen said, AT&T could begin offering local service in some markets by late summer or early fall.

For business customers, he said, AT&T could use existing direct connections between AT&T switches and many of its business customers' offices to begin offering local services.

Allen said AT&T would also pursue other means to offer local service. This could include using cable television technology and increasing AT&T's use of facilities from companies that provide access to customers as an alternative to the Bell companies.

In addition, he said, AT&T could use fixed wireless technology and, on a selective basis, build its own network facilities to offer local services.

CONTACT: AT&T

John Heath, 908/221-6659 (office), 201/543-0811 (home)

or

Jim Van Orden, 213/778-4936 (office), 800/566-0742 (pgr)

or

Jim Byrnes, 908/221-7876 (office), 908/689-6040 (home)