Fcc Approves Sbc/Pacific Telesis Merger

Business Wire, Jan 31, 1997

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 31, 1997--The pending merger of SBC Communications and Pacific Telesis Group passed another regulatory milestone today when the Federal Communications Commission (FCC) approved it unanimously and without conditions.

"We're pleased that the FCC commissioners voted unanimously to approve and we look forward to completing the merger so we can provide more effective competition in California, particularly in the long-distance, international and wireless markets," said Phil Quigley, chairman and chief executive officer of Pacific Telesis Group. "Our merger is good news for California consumers wanting additional choices and combinations of services to meet their telecommunications needs."

"The combination of SBC and Pacific Telesis will create a stronger world-class telecommunications company for our customers," said Edward E. Whitacre Jr., chairman and chief executive officer of SBC Communications. "As all telecommunications markets open to competition, we expect to be well-positioned to provide our customers with one-stop shopping convenience for advanced telecommunications services.

"We recognize there are many important issues before the commission, and we appreciate its diligent review and approval," Whitacre said.

The FCC's approval involved the transfer of hundreds of wireless licenses from Pacific Telesis to SBC, including Pacific Telesis's PCS licenses in California and Nevada. The FCC found that "the transfer will serve the public interest."

The merger has been approved overwhelmingly by shareholders of both companies. In addition, the Nevada Public Service Commission has approved the merger, the U.S. Department of Justice found that the merger does not violate federal antitrust laws and the California Attorney General has found that the merger will not lessen competition in California. Action by the California Public Utilities Commission is expected in March.

SBC and Pacific Telesis announced their merger agreement April 1, 1996. Together, the two companies 1996 revenues totaled $23.5 billion. The companies serve the nation's two most populous states and seven of its ten largest metropolitan areas.

Pacific Telesis (NYSE:PAC) is a diversified telecommunications corporation based in San Francisco. Through its Pacific Bell and Nevada Bell subsidiaries, the corporation offers a wide array of telecommunications services in California and Nevada, including directory advertising and publishing. Through its operating subsidiaries, the corporation serves 16.4 million access lines and offers Internet access services to both business and residential customers. Another subsidiary, Pacific Bell Mobile Services, has begun offering new wireless personal communications services (PCS) in the San Diego area, and will expand service in California and Nevada in 1997.

SBC Communications Inc. (NYSE:SBC) is one of the world's leading diversified telecommunications companies and the second-largest wireless communications company based in the United States. SBC's subsidiaries provide innovative telecommunications products and services under the Southwestern Bell and Cellular One brands. Its businesses include wireline and wireless services and equipment in the United States and interests in wireless businesses in Europe, Latin America, South Africa and Asia; cable television in both domestic and international markets; and directory advertising and publishing.

CONTACT: Larry Solomon, SBC Communications, 210/351-3990 or

Lou Saviano, Pacific Telesis, 415/394-3744