ALTS Praises CLEC Proposal on Intercarrier Compensation; Cost-Based Intercarrier Compensation Coalition Presents an 'Economically Rational' Alternative to Bill and Keep.

Business Editors/High-Tech Writers

WASHINGTON--(BUSINESS WIRE)--May 11, 2004

The following statement may be attributed to John D. Windhausen, Jr., President of the Association for Local Telecommunications Services ("ALTS"):

"ALTS is extremely pleased that a forward-thinking group of CLECs has put forth an economically rational plan to solve the complexity of issues surrounding intercarrier compensation. The Cost-Based Intercarrier Compensation Coalition (CBICC) proposes a transition to a unitary rate that will put an end to any unjust arbitrage without adopting the dangerous bill and keep approach, which would only encourage new forms of arbitrage. Perhaps most important, the CBICC proposes a transition plan to integrate interstate and intrastate rate structures in a way that promotes stability in the telecommunications industry. The plan recognizes that any increases in end user prices should be carefully tailored to avoid any rate shock on consumers. Finally, the plan re-confirms the need for carriers to be compensated for their costs of carrying telecommunications traffic, a principle that is well-grounded in the Telecommunications Act."

ALTS is the leading national industry association whose mission is to promote facilities-based local telecommunications competition. Located in Washington, D.C., the organization was created in 1987 and represents companies that build, own, and operate competitive local networks. For more information on ALTS, visit the ALTS Web site at www.alts.org.

The Cost-Based Intercarrier Compensation Coalition is an industry group organized by Competitive Local Exchange Carriers to develop economically efficient intercarrier compensation rules.