AT&T Files Joint Appeal Seeking Over $1 Billion in Reimbursements From the Puerto Rico Telephone Company.

Business Editors

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--April 1, 2002

AT&T of Puerto Rico, Inc., in a joint motion with Sprint International Caribe, Inc. and Telefonica Larga Distancia de Puerto Rico, Inc., filed an appeal today in the Puerto Rico Circuit Court of Appeals seeking $1.15 billion in reimbursements for overcharges levied on long-distance carriers and customers by Puerto Rico Telephone Company, an affiliate of Verizon Communications.

The filing follows up a five-year regulatory battle at the Puerto Rico Telecommunications Regulatory Board over intra-island access charges imposed by PRTC. The Board ruled that these charges are excessive and therefore in violation of the Puerto Rico Telecommunications Act of 1996.

"PRTC's monopoly position, outright disregard of regulatory orders and its use of delaying measures have allowed it to charge both members of the industry and its customers more than $1 billion dollars in excessive and unwarranted access fees," said Eliana Ramirez, vice president of marketing for AT&T of Puerto Rico.

The Puerto Rico Telecommunications Law, also known as Law 213, was approved in September 1996 with the purpose of opening the local telecommunications market to competition. The law requires that the access provider, in this case PRTC, make its network available to other carriers. Also, it requires PRTC to maintain a fair competitive environment in which access is provided under the same conditions that PRTC makes it available to its own affiliates, and that these fees be based on actual costs.

In the regulatory proceedings leading up to this lawsuit, the Board concluded that the per-call access fee charged by PRTC - more than 9 cents -- was not cost based, and, therefore, illegal. The appeal is seeking the immediate reduction of PRTC's access fee to just over 2 cents. The appeal also seeks the full reimbursement of $1.15 billion in access fees illegally charged by PRTC since April 8, 1997.

"We are confident that once the court reviews this case, it will agree with us, and will rule accordingly," said Ramirez. "PRTC has a long history of anti-competitive behavior. Grossly inflated access fees are just one example."

AT&T (www.att.com) is among the world's premier voice, video and data communications companies, serving consumers, businesses and government. Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network and is the largest cable operator in the U.S. The company is a leading supplier of data, Internet and managed services for the public and private sectors, and offers outsourcing, consulting and networking-integration to large businesses and government. Serving nearly 60 million consumers, AT&T is the market leader in consumer communications services and operates AT&T WorldNet (R) Service, a leading Internet access service that has garnered several awards for outstanding customer service.

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