AT&T asks state regulators to arbitrate local phone service talks with GTE.

NEW YORK--(BUSINESS WIRE)--Aug. 15, 1996--AT&T is asking regulatory commissions in 20 states to arbitrate unresolved issues in the company's negotiations with GTE to offer competitive local phone service in areas served by GTE.

The states are: Arizona, California, Florida, Hawaii, Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Virginia, Washington and Wisconsin.

"We have worked with GTE since March 12 to reach an agreement that will let AT&T give consumers and businesses a choice for local phone service," said Reed Harrison, the AT&T vice president leading AT&T's negotiations with GTE.

"We have agreed on many issues," Harrison said. "But we need arbitration to break the deadlock on critically important points such as pricing, availability of GTE services, how to connect AT&T's and GTE's networks, and ordering, billing and maintenance processes to provide quality customer service."

Under the federal telecommunications law passed earlier this year, companies seeking to enter the local phone market monopolized by local phone companies such as GTE can ask state regulators to intervene to settle disputed or unresolved issues.

AT&T's arbitration with GTE must be completed and an agreement concluded by Dec. 12 under terms of the law.

"The outcome of arbitration will do more than simply set the terms under which AT&T competes with GTE," Harrison said. "It will also determine whether customers will have the choice they deserve for local service."

Unlike the regional Bell phone companies, GTE does not have to open its local phone market to competition before it can provide long distance service.

"GTE has already entered the long distance market in some areas, but can effectively keep AT&T from providing local service until terms are reached for interconnecting with GTE's local network," Harrison said.

AT&T has been trying to negotiate an agreement with GTE to allow it to connect with GTE's local network, purchase and resell GTE's services, and work out other economic and technical issues to bring choice to customers in monopoly markets.

AT&T plans to offer local phone service with a wide range of long distance, on-line, wireless and entertainment services.

ADVISORY TO EDITORS: Harrison will host an audio news briefing and answer questions from the news media at noon eastern time today. The number is 1-800-553-0351. Ask for the AT&T Arbitration teleconference. Please call in at least five minutes prior to the call and provide your name and media association to the operator. A taped replay of the briefing will run every hour starting at 2 p.m. eastern time today through 11 p.m. eastern time tomorrow. The number for the replay is 1-800-475-6701, access code 313689.

CONTACT: AT&T

John Heath 

908-221-6659 (work)

201-543-0811 (home)

[e-mail]

or

Jim Byrnes 

908-221-7876 (work)

908-689-6040 (home)

[e-mail]