AT&T to offer full suite of phone services in Connecticut; will launch local service in other markets.

plans to petition Connecticut regulators to offer local telephone service, as well as long-distance communications, to businesses and consumers in Connecticut, starting early next year.

The company also said it plans to give customers a choice for local service in other markets around the nation, as local laws and regulations permit it to do so.

In fact, in many states it's illegal for companies other than selected phone monopolies to offer local service. "More states allow gambling, like lotteries, than allow local phone service competition," said AT&T Chairman Robert E. Allen.

Further, Allen called on Congress to pass telecommunications reform legislation that establishes real competition for local phone service. A national plan to end existing monopolies is needed, he said.

In Connecticut, AT&T is the first company to announce plans to compete with the local phone utility on a widespread basis for both business and residential customers.

Also, the company filed on Sept. 1, for permission to provide local service in California, beginning next year, if the state sets rules that support full and open competition.

Last May, AT&T filed to provide local service in Chicago and Grand Rapids, Mich., but has been unable to reach agreement with Ameritech, the local phone utility in those two markets, on conditions that will permit commercially feasible competition.

"Our customers have made it crystal clear they want to choose who provides their communications services -- for local, long-distance, wireless and on-line use," said Allen.

"We will fight for the right to give our customers a choice for local service through every option open to us -- that includes reselling local services, using alternate providers and building our own telephone network facilities."

The company said that real competition in the local market must give customers choices that let them keep their phone numbers when changing carriers and don't require them to dial extra digits to make certain kinds of phone calls. These are benefits customers already enjoy in the competitive long-distance marketplace.

"Unfortunately, the few local phone monopolies that have even attempted to talk competition have tripped over their own words with their actions," said Allen.

For example, he noted, Ameritech has used delay tactics in negotiations and Rochester Telephone has established unfair and prohibitive wholesale prices. Allen also said that Southern New England Telecommunications(SNET) has proposed rate structures that would set residential wholesale prices at 125 percent to 270 percent of its retail prices.

"AT&T is successful in the highly competitive long- distance market because we focus on customers' needs for high- quality innovative services at a good value," he said.

Allen explained that AT&T wants to be able to offer a menu of services as a way to deepen the company's relationships with customers.

Such packages could allow customers to choose from among local, local toll, long-distance, wireless and on-line services to get maximum value.

"We want to be the communications company that serves our customers the way they want to be served," Allen said.

The Connecticut Department of Public Utility Control (DPUC) is scheduled to propose competitive resale prices for local phone service by Nov. 22.

"Connecticut consumers and businesses would be among the very first in the nation to reap the advantages competition can bring to local phone service -- lower prices, innovative new services and better customer care," Allen said.

"However," he cautioned, "AT&T will be forced to re- evaluate its plans to offer local service in Connecticut if the DPUC doesn't approve competitive resale prices."

CONTAC: AT&T

Ruthlyn Newell, 908/221-2737 (office)

908/647-6260 (home)

or

Jim Byrnes, 908/221-7876 (office)

908/689-6040 (home)