Ameritech Indiana's 20% rate increase called "anti-competitive" and "not cost justified".

INDIANAPOLIS--(BUSINESS WIRE)--May 14, 1996--AT&T today filed a petition with the Indiana Utility Regulatory Commission (IURC) charging that the 20 percent increase Ameritech Indiana is seeking for its intrastate Carrier Common Line (CCL) charges is "anti- competitive" and "not cost justified."

These charges are fees paid by long-distance companies to local telephone companies such as Ameritech Indiana for connecting long-distance calls to the local telephone network.

As part of Ameritech's "Opportunity Indiana" plan approved by the IURC in June 1994, Ameritech Indiana agreed to reduce the End User Common Line Charge (EUCLC) by $2.21 by June 1, 1996, which eliminates the subsidy consumers pay and reduces the subsidy business customers pay to Ameritech Indiana. However, Ameritech Indiana, with its recent filing, is increasing by 20 percent the subsidy long-distance companies in Indiana must pay the monopoly. This increase in the CCL charge will ultimately affect all long-distance customers in Indiana, since about 46 cents of every long-distance dollar goes for the use of the local telephone network. Ameritech stated in its filing that the increase in Indiana was necessary to allow Ameritech to respond to competitive pressure in Illinois.

"Just because we are captive customers of Ameritech Indiana for Switched Access Service, AT&T and other long- distance companies and ultimately our customers in Indiana should not be required to pay significantly higher charges so that Ameritech can address emerging competition in Illinois," said Bob Veneck, AT&T's assistant vice president for Government Affairs in Indiana. "This is not fair to consumers and business customers in Indiana. Long-distance companies in Indiana should not be required to pay higher intrastate charges to maintain or increase the profits of Ameritech Indiana, which already is one of the most profitable Bell operating companies in the United States. We feel that this is totally inconsistent with the concept of creating a competitive telecommunications environment in Indiana and is a clear example of Ameritech's monopoly power."

In its petition AT&T is requesting that the IURC immediately reject Ameritech Indiana's proposed 20 percent CCL charge increase or set the matter for formal hearing and require Ameritech Indiana to prove that the proposed increase is justified.

CONTACT: Mike Pruyn, AT&T

312-230-4894 (office)

1-800-965-9429 (pager)

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