CPUC still needs to pass regulations before Californians can choose local phone carrier; Washington state beats California in approving local telephone competition.

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 22, 1994--MCI said Tuesday that it is still unable to apply to the California Public Utilities Commission (CPUC) to provide local phone service in California, even though other states are opening up local competition at a rapid rate.

MCI's comments came on the heels of last weeks's ruling by the Washington State Utilities and Transportation Commission approving a request by MCI Metro, a wholly owned subsidiary of MCI, to offer competitive local telephone service in Washington.

"Given California's leadership position in many other high technology areas, we are surprised that the state is bringing up the rear in moving toward a truly competitive marketplace," said Richard Severy, MCI's director of Western Regional Regulatory Affairs. MCI has already been given the green light in Maryland, New York, Massachusetts and Washington, and similar rulings are expected in the coming weeks in Illinois, Michigan and Pennsylvania.

While California does not yet allow local competition, the CPUC did pass a rule in September allowing long distance companies to provide intraLATA service (those calls outside a 12 mile radius but within a calling area) as of Jan. 1, 1994.

However, to choose a carrier other than a local phone company such as Pacific Bell or GTE, consumers will be required to dial a cumbersome five-digit access code. Nineteen states have already approved or are currently considering elimination of the access code (referred to as "intraLATA equal access"). The CPUC has stated that it intends to consider intraLATA equal access sometime next year.

In January 1993, the CPUC issued a report to Gov. Wilson declaring its intention to have a fully competitive telecommunications industry by Jan. 1, 1997. "California has a long way to go before achieving that goal," said Severy, "but we hope that rulings like Washington's will inspire the CPUC to stay on schedule."

MCI Metro, a wholly owned subsidiary of MCI, will provide a full range of basic and enhanced local telecommunications services through fiber optic rings and local switching networks throughout the United States as local regulatory authorities permit. MCI Metro, headquartered in McLean, Va., owns and operates conduit and fiber cable facilities in more than 200 U.S. cities.

CONTACT: MCI California, San Francisco

Larry Kamer or Kristina Maugg, 415/512-6800