Cablevision Systems signs cable industry's first interconnection agreement with a regional Bell telephone company.

WOODBURY, N.Y.--(BUSINESS WIRE)--Feb. 16, 1995--Cablevision Systems Corp. (ASE:CVC) today announced that its wholly owned subsidiary, Cablevision Lightpath Inc. has signed a groundbreaking agreement with NYNEX, one of the nation's seven Regional Bell Operating Companies (RBOC), to interconnect their telephone networks to complete local calling. This is the first agreement between a cable television operator and an RBOC that recognizes the cable company as a competitor.

Cablevision Systems Corp. chairman Charles F. Dolan said, "Today's agreement moves New York State's telecommunications industry in the direction of real local telephone competition. It is a first step toward producing concrete benefits for all telephone customers by giving them a choice of service providers. With Lightpath, Cablevision has made a substantial commitment to telephony. We already have a cable network that connects to 1.4 million New York area customers. That is a unique platform that will allow us to deliver the full benefits of developing local exchange competition to business and residential telephone customers."

Cablevision Lightpath president Joseph Cece praised the New York Public Service Commission (PSC) for its efforts in promoting competition. "Our agreement with NYNEX reflects the progressive framework the PSC has established in New York State," Cece said. "Today's agreement establishes interim measures that define the path for Pathlight's entry into the local exchange market. With the continued encouragement of the PSC, and the continued cooperation of NYNEX, we are sure that this first step will lead to a fully level playing field which includes economic conditions for true competition in the local telephone market," he added.

Cablevision Lightpath currently provides commercial customers with switched telephone services, making Cablevision the only cable operator in the nation delivering switched telephone service over its own facilities.

The two principal provisions of today's agreement require the two parties to pay reciprocal compensation in exchange for terminating calls on each other's networks, and an interim agreement for "number portability." Number portability is a significant component of the pact because it allows telephone customers to retain their existing telephone numbers when changing the provider of their local telephone service. NYNEX is working with the industry in New York to develop a permanent number portability solution. Prior to this agreement, Lightpath was not compensated by NYNEX for completing calls that originated in the NYNEX system.

Cablevision has previously indicated that with continued advances in the competitive framework, such as those begun through this agreement, it plans to begin testing New York-area delivery of residential telephone service over its cable system by mid-year 1995. Lightpath's Cece expects that the New York Public Service Commission, through its ongoing Competition II Proceeding, will provide final resolution to such issues as reciprocal incremental cost-based interconnection rates for co-carriers as well as other outstanding competitive issues.

Cablevision Systems, the nation's fifth largest operator of local cable television systems, serves 2.6 million subscribers in 19 states, 1.4 million of them in the New York Metropolitan Area.

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