Cincinnati Bell Telephone customers in Kentucky get rate increase, price reductions for some services, and extended area calling.

CINCINNATI--(BUSINESS WIRE)--May 25, 1995--Cincinnati Bell Telephone Company (CBT) has received approval from the Public Service Commission of Kentucky (PSCK) to increase prices for some telephone services, reduce prices for other services in Kentucky and to offer Extended Area Service (EAS) in Gallatin, Grant, and Pendleton Counties.

However, the PSCK's order does not provide for additional revenue for the telephone company. Revenue from the increase in some rates will be offset by reductions in the costs of other services.

"For the typical residential customer in Kentucky, this represents the first increase in nearly a decade," said Barbara J. Stonebraker, CBT senior vice president. "Although we are disappointed the order will not provide additional revenue, it provides services that will benefit our customers and community.

EAS for the three counties is something our customers have told us they want. It is now a reality. The order guarantees immediate rate reductions for some services and creates additional reductions for Touch-Tone in the future."

EAS is a service that allows toll-free calling in an area wider than a customer's normal free calling area. Calls are toll-free only among customers who have EAS.

The new rates were effective May 23. Extended area service is scheduled to begin November 23. CBT needs the time to make changes to its network.

The approval means immediate changes for CBT Kentucky customers in several areas:

- Basic residence rates will increase. For the average Kentucky

metropolitan area customer, the increase will amount to

91 cents a month.

-0-

                    Kentucky Metropolitan Area Charges

                Former Rate       New Rate         Percent Change
Residential        $15.29            $16.20                 6.0%
Business           $44.62            $46.27                 3.7%

- Customers in Gallatin, Grant, and Pendleton Counties will be

able to purchase EAS no later than November 23, 1995. With

EAS, customers pay a higher monthly rate, but the increased

charge includes flat rate local calling throughout their

current local service area as well as calling other EAS

customers in Boone, Campbell, Gallatin, Grant, Kenton, and

Pendleton Counties.

In addition, CBT will investigate offering toll free calling with Ohio EAS customers. The charge for converting to EAS will be waived for 90 days after EAS implementation. Customers who choose EAS will keep their current telephone number if it is technically feasible. (See chart below.)

- Customers who decide to continue their current Local Area

Service will continue to pay a lower monthly charge, but

will still pay toll charges for calls into the Kentucky

Metropolitan and Ohio EAS areas. Toll rates do not change with

this order. Customers who choose EAS will still pay a toll

charge when calling customers without EAS -- those with LAS. -0-

                   EAS and LAS Monthly Rates

                  Former Rate         LAS Rate         EAS Rate
Residential          $09.11            $09.65           $26.05
Business             $17.61            $18.26           $57.07

- The monthly call allowance for Directory Assistance (DA) calls

has been removed and the cost of a local DA call increased

4 cents a call to 44 cents. CBT will continue to respond to

special needs of customers by maintaining its present DA call

exemption policy. Physically challenged and special needs

customers, nursing homes, coin calls, hotels, motels, and

hospitals will be allowed to use DA service without charge.

- Customers with Touch-Tone service will see an immediate

reduction in the cost of the service. Touch-Tone rates

for residence customers are reduced to 92 cents a month from

the current $1.15 and for small business customers to $1.88 a

month from $2.35. CBT has agreed to reduce Touch-Tone rates

later in 1995 and again in 1996.

- Any local or local toll call placed by an operator is now

$1.00per call. Person-to-person calls will carry a flat

operator surcharge of $3.00.

- Call Trace activations have been lowered to $1.50 from $5.00

for each activation. This makes CBT's rate for Call Trace

one of the lowest in the country. The Per Line Number Privacy

rate is also reduced from $1.60 to $1.00 a month.

Cincinnati Bell Telephone provides modern telecommunications products and services in a three-state area including portions of Ohio, Kentucky, and Indiana. The company has 888,000 access lines and has customers in an area covering more than 2400 square miles.

CONTACT: Cincinnati Bell Telephone, Cincinnati

Kyle Hill, 513/397-1240