Continental Cablevision seeks permission to offer local telephone service in California; company to invest $700 million in California's telecommunications infrastructure.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Aug. 31, 1995--Continental Cablevision Inc., the nation's third largest cable television operator and the largest cable operator in Los Angeles, Thursday announced it has filed a petition with the California Public Utilities Commission requesting permission to offer local telephone service in 10 California counties.

If the petition is approved, Continental will invest at least $700 million in the state, converting its existing cable television systems into broadband telecommunications networks capable of providing switched voice, video and data services.

The expanded construction and operational activities will result in the creation of 500 jobs statewide.

Continental will provide countywide telephone service by supplementing its existing cable television networks with space leased from other network providers, becoming both a facilities-based provider and a reseller of telecommunications services. The company will offer telephone service through a separate subsidiary, Continental Telecommunications of California Inc.

Continental will provide a number of residential and commercial intra-LATA services, including dial tone, lifeline and PBX trunks; local exchange usage services; optional and supplemental features; Centrex services; and switched long distance carrier access services.

The company's proposed telephone service areas include the counties of Fresno, Kings, Los Angeles, Madera, Orange, Riverside, San Joaquin, Sutter, Tulare and Yuba. The counties, which consist of both rural and urban communities, are home to Continental's largest cable operations in the state and have a combined population of 14 million residents.

``At a time when business is leaving California, Continental Cablevision is renewing its commitment to the state with this significant investment in infrastructure and jobs,'' said James H. (Trey) Smith, III, Continental's senior vice president.

``Continental has the experience, technology and operational systems in place to successfully compete against the entrenched telephone companies, offering our customers a choice in telecommmunications service providers.''

Continental will enhance its existing 14,300 miles of fiber optic and coaxial cable plant with a telecommunications system designed to route switched voice, video and data signals at a performance level that exceeds BellCore standards.

The company will use Synchronous Optical Network (SONET) digital transmission technology with broadband optical transmission equipment in a dual ring architecture to achieve the reliability and capacity needed to provide advanced voice, video and data services.

In addition to providing telephony services, the 750 MHz network will be capable of offering advanced digital video services.

Thursday's filing is a result of the CPUC's interim local telephone rules approved on July 24. The rules permit facilities- based competition starting Jan. 1, 1996, and resale competition beginning March 1, 1996.

``The CPUC interim rules provide a regulatory framework sound enough for us to undertake the work necessary to become a competitive telephone services provider,'' said Jeremy Stern, Continental's vice president of corporate and legal affairs.

``However, there are a number of key regulatory issues left to be determined, including interconnection and unbundling standards, universal service and number portability. These issues will need to be successfully resolved to ensure the viability of the business and to fully realize the promise of competition.''

Continental Cablevision is a Boston-based telecommunications company with interests in domestic and international cable television operations, cable programming networks and consumer satellite delivery systems. The company is a partner in Teleport Communications Group, a leading telecommunications service provider.

Pending the acquisition of the Providence Journal Co.'s cable properties, the company will own cable television operations in 20 states passing 6.6 million homes and serving 4 million customers. In California, Continental will be the state's second largest cable operator with networks passing 2 million homes and serving 900,000 customers.

CONTACT: Continental Cablevision Inc., El Segundo

Susan Ritchie, 310/647-5715