Current State of Local Competition Provides Evidence of Open Market, SBC Ameritech Illinois Tells Illinois Commerce Commission.

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SBC Ameritech Illinois today said the current state of competition in the local market provides the best evidence that the local market is open. The company urged the ICC to avoid undue delay in a test related to the company's entry into the long distance market.

"We welcome the Commission's leadership in ensuring the test of our systems, which are already handling large commercial volumes on a daily basis, is conducted and completed in a more timely and efficient way. A more expeditious test that meets the ICC's objectives and rigorous requirements is in the best interest of Illinois consumers," said Carrie Hightman, president, SBC Ameritech Illinois. "Every day of delay, Illinois consumers pay more than they should for long distance service and are deprived of the range of local and long distance choices that they would otherwise enjoy."

In the 15 other states where incumbent local providers already have been granted long distance authority, the cost of long distance service has dropped sharply and competition in the local market increased markedly.

"We have recommended a number of ways that the test could be streamlined while improving its integrity and validity," Hightman said.

Some examples that would save time and money cited by SBC include:

-- Active Commission Oversight And Direction Of The Test.

-- Avoiding Unnecessary Testing And Retesting By Relying On Actual Wholesale Activity; Or Completed Tests From Other Ameritech States That Share Common Systems With Illinois.

-- Retaining A New Auditor To Audit, Not Rebuild Or Replicate From Scratch, SBC Ameritech's Performance Measures -- Which Could Reduce By Up To Six Months The Extra Cost Consumers Are Paying For Long Distance.

The operating and support systems (OSS) test, though not a required element of the FCC's long distance entry process, is one method to demonstrate that an incumbent local provider's systems are open to competitors in a non-discriminatory manner, but the FCC has consistently held that the best evidence of operational readiness is commercial volumes of CLEC using those systems. These OSS systems tests, which have already cost $170 million across the five Ameritech states, were developed because, in the past, actual commercial volumes of wholesale activity between the incumbent and its competitors were not significant enough to demonstrate that the systems were working properly.

"Current Illinois commercial volumes are the best evidence that our operating and support systems are working at a level that meets FCC requirements for long distance entry. Based on rival carriers' market share, there is more competition and a more open telecom market in Illinois than in any other state at the time at which they were granted long distance relief," Hightman said.

SBC Ameritech's five-state wholesale systems are operating at commercial volumes, they being provided at high levels of quality, and they process more than 1.7 million pre-order transactions and 600,000 orders from competitors every month. During the average business day, SBC Ameritech's OSS supports more than 75,000 pre-orders and 25,000 of those result in actual customer orders from competitive local exchange carriers (CLECs). In Illinois, other local service providers, including AT&T, MCI WorldCom, McLeod, Z-Tel and TDS Metrocom, are actively and successfully marketing local service in SBC's service area, serving 1.9 million access lines or 23 percent of access lines.

"If these recommendations are accepted, then the OSS test will accurately reflect what is already happening in the market, "said Hightman. "We are hopeful the Commission will give significant consideration to our recommendations and adopt a course of action that allows Illinois consumers to see the benefits of increased competition, sooner rather than later."

SBC Communications Inc. (www.sbc.com)(NYSE:SBC) is one of the world's leading data, voice and Internet services providers. Through its world-class network and its subsidiaries' trusted brands - SBC Southwestern Bell, SBC Ameritech, SBC Pacific Bell, SBC Nevada Bell, SBC SNET and Sterling Commerce - SBC companies provide a full range of voice, data, networking and e-business services, as well as directory advertising and publishing. A Fortune 27 company, America's leading provider of high-speed DSL Internet Access services, and one of the nation's leading Internet Service Providers, SBC companies currently serve nearly 60 million access lines nationwide. In addition, SBC owns 60 percent of America's second largest wireless company -- Cingular Wireless -- which serves more than 21 million wireless customers. Internationally, SBC has telecommunications investments in 28 countries.