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ROCHESTER TELEPHONE PLAN CAN HELP COMPANY COMPETE, FITCH SAYS -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 3 /PRNewswire/ -- Rochester Telephone Co.'s (NYSE: RTC) proposed restructuring plan announced today can position the company to reduce overall business risk and help sustain credit quality in a period of intensifying competition, Fitch says. Rochester Telephone's senior debt is rated A+', its debentures and notes are rated A', and its commercial paper F-1'.
 With its "Open Market Plan," Rochester Telephone is responding positively to growing competition. Through effective engineering, appropriate pricing, and marketing of its existing network, the strategy will help reduce the incentive for other vendors to build competing facilities that replicate parts of Rochester's network.
 In addition, the plan will position the company to generate maximum revenue from its investment in an important asset: its advanced network in Rochester. The plan is also designed to offer rate stability to residential customers.
 Under this initiative, Rochester Telephone will divide its local operating company into two separate entities. One will act as a wholesale company, selling basic dial tone network services and enhanced services to other communications companies. The second will operate as a retail telecommunications company, providing a range of communications products and services. Basic residential and Lifeline rates would be held at current levels until January 1995. After that, rates would increase by no more than the inflation rate.
 The plan must be approved by the New York State Public Service Commission. Fitch will review and assess the impact of the plan as it is finalized.
 -0- 2/3/93
 /CONTACT: Timothy Cain of Fitch, 212-908-0587/
 (RTC)


CO: Rochester Telephone Co. ST: New York IN: TLS SU:

TM -- NY082 -- 2574 02/03/93 16:26 EST
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Publication:PR Newswire
Date:Feb 3, 1993
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