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SNET SEEKS ALTERNATIVE REGULATION TO PAVE WAY FOR MARKETPLACE OF TOMORROW.

NEW HAVEN, Conn.--(BUSINESS WIRE)--May 18, 1995--In response to a comprehensive set of proceedings initiated by the Connecticut Department of Public Utility Control (DPUC) to implement legislation permitting competition in all telecommunications markets, SNET today gave notice of its intent to seek an alternative form of regulation more consistent with an increasingly competitive marketplace.

SNET is also providing the DPUC with financial data to enable the Department to conduct a financial review. This review will help put in place a framework for developing an alternative form of regulation.

"We are not seeking to increase the price of local service," said Daniel J. Miglio, SNET chairman and chief executive officer. "We will stand by our previous agreement not to increase local service rates before 1998. Beyond that, marketplace forces will increasingly determine the price levels of telecommunications services, including local service which becomes competitive this year."

He noted that "this is an essential step in preparing for the fully competitive marketplace called for in the legislation that was enacted last year. The review will provide a frame of reference for making necessary changes in the nature of regulation."

"In the fully competitive market of the future, customers can expect to benefit from increased choice, the swift introduction of new products and market-driven prices for telecommunications services," Miglio said.

The accelerating pace of technological change is driving changes in the marketplace and in regulation. The telecommunications, computer and cable television industries are converging and competition is intensifying. In recognition of these changes, legislation passed in 1994 opened up all telecommunications markets in Connecticut.

The DPUC is now conducting a series of proceedings that will set the terms and conditions to implement that law. This includes making decisions on complex issues such as the reclassification of services that are found to be competitive, the certification of providers of competitive services, competition for local service, assuring universal service, funding lifeline service, the costs of providing service and capital recovery.

"We believe competition is good for Connecticut, our customers and SNET. We also believe that competition will be most effective if the rules provide equal terms and conditions for all competitors." Miglio said.

The first part of this review will begin in mid-June with SNET filing financial information with the DPUC, as well as a description of the fundamental elements of its alternative regulation plan.

In the second part of this proceeding, which will begin in the fall, SNET will include details of the proposed plan for alternative regulation, including pricing provisions, cost of service studies, and reporting proposals. SNET, a Connecticut-based company reaching beyond its traditional borders, provides local, national and international calling; mobile communications; and publishing, information and advertising services. It is building I-SNET, a statewide information superhighway that brings to its customers a full array of information, communications and entertainment services.

CONTACT: SNET

Bill Seekamp, 203/771-2136
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Publication:Business Wire
Date:May 18, 1995
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