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BELL COMPANY INVOLVEMENT IN INFORMATION SERVICES WILL CREATE OVER A MILLION U.S. JOBS, SAYS STUDY

 BELL COMPANY INVOLVEMENT IN INFORMATION SERVICES
 WILL CREATE OVER A MILLION U.S. JOBS, SAYS STUDY
 WASHINGTON, D.C., June 9 /PRNewswire/ -- Bell company participation in the information services industry will create 1.46 million jobs for Americans and will add an estimated $110 billion to the total U.S. gross domestic product by the year 2001, according to a study released today.
 The study, "The Economic Impact of BOC Participation in the Information Services Industry," prepared for the regional Bell telephone companies by The WEFA Group, notes that jobs will ripple across all industries and bolster the U.S. economy. For example, continued Bell participation in information services will create an added 290,000 manufacturing jobs by the year 2001.
 A wide variety of organizations support Bell entry into information services, including labor groups and information providers. "The Communications Workers of America has long supported expansion of the information services business in the United States," said Barbara Easterling, secretary-treasurer, CWA. "We need to take steps to save and create American jobs, not stifle them. The findings of this study are encouraging for the embattled American worker - particularly as unemployment lines continue to grow and wages shrink with the manufacturing jobs being moved overseas. Our colleagues in the International Brotherhood of Electrical Workers join in support of this effort."
 Daniel Bruns, president, General Videotex Corporation, a leading information provider, noted, "This study shows that easy-to-use interactive services benefit everyone as they become widespread over time. I believe -- as do most of my information services colleagues -- that continued regional Bell company investment and competition not only benefits consumers today, but creates new opportunities for all Americans."
 "The jobs cited in the study, which average nearly 150,000 new jobs per year, are crucial to America's economic future and are important to our nation's global competitiveness," said Ronald Stowe, vice president, Washington Operations, Pacific Teg these jobs and consumers may not benefit from many lifestyle enhancing services. In short, Americans are being denied a part of their future."
 "Our research indicates that with Bell companies competing freely in the information services industry, significant gains accrue to an economy that needs and is primed to take advantage of new technologies, new applications and new approaches to doing business," stated Michael Raimondi, senior vice president, The WEFA Group.
 In addition to creating jobs, the study finds that by the year 2001 Bell participation in information services will improve the U.S. trade balance by $26.5 billion and increase consumer spending by $71 billion. Findings indicate the aggregate inflation rate slows one-half of one percentage point on average per year and manufacturing growth gains 0.2 of one percent annually with Bell participation in the information service industry in the next decade.
 Although study findings predict the U.S. work force and economy will benefit from Bell participation in information services, there is legislation currently pending in Congress that might prevent the seven companies from providing their wealth of research development expertise and capital.
 The U.S. House Judiciary Committee's subcommittee on economic and commercial law recently approved a bill, H.R. 5096, which would preclude the Bell companies alone among all telephone companies from providing or even seeking authorization to provide information services, manufacture telecommunications equipment and related software and offer long- distance service for a period of three to seven years, and which would make it extremely difficult for them to obtain that authorization even after that time period. Introduced by Congressman Jack Brooks (D-TX), chairman of both the subcommittee and the House Judiciary Committee, the bill is being considered by the full committee.
 "We believe H.R. 5096 is a slap in the face to all Americans," stated Stowe. "This study is further evidence that the Brooks bill is anti-competitive, anti-worker and strongly pro-special interest."
 The study is being distributed on Capitol Hill as part of the effort by the regional Bell companies to demonstrate why H.R. 5096 is not in the public interest.
 The study was designed to estimate and forecast the direct and indirect employment changes in the U.S. economy due to Bell company participation in the information services industry. The study utilizes WEFA's integrated and consistent large-scale econometric models of U.S. macroeconomic, industry and regional economic activity.
 The enhanced models used by WEFA yield two sets of forecasts through the year 2001. For comparison purposes, the first forecast represents WEFA's standard long-term forecast of economic activity in the U.S. This forecast is updated every month by economists at WEFA and is sent to businesses and governments around the world to support their planning and policymaking activities. The second forecast quantifies that impact of Bell company participation in the information services industry for both the national and individual state economies.
 The WEFA Group was formed from the 1987 merger of two leading international econometric consulting firms, Wharton Econometric Forecasting Associates and Chase Econometrics. WEFA enjoys a notable client roster including many large manufacturing companies, banks, insurance companies, retailers, utilities, services companies and government agencies.
 -0- 6/9/92
 /NOTE TO EDITORS: Reporters may contact the following individuals for more information or to obtain copies of the two-volume, 240-page study:
 Pacific Telesis Janice Rylander 202-383-6431
 Ameritech Peter Lincoln 202-955-3058
 Bell Atlantic Larry Plumb 703-974-5446
 BellSouth Bill McCloskey 202-463-4129
 NYNEX Bob Jasinski 202-416-0125
 Southwestern Bell Joyce Taylor 202-293-8553
 U S WEST Blair Johnson 202-429-3105
 Additional contacts for comment:
 CWA John Morgan 202-434-1315
 The WEFA Group Mike Raimondi 617-221-5843
 General Videotex Corp. Dan Bruns 617-491-3342
 /CONTACT: Valerie Christy of Fleishman-Hillard, 202-828-8820/ CO: WEFA Group ST: IN: TLS SU:


LR -- NY067 -- 8570 06/09/92 17:41 EDT
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