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COMPANIA DE TELEFONOS DE CHILE STATEMENT

 SANTIAGO, Chile, Aug. 12 /PRNewswire/ -- On Aug. 9, a majority of the members of the Telecommunications Sub-Committee of the Chilean Chamber of Deputies voted an amendment to a government bill on telecommunications, which if eventually approved would deprive Compania de Telefonos de Chile (NYSE: CTC) of its right to participate further in the long distance markets.
 In response to this development CTC's management has issued the following statement:
 "The Chilean Telecommunications Law, and the terms of CTC's existing franchises, provide that the company is the owner of concessions to supply local, domestic long distance and international services with its own equipment and/or with equipment owned by other parties.
 "In 1989, in connection with applications submitted by CTC to the Ministry of Transport and Telecommunications to increase the proportion of long distance services provided with its own equipment, ENTEL, the monopoly carrier of long distance services in Chile, objected to CTC's applications on anti-trust grounds.
 "After four years of study and consideration on April 16, 1993, the Chilean Anti-monopoly Commission decided unanimously that CTC should be allowed to compete in the long distance markets subject to the establishment of a multicarrier system and a maximum waiting period of 18 months.
 "In line with such a decision, the executive branch of the Chilean Government proposed to Congress shortly afterwards certain changes to the prevailing telecommunications law, including provisions to implement the multicarrier system.
 "The Aug. 9 decision by the Telecommunications Sub-Committee of the Lower House of the Chilean Congress is the initial step in a complex legislative process pursuant to which all constituencies will be allowed ample opportunity to express their views on the matter.
 "Further discussion of this bill will occur at the Finance Sub- Committee of the Lower House as well as by the full Chamber of Deputies, in addition to votes by the senate's corresponding sub-committees and by the full Senate. Moreover, the executive branch of the Chilean Government has veto powers and the constitutionality of the bill may be subject to review by the respective Constitutional Affairs sub- committees of both Houses of Congress and by the Chilean constitutional Court.
 "The management of CTC will continue to communicate its position in all appropriate forums and believes that the strength of its historical, legal and technical arguments, which enjoy widespread support by most representative institutions and opinion leaders from all political persuasions, will once again, result in the confirmation of its rights through the legislative process.
 "Management reaffirms its belief that there will be no material adverse impact on earnings from this development during 1993 and 1994 and that CTC's core telephone and other telecommunications businesses would not be affected."
 -0- 8/12/93
 /CONTACT: Alejandro Rivera, head of investor relations, of Compania de Telefonos de Chile, 011-562-696-1147, or Felicia Vonella of Dewe Rogerson Inc., 212-688-6840/
 (CTC)


CO: Compania de Telefonos de Chile ST: IN: TLS SU:

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Date:Aug 12, 1993
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