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LONG DISTANCE RULING BY CHILEAN ANTITRUST COMMISSION AND RULING BY CHILEAN SUPREME COURT

 SANTIAGO, Chile, April 22 /PRNewswire/ -- Compania de Telefonos de Chile (NYSE: CTC) announced today that the Chilean Antitrust Commission has issued a ruling providing that "local" telephone companies can expand their presence in the long distance markets and "long distance" telephone companies can enter the local market, all subject to certain conditions.
 CTC's board of directors has publicly stated that "this is a victory not only for CTC but also for the free enterprise system in Chile."
 The Antitrust Commission's ruling provides that the participation by the local companies in the long distance markets will be conditioned upon the implementation of a multicarrier system. Among other conditions, the ruling also establishes a "transitional" period of up to 18 months from the date of the ruling. During this period, enabling regulations will be drafted; however, the ruling also specifies that CTC would not be permitted for 18 months to expand the use of its own equipment in the long distance markets, or otherwise compete. The board of CTC has stated its concern about this limitation and is currently considering its available options to ensure CTC's ability to compete effectively in the long distance markets, including a formal request for certain amendments to the ruling. The ruling is subject to appeals.
 In an unrelated action, the Chilean Supreme Court has rejected the appeal by Telefonica de Espana, the owner of 43.6 percent of CTC and 20 percent of ENTEL of an earlier decision by the Antitrust Commission directing Telefonica to sell its interest in either CTC or ENTEL within 18 months. Telefonica has not advised CTC of what action it will take as a result of the failure of its appeal.
 Compania de Telefonos de Chile, S.A. the first South American company to list its shares on the New York Stock Exchange, is the largest telecommunications enterprise in Chile providing local, long distance and international telephone services in 77 percent of the country's territory where 92 percent of Chile's population resides. Additionally, the company operates a cellular network in the two principal metropolitan areas of Chile, Santiago and Valparaiso.
 -0- 4/22/93
 /CONTACT: Alejandro Rivera of Compania de Telefonos de Chile, 011-562-696-6010, or Felicia Voneslla of Dewe Rogerson, Inc., 212-688- 6840, for Compania de Telefonos de Chile/
 (CTC)


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

AH-TS -- NY055 -- 9383 04/22/93 11:35 EDT
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Publication:PR Newswire
Date:Apr 22, 1993
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