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ROCHESTER TEL FILES DETAILS OF OPEN MARKET PLAN

 ROCHESTER, N.Y., Sept. 15 /PRNewswire/ -- Rochester Tel (NYSE: RTC) filed with the New York State Public Service Commission today the final details of its Open Market Plan, including the proposed prices for the split of Rochester Telephone into two separate companies.
 In February of this year, the company proposed to open the Rochester local exchange market to competition. Under the proposal, Rochester Tel's local exchange operations would be divided into two parts -- a wholesale provider of basic network services and a retail telecommunications service provider.
 Basic network services such as access to the network, transport between offices, switching and other network service elements would be provided by a new fully regulated subsidiary tentatively designated as "R-Net." The company will offer these basic network services on a wholesale basis under a Full Interconnect tariff. Retail companies desiring to compete for various aspects of the local exchange business would be able to purchase any or all of these unbundled basic network services and resell them to residential and business telephone users on a retail basis.
 "We are serious about opening up the local market and this filing is clear proof of that," said John K. Purcell, Rochester Tel vice president of corporate planning. "Under the Open Market Plan Rochester area customers will be the first in the United States to choose their local telephone company."
 The proposed wholesale rates unbundle R-Net's network services into functional elements that will be purchased at wholesale rates by the competitive retail providers. The proposed rates use today's telephone prices as a starting point, and then recognize the competitive nature of this Open Market Plan by adding the following features:
 -- Wholesale discounts are provided to stimulate network usage. They are based on usage per line and term commitment, not on total volume.
 -- Residential flat rate service is frozen with no increases permitted. Overall wholesale elements are subject to price increases, but no more than inflation.
 -- R-Net will accept interconnection with and proposes mutual compensation with any other network at any point on its network at which unbundling has occurred.
 A second newly created subsidiary, tentatively designated as "R-Com" would compete on an equal footing with other retail companies to become the telecommunications providers for business and residential subscribers. Retail companies would be selected by consumers through a ballot process once the plan is approved.
 HIGHLIGHTS OF THE PROPOSED OPERATING PLAN FOR "R-NET"
 I. SERVICES PROVIDED BY R-NET
 It is anticipated that R-Net would offer services to its carrier- customers, including but not limited to the following, on a wholesale basis:
 SERVICE UNBUNDLED ELEMENTS
 Flat Rate Residential
 Local Service
 Residential Local Measured Link, Port, Usage (switching,
 Service local transport)
 Residential Lifeline Link, Port, Flat Rate or
 Service Measured Usage
 Business Local Measured Link, Port, Usage (switching,
 Service local transport)
 PBX Measured Service Link, Port, Usage (switching,
 local transport)
 Centrex Service Link, Port, Usage (switching,
 local transport)
 ISDN Service Link, Port, Usage (switching,
 local transport)
 Basic Coin Phone Service Link, Port, Usage (switching,
 local transport)
 Intelligent Coin Phone Link, Port, Usage (switching,
 Service local transport)
 SS7 Interconnection Link, Port, Flat Rate Usage
 Local Switched Access Switching, Transport, Info
 IntraLATA Switched Access Common Line, Switching, Transport,
 Info
 Intrastate Switched Access Common Line, Switching, Transport,
 Info
 Interstate Switched Access Common Line, Switching, Transport,
 Info
 Interstate Analog Private Link, Channel Conn, Interoffice
 Line Svc. Mileage
 Intrastate Analog Private Link, Channel Conn, Interoffice
 Line Svc. Mileage
 Interstate Digital Private Link, Channel Conn, Interoffice
 Line Svc. Mileage
 Intrastate Digital Private Link, Channel Conn, Interoffice
 Line Svc. Mileage
 Installation/Records Changes
 Touchtone Service (provided on all switched lines at no additional
 charge)
 Calling Features (such as call waiting, call ID, etc.)
 Printing & Distribution of White Page Directory
 Preferential Phone Numbers (within R-Net NXXs only)
 Non-Published Phone Numbers
 Additional White Page Directory Listings
 Special White Page Directory Listings
 Sale of White Page Directory Listings and Updates
 911 Call Routing and Data Base Management
 Automatic Message Accounting Records
 Account Maintenance Charge
 II. REQUIREMENTS OF RETAIL COMPANIES TO PROVIDE LOCAL EXCHANGE SERVICE
 RTC proposes that providers of local service be subject to the same requirements as R-Com, including requirements to:
 1. Obtain certification from the New York State Public Service Commission.
 2. Include in its service offerings, flat rate residential service at a price no higher than the maximum proposed for R-Com.
 3. Abide by New York State Public Service Commission service and billing standards for residential customers.
 4. Provide service as mandated by the New York State Public Service Commission for disadvantaged classes.
 5. Accept any customer desiring services.
 III. REQUIREMENTS/PRIVILEGES ASSOCIATED WITH BEING ON THE LOCAL SERVICE BALLOT
 RTC proposes that retail companies that participate in the local service ballot process:
 1. Meet the requirements noted above for the provision of local exchange service.
 2. Be willing to accept an allocation of customers who do not choose a retail company in the ballot process.
 3. Be included in all informational campaigns for the ballot process on an equal basis with all other ballot participants.
 4. Be automatically eligible for term discounts from R-Net with volume commitments waived for the first three years after inception of the open market.
 IV. NUMBER RETENTION
 RTC proposes end users who are not changing physical location may change retail companies without changing phone numbers. RTC proposes a small surcharge added to each retail company, including R-Com, for each phone number it serves. The "portability" surcharge will allow R-Net and other networks to switch calls between networks and "find" the consumer.
 -0- 9/15/93
 /CONTACT: Diana Melville of Rochester Tel, 716-777-1090/
 (RTC)


CO: Rochester Tel ST: New York IN: TLS SU:

AR-KL -- CL011 -- 2131 09/15/93 10:04 EDT
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Date:Sep 15, 1993
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