PUC Decisions Wrong For Pennsylvania

PUC Decisions Wrong For Pennsylvania

Bell Atlantic Criticizes Public Utility Commission Actions

July 10, 1997

HARRISBURG, Pa. - The Pennsylvania Public Utility Commission (PUC)
today made three significant decisions and each was bad news for
Pennsylvania and the people who live here, Bell Atlantic charged this
afternoon.

"We have to see the orders before making a decision, but we may ask
the Commission to reconsider each one of these issues," said Daniel J.
Whelan, president and CEO, Bell Atlantic -Pennsylvania.

The PUC acted in three areas, including pricing for use of the Bell
Atlantic network by local phone competitors and two area code issues.

PUC Sets Network Element Rates Below Bell Atlantic Costs

The PUC today set rates for competitors who use parts of the Bell
Atlantic network to provide local telephone service. However, the PUC
set rates below the level of costs as calculated by Bell Atlantic and
submitted to the Commission.

"We're disappointed. This decision does not enable competition, but
rather creates a subsidy system for some of the country's wealthiest
corporations - companies like MCI and AT&T," Whelan said.

On the other hand, Whelan noted that the decision clears the way for
Bell Atlantic to offer long distance service in Pennsylvania, and Bell
Atlantic will begin the process of applying to provide long distance
as soon as possible.

PUC Adopts Consumer-Unfriendly Solution By Carving Up 412

Under the area code plan adopted for the Pittsburgh area, hundreds of
thousands of homes and businesses served by 412 will be forced to
change their local phone number. The 724 area code will be assigned
to all current and new numbers outside the city of Pittsburgh.

"This approach costs businesses millions of dollars as they change
stationery, business cards, and signs - all costs that will be paid by
customers," Whelan predicted. "A geographic split is bad for business
growth and thwarts the efforts of the Ridge administration to promote
economic development in western Pennsylvania."

Recently, after considering the costs of a geographic split, Maryland
adopted an alternative that left all existing telephone numbers
unchanged.

Whelan added that the Pittsburgh split will force several townships
and boroughs to dial 11 digits to complete local calls across the
boundary lines of 412 and 724.

The solution is temporary. In time, when another new area code is
needed in the Pittsburgh area, the same confusion and cost problems
will come up again.

"Transparent Overlay" A Potential Nightmare For Eastern, Central Pennsylvania

Following an eleventh-hour lobbying blitz by the Office of the Consumer
Advocate and MCI, the PUC approved a "transparent overlay" as the 215,
610 and 717 area codes exhaust in eastern and central Pennsylvania.
This approach disguises the real telephone number in a new area code
and substitutes a telephone number from the old code. Telephone
company computers would convert the old area code number into the
actual telephone number to complete a call.

"The approach is ill considered," said Whelan. "It is probably
illegal. It will definitely confuse customers. It is untried, and it
is simply risky."

Whelan noted that in some cases, 911 operators and dispatchers would
not see the telephone number a customer uses on their screens in a
transparent overlay. Instead, 911 centers would see the real number
in the telephone company system. "Everyone knows seconds count in an
emergency," Whelan said. "This solution, advanced by MCI, could
present a series of confusing scenarios for 911 operators."

Bell Atlantic also warned that transparent overlays could affect
cellular phone calls and Caller ID displays. A different number also
would show up on customer bills, puzzling millions of customers.

"This is a last minute proposal formulated by people who were afraid
of adding three simple digits to their local calls," Whelan said.
"This scenario only reinforces Bell Atlantic's initial point: that the
transition to 10-digit local dialing for everyone now is the least
confusing, most convenient solution for customers in 215, 610 and
717."

Bell Atlantic Corp. (NYSE: BEL) is at the forefront of the new
communications, entertainment and information industry. In the
mid-Atlantic region, the company's telephone company subsidiaries are
the premier providers of local telecommunications and advanced
services. Globally, it is one of the largest investors in the
high-growth wireless communication marketplace. Bell Atlantic also
owns a substantial interest in Telecom Corporation of New Zealand and
is actively developing high-growth national and international business
opportunities in all phases of the industry.