MCI Says Illinois Proposal Could Drive Up Local Phone Rates

SBC-backed Measure Could Destroy Local Phone Competition

ASHBURN, Va., May 5, 2003 -- A proposal pushed by SBC would drive up local phone rates in Illinois and destroy the growing local phone competition just as it is beginning to take off, MCI said today.

"Make no mistake about it, SBC wants nothing more than to raise wholesale rates in an effort to drive competitors out of the residential market in Illinois and to put its monopoly back together again," said Joan Campion, MCI Vice President for Law and Public Policy. "If SBC gets its wish, local phone competition could be stopped in its tracks. Consumers will be forced pay more for local service and will have a sharply limited choice of service providers."

Campion today testified before a joint hearing of the Illinois Senate Environment and Energy and the Illinois House Public Utilities committees regarding an SBC-driven legislative proposal to raise the wholesale rates that competitors pay SBC to lease the network piece parts that competitors use to provide local phone service. The federal Telecommunications Act of 1996 and Illinois' own telecom law mandate that SBC and its sister Bell monopolies provide competitors access to the public phone network at cost, plus a reasonable profit for SBC.

"It's been two years since the Illinois General Assembly rewrote the state telecom law to require SBC to provide competitors access to the public phone network at cost-based rates. MCI responded by expanding our Illinois local phone offerings and now provides a competitive alternative to SBC to consumers across the state," Campion said. "MCI's experience in the Illinois market is that consumers are hungry for choice. Now SBC - after fighting pro-competitive decisions by the Illinois Commerce Commission for years - apparently wants to pull a fast one at the Illinois General Assembly in an effort to eliminate that choice."

"It is crucial that state lawmakers reject SBC's scare tactics and give the current rate structure time to work. If SBC succeeds in raising wholesale rates, consumers would be the real losers - with fewer choices and higher rates," Campion said.

About WorldCom, Inc.
WorldCom, Inc. (WCOEQ, MCWEQ), which currently conducts business under the MCI brand name, is a leading global communications provider, delivering innovative, cost-effective, advanced communications connectivity to businesses, governments and consumers. With the industry's most expansive global IP backbone and wholly-owned data networks, WorldCom develops the converged communications products and services that are the foundation for commerce and communications in today's market. For more information, go to http://www.mci.com.