MCI To Expand All-Distance Offering In California

Interim Rates Approved by State Regulators Could End Pacific Bell Monopoly

BACKGROUND: The California Public Utilities Commission today approved interim rates for access by competitors to Pacific Bell’s mon
opoly local telephone network. The ruling meets both the letter and spirit of the 1996 Telecommunications Act, as affirmed earlier
this week by the U.S. Supreme Court.

The following statement should be attributed to Wayne Huyard, MCI Chief Operating Officer.

“Today is the beginning of the end for SBC Pacific Bell’s monopoly dominance in California. With today’s ruling by California regul
ators, MCI will be able to expand the availability of our revolutionary new all-distance service, The Neighborhood, throughout the s
tate. As a result, more Californians will soon enjoy the benefits of competition—lower prices, improved service and expanded offeri
ngs.

The Commission should be commended for its commitment to competition, which is leading to tangible benefits for California consumers
. If SBC commits to these approved rates and other market-opening requirements, MCI will have no reason to oppose a future SBC Paci
fic Bell long distance application for California.”

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