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Ameritech And Allegiance Telecom Advance Local Competition

Electronic Bonding Streamlines Ordering Process

CHICAGO, March 15, 2000 - Ameritech and Allegiance Telecom, Inc. (Nasdaq: ALGX) today announced that they have completed the electronic bonding between their operations support systems (OSS), reducing the time required to process customer orders for local service requests. The bonding between their systems makes it easier for Illinois businesses to switch from one local service provider to another. This accomplishment builds on Allegiance's previously successful electronic bonding of OSS with Bell Atlantic in New York and Massachusetts, SBC in Texas and Pacific Bell in California.

Electronic bonding enables computers at different phone companies to communicate with each other in real-time, providing for rapid sharing of customer information, service requests and other data.

"The lack of electronic bonding between facilities-based local carriers has been widely recognized as the principal bottleneck in realizing the competitive local service marketplace envisioned by the Telecommunications Act of 1996," said Royce Holland, chairman and chief executive officer of Allegiance Telecom. "Today's announcement with Ameritech is another major step toward reaching our goal of implementing electronic bonding with all incumbent local phone providers."

Currently, many competitive local exchange carriers (CLECs) have unique or one-of-a-kind electronic systems that may not adhere to industry standards. Therefore, some CLECs depend upon faxing customer orders to the incumbent local telephone company, which then must manually input this information into their systems for processing. Allegiance, however, developed its electronic interfaces to conform with industry standards, as did Ameritech.

"This cooperation and efficiency is an excellent example of what can be accomplished when a CLEC and incumbent local provider cooperatively use their energies and resources," said Joset Wright, president of Ameritech Illinois. "This was a collaborative effort marked by teamwork and cooperation by both companies and represents the model for how local competition should evolve in Illinois."

By adopting this process, Allegiance is able to receive from Ameritech a "firm order commitment" - confirmation that an order has been received - much more rapidly. Using electronic interfaces, this confirmation is typically sent within six hours, and on many occasions, it is sent almost instantaneously. Using the manual system, it took approximately 24 hours on average to complete this step.

To date, more than 105 CLECs have received state approval to provide local service in Illinois and 149 are currently under negotiation. In 1999, Ameritech-Illinois processed more than 267,800 service orders for CLECs.

Ameritech has provided more than 10 million phone numbers to CLECs in Illinois. Electronic bonding will significantly increase the volume of customers that can be switched to Allegiance service each month and help eliminate opportunities for service interruptions during the switching of a customer's service from one local provider to another.

Allegiance and Ameritech hope their success will serve as a template for the industry and encourage other incumbent local exchange companies and CLECs to institute the same process. Electronic bonding is a non-proprietary architecture that is fully available to any local provider.

Allegiance Telecom (http://www.allegiancetele.com/) is a facilities-based local exchange carrier headquartered in Dallas, Texas. Allegiance offers businesses a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. Allegiance is targeting 36 major metropolitan areas in the U.S. with its "one-stop shopping" approach. Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX.

Ameritech is the premier provider of communications services in the Upper Midwest, with nearly 20 million business and residential customers - more than 22 million access lines - across Illinois, Indiana, Michigan, Ohio and Wisconsin. It is a company of SBC Communications, Inc. (http://www.sbc.com/), a global communications leader. Through its subsidiaries - Southwestern Bell, Ameritech, Pacific Bell, SBC Telecom, Nevada Bell, SNET and Cellular One - and world-class network, SBC provides local and long-distance phone service, wireless and data communications, paging, high-speed Internet access and messaging, cable and satellite television, security services and telecommunications equipment, as well as directory advertising and publishing. In the United States, the company currently has 90.4 million voice grade equivalent lines, 11.2 million wireless customers and is undertaking a national expansion program that will bring SBC service to an additional 30 markets. Internationally, SBC has telecommunications investments in 23 countries. With more than 204,000 employees, SBC is the 13th largest employer in the U.S., with annual revenues that rank it among the largest Fortune 500 companies.

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