Ameritech Investing 32 Percent More Capital In Illinois Network Improvements

Network and Infrastructure Enhancements Support DSL Technology

Chicago, Illinois, April 06, 2000

Before the end of this year, Ameritech expects to invest more than $1 billion in network enhancements in Illinois alone to bring customers the latest broadband technologies and high-quality, dependable voice service. The projected spending represents an approximate 32 percent increase over a 1999 investment of more than $756 million for the same types of improvements. Network spending has increased an average of 10 percent per year since 1995.

Ameritech network infrastructure investment includes enhancements like upgrades to the local loop infrastructure and Asynchronous Transfer Mode (ATM) switches. It does not represent information technology and wireless investments.

"This increased network investment is a benefit of Ameritech's merger with SBC Communications," said Joset Wright, president of Ameritech Illinois. "We are investing in technology that will have a direct, positive impact on our customers. Not only will our investment benefit customers who want high-speed Internet access, it also will provide better, more reliable communications for nearly all of our customers throughout Illinois."

Part of this investment includes upgrades to and installation of additional fiber-optic technology to support DSL and other high-speed data services. These enhancements increase the capacity of Ameritech's network, allowing it to handle future data growth. Fiber-optic technology not only helps to ensure greater network reliability, but also enables users to benefit from high-speed access to such telecommunications applications as data transfer, Internet browsing, telemedicine, video conferencing and distance learning.

DSL service enables customers to access the Internet or corporate networks at speeds up to 200 times faster than standard analog modems. DSL allows customers to instantly connect to the Internet without the hassle of busy signals or waiting for the modem to dial-up. Each DSL customer will receive a dedicated connection to their central office with guaranteed minimum connection speeds.

Project Pronto will help transform SBC into the largest single provider of advanced broadband services in America and will make DSL access available to an estimated 77 million Americans, or about 80 percent of SBC's customers. In Illinois, DSL service from Ameritech.net will be available in 87 cities by the end of 2000.*

The network improvements also will allow competitive local exchange carriers (CLECs) to better access the Ameritech network to allow for increased competition between local phone service providers. Ameritech is modifying its operating systems to provide electronic interfaces, and adding additional local service centers to accommodate CLECs' needs. More local competition and more choices will allow consumers to choose from a number of different telephone service providers. Additional competition also promotes infrastructure investment and economic development in Illinois.

"Competition in communications is good for all residential and business customers," said Wright. "It saves customers money and promotes improved technology and better quality service. We want to encourage a competitive environment." In addition to the Project Pronto- and CLECs-related enhancements, Ameritech also is upgrading and enhancing its Advanced Intelligent Network (AIN) platforms, conducting infrastructure modernization and upgrading its interoffice connections.

* Ameritech's DSL service is provided by Ameritech Corp.'s wholly owned data subsidiary, Ameritech Advanced Data Services.

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 Illinois. It is a company of SBC Communications, Inc. (www.sbc.com), a global communications leader. Through its trusted brands - Southwestern Bell, Ameritech, Pacific Bell, SBC Telecom, Nevada Bell, SNET and Cellular One - and world-class network, SBC's subsidiaries provide 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.