Ohio Internet Users Stand To Benefit From State Legislation

Ameritech Provides Testimony in Support of Investment in

Columbus, Ohio, January 18, 2000

Smith said that the bill would introduce investment incentives for local telephone companies to build the high-speed data networks that business, academic and residential Internet users are demanding. "We need to deploy a broadband network throughout the state, so that every homeowner and every schoolchild has access to what is going to become the greatest commerce and learning tool of the 21st century," Smith said in support of the legislation.

The Internet Investment Act was introduced January 6, 2000, by State Senator Roy Ray (R-Akron) to create incentives for local telephone companies that invest in the development of high-speed data networks. The bill would facilitate the creation of broadband communications systems such as the DSL (digital subscriber line) network SBC Communications intends to build in Ohio and other states through its $6 billion Project Pronto program. Ameritech merged with SBC in 1999.

The legislation would place into law, a regulatory system based on the prices charged for basic telephone service. Ameritech has operated under such a system since 1995 through an agreement with the Public Utilities Commission of Ohio. Under this agreement, called Advantage Ohio, Ameritech has maintained affordable service for customers, while making substantial investments in its network and improving service quality. The current system can be revoked at the discretion of the PUCO. This legislation would create a more stable long-term environment.

In supporting the Internet Investment Act, Ameritech Ohio President Jacqueline F. Woods, said "Price-based regulation works: It works for regulators, it works for Ameritech, but most of all, it works for our customers. We welcome the opportunity to have the legislature build on the success of Advantage Ohio by codifying a new incentive regulation approach. This legislation would help make it possible for us to keep Ohio's telecommunications network among the best in the nation."

EDITORS NOTE: To receive a copy of Jim Smith's testimony before the Ohio Senate Ways and Means Committee, contact Ilana Isakov, 216.566.7019.

Ameritech is the premier provider of communications services in the Upper Midwest, with 13 million customers and more than 21 million access lines across Illinois, Indiana, Michigan, Ohio, and Wisconsin. 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 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 87.3 million voice grade equivalent lines, 10.3 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 22 countries. With more than 200,000 employees, SBC is the 14th largest employer in the U.S., with annual revenues that rank it among the largest Fortune 500 companies.