MICHIGAN REGULATORS MUST FORCE AMERITECH TO OPEN LOCAL PHONE MARKET

MCI WorldCom Asks PSC to End Competition Stalemate by Ordering Network Access, Systems Testing

News Bureau Media Relations 800-644-NEWS Investors Scott Hamilton 601-460-4981

CHICAGO, September 23, 1999 - After enduring years of Ameritech delays, MCI WorldCom is today asking the Michigan Public Service Commission (PSC) to order Ameritech to take key steps to open its local phone monopoly to competition as required by law. Specifically, MCI WorldCom asks the Commission to order Ameritech to allow competitors to lease piece parts of the existing public phone network it controls and to undergo third-party testing of critical operations support systems (OSS) that competitors must use to serve their customers.

For more than two years, Ameritech has refused to provide competitors access to its network or to put in place fully-automated, functioning OSS that allows competitors to order, install, bill and repair their customers' service. Both are part of a well-defined list of requirements mandated by the federal Telecommunications Act of 1996 and Federal Communications Commission (FCC) rules - which were recently upheld by the U.S. Supreme Court.

"Because of Ameritech's stonewalling, it still is impossible for competitors such as MCI WorldCom to serve large portions of the local phone market in Michigan, particularly small business and residential customers," said Joan Campion, regional director for MCI WorldCom Public Policy. "We're tired of waiting for Ameritech to decide when it will choose to obey the law and open its markets, so we are asking the Commission to force Ameritech's hand."

The Act requires the Baby Bell monopolies, including Ameritech, to take very specific steps to allow competitors into their local phone markets. It further states that local markets be irreversibly open to competition before monopolies such as Ameritech can offer long distance service to customers within its five-state service territory.

In denying Ameritech's only long distance application (for Michigan) in 1997, the FCC ruled that the monopoly had failed to take the necessary steps to open its local phone market. But, faced with the possibility of losing its monopoly revenue streams, Ameritech decided to forego fixing its problems and gave up on subsequent long distance pursuits. As a result, competitors continue to be locked out of the local market years after federal law required an end to Ameritech's monopoly.

"There is no reason why Michigan phone customers should be denied the benefits of local competition while consumers in other states, New York in particular, are beginning to enjoy the lower prices, improved service and new and innovative products that competition brings," Campion said.

MCI WorldCom complimented the Michigan PSC on its pro-competitive policy record and promised that if it compels Ameritech to actually open its market, as regulators in New York are working to do with Bell Atlantic, MCI WorldCom would be among the first new companies to offer widespread phone service in Michigan.

"New York regulators recognized that only they could force the local monopoly to open its market," Campion pointed out. "As a result of strong, pro-competitive decisions and ongoing PSC efforts to level the playing field there, MCI WorldCom is currently providing more than 160,000 customers statewide an alternative to the take-it-or-leave-it Bell service they've had for more than a hundred years. By working with the Michigan PSC, we look forward to offering Michigan consumers the same alternatives once the market is open here."

In Michigan, two critical hurdles are OSS testing and competitor access to the network. OSS testing by an independent third-party in New York highlighted many problems with the systems there, which Bell Atlantic continues to correct under regulatory supervision. MCI WorldCom believes the same sort of testing regimen would accelerate competition here too.

In addition, Ameritech has refused to lease competitors combinations of unbundled network elements (UNEs), known as "UNE-P" or "platform," which MCI WorldCom needs to serve residential and small business customers. MCI WorldCom currently serves business customers in Ann Arbor, Detroit, Flint, Grand Rapids and Lansing using its own facilities, but cannot compete on a local residential level unless Ameritech allows it to use this technology, in accordance with federal law.

MCI WorldCom is a global leader in communications services with 1998 revenues of more than $30 billion and established operations in over 65 countries encompassing the Americas, Europe and the Asia-Pacific regions. MCI WorldCom is a premier provider of facilities-based and fully integrated local, long distance, international and Internet services. MCI WorldCom's global networks, including its state-of-the-art pan-European network and transoceanic cable systems, provide end-to-end high-capacity connectivity to more than 40,000 buildings worldwide. MCI WorldCom is traded on NASDAQ under WCOM. For more information on MCI WorldCom, visit the World Wide Web at http://www.wcom.com.

(EDITORS NOTE: For copies of the filing, please contact Tim Guillen at 312-470-4893)

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