Press Release

PUC Approves AT&T Merger with SBC Communications

Published on 10/6/2005

Filed under: Telecommunications

HARRISBURG – The Pennsylvania Public Utility Commission today unanimously approved the merger of AT&T Corp. with SBC Communications without conditions.

“It is my hope that this merger of these two telecommunications services will result in enhanced telecommunications services and increased technological advancements for Pennsylvanians,” said PUC Chairman Wendell F. Holland. “I am encouraged that the merged entity we approve today will become a viable competitor in Pennsylvania’s growing telecommunications landscape through economic development and investment in this Commonwealth.”

The Commission approved the deal after determining the merger will enhance competition, service reliability and customer service and convenience in Pennsylvania. The approval covers both companies and their subsidiaries.

In the joint application to the PUC, the companies asserted the merger will create “a stronger company better positioned to compete in Pennsylvania’s telecommunications market” while allowing the merged company to make capital improvements that would not have been made otherwise by the two separate entities.

The companies are also committed to the aggressive deployment of Voice over Internet Protocol (VoIP) to Pennsylvania's mass market telephone service consumers.  Integrating the companies' networks will also increase efficiency, and improve the quality of service for customers who use the Internet or make long-distance phone calls.

The merger does not change customer rates or conditions of services provided to the state’s existing AT&T customers.

The merged company also remains committed to providing the state’s Telecommunications Relay Service (TRS) until 2007. The service – PA Relay – enables people who are deaf, hard of hearing and speech disabled to communicate by phone with each other and the hearing public, by dialing 7-1-1.

The companies filed a joint application with the PUC on Feb. 28, 2005, requesting approval of the merger. The PUC solicited comments on the proposal and held a hearing on the matter Aug. 9, 2005. An Administrative Law Judge issued an Initial Decision on Sept. 14, 2005.

SBC Communications is a Delaware-based company with headquarters in San Antonio, Texas. The company and its subsidiaries offer services in a 13-state region, concentrated in the Western, Midwestern and Southwestern, United States. The company provides voice, data and Internet services to residential, business and government customers.

AT&T Corp. operates the world’s largest communications network with a global presence in more than 50 countries serving residential, business and government customers.

The merger means that AT&T will become a wholly owned subsidiary of SBC. Approval of the merger is still being considered by other states where SBC and/or AT&T subsidiaries operate, and is also under review at the U.S. Department of Justice and the Federal Communications Commission.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.

For more information about the PUC and additional press releases, visit our website at www.puc.state.pa.us.

# # #

Docket Nos.    A-311163F0006, A-310213F0008 and A-310258F0005

Contact:

• Press Secretary
  717-787-5722