SBC AT&T Inc.

SBC (NYSE: SBC) today filed a competitive reclassification tariff with the Illinois Commerce Commission classifying residential services in the Metropolitan Chicago telecommunications market as competitive. "Today we are asking the Illinois Commerce Commission to recognize what Chicago area consumers already know - that there is competition for residential local service in the Chicago telecommunications market," said Carrie J. Hightman, president, SBC Illinois. "If the ICC agrees, SBC would have the same ability as our numerous unregulated competitors, and consumers will have more choice and greater value." The ICC and the General Assembly have already declared as "competitive" local service for business lines, long distance service for residential and business lines, numerous residential and business calling features, and operator assistance over the last 20 years. Residential local service is the final segment of voice service subject to government pricing in Illinois, even though consumers have choices other than SBC's service. Currently, there are more than 70 companies that are providing local residential service in the Chicago market. This competitive classification would give SBC the ability to compete freely with our unregulated competitors. SBC's competitors can change the price of a bundled package in one day and consumers immediately reap the benefits. But out-of-date regulations keep SBC from matching a price offer from a competitor immediately. Instead, SBC must first seek approval from the ICC through a bureaucratic process that can take from 45 days to as long as one year. The ICC staff has publicly stated that the Chicagoland area is the most competitive market in Illinois even without considering the millions of competitive connections provided to consumers from wireless and VoIP service providers. There are now more wireless phones in Illinois than wirelines and technology is advancing at the fastest pace in history, yet Illinois hasn't updated its telecommunications laws since 2001. "Declaring the Chicago LATA competitive will enable SBC to compete more effectively with cable and other non-union companies said Ron Kastner, IBEW Local Union 21 President-Business Manager. "Just like cable, SBC needs flexibility to compete to keep its customers and our jobs. The more Illinois policy keeps up with other states, the more jobs we'll be able to keep in Illinois." Unfortunately, Illinois is falling further behind our neighboring states. Just last week, Michigan and Wisconsin joined Ohio, Missouri and Iowa in updating their telecommunications policies, but Illinois has accomplished nothing in four years. Illinois consumers deserve the value and options that consumers in other states are enjoying, and we must keep pace to protect telecommunications jobs and investment in this state. According to Oasis, a national nonprofit educational organization designed to enhance the quality of life for mature adults, access to and development of increased technology services is important to people 50 and older. "As the older adult market expands, every effort should be made to encourage and connect this market to the best and latest technology that will provide older adults with more choices and more services delivered faster and at a better price," said Marcia Kerz, President of the OASIS Institute. "We support this filing, as it updates Illinois' telecommunications policy to reflect the new technologies that have entered the marketplace. It encourages communications companies to invest in bringing the latest technology to consumers." The Rainbow/PUSH Coalition also went on record supporting the filing, because its approval is important for Illinois jobs. "Telecommunications is an economic driver in today's economy," said Bonita Parker, COO, Rainbow PUSH Coalition. "An equal playing field for all companies is the best way to promote competition and create job growth in Illinois." There is more telecommunications competition in Illinois than ever before. Illinois' policy needs to reflect that we live in a world dominated by new technologies and consumers are relying on wireless, cable and Internet calls. Unfortunately, the state's rules are out of date and must be modernized. The ICC needs to look at today's marketplace and acknowledge that there is competition and that Chicagoland residents have a choice for their communications needs. Only then will consumers receive the full benefits of better value and more choices. SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves more than 51 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation's leading providers of Internet services. SBC companies also offer satellite TV service. Additional information about SBC and SBC products and services is available at www.sbc.com.