AT&T comments on FCC cellular filing by Bell Atlantic

BASKING RIDGE, N.J. -- January 27, 1993 -- AT&T released the following statement in response to media inquiries regarding a Federal Communications Commission filing by Bell Atlantic regarding AT&T's proposed alliance with McCaw Cellular:

"Our proposed alliance with McCaw fully supports public policies designed to provide competition in telecommunications because it would strengthen competition in wireless communications, help the industry to grow, and improve service.

"We don't believe the alliance and investment in McCaw Cellular requires an investigation by the FCC.

"For one thing, we are not taking control of McCaw, as Bell Atlantic suggests in its press release. The negotiations, which are still under way, would give us one-third ownership in McCaw. If the time ever came that we sought to exercise the control option that is part of the agreement, we would file with the Commission for the necessary approvals.

"As we have made clear, our taking a position through McCaw in the cellular industry does not change the local exchange monopoly held by the Regional Bell companies. All but the tiniest fraction of cellular calls go through the local exchanges--and will for a long time to come."

McCaw Cellular disputes claims in FCC filing by Bell Atlantic

KIRKLAND, Wash. – January 29, 1993 -- In response to Bell Atlantic Mobile's FCC filing yesterday, McCaw Cellular Communications (NASDAQ:MCAWA) strongly stated that the proposed investment by AT&T in the com pany complies fully with FCC regulations and policies and is in the public's best interests.

The alliance, still being negotiated, would see AT&T make a minority investment in McCaw. No change of control of the company in any of its operations will occur in this transaction. Furthermore, no cellular licenses would be affected and McCaw's management team would remain in complete control of the company.

"We believe that Bell Atlantic's charges to the FCC are self-serving and completely without merit," said McCaw Vice Chairman Wayne Perry. "The alliance between McCaw and AT&T is fully supportive of public telecommunications policies and will increase competition in the wireless communication industry and bring new services and infrastructure capabilities to the American public."

Perry also emphasized that Bell Atlantic's claims of the alliance proposing a competitive challenge to the Regional Bell companies' local exchange monopoly were unwarranted, pointing out that the vast majority of all cellular calls travel across the local exchange network.

McCaw Cellular Communications Inc., operating under the name Cellular One in most of its markets, is the leading provider of personal communications services in the United States and is developing and marketing a broad range of wireless communications services, including a cellular network that spans the continent, and is capable of transmitting voice and data communications.

McCaw Cellular owns a 52 percent interest in LIN Broadcasting Corp., which is engaged in cellular telephone operations, television broadcasting and specialty publishing.

It also has a 32 percent stake in American Mobile Satellite Corp., which is developing a satellite-based communications network to provide personal communications service to remote areas of North America now out of reach of terrestrial communications systems, and a 51 percent stake in Claircom Inc., a joint venture with Hughes Network Systems, which is licensed to provide telephone service to commercial and private aircraft.

McCaw Cellular is the nation's fifth largest paging service provider.