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August 26, 1996 CONTACT: NYNEX, New York, Maureen Flanagan, 212/395-0500 NYNEX debuts long distance service in Arizona; Kicks off aggressive "out of region" long distance strategy NEW YORK--August 26, 1996--NYNEX Long Distance Company is open for business. NYNEX Long Distance Company, a subsidiary of NYNEX, today launched its long distance service in Arizona by taking service orders from customers who've selected NYNEX as their long distance carrier. NYNEX also has received permission to provide long distance service in eight other states: Colorado, Idaho, Iowa, Michigan, Montana, Texas, Utah and Wyoming. The company plans to offer long distance service in Florida as early as next month, pending state regulatory approvals, and is completing the process of filing in all other out-of-region jurisdictions. "We're eager to give customers around the country a choice for their domestic and international long distance calls," said Robert T. Anderson, president of NYNEX Long Distance Company. "We plan to offer consumers and businesses a full array of long distance services including paging, cellular, and Internet access, that will be packaged according to their individual needs." "Our customers can expect us to set new standards for convenience, simplicity and all-around service excellence," said Anderson. "Our service representatives will be available 24 hours a day, every day. And we'll offer flexible billing arrangements that allow customers to pay by credit card and, in the future, through electronic funds transfer." A Targeted Out-of-Region Approach Initially, NYNEX is concentrating on markets that have natural affinities to its northeast region. For instance, many retirees who have left New York and New England now live permanently or part-time in Arizona and Florida, and have family and friends in the NYNEX region they call regularly. This targeted approach to residence customers extends to out-of-region businesses as well. "We're offering these consumers and businesses value-added packages based on their high volume of calling into the NYNEX region," said Anderson. International Opportunities are Lucrative NYNEX is well positioned to succeed in the international long distance business given that the Northeast is a virtual hub of overseas calls. More than 20 percent of U.S. international calling originates in the NYNEX region, representing an opportunity of approximately $3 billion a year. The ethnic diversity of the region means that significant numbers of residents have ties overseas, and they use the phone to stay in touch. For example, nearly 50 percent of all Irish immigrants living in the United States reside in NYNEX territory. The Northeast is also home to a significant Caribbean population -- including 80 percent of all Dominican Republic immigrants living in the U.S. -- as well as sizable populations from Columbia, Brazil, Italy, India, China, Greece and Israel. In addition, nearly 20 percent of the Fortune 500 multinational companies are headquartered in the Northeast and have significant communications requirements to support their business needs around the globe. "Our region has incredible potential," said Anderson. "We know our customers, we've built solid relationships with them, and we're ready to provide them with high-quality service at a competitive price." Anderson, noting that NYNEX was the first RBOC to file for permission to offer international, long distance service, said the company plans to leverage its global experience in countries like the United Kingdom, the Philippines and Thailand as it seeks to capture significant market share in the long distance business. Tremendous Potential in Home Region NYNEX expects to be the first regional Bell company to meet the 14-point checklist in the Telecommunications Act of 1996 and be allowed to enter the long distance market in its home region. The company plans to offer long distance service in New York by the fourth quarter of this year and in Massachusetts and the rest of its seven-state home region no later than December 1997. NYNEX's goal, Anderson said, is to acquire at least 20 percent of the $10 billion in-region long distance market within five years. Anderson estimated that this market is growing at more than eight percent a year. NYNEX is a global communications and media company that provides a full range of services in the northeastern United States and high-growth markets around the world, including the United Kingdom, Thailand, Gibraltar, Greece, Indonesia, the Philippines, Poland, Slovakia and the Czech Republic. The Corporation is a leader in the telecommunications, wireless communications, cable television, directory publishing and entertainment and information services. FAX copies of recent NYNEX news releases are available free of charge, 24 hours a day. Call 1-800-331-1214 and an automated system will provide instructions. return to news archive