July 16, 1996

CONTACT: Bob Varettoni, New York, 212-395-2283
Jack Hoey, Boston, 617-743-4760

NYNEX FILES TO ARBITRATE DISPUTES WITH TELEPORT COMMUNICATIONS GROUP IN EFFORT TO COMPLY WITH TELECOMMUNICATIONS ACT OF 1996

NEW YORK, NY -- NYNEX announced that it will file requests today for arbitration with regulatory authorities in New York, Massachusetts and Rhode Island in efforts to resolve issues it has encountered in negotiating interconnection agreements with Teleport Communications Group (TCG) to promote competition for local telephone services.

NYNEX has been engaged in negotiations with TCG and more than a dozen other telecommunications carriers in order to complete the interconnection agreements required to meet the 14-point checklist detailed in the Telecommunications Act of 1996 -- one of the requirements for NYNEX's entry into the long-distance market in the Northeast.

According to Jack Goldberg, NYNEX Vice President - Wholesale Markets, these negotiated interconnection agreements should be a straightforward expansion of similar arrangements NYNEX reached with TCG in New York in 1994 and Massachusetts last year to connect the two companies' telephone networks.

"We'd prefer to complete these agreements through good faith negotiations," Goldberg said. "But if negotiations prove unproductive, we'll seek arbitration to help bring the negotiations to a conclusion."

He added, "We're prepared to go to arbitration to resolve disputes with any carrier to expedite our compliance with the Telecommunications Act."

This is the first time NYNEX has filed for arbitration with another carrier.

Between 135 and 160 days after a carrier formally requests to begin negotiations with a state's incumbent local telecommunications carrier the parties may request arbitration to resolve open issues. TCG and MFS Communications Company both made requests to begin negotiations with NYNEX on Feb. 8 with a deadline of July 17 to seek arbitration. NYNEX announced the signing of a comprehensive interconnection agreement with MFS on June 27.

Separately, NYNEX announced July 10 that it had signed agreements with Frontier Corp., the fifth largest long-distance company in the country, and USN Communications (U.S. Network Corp.) to resell local telephone services in New York beginning Oct. 1.

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 company is a leader in telecommunications, wireless communications, directory publishing and video entertainment and information services.