News from the Oklahoma Corporation Commission

Matt Skinner, Public Information, m.skinner@occmail.occ.state.ok.us

Phone: (405) 521-4180

June 28, 2002

COMMISSION PRAISES JUMP TO THE DIGITAL AGE

A Giant Step Forward For Telecommunications in Oklahoma

Oklahomans may not know it, but tomorrow is an historic day for Oklahoma, say Oklahoma Corporation Commissioners. At one minute after midnight tonight, SBC Southwestern Bell will take the last analog switch in its Oklahoma network out of service, transferring all voice and data traffic to a new, state-of-the-art digital switch, making the SBC network in Oklahoma entirely digital.

“It puts Oklahomans in the driver’s seat when it comes to the Information Age,” explained Corporation Commission Chairman Denise Bode. “While those in certain parts of the country are held back in the amount of data that can be moved quickly and reliably from point A to point B because of old-fashioned analog systems, the sky’s the limit in the large part of Oklahoma that’s part of the SBC network.”

Chairman Bode said the high-tech network is an outgrowth of “alternative regulation,” under which prices for consumer services are set based on such factors as cost and market conditions.

“Earnings-based regulation was fair when there was only one phone company operating in Oklahoma,” Bode said. “In today’s increasingly competitive environment, alternative regulation is not only fair, it’s necessary to encourage telecom companies to invest in the technology needed to help our state compete in the 21^st century marketplace. SBC has invested millions as a result of the ‘alt-reg’ agreement, and Oklahoma consumers and businesses will enjoy the benefits.”

Commissioner Bob Anthony noted the upgrade is the latest example of the Commission’s willingness to adapt regulation so companies can meet rapidly changing customer requirements.

Past rule changes have resulted in mandatory service quality standards and the establishment of the largest toll-free calling areas in the nation. In 1999 Anthony sponsored the alternative regulation proposal that combined incentives to bring new telecommunication companies into the Oklahoma market while gradually revising the requirements placed on Bell as competition took hold.

“When I was first elected to the Commission, Bell still had customers receiving service on party lines with two or four connections,” Anthony said, emphasizing how rapidly change is occurring. “Today we celebrate an all digital network bringing the capability of the latest telecommunications features to all Bell customers within the state, and Bell is moving rapidly to expand those features throughout its Oklahoma service area.”

The Oklahoma Corporation Commission approved the alternative regulation agreement in December of 1999. The state legislature allowed it to go into effect the following March.

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