To: songw who wrote (14644 ) 1/13/1999 1:47:00 PM From: Anthony Tsai Read Replies (2) | Respond to of 21342
01/13 11:40A (DJ)+Ameritech To Invest $3B In Commun Network In 1999 >AIT Story 4167 (H/, AIT, I/RTL, I/TEL, I/TLS, N/DJN, N/DJWI, N/HIY, N/HOT...) (MORE) DOW JONES NEWS 01-13-9 11:40 M Story 5078 Ameritech To Invest $3B -2: Little Money For DSL Now >AIT NEW YORK (Dow Jones)--Ameritech Corp. (AIT) said it will invest $3 billion in capital this year but does not immediately plan significant investments in a hot new high-speed Internet technology, according to company officials. The Chicago-based Bell has earmarked about $2 billion of that money for coreoperations and $1 billion for the development of new businesses, which include cable television, data communications, security monitoring and cellular paging. "We are probably the largest investors in each of the states we serve, with the possible exception of the auto companies in Michigan," said Thomas Richards, executive vice-president of communications, speaking at a Wednesday press conference in Chicago. The company, however, said it does not plan to make any major immediate investments in a high-speed Internet technology known as digital subscriber lines, or DSL. Ameritech officials said they are waiting for further clarifications from the Federal Communications Commission about whether Bell operators must create a separate subsidiary in order to offer the service, and whether they will berequired to unbundle and resell DSL. Ameritech said the FCC could rule as early as next month and that the company still has time to spend heavily in DSL, but officials declined to say how much they would invest. "We would re-evaluate what to do with our budget and DSL at that time," said Frank Mitchell, media relations manager. Ameritech will continue to deploy DSL on a customer-by-customer basis, Mitchell said, but the company has established a presence in only three communities while its peers are ramping up for major roll-outs of the service. In fact, SBC Communications Inc. (SBC), the San Antonio-based Bell that is poised to acquire Ameritech, announced Tuesday what it called the country's largest DSL deployment in the country. Meanwhile, Richards said at the press conference that Ameritech expects to realize $6 in revenue for every $1 of capital investment. He said this ratio is about 30% higher than that of Ameritech's peers. The $3 billion figure also represents a step-up in capital investment, Richards said, noting that Ameritech had invested $12.4 billion over the previous five years. Ameritech plans to spend $110 million to install an additional 300,000 of fiber optic cable. That follows a $90 million investment for 200,000 miles of fiber in 1998, and will increase the network to nearly two million miles of fiber by the end of this year. - By Craig Karmin; 201-938-2020 craig.karmin@cor.dowjones.com (END) DOW JONES NEWS 01-13-99 01:37PM Additional Codes (N/HYL, N/UTI, N/WEI, M/UTI, P/DTE, R/IL, R/NME, R/US, R/USC)