In one of the largest hosted VoIP deals yet, Notre Dame tries to keep ahead of trends from cell phones to the potential of Wi-Fi over IP.
By Paul Travis

When the University of Notre Dame began making plans for a new voice-communications system to replace its Centrex system, a hosted voice service from SBC Communications it’s been using since 1992, school officials had to take into account big changes in the way people communicate. Cell phones with cheap long-distance rates are making in-room long-distance services less important. So are E-mail and instant messaging; at Notre Dame, as at many universities, people can access any location on campus through a wireless data system. And the growing use of voice-over-IP technology promises more changes in the future.
But a few things haven’t changed: Notre Dame likes having the 631 dialing exchange exclusive to the school. It also isn’t eager to run its own phone system. And it wants technology flexible enough to adapt to new services and applications.

That’s why Notre Dame decided to stick with SBC, and in early November signed a multimillion contract for a hosted VoIP system that will be deployed over the next several years and eventually serve around 16,000 students, faculty, and staff. It is one of the largest hosted VoIP contracts to date, according to industry analysts and SBC.

With its Centrex contract due to expire at the beginning of 2006, the university looked at other options, including buying voice switches and setting up its own system, or bringing in another service provider.

«SBC convinced us they are very much committed to the digital revolution and that voice-over-IP is their future,» says Dewitt Latimer, the university’s chief technology officer. «We also had to ask ourselves whether there was value added by breaking ranks with SBC and whether that value was equal to the amount of pain. We were very satisfied with the service SBC had provided and eventually decided to renew our relationship with them.»

The SBC PremierSERV Hosted IP Communications Service will be deployed in phases over the next several years, starting with a pilot for a few hundred users in the first quarter of 2005. If that works as expected, the university will begin to cutover buildings to the new system throughout next year and into early 2006. The new contract runs for three years and can be renewed for two more years. Latimer wouldn’t provide financial details.

One key element is the ability to provide and charge for tiered services in a changing technology environment where it isn’t clear what services students or the university will want. «I’m not sure that the traditional model of providing voice services to students is applicable in the future,» Latimer says. The majority of students have cell phones with free or inexpensive long-distance calling provided under a contract paid for by their parents, he notes. Still, the university needs to provide basic phone service to dorm rooms, which are usually shared by several students.

Notre Dame also wants to be prepared in case VoIP shifts into becoming voice-over-Wi-Fi. The university has deployed a Wireless Fidelity data network around its campus, and some analysts and vendors think that making voice calls from Wi-Fi hot spots will be a big trend in the coming years. «We’re very comfortable with the service we can deliver to students over a wireless infrastructure,» Latimer says. «A wireline-wireless package is a future option.»

The more sophisticated features offered by a VoIP system will be used by faculty and university employees who work in call centers or do fund raising, Latimer says. The system will offer a single in-box for voice and E-mail messages, «find-me, follow-me» call routing, and the ability to launch a voice call by clicking on a button on a computer screen. «The whole goal here is to position us in such a way that we can take advantage of new applications, even those we haven’t thought about,» he says.

Going with a hosted VoIP system lets businesses and organizations move to the latest technology without a lot of hassle, says William Stofega, a senior analyst at IDC. «In some cases it allows the IT staff to retain some control without the headaches of security and upgrades,» he says. «The IT staff can handle the fun part: developing customized applications.»

For the phone companies, which have been selling Centrex service to businesses for decades, a key measure of success will be how well they shift those customers onto newer, hosted VoIP services. Says Stofega: «On one hand, SBC loses a Centrex customer. On the other they gain a hosted customer and are selling managed services.»

A lot of people told me they chose to opt out of having their personal information shared after I wrote the other day about SBC’s plans to open customer files to its «family of companies.»

But many also said that SBC is making privacy protection a costly goal.

It turns out that the company will take away discounts for popular offerings like high-speed Internet service if customers say they don’t want their info being shared among subsidiaries. The result is higher monthly bills.

SBC says this is necessary to ensure that conditions for bargain-priced service packages are met on a monthly basis.

Federal authorities say that by telling customers that their bills will go up if they opt out of sharing personal data, SBC may be placing financial barriers in the way of privacy protection.

Mark Wigfield, a spokesman for the Federal Communications Commission in Washington, said that «telecom providers are prohibited from engaging in unreasonable discrimination.»

«If what SBC is doing is designed to prevent people from exercising their privacy rights, that’s not reasonable,» he said.

The issue arose after I wrote about a letter SBC is now sending customers informing them that their personal data will be shared among the SBC family of companies unless individual customers say otherwise.

The letter didn’t mention that SBC’s corporate family includes as many as 50 subsidiaries.

It also didn’t mention that substantial discounts for so-called bundled services like high-speed Net access or satellite TV will be lost if a customer chooses to opt out from having data shared.

Eddy Bennett, a Carmel real-estate broker, learned this when he called to opt out after reading my column. He receives local and long-distance phone service from SBC, along with DSL Net access.

«They told me if I wanted to opt out, they would discontinue my DSL,» Bennett said. "They said they need my information to make the whole thing work. "

The data in question is called customer proprietary network information, or CPNI. The FCC defines this as «what numbers you call, how often you call them, how much you pay to call them, what services you subscribe to, how you use those services, and other personal and sensitive information about your telephone usage.»

In its letter to customers, SBC said it wants to share such info with subsidiaries «to offer you additional products and services that might be of interest to you or save you money.»

Bennett didn’t want that. But faced with disruption of his DSL service, he decided not to opt out. He resigned himself instead to allowing SBC to share his data with all subsidiaries.

«They didn’t give me the option of opting out,» Bennett said.

John Britton, an SBC spokesman, said the pricing of bundled services centers on a customer’s telephone package.

He said the company’s various subsidiaries must be able to examine a customer’s calling data to be able to determine whether that customer is eligible for additional discounted services.

«You’re getting a break in price because you’re giving us your business,» Britton said. «We have to make sure that you’re receiving the qualifying features.»

In essence, SBC is asking for blanket permission to share customers’ data with all subsidiaries when just one or two may be involved in bundled services.

Moreover, the company is saying that its subsidiaries need to see your phone records to approve discounts, rather than having the main phone company make such determinations without passing around customers’ personal info.

«We follow all regulatory guidelines for CPNI,» Britton said.

He acknowledged that the prospect of higher prices for customers who opt out from data sharing is not disclosed in any of SBC’s written materials.

But he said the point is made clear orally by customer-service representatives.

«There are scripts,» Britton said. «Customers are read scripts containing this information.»

Bennett, the Carmel real estate broker, said no one read any such script to him. «I would have remembered that,» he said.

San Francisco resident Anne Brydon, a retired flight attendant, said she felt SBC was deliberately trying to prevent her from opting out when a service rep warned this week that her DSL bill would go up if she blocked any data sharing.

She said that even if the company makes its policy known orally when customers sign up for bundled services, this practice excludes people like her who agree to additional services via the Internet. «I never spoke to an SBC person until I tried to opt out this week,» Brydon said.

Terrie Prosper, a spokeswoman for the California Public Utilities Commission, said state regulators weren’t aware of the privacy implications of SBC’s opt-out practice but are interested in looking into the matter.

Wigfield, the FCC spokesman, said there doesn’t appear to be a specific rule in the federal commission’s guidelines that addresses what happens if pricing of services acts as a barrier to opting out.

But he said the guidelines are clear that the paramount concern is ensuring that consumers’ privacy is safeguarded.

SBC’s Britton acknowledged that some people might see higher monthly bills as an obstacle to opting out from having one’s personal info shared.

«I wouldn’t call it an obstacle,» he said, «but I can see what you’re saying.»

Nevertheless, he reiterated that SBC complies with all relevant federal rules and said the company is required by law to offer services like Internet access and satellite TV through subsidiaries.

These subsidiaries, Britton maintained, require access to customers’ data. «We’re focused on giving customers what they want,» he said. «We respect the customer’s right to choose. We respect their privacy.»

Customers who feel that their privacy isn’t being respected can lodge a complaint with the FCC by e-mailing fccinfo@fcc.gov or calling (888) 225–5322.

Also, I inadvertently gave the wrong number in my last column for SBC customers wishing to opt out from having their info shared. I gave the number for business customers. Residential customers should call (800) 310–2355.

David Lazarus’ column appears Wednesdays, Fridays and Sundays. He also can be seen regularly on KTVU’s «Mornings on 2.» Send tips or feedback to dlazarus@sfchronicle.com.

This column has long railed against corporate America forcing consumers to opt out of having their personal information shared, rather than the more respectful alternative of seeking people’s permission before passing around confidential data.

The practice is once again highlighted by a letter SBC is sending to customers throughout the Bay Area -- and is made all the more relevant by the phone giant’s plan, announced last week, to begin offering TV service by next year.

«The protection of our customer’s privacy is of utmost importance to the employees and management of SBC California and to the SBC family of companies, „ the letter says.

It then reverses course by declaring:

“SBC California and its affiliated telecommunications carriers would like to share your customer proprietary network information (also known as CPNI) within the SBC family of companies for the purpose of using that information to offer you additional products and services that might be of interest to you or save you money.»

Nowhere in the letter does it say what or how many entities comprise the «SBC family of companies.» It turns out that what SBC is really saying is that no fewer than 50 corporate entities will have access to your file.

«That’s only in theory,» insisted John Britton, an SBC spokesman. «In reality, the only ones that would have interest in the information would be the ones that offer long-distance service or Internet service, or the directory company.»

SBC explains in its letter that the company might, for instance, want to use details of your local phone service, including your calling habits and billing data, to offer you long-distance or Internet service.

It also says that by sharing personal info among corporate family members, «we can shorten your calls and get right to your important business.»

Otherwise, SBC says its service reps «must ask your permission to view your CPNI» every time you contact the company «so that we can properly advise you about products and services that may be useful or cost-effective for you.»

Whether you want them to or not.

In any case, it has taken this much of the letter for SBC to finally get around to mentioning that customers will have to take the initiative if they don’t want their data spreading.

«To allow the SBC family of companies access to your CPNI for the purposes outlined above, no further action is required,» the company says. (The italics are theirs.)

«To deny such access,» it continues, adopting a more formal tone, customers can opt out online, via telephone or by mail.

SBC, like all companies using opt-out tactics (including The Chronicle), knows that the vast majority of consumers can’t be bothered to fill out forms or make calls.

«They know most people won’t do the work needed to protect their privacy, „ said Lee Biddle, an attorney with the Utility Consumers’ Action Network in San Diego.

As a result, tacit approval is routinely given for companies to do with customers’ info pretty much whatever they please.

SBC’s Britton said the SBC family of companies doesn’t include Yahoo, with which SBC has a partnership for high-speed Internet service. Nor does it include Microsoft, with which SBC is partnering for its TV service.

The TV service will allow SBC customers to receive programming via high- speed data lines. The programs, including video on demand, will be accessed directly from SBC’s servers, potentially giving the company unique insight into customers’ interests.

Will customers’ viewing habits be recorded and employed for marketing purposes, as is the case with telephone usage? Will SBC make use of the knowledge that a particular household prefers Nickelodeon, say, or the Playboy Channel?

Britton said it’s too soon to be able to answer such questions. He said SBC’s TV service isn’t due to be introduced until the end of 2005.

“It would not be appropriate to speculate about a product that’s more than a year from the marketplace,» Britton said.

SBC, he added, hasn’t yet determined which regulations will apply to its TV service and how this will affect collection and use of customer data.

Beth Givens, director of the Privacy Rights Clearinghouse, a San Diego advocacy group, said the advent of phone companies offering video brings «a whole other dimension to the CPNI issue.»

«It’s very troubling,» she said. «It’s a good example of how technology is advancing so quickly that laws aren’t even close to catching up.»

At the very least, this illustrates the importance of opting out of data sharing for anyone who cares about his or her privacy. It’s increasingly difficult to know how far exactly one’s personal information might travel.

SBC customers who discarded the current letter without reading it, which is probably most people, can still opt out by calling (800) 750–2355.

David Lazarus’ column appears Wednesdays, Fridays and Sundays. He also can be seen regularly on KTVU’s «Mornings on 2.» Send tips or feedback to dlazarus@sfchronicle.com.

High-speed DSL Internet service becomes available to more residents
By Jason Thomas

Greenwood residents seeking a faster online hookup have another option as SBC Communications Inc. continues to expand its Internet access service.

SBC Yahoo! DSL, which utilizes existing phone lines, now is available to a greater number of Greenwood residents, according to SBC Indiana spokesman Mike Marker.

The difference between DSL -- digital subscriber line -- and regular dial-up is «night and day,» Marker said. «You can just fly.»

With DSL, the existing phone line is split into two frequencies: one for the broadband technology for Internet services, another for regular phone use. Subscribers are given a splitter that plugs into the phone jack.

Speeds increase from 56K on a regular dial-up to 1 MB with the DSL’s least expensive plan.

Faster Internet service -- including cable modems, also available in the area -- has been the subject of federal hearings as lawmakers seek ways to make the superlative technology more affordable to the masses.

Without purchasing long-distance service, SBC Yahoo! offers a high-speed Internet plan for $36.99 a month, which is more than three times the amount of some regular dial-up services.

«Our communities benefit when investments are made that strengthen local infrastructure and increase access to advanced technologies,» state Rep. David Frizzell, R-White River Township, said in a news release. «High-speed Internet access is essential to our state’s growth.»

Because it is not tied to phone service, DSL enhances the Web experience, according to Marker.

«What we found is that it changes the way people use the Internet,» he said. «It’s an ’always on’ connection.»

For more information, contact SBC Yahoo! DSL at (866) SBC-YAHOO (722–9246).

In a move to stave off competitors, SBC Communications Inc. will offer residential Voice over Internet service in early 2005.

Voice over Internet -- VoIP, Voice over Internet Protocol -- turns voice telephone conversations into digital elements, transmits them over the Internet to the party dialed. This avoids traditional long distance telephone charges. A growing number of people are opting for VoIP service from alternative providers, which along with use of cell phones is eroding the traditional long distance revenue source for phone companies.

SBC has been testing its VoIP service with about 1,000 customers in Los Angeles, Dallas, Chicago and San Antonio, said Bridget Stachowski, an SBC spokeswoman in San Francisco.

The SBC VoIP service will have features such as «find me» and «do not disturb,» giving customers the ability to specify which numbers can ring through, as well as a click-to-call capability that lets customers call friends and family with the click of a mouse, Stachowski said. The service will also have popular telephone features: voice mail, call forwarding, call waiting, caller ID and three-way calling.

Randall Stephenson, SBC chief operating officer, said in a statement: «Over time, we expect that VoIP will be a preferred voice service because of the features and benefits this technology enables.»

Stachowski agreed there is little advantage for telephone users making a free, local call. SBC residential phone customers who have both VoIP and traditional phone service will benefit from lower long distance charges using the VoIP. In a power failure, or if the home computer isn’t working, the traditional telephone can be used, she said.

And, the emergency 911 system can only locate a caller on a traditional telephone line. Details and cost of the service has yet to be determined.

Earlier, SBC and Microsoft Corp. inked a $400 million, 10-year deal that gives Microsoft a sought-after foothold in television technology. SBC is spending $4 billion to replace copper cables with fiber optics. This will give its Internet customers faster connections, and in the Microsoft deal, allow it to transmit television services like video on demand, picture-in-picture viewing and digital video recording, as well as new features such as Caller ID and instant messaging on the TV screen or alerts when desired programs are about to air.

SBC Communications, the nation’s second-largest telephone company, will eliminate 10,000 jobs by the end of next year, according to a filing Friday with securities regulators.

The cuts will amount to 6.1 percent of SBC’s workforce of 165,000 employees and will come through attrition and layoffs, the company said. They come on top of 7,000 jobs SBC plans to cut this year as well.

The company did not say which divisions would be directly affected, but an SBC spokesman, Michael Coe, acknowledged that businesses that were not growing would probably lose jobs while those that are growing might see increases.

SBC has more than 50 million phone lines in 13 states. A company spokesman, Larry Solomon, said the job cuts «will be across geographies and across business units.»

Solomon said the company might add workers in growing parts of its business as part of an ongoing effort to adjust its workforce to business conditions.

BC said it had 165,520 employees as of Sept. 30, down from 172,540 a year earlier.

SBC has been losing phone lines as customers replace traditional lines with cellular phones and voice-over-Internet service.

In general, SBC and the other Bell operating companies — Verizon Communications, the largest phone company; BellSouth; and Qwest — have been reducing the size of their local-phone businesses because they have been losing tens of thousands of customers in the past few years.

Conversely, other parts of their business, like providing high-speed Internet connections and long-distance phone service, have been growing.

The Bell companies also have started expanding their fiber-optic networks and have been relying more heavily on their wireless subsidiaries, Verizon Wireless and Cingular Wireless.

BellSouth, the third-largest Bell company, cut 3,050 jobs, or 4.6 percent of its workforce in the third quarter of this year.

SBC did not say how much money it expected to save through the job cuts, although some industry analysts expect more than $1 billion in potential savings.

Bloomberg News contributed to this report.

Cuts could come within 3 years

By Terry Camp

Mid Michigan — (11/05/04)--Michigan’s largest telephone company has announced job cuts and workers fear more. SBC Communications says it will cut as many as 1,000 state jobs within three years.

Some of those job losses will happen in Saginaw.

Terry Camp had more.

SBC blames the state’s negative business climate for the job cuts. And local workers fear it’s not going to get better soon, meaning more jobs will be lost.

Mary Palomarez is an operator with SBC. She says workers in Saginaw have feared cuts for sometime now.

«It’s hard with all the competition,» she said. «Everyone can go into long-distance service and local service. We finally got into long distance and then the cellular, that’s hurting us.»

«Here in Saginaw we’re talking 23 or 24 jobs and it won’t be until 2006,» said Billy Martin, an SBC worker and president of the local communications union.

The two dozen jobs will be lost when an office in the downtown Saginaw location is closed. No jobs will be lost at the Bay Road office.

Combined, the two sites have more than 1,000 workers. Martin says the announcement of the jobs cuts caught him off guard, but he is not surprised it’s happening.

«The fact is we need a fair business climate in the state of Michigan, but currently we don’t have that opportunity here,» he said.

Martin and SBC have complained to state regulators that the company isn’t being fairly compensated for allowing competitors to use SBC’s landlines for phone use.

Martin says SBC offices in other states have added jobs while the trend of losing jobs in Michigan could continue.

«Unfortunately I cannot predict the future, and the future could be very bleak for the rest of the people who work in this area,» he said.

A member of the Michigan Public Service Commission denies SBC claims that the state’s regulatory climate is forcing the job cuts. While only about two dozen jobs will be lost in Saginaw, several hundred will be cut in the Detroit area.

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YellowPages.com(SM) brand is recognized as a standard of the industry

SAN ANTONIO and ATLANTA, Nov. 5 /PRNewswire-FirstCall/ -- A newly formed Internet yellow pages joint venture between the directory affiliates of SBC Communications Inc. (NYSE: SBC — News) and BellSouth Corp. (NYSE: BLS — News) has closed the transaction announced yesterday to acquire online directory publisher www.yellowpages.com, Inc. The new venture will utilize the highly recognized YellowPages.com brand and expects to become the market leader in Internet yellow pages and local Internet search.

The creation of this venture and acquisition of YellowPages.com now positions the two directory publishing companies of SBC and BellSouth to better serve their local Internet search customers and lays the foundation for what they expect to be a leading provider of nationwide, online yellow pages and Internet local search. Through this combination, the YellowPages.com site expects to receive more than 50 million consumer searches per month.

YellowPages.com has the most recognized web address in the industry. The joint venture will use the companies’ deep local content and strong consumer usage to create a technology-focused venture that will bring greater value to advertisers and users by delivering more robust, comprehensive content.

The new venture will be headquartered in Pasadena, Calif., with operations in Henderson, Nev., and it will draw on the technology, management, sales forces and customer care capabilities of all three companies.

Charles Stubbs, an executive with BellSouth’s online yellow pages operation, has been named president and chief executive officer. Bill Clenney, an executive with SBC’s online yellow pages business, has been named chief financial officer. Debbie Slavin, also an SBC online yellow pages executive, was named senior vice president — Operations.

SBC Directory Operations and BellSouth Advertising and Publishing will continue to manage their local online yellow page relationships in their respective regions, outside the new venture, while the new venture will develop a sales force for national advertising accounts.

Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in SBC’s and BellSouth’s filings with the Securities and Exchange Commission. SBC and BellSouth disclaim any obligation to update or revise statements contained in this news release based on new information or otherwise.

SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves more than 46 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation’s leading providers of Internet services. SBC companies also now offer satellite TV service. Additional information about SBC and SBC products and services is available at [ >>> ] .

BellSouth Corporation is a Fortune 100 communications company headquartered in Atlanta, GA, and a parent company of Cingular Wireless, the nation’s largest wireless voice and data provider. Backed by award-winning customer service, BellSouth offers the most comprehensive and innovative package of voice and data services available in the market. Through BellSouth Answers®, residential and small business customers can bundle their local and long distance service with dial up and high speed DSL Internet access, satellite television and Cingular® Wireless service. For businesses, BellSouth provides secure, reliable local and long distance voice and data networking solutions. BellSouth also offers online and directory advertising through BellSouth® RealPages.com® and The Real Yellow Pages®. More information about BellSouth can be found at [ >>> ] .

SAN ANTONIO (Business Wire)Eligible SBC All Distance Service Customers Can Now Receive DSL for Less Than Most Cable Modem, Many Leading Dial-up Services Market Uncertainty by Other Providers Makes It Right Time to Switch

In a move designed to appeal to dial Internet and cable modem customers and consumers worried about other companies potentially leaving the market, SBC Communications Inc. (NYSE:SBC) today announced the lowest monthly price ever for SBC Yahoo! DSL. It is the best consumer price available for similar speed and term offers from any leading provider in the nation.

Effective Monday, Nov. 1, SBC Yahoo! DSL will be available for $19.95 a month for new DSL residential customers who commit to a one- year term and subscribe to the popular SBC unlimited local and long distance calling plan, All Distance.

The plan brings together several of the most popular SBC services in a single package, with SBC Yahoo! DSL Internet access service and SBC All Distance service offering convenience, value and affordability. The All Distance bundle delivers unlimited local and nationwide direct-dial long distance calling, Caller ID, voicemail and the choice of two SBC calling features for just $48.95 a month. SBC Yahoo! DSL Express is one of the fastest-growing high speed Internet services in the United States, offering download speeds of 384 Kbps — 1.5 Mbps and upload speeds of up to 384 Kbps, virtually unlimited e- mail account storage, industry-leading safety and security features, and award-winning parental controls package.

«We believe there’s no better deal in the market we serve today — and dial-up Internet and cable modem customers who ’do the math’ will quickly see that,» said Scott Helbing, senior vice president, SBC consumer marketing. «Our customers will benefit for 12 months of value while many of our competitors’ best rates are only good for three or six months and then revert back to rates much more expensive than our offer.»

«For consumers worried about other long distance providers who are retreating from the market and leaving their customers with an uncertain future, this is the best price, the best reason to come to SBC companies,» said Helbing.

The SBC Yahoo! DSL promotional offer is available to All Distance customers who place new orders for high-speed Internet service before January 31, 2005.

SBC local service customers who do not subscribe to All Distance can still take advantage of great promotional pricing when they switch from cable broadband service to SBC Yahoo! DSL. Through December 31, 2004 current cable broadband subscribers signing up for SBC Yahoo! DSL for $26.95 a month with a one year term commitment receive two months of service free, after bill credits, valued at $53.90.

The offers follow a recent SBC announcement that SBC FreedomLink Wi-Fi service will be available for just $1.99 a month for SBC DSL customers. As part of an introductory offer, customers who sign up for SBC Yahoo! DSL will be able to use the FreedomLink service at no charge until April 15, 2005. FreedomLink service enables DSL subscribers to enjoy a wireless broadband experience at more than 4,100 locations nationwide, including hotels, airports, convention centers, coffee shops, restaurants and business centers. FreedomLink memberships are also available for non-SBC DSL subscribers for $19.95 a month.

With more than 4.7 million DSL lines in service, SBC companies are the nation’s largest DSL provider. SBC companies expect to have more than 5 million DSL subscribers by the end of the year. There are nearly 19.8 million SBC long distance lines in service.

For additional information consumers can visit www.sbc.com/news_room.

SBC Yahoo! DSL customers will also be charged a monthly FUSF (Federal Universal Service Fund) cost recovery fee to help cover charges from our data transport supplier pursuant to state and federal telecom regulations. This fee is not a tax or government required charge.

$19.95 promotional pricing available for new SBC Yahoo! DSL residential customers who subscribe to All Distance(R). Not available in all areas. Offer only valid for orders placed through an SBC sales channel; third party channels excluded. SBC Yahoo! Pro not included. Order for SBC Yahoo! DSL must be placed between 11/01/04 and 01/31/05. One-year term required. Offer not valid with any other SBC Yahoo! DSL promotion. Additional terms and conditions apply for SBC All-Distance. Visit sbc.com for additional information. $26.95 pricing available for new online orders or if purchased as a part of a qualifying services bundle. For all DSL orders, SBC local service and one year term required. $200 early termination fee. At end of term, then-current monthly rate applies. $150-$200 additional charge if technician install is required or desired. The equipment charge will appear on the first bill along with any corresponding and offsetting instant credits. Laptop users and some desktop users may need to purchase an Ethernet card. Billing begins on service activation date. Service not available in all areas. Subject to change without notice. Maximum speed achieved depends on customer location. Acceptance of Terms of Service required. Taxes and additional fees & surcharges extra. Other restrictions apply. SBC Yahoo! DSL is an information service that combines DSL transport, Internet access and applications from SBC Internet Services, with customized content, services, and applications from Yahoo! Inc.

SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves 25.7 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation’s leading providers of Internet services. SBC companies also now offer satellite TV service. Additional information about SBC and SBC products and services is available at www.sbc.com.

By CBS MarketWatch
Last Updated: 10/28/2004 12:05:02 AM

SAN FRANCISCO (CBS.MW) -- SBC Communications plans a major price cut for high-speed Internet customers who also buy the company’s local and long-distance phone service, according to a published report Wednesday.

SBC plans to charge $19.95 for digital subscriber line, or DSL service, to new subscribers who also sign up for its local and long-distance phone plan for an additional $48.95, according to the Wall Street Journal.

The move is meant to counter Internet-calling plans offered by some rivals, the Journal said, and to get customers to migrate away from traditional long-distance providers such as MCI (MCIP) and AT&T (T), the newspaper reported.

DSL providers are also in a battle with cable operators, who can currently offer faster high-speed Internet service than DSL.

SBC (SBC) rose 21 cents to close at $24.96 on Wednesday.