NEWS December 2, 1994 TRANSFER AND ASSIGNMENT OF AUTHORIZATIONS AND LICENSES FROM IDB TO LDDS APPROVED On November 30, 1994, the International Bureau approved the application to transfer or assign control of Title II authorizations and Title III licenses from IDB Communications Group, Inc. ("IDB"), its subsidiaries and affiliates, and Southwest Communications, Inc. ("SCI"), to LDDS Communications, Inc. ("LDDS") and LDDS Corporation ("LDDS Corp."). The application was filed pursuant to a proposed merger agreement under which LDDS would acquire the IDB Companies. The merger would bring together LDDS, which is the nation's fourth largest long-distance carrier, and IDB, which provides domestic long distance and significant international facilities-based telecommunications services. LDDS' acquisition of the IDB Companies would be in addition to its acquisition of both WilTel International, Inc., and WilTel, Inc., which was approved by the International Bureau on November 9, 1994. In its Memorandum Opinion and Order, the International Bureau concluded that the proposed merger will not materially increase concentration in any relevant market and, therefore, will not reduce competition. Rather, the Bureau concluded that the proposed transaction will create procompetitive benefits by producing a combined entity with improved capability of serving customers in several markets. In approving the transaction, the Bureau denied COMSAT's Petition to Deny in Part. COMSAT had alleged that IDB Mobile, a 50% affiliate of IDB, controls several earth stations licensed to SCI in violation of Section 310 of the Communications Act. COMSAT also alleged that Teleglobe, a Canadian corporation that owns the other 50% of IDB Mobile, had assumed de facto control of IDB Mobile. If true, this allegation would raise the issue of an unauthorized transfer of control under Section 214 of the Act. Although the Bureau found that none of COMSAT's allegations raised a substantial and material question of fact as to whether the proposed transfers and assignments to LDDS and LDDS Corp. are in the public interest, the Bureau is investigating further the matter of whether Teleglobe has assumed de facto control of IDB Mobile. (over) - 2 - In sum, the Bureau found that the grant of the application will serve the public interest, convenience and necessity. It accordingly authorized Applicants to: (1) transfer control of IDB Companies' Title II authorizations and cable landing licenses to LDDS; (2) transfer and/or assign IDB Companies' Title III radio authorizations to LDDS Corp.; (3) assign SCI's Title II authorizations to LDDS Corp.; and (4) assign SCI's Title III radio authorizations to LDDS Corp. Action by the Chief, International Bureau, November 30, 1994. International Bureau Contacts: Helene T. Schrier at (202) 418-1466 and Susan O'Connell at (202) 418-1460.