NEWS                  May 28, 1998

STATEMENT OF CHAIRMAN WILLIAM E. KENNARD ON
AT&T LONG DISTANCE ANNOUNCEMENT

AT&T's announcement is premature, unwarranted and inconsistent 
with their own public proposals to the FCC.  This announcement 
suggests that AT&T will raise rates to pay for universal service.  
But consumers are enjoying the lowest long distance rates in history.  
The FCC will continue to drive long distance prices down and ensure 
that consumers get the full story:  no hidden charges on their bills 
and full disclosure of the significant cost reductions they receive.