SBC Communications Selects Alcatel As Primary Supplier For New Fiber Network

SAN ANTONIO--(BUSINESS WIRE)--Oct. 20, 2004--SBC Communications Inc. (NYSE: SBC) today announced a five-year, approximately $1.7 billion primary supplier agreement with Alcatel to provide network equipment and video system integration services for Project Lightspeed, the SBC initiative to drive fiber deeper into its networks to provide customers new, feature-rich Internet Protocol (IP)- based services, including IP television, voice over IP and ultra-fast Internet access.

"This is the next big step forward in our industry-leading deployment of networks that will provide consumers with innovative advanced services," said Edward E. Whitacre Jr. chairman and CEO of SBC. "We're moving at light speed to bring IP-enhanced services to customers."

“This is the next big step forward in our industry-leading deployment of networks that will provide consumers with innovative advanced services”

The SBC selection of Alcatel is the first in a series of vendor selections to build out SBC's new IP service offerings for customers.

Alcatel's network equipment will include core network access, aggregation and switching equipment platforms that will provide the Internet Protocol, packet-based technologies over fiber optics that connect the neighborhoods to the central office. Additionally, Alcatel will work with SBC to ensure seamless video systems integration.

Last week, SBC announced it would dramatically accelerate its $4 billion to $6 billion Project Lightspeed plan to extend its new fiber- optics network closer to customers, with a goal of providing 18 million households IP-based services including super high-speed data, video and voice services in two to three years - rather than five years as previously announced. SBC made the announcement immediately after the FCC issued rules clarifying that it intends to keep advanced networks and services free from regulations designed for traditional telecom services and networks.

Project Lightspeed minimizes deployment time and cost by using both a Fiber to the Premise (FTTP) and Fiber to the Neighborhood solution. This approach gives SBC's customers the IP capabilities they want - integrated digital TV, super-high-speed broadband and voice over IP services - at one-fourth the cost and time as an FTTP-only overbuild.

"Our IP network will strengthen our relationship with our customers by enabling us to differentiate our offerings through service integration and advanced functionality," said Whitacre. "Project Lightspeed allows us to deliver operating efficiencies with an improved customer experience."

As previously announced, SBC companies are currently trialing FTTP in a number of locations and will launch trials of FTTN early in 2005 which will provide SBC valuable information around consumer views of the technology and how to best design and deliver solutions to meet customer expectations.

Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release contains financial estimates and other 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 filings with the Securities and Exchange Commission. SBC disclaims 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 25 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.