CSW
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CENTRAL AND SOUTH WEST CORPORATION
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News Release
1616 Woodall Rodgers Freeway
P.O. Box 660164 - Dallas, Texas 75266-0164
Central Power and Light Company, Corpus Christi
Public Service Company of Oklahoma, Tulsa
Southwestern Electric Power Company, Shreveport
West Texas Utilities Company, Abilene
Central and South West Service, Inc., Dallas
and Tulsa
CSW Communications, Inc., Austin CSW Credit,
Inc., Dallas CSW Energy, Inc., Dallas CSW
International, Inc., Dallas CSW Leasing, Inc.,
Dallas EnerShop Inc., Dallas SEEBOARD plc,
Crawley, West Sussex, U.K.
CENTRAL AND SOUTH WEST CORPORATION AND ICG COMMUNICATIONS
CREATE INNOVATIVE TELECOMMUNICATIONS PARTNERSHIP
LANDMARK VENTURE JOINS MAJOR UTILITY WITH COMPETITIVE PHONE CARRIER
DALLAS,TX, and ENGLEWOOD, CO (January 14, 1997)-Central and South West
Corporation (NYSE: CSR) and ICG Communications, Inc., (AMEX: ICG) today
announced a landmark venture that will market telecommunications
services-including local exchange telephone service-in a four-state region in
the Southwest. In the newly competitive telecommunications industry, this
innovative partnership will combine the strengths of an electric public utility
company and a competitive local exchange carrier (CLEC) to provide consumers
with local telephone, long distance and a variety of data communications
services.
Formation of the limited partnership was announced by E.R. Brooks,
chairman, president and chief executive officer of CSW Corporation and J. Shelby
Bryan, president and chief executive officer of ICG Communications, Inc. This
venture will combine the resources of CSW Communications, Inc., a subsidiary of
CSW Corporation and ICG Telecom Group, a subsidiary of ICG Communications. The
new company, CSW/ICG ChoiceCom(TM), L.P., will be based in Austin and will
develop and market its telecommunications services in the four-state region of
Texas, Oklahoma, Louisiana, and Arkansas, which is the primary service territory
of Central and South West's utility system. The partnership is equally owned by
CSW and ICG.
"This unique partnership is one that will strengthen the capabilities of
both corporations," said Brooks. "CSW Communications has made great strides in
developing new communications-based technologies for utility management. Now we
look forward to launching CSW/ICG ChoiceCom(TM) and making it a key player in
the telecommunications industry in our region."
"We are very pleased to be at the forefront of this type of partnership
within our industry," said Bryan. "This is an excellent fit with ICG's plan to
develop and expand our presence in the Southwest. We are confident that this
partnership will soon bring the benefits of local telephone competition to our
targeted markets in this four-state region."
CSW/ICG ChoiceCom(TM) will initially serve Austin and Corpus Christi,
Texas, and Tulsa, Oklahoma, with local telephone, long distance and data
services. At the same time, the new company will develop business opportunities
in other cities in the four-state region.
CSW Communications already operates approximately 400 miles of
long-haul fiber lines it has built in Texas and Louisiana. ICG Telecom, a
leading national provider of competitive local exchange services, currently
offers or plans to offer local phone service in approximately 60 cities with
more than 3,000 miles of fiber optic cable in its cluster regions of California,
Colorado, Texas, the Ohio Valley and the Southeastern United States. CSW/ICG
ChoiceCom(TM) plans to offer local exchange, long distance and data transmission
services within the four-state CSW region.
In addition to offering local exchange, long distance and data
transmission services, CSW/ICG ChoiceCom(TM) will expand CSW Communications'
existing city-to-city fiber network business. The venture also expects to
develop full-service, interactive networks using hybrid fiber/coaxial technology
in the near future.
ICG's competitive local telephone services are provisioned on the
company's fiber-optic backbone networks and supported by its switch facilities
and technical resources, including its national network control center. ICG's
state-of-the-art platforms include Lucent Technologies/Bell Laboratories'
5ESS(R) switching systems and Bellcore Operational Support Systems.
Prior to the federal Telecommunications Act of 1996, certain
multi-state electric utility companies were restricted from competing in the
telecommunications industry. CSW Communications became the first exempt
telecommunications company (ETC) under the Act, allowing it to more fully
compete within the telecommunications industry.
The company already has franchises in Austin and Corpus Christi to
build fiber-optic networks and provide telecommunications services.
CSW Communications, also based in Austin, will continue to develop and
offer communications-based utility management services. The company developed
the Customer Choice & Control(TM) program that helps utilities prepare for a new
competitive environment. Currently, CSW Communications is deploying a wireless
utility management program for the 10,000 customers of the city-owned electric
and water utilities of Georgetown, Texas, and is conducting a pilot project for
the Austin Electric Utility Department.
Central and South West Corporation, based in Dallas, owns four electric
utility subsidiaries in the United States: Central Power and Light Company,
Public Service Company of Oklahoma, Southwestern Electric Power Company and West
Texas Utilities Company. It also owns several other non-utility companies.
The operations of ICG Communications, Inc., based in Englewood, Colo.,
consist of ICG Telecom Group, ICG Fiber Optic Technologies and ICG Satellite
Services. Telecom Group is ICG's CLEC and enhanced services business. Fiber
Optic Technologies provides network integration and support services. Satellite
Services provides maritime telecommunications network and international
end-to-end voice and data services, and operates VSAT (very small aperture
terminal) private data networks.
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Financial Community Contact: Sharon R. Peavy, director of investor relations for
Central and South West Corporation, (214) 777-1277