Reporting released today by CCMI, the Center for Telecommunications Management Information, shows that SBCLD continues to far outpace the other RBOC long distance subsidiaries in both the number and size of deals posted. It is now clear why they were attracted to AT&T and they obviously want strong relationships with large enterprise clients.

Another item of note this month is a return to the downward trend analysts have come to expect in negotiated pricing. The index dropped 3% compared to April when the industry saw the first increase in the index in over six months. In addition, the index is now 1.5% below where it stood in March. It may be too soon to be definitive, but it's looking like April's numbers were a one month anomaly and the index hasn't not hit bottom on pricing just yet.

CCMI LD Negotiated Telecom Price Index Summary Report
LD Negotiated Telecom Price Index

Rack Rate Index:
May 2005 - 108.73 Index, +0.00% Change
April 2005 - 108.73 Index, +0.00% Change
March 2005 - 108.73 Index, +0.00% Change

Negotiated Rate Index:
May 2005 - 77.87 Index, -3.31% Change
April 2005 - 80.53 Index, +1.44% Change
March 2005 - 79.39 Index, -1.11% Change

Average MARC:
May 2005 - $340,184.26
April 2005 - $378,881.52
March 2005 - $449,983.95

During the same time period retail telecom prices showed an infinitesimal increase for all market baskets in May. Retail prices have increased twenty-two of the last twenty-five months. The slight price increases were driven by intrastate private line.

CCMI Retail Telecom Price Index Summary Report
Retail Telecom Price Index

Small Business:
May 2005 - 112.25 Index, +0.01% Change
April 2005 - 112.24 Index, +0.28% Change
March 2005 - 111.93 Index, +3.80% Change

Medium Business:
May 2005 - 102.30 Index, +0.01% Change
April 2005 - 102.29 Index, +0.12% Change
March 2005 - 102.17 Index, +0.59% Change

Large Business:
May 2005 - 113.42 Index, +0.01% Change
April 2005 - 113.41 Index, +0.25% Change
March 2005 - 113.12 Index, +0.05% Change

source: CCMI DealWatch, www.ccmi.com/dealwatch.html

About CCMI's Telecom Price Indexes Retail Telecom Price Index

The Retail Telecom Price Index consists of a market basket of services including local, long distance, frame relay and private line. Each profile was developed based on an annual survey of telecommunications spending habits conducted in cooperation with The Telecom Manager's Voice Report. May 2003 is the Telecom Price Index base month with an index of 100.

* Retail Small Business Profile - Monthly spend approximately $10,000 with regional orientation. Majority of spend is related to voice services with heaviest expenditures on local and outbound long distance services, little international traffic. Small amount spent on private line and frame relay services.

* Retail Medium Business Profile - Monthly spend approximately $45,000 with national orientation. Majority of spend is still related to voice services but with increasing expenditures on outbound and inbound long distance services. More international long distance and higher private line and frame relay spends.

* Retail Large Business Profile - Monthly spend approximately $175,000 with national and international operations. Heavy data and broadband use with significant increase in frame relay spending. Long distance services represent a majority of the voice service monthly spend.

Negotiated Telecom Price Index

The Negotiated Telecom Price Index measures two key benchmark prices. The Rack Rate Index tracks the undiscounted average cost per minute of long distance calling using the calling profile for a typical domestic large business user. The Negotiated Rate Index uses the same profile and calculates the average cost per minute based on negotiated service contracts between large users and major long distance service providers. January 2004 is the Negotiated Price Index base month with an index of 100.

CCMI publishes the Negotiated and Retail Price Indexes monthly.

About CCMI
Founded in 1971, CCMI is the telecom industry's leading source for telecom information and applications. Our products and services help thousands of telecom providers and end-users, in the US and abroad, compete effectively, meet deadlines, cut costs and work smarter. From our industry standard telecom databases to the most comprehensive online repository of rate and tariff documents, to the most flexible network design and pricing application on the market -- CCMI delivers reliable information & innovative, practical solutions. More information on CCMI's conferences, products, and services can be found at www.ccmi.com.

Contacts:
Glenn Powell
Director, Product Development
CCMI
301-287-2383
gpowell@ccmi.com

Michele Campbell
Marketing Manager
CCMI
301-287-2641
mcampbell@ccmi.com