PUBLIC NOTICE

Dear Customer:

On August 28, 1997, Southwestern Bell Telephone Company (Southwestern Bell or Company) filed an application with the Public Utility Commission of Texas (PUC or Commission) to offer an experimental service called FasTrak DSL (Digital Subscriber Loop) in Section 14 of the Company's Digital Link Service Tariff. Southwestern Bell filed its application pursuant to PUC Substantive Rule 23.26 for new and experimental services and has been assigned Tariff Control No. 17906. If this application is approved, FasTrak DSL will be available for a period not to exceed one year from the effective date of the tariff. The company has requested an effective date of October 22, 1997 for this tariff.

FasTrak DSL (Digital Subscriber Loop) is an optional, dedicated, point-to-point, digital data service that allows end-user customers to connect their personal computers to a designated data service provider at speeds of up to 384 Kbps and 1.5 Mbps. The service is based on Asymmetric Digital Subscriber Loop (ADSL) technology, which allows high-speed data transmission over the same twisted-pair copper wires that provide analog voice services.

The high-speed data traffic rides over the customer's existing Plain Old Telephone Service (POTS) and preserves the customer's POTS integrity during electrical power failures. FasTrak DSL requires a data/voice (or POTS) splitter at the end-user's premises and at the serving central office to separate the data and voice traffic. The POTS splitter is a passive, non-powered, band-pass device that filters signals for use by analog terminals (i.e., telephones and modems). The POTS splitter allows ringing current and other signaling to be transmitted by the analog terminal devices.

Both voice and data services are carried simultaneously over the same twisted-pair copper wire. Voice calls originated at the end user's premises are carried over the twisted-pair to the serving central office. The POTS splitter located in the central office routes voice traffic to the voice switch on the public switched telephone network and completes the call. When the data calls are placed, the travel the same path as the voice calls to the POTS splitter. At the same POTS splitter located in the central office, data calls are routed to a Digital Subscriber Line Access Multiplexer (DSLAM) and multiplexed onto Southwestern Bell's backbone data network.

Southwestern Bell's backbone data network is based on Asynchronous Transfer Mode (ATM) technology). To complete data calls from the end-user to its designated data service provider (corporate LAN or Internet Service Provider) requires the data service provider to subscribe to a dedicated high-capacity link to Southwestern Bell's ATM data network. This link is subscribed and paid for by the data service provider.

Possible applications for FasTrak DSL include remote office and Internet access applications. Remote office applications include businesses allowing employees to work from home using FasTrak DSL to access the company's Local Area Network (LAN) from the employee's home-based PC. They also include businesses requiring high-speed access to the company LAN or database from a remote branch or satellite office. Internet access applications include business or residence customers who desire high-speed access to a designated Internet Service Provider. All of these applications require the data service provider (corporate LAN or Internet Service Provider) to purchase a separate link to Southwestern Bell's ATM data network.

FasTrak DSL has two service arrangements available: FasTrak DSL 384 and FasTrak DSL 1.5.

FasTrak DSL 384

FasTrak DSL 384 provides an intraLATA point-to-point connection for unlimited high-speed digital data transport between an end-user and a data service provider at speeds up to 384 Kbps. The upstream and downstream speeds (from end-user to data service provider, and from the data service provider to the end-user) are up to 384 Kbps in each direction. (384 Kbps x 384 Kbps)

FasTrak DSL 384 is available to customers who live within 15,000 feet of a designated ADSL-equipped wire center. However, additional technical limitations (e.g., pair-gain equipment, load coils, bridge taps, etc.) may cause the service to be unavailable to customers within the 15,000-foot range.

Rate for FasTrak DSL 384 include a monthly recurring charge of $150.00 and a non-recurring charge of $125.00. A three-month minimum billing term applies.

FasTrak DSL 1.5:

FasTrak DSL 1.5 provides an intraLATA point-to-point connection for unlimited high-speed digital data transport between an end-user and a data service provider at speeds up to 1.5 Mbps. The downstream speeds (from data service provider to the end-user) are up to 1.5 Mbps. The upstream speed from the (end-user to the data service provider) is up to 384 Kbps (1.5 Mbps x 384 Kbps)

FasTrak DSL 1.5 is available to customers who live within 12,000 feet of a designated ADSL-equipped wire center. However, additional technical limitations (e.g., pair-gain equipment, load coils, bridge taps, etc.) may cause the service to be unavailable to customers within the 12,000-foot range.

Rate for FasTrak DSL 1.5 include a monthly recurring charge of $250.00 and a non-recurring charge of $125.00. A three-month minimum billing term applies.

Person who wish to comment on this application should notify the Commission by October 12, 1997. Requests for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326, or your may call the Public Utility Commission's Office of Customer Protection at (512) 936-7120 or 1-(888)-782-8477. Hearing and speech-impaired individuals with text telephones (TTY) may contact the Commission at (512) 936-7136.