On March 26, 2004, Standard&Poor's Rating Services announced that it will be conducting a review of the investment-grade regional Bell operating companies (RBOCs), including SBC Communications Inc., given the rising business risk that these carriers face. Accordingly, the current CreditWatch listing for the ratings of SBC, BellSouth Corp., and Cingular Wireless LLC, originally precipitated by the pending purchase of AT&T Wireless by Cingular (60%/40% owned by SBC and BellSouth, respectively), is updated to now include the separate, additional concern regarding increasing competitive pressure on the wireline segments of SBC and BellSouth. This heightened competition reflects the potential for continued loss of access lines due to wireless substitution, unbundled network element platform (UNE-P) providers and, most importantly, cable telephony
