Former Cabinet Member Named SBC President

SBC Communications officials announced Monday they have
hired a former Commerce Department chief to lead them through an
increasingly treacherous regulatory and government landscape.

William Daley, U.S. Secretary of Commerce from 1997-2000, will report
directly to Edward Whitacre, SBC chairman and chief executive officer, in
the future and signals the belief by many on SBC’s board of directors that
it will need a strong government insider to succeed in today’s regulatory
environment.

The announcement ends months of speculation the Illinois native would run
for governor or even senator in the Midwest state. Many top Democrats were
hoping the man who helped Al Gore run his presidential election campaign
would try to take the top spot in the state.

Responsible for the Bell’s strategic planning, regulatory matters,
governmental initiatives and international affairs, Daley has his work cut
out for him.

SBC is losing ground with regulators and Congress alike as it tries to find
room to expand its digital subscriber line (DSL) business in a manner that
benefits itself the most.

Earlier this year, the highly controversial Tauzin-Dingell Bill, which
would have eliminated many of the regulatory constraints imposed by the
1996 Telecommunications Act, suffered a messy end on Capital Hill and is
likely gone forever in its current state. SBC and the other three Bells
lobbied hard for the bill, despite widespread opposition for the bill.

SBC is also looking to expand its long-distance coverage in its 13-state
footprint, the holy grail of the Bells since Ma Bell’s breakup in the
1980s. Despite Federal Communications Commission approval to enter
Arkansas and Missouri last week, the telephone company has been stymied in
its attempts to reach California, Nevada and the Midwest.

Daley, who’s brother Richard is the mayor of Chicago, said he is looking
forward to the challenge the presidency of SBC will bring and what he can
do to help.

“One of the many things that attracted me here was the company’s commitment
to maintain outstanding relations within the policymaking arena, and I
intend to build on that,” Daley said. “Additionally, SBC’s leadership
position in delivering broadband and its strong commitment to its customers
and communities was very important to me.”

It’s expected that Daley’s ties in Illinois, and by extension the entire
Midwest region, will bode well for SBC as it tries to establish
long-distance approval in those states. So far SBC, and its subsidiary
Ameritech, are encountering substantial
resistance
from competitive local exchange carriers (CLECs) who say the
Bell is not living up to its promise to deliver competitive services.

On the other hand, Daley’s investment experience will help SBC immeasurably
as it takes its wireless venture public next
year
, despite the fact many experts consider the U.S. is going through
a recession at this time.

Whitacre said he is confident Daley is up to the task and is delighted to
have Daley on his senior management team to take responsibility in areas
“critical to SBC’s future.”

“His appointment as president of SBC signals the importance of governmental
matters to our company’s ability to grow revenues, compete effectively and
meet our customers’ needs,” Whitacre said. “Bill’s unique blend of
business and governmental experience, combined with his strong leadership
and management abilities will serve SBC well in today’s environment.”

Daley’s resume shows he will be more than capable to take on the challenges
SBC faces in the very near future. In addition to his three-year stint as
Commerce Secretary, he was the vice chairman of Evercore Capital Partners,
LP (a private equity investment firm), president and chief operating office
at Chicago’s Amalgamated Bank and a partner at law firm Daley & George.

Daley received his law degree from John Marshall Law School and is a board
member of EDS.

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