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Contact: Marty Berkowitz
(614) 387-2962

OCC Presses PUCO for Conditions on CenturyTel-Embarq Merger

COLUMBUS, Ohio – February 24, 2009 – A proposed transfer of control of the Ohio operations of Embarq Communications to CenturyTel Inc. should meet conditions proposed by the Office of the Ohio Consumers' Counsel (OCC) to the Public Utilities Commission of Ohio (PUCO), according to a motion filed by the OCC.

Citing the Ohio law that requires the PUCO to ensure that such a merger would promote the public convenience and ensure the continuation of adequate service at reasonable rates, the OCC requested that the PUCO place the following conditions on its approval of the merger:

• Obtain a commitment from the merged company to provide broadband service to the entire Embarq customer base within four years;

• Eliminate a $1.65 monthly charge for Touch Calling, also known as touch tone, charged by CenturyTel.

• Removing a $4.10 Interstate Access Fee that Embarq charges its customers. The OCC had originally agreed to a temporary assessment of this fee to allow Embarq to recover revenues lost as a result of reductions in intrastate access charge levels but had not intended for it to become a permanent charge.

The OCC provided documentation in its pleading that both CenturyTel and Embarq have enjoyed healthy earnings during at least the past seven years. Given favorable economic circumstances, the OCC reasoned in its motion that the costs incurred by providing broadband access to the entire service area and removing the two charges would be easily absorbed as part of the merger package.

“We are hopeful that the PUCO will give serious review to the recommendations we have put forth,” Janine Migden-Ostrander, Consumers’ Counsel said. “Ohio law provides an opportunity for state regulators to examine such business transfers to ensure that they provide tangible benefits to consumers, as well as keeping rates affordable. We believe that by including the provisions we have recommended, the PUCO will be acting in the best interests of consumers.”

CenturyTel currently provides local and long distance services with approximately 64,000 access lines in six exchanges in Lorain and Erie Counties. Embarq serves approximately 440,000 access lines by providing local and long distance service in all or part of 50 Ohio counties.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC Web site at www.pickocc.org.