FOR IMMEDIATE RELEASE                                          AT
WEDNESDAY, SEPTEMBER 20, 1995                      (202) 616-2771
                                               TDD (202) 514-1888


Anne K. Bingaman, Assistant Attorney General in charge of the
Antitrust Division issued the following statement today after
AT&T's restructuring announcement:

     The AT&T breakup is a further reflection of the profound
changes occurring in the telecommunications industry at this
time.  It is interesting that the transaction will result in less
vertical integration within AT&T by separating AT&T's
manufacturing and communications services.  Because of our
extensive involvement in safeguarding competition in this
industry, we will examine this transaction with great interest,
just as we monitor all major developments that might affect the
competitive landscape.  In general, corporate spin-offs of this
kind do not raise significant antitrust concerns.
     The Antitrust Division will consider the transaction
carefully to determine what implications, if any, it might have
for antitrust consent decrees in which AT&T is a party.  In
particular, AT&T's acquisition of McCaw Cellular Communications
Inc., and U.S. v. Western Electric Co. also known as the modified
final judgment or MFJ, under which AT&T was broken up in 1984.
                               ###
95-492