SOUTHWESTERN BELL MOVES HEADQUARTERS TO TEXAS

Southwestern Bell Corp. has announced that it is moving its corporate headquarters from St. Louis to San Antonio, Texas.

Company Chairman Edward Whitacre said the move is intended to position the company for increased growth and new business opportunities.

Whitacre said the company's corporate staff of about 500 people will be transferred, but more than 10,100 Bell employees will remain in the St. Louis area.

Also remaining will be the headquarters for Southwestern Bell Telephone, Southwestern Bell Services, Southwestern Bell Yellow Pages, Southwestern Bell Technology Resources Inc., Southwestern Bell Telecom and the telephone company's Missouri division.

Craig Felzien, area manager of community relations, said the move will not directly affect the local Southwestern Bell operations.

"I don't see any direct downsizing as a result of the St. Louis move," he said.

He said the corporate move to San Antonio is "in direct response to being ready for the future and being able to be closer to where our large customer base is. Also, our interest in the Mexico operation is of grave importance to our corporation.

He stressed that more than 100 different companies are competing with Southwestern Bell in Missouri providing the very same services Bell provides. "It's very important for us in the short term and long term to gain federal and state re-regulation in order to compete on an even playing field," said Felzien.

This competition comes in the form of WATS lines, long distance service in this area code, and telephone equipment custom calling features.

"We have recently gone to the (Public Service Commission) to ask for pricing flexibility so we can lower and raise prices in response to competition," he said.

The company has been downsized the past six to seven years in order to become more competitive, he said. Locally, there are 250 management and non-management employees. That's down from about 325 six years ago, he said.

"That's a fairly stable employee figure at this time as we learn to work smarter and broaden everyone's responsibilities," he said. "We could see that number decline some, but we feel certain at this point we're right where we're supposed to be."

The corporation headquarters move will begin in late December and be completed in March, noted Whitacre.

"This move will put us closer to more of our major growth markets and customers," Whitacre said. "Another consideration is our work with Telmex, the Mexican telephone company. That's an important market for us, and San Antonio serves as the gateway to Mexico."

Southwestern Bell Corp. is an international communications company with more than 11 million customers and more than 60,000 employees.

"The decision to move was a tough one," said Whitacre. "It's been a difficult decision-making process. It's said to me personally to think of moving. I'm sure our employees think the same way. St. Louis has been home for the corporation since 1879. St. Louis is a class city, and we will remain committed to the St. Louis."

Whitacre said all corporate employees will be encouraged to retain their jobs by moving to San Antonio. Southwestern Bell will pay employees' relocation costs.

"Employees who decide to leave the company will be offered a severance package that includes up to a year's salary, out-placement services, and up to six months of free family health insurance coverage," said Whitacre.