BellSouth Long Distance Hearing Assessment: Opponents Revisiting Old, Resolved Issues.

Business Editors/High-Tech Writers

TALLAHASSEE, Fla.--(BUSINESS WIRE)--Oct. 17, 2001

With long distance hearings before the Florida Public Service Commission (FPSC) at their midway point, the principal focus of competitive local carriers, opposing BellSouth's entry into Florida's market, is to contest rates and specific service issues that have already been addressed and resolved through the regulatory process.

"There is very little attention being given to rebut the empirical data BellSouth has presented concerning the high level of competition in Florida," said BellSouth President - Florida, Joe Lacher. "Competitors seem to be concentrating their efforts on readdressing issues like DSL and UNE (Unbundled Network Elements) rates. These are issues where the regulatory process was precisely followed and decisions were rendered. Competitors are virtually asking the Commission to retry the entire UNE docket and its DSL resale decision. If competitors are saying again that current rates are an obstruction to competition they haven't been looking at their numbers."

BellSouth contends that local competitive carriers provide Florida customers with about 1 million telephone lines and have captured about 11% of the overall market. In some BellSouth markets, local competitive carriers have garnered more than 35% of lucrative business customers. Other than cursory denials during opening statements, competitors haven't addressed the competitive issue with any BellSouth witness.

"UNE rates were set after a thorough hearing where detailed cost models were carefully analyzed by the Commission," said Lacher. "The Commission actually amended the resulting staff recommendation, lowering prices even more for competitive carriers. The PSC has been very proactive in its efforts to open the Florida market, and has addressed the concerns and issues that competitors claim have been barriers. This is just another example where competitors are trying to use the regulatory process to improve their bottom line."

Lacher also said any discussion concerning DSL rates is an effort by competitors to expand the requirements BellSouth must address to obtain FPSC approval.

"Intervening companies have attempted to leverage these proceedings to gain financial subsidies on DSL services, which are already competitively available. The Federal Communications Commission has a list of requirements BellSouth must satisfy to be allowed into the long distance market, DSL is not one of them. Raising the bar and adding new requirements at this time is an unfair and unacceptable tactic.

"BellSouth is ready to offer long distance to our customers in Florida. We have gone above and beyond what has been asked of us to be allowed in the market. I think the approach competitors have taken to this hearing is a good indicator that we are on solid ground," said Lacher.

Today's procedures focused on interconnection issues between competitive local companies and BellSouth's network. BellSouth's Senior Director of Interconnection Services, Keith Milner told the Commission that the company has maintained a high performance level towards serving its wholesale customers in Florida.

"As required by the Act and by the FCC's rules, BellSouth provides local interconnection at any technically feasible point in its network, on terms that are just, reasonable, and nondiscriminatory," said Milner.

About BellSouth Corporation

BellSouth Corporation is a Fortune 100 communications services company headquartered in Atlanta, GA, serving more than 45 million customers in the United States and 16 other countries.

Consistently recognized for customer satisfaction, BellSouth provides a full array of broadband data and e-commerce solutions to business customers, including Web hosting and other Internet services. In the residential market, BellSouth offers DSL high-speed Internet access, advanced voice features and other services. BellSouth also provides online and directory advertising services, including BellSouth(R) RealPages(SM).com.

BellSouth owns 40 percent of Cingular Wireless, the nation's second largest wireless company, which provides innovative wireless data and voice services.