BellSouth Seeks PSC Approval to Compete in Long Distance Market.

TALLAHASSEE, Fla.--(BUSINESS WIRE)--July 7, 1997--

-- Will Provide Customers "Freedom" from Long Distance

Pricing Logjam --

BellSouth Monday took a major step to become a single source provider of local, local toll and long distance services by asking the Florida Public Service Commission (FPSC) to agree that the company be allowed to fully compete in the long distance market.

If the FPSC gives the thumbs up, then BellSouth will seek final approval from the FCC to compete directly with AT&T, MCI, Sprint, and others, to provide long distance service.

Joseph Lacher, president, BellSouth-Florida says our focus, since the Telecommunications Act of 1996 was passed, has been to aggressively phase competition into BellSouth's local and local toll markets throughout Florida. Now, more than a year later, competition thrives in numerous telecommunications markets which, in the past, exclusively belonged to BellSouth.

"The intent of the Telecommunications Bill was for local telephone companies to enter the long distance market as close as possible to the time when long distance companies enter the local market. Well, despite what you've been hearing from those trying to delay our entry into long distance, local market competition is alive, well and growing here in Florida," said Lacher.

To date 102 companies have been certified for entry into the local telephone market. They have been targeting principally business customers, but the size and breadth of their offerings are growing.

Since the Telecommunications Act was passed, giving the Bell Companies an opportunity to get into the long distance business, delays have been caused by what Lacher calls "negative incentives."

"The federal law requires that we demonstrate that we have opened our local market to competition by complying with a 14 point checklist. This checklist is being used in a perverse manner," said Lacher. "Some long distance companies are avoiding the residential market while they concentrate on large business customers and the local toll market. These long distance carriers then turn around and challenge our entry into long distance by saying there is no residential local competition. This type of `Catch 22' tactic is unfair to both the consumer and BellSouth. It's clear these companies do not want competition."

To show BellSouth has complied with the checklist, it has submitted more than 100 boxes containing hundreds of thousands of pages for the FPSC staff and Commissioners to review.

"Our long distance filing is one of the largest and most comprehensive regulatory endeavors we've ever undertaken in the state," said Lacher. "But in essence we can sum up this small library of forms in just 10 words; `We will give consumers real choices in long distance service.' In this case, BellSouth's plan to expand its business into long distance is going to result in consumers receiving better long distance prices."

Lacher adds that the size of the filing is necessitated by the fact that it's anticipated that long distance providers don't want BellSouth customers to have the same choices available to customers of GTE in Tampa or Sprint customers in Orlando.

"We hope the Commission considers the issue of fairness in our filing. BellSouth remains the only one of the 13 Local Exchange Telephone Companies in the state not allowed to offer long distance service to its customers," said Lacher.

FPSC hearings on BellSouth's entry into long distance are scheduled for September with a Commission decision due in early November.

"It's time for true long distance competition to take place now. Consumers should drive this process, not the ever-changing marketing strategies of the long distance industry," said Lacher.

CONTACT: BellSouth

Spero C. Canton, 305/347-5455