BellSouth Makes Unparalleled ADSL Service Price Move. Company Cuts Total Customer Cost of Acquiring BellSouth FastAccess Service by Two-Thirds - Company Business and Marketing

Cambridge Telcom Report, August 16, 1999

Advancing its position as a leader in delivering Internet and data services, BellSouth (NYSE: BLS) announced Tuesday it has lowered the total cost of BellSouth FastAccess ADSL service, saving customers nearly $200.

Making an unparalleled region-wide price move, the company has significantly decreased the overall activation cost of one of the fastest consumer - and small business - focused DSL services in the Southeast to $99.95.

For customers throughout the region who meet the necessary requirements, and order FastAccess service between Aug. 9, 1999 and Sept. 30, 1999, BellSouth will waive the standard $199.95 installation fee. Monthly recurring charges for FastAccess service remain at $59.95, or $50.00 if customers subscribe to the BellSouth Complete Choice plan on their residential phone line.

"We want to bring FastAccess ADSL service to every customer in the Southeast," said Alice McCall, vice president of strategy and marketing for BellSouth Consumer Services. "At $99 for activation, FastAccess is even more affordable for our customers helping us realize our goal of delivering high-speed access at a great price."

Changes to the pricing structure for FastAccess service from Aug. 9 to Sept. 30 are outlined in the columns below:

                     Before Aug. 9, 1999   Aug. 9 - Sept. 30, 1999
                     -------------------   -----------------------

Service activation         $99.95                 $99.95
ADSL modem                 $0                     $0
On-site installation fee   $199.95                $0 (waived)
Total Customer Cost        $299.90                $99.95

Customers can order FastAccess service by calling 1-888-321-ADSL or visiting the Web site at www.bellsouth.net/external/adsl. When accessing the site, customers may also qualify their phone line for FastAccess service and complete their order request online. At the end of the order, customers will receive a message thanking them for ordering FastAccess service, as well as instructions for scheduling an installation appointment. A follow-up e-mail will also be sent to the customer requesting they call 1-888-321-ADSL to schedule an appointment, if they have not already done so.

"BellSouth has made it even more affordable for small business customers to take advantage of the great benefits FastAccess ADSL service offers," said Dave Abrahamson, vice president of marketing for BellSouth Small Business Services. "FastAccess service allows small businesses to utilize high-speed access for critical transactions and applications important to the success of their businesses."

For residential customers taking advantage of BellSouth Solutions, the $9.95 BellSouth Solutions savings reward will apply as long as the customer has BellSouth FastAccess service and also subscribes to the BellSouth Complete Choice residential bill plan option. A BellSouth Business Solutions savings of $4.95 is available for all BellSouth FastAccess service customers subscribing to the BellSouth Complete Choice for Business bill plan option.

BellSouth is a $24 billion communications services company. It provides telecommunications, wireless communications, cable and digital TV, directory advertising and publishing, and Internet and data services to more than 35 million customers in 19 countries worldwide. Its telephone operations provide service over one of the most modern telecommunications networks in the world for more than 23 million telephone lines in a nine-state region that includes Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. For more information on BellSouth, visit www.bellsouth.com, or for more information on BellSouth.net visit www.bellsouth.net.