BellSouth CEO On Third Anniversary of Telecom Act

Ackerman: BellSouth's Data Surpasses Voice;
Calls For Deployment Of Advanced Services To Handle Increasing Traffic

For Immediate Release:

February 8, 1999

JACKSON, MISS. -- The explosion of computer usage has hit a dramatic milestone -- half of all traffic on the BellSouth telecommunications network is data, surpassing voice for the first time.

The announcement came from BellSouth Chairman and CEO Duane Ackerman in a speech prepared for delivery to the Rotary Club of Jackson, Miss., on the third anniversary of passage of the Telecommunications Act of 1996.

Ackerman predicted that voice traffic would drop to 10 percent by 2008.

"It's not that voice is declining, on the contrary, it continues to grow, doubling every 12 years, but data traffic over the internet -- e-mail, orders from retail businesses and the like -- continues to double every 100 to 120 days," Ackerman reported.

The ability to use computers in business and personal life is opening new opportunities for individuals and companies throughout the Southeast, Ackerman said.

The ease of using communications links and the dramatic drop in their cost means that "suddenly small-and mid-sized businesses and other institutions can now afford network technologies that in the past only big companies could afford. So more businesses are using the internet to link up all their locations," Ackerman said.

He noted the irony of the fact that the word "internet" is used only twice in the 1996 telecom law and then only parenthetically.

"If you listen to the public debate on the Telecom Act, you would assume that the only thing at stake is local "voice" service," Ackerman declared. "And, I fear that federal regulators are regulating the industry now as though the telephone is the cutting edge communications device."

Turning to the third anniversary of the signing into law of the Telecom Act, Ackerman said "Clearly it has not delivered the competition some said it would in local, residential service. It has delivered competition in business - for large businesses and other large institutions."

"Every company has limited capital; they want to put it where they'll get their best return, so we don't blame any company for serving business customers. What we don't like is people claiming it is our fault there is not local residential competition. We've opened our networks, we've done out part, now it depends on the motivation of our competitors."

BellSouth issued a white paper tallying the extent of local competition and BellSouth's investment in ensuring that competition works. More than 750,000 telephone lines are served by competing telephone companies in BellSouth's nine-state operating region. Their competition was made possible by 575 interconnection agreements, 800 employees within a network and carrier services group at BellSouth dedicated to serving competitors and training offered free from BellSouth to our competitors' service order personnel.

Having opened the market, Ackerman concluded, "We want to get on with deploying the advanced technology that can handle the increasing traffic on the internet. But under current rules, it is just not feasible to do so in all of our markets. Our ability to offer long-distance service is an essential part of delivering the data services our customers are demanding."

BellSouth is a $23 billion communications services company. It provides telecommunications, wireless communications, cable and digital TV, directory advertising and publishing, and Internet and data services to nearly 33 million customers in 19 countries worldwide.

For more information, contact:

Bill McCloskey, 202-463-4129 John Schneidawind, 202-463-4183 Joe Chandler, 404-927-7420

NOTE: For more information about BellSouth, visit the BellSouth Web page at http://www.bellsouth.com/. Also, BellSouth news releases dating back one year are available by fax at no charge by calling 1-800-758-5804, ext. 095650 or write: for Atlanta releases 1155 Peachtree St., N.E.; Atlanta, Ga. 30309-3610 and for DC releases; 1133 21st St., N.W.; Suite 900; Washington, D.C. 2003.

A list of BellSouth Media Relations Contacts is available in the Corporate Information Center.

Click here to find the latest on BellSouth Application to FCC to Offer Long-Distance Service in Georgia and Louisiana.

NOTE: For more information about BellSouth, visit the BellSouth Web page at http://www.bellsouth.com/. Also, BellSouth news releases dating back one year are available by fax at no charge by calling 1-800-758-5804, ext. 095650 or write: for Atlanta releases 1155 Peachtree St., N.E.; Atlanta, Ga. 30309-3610 and for DC releases; 1133 21st St., N.W.; Suite 900; Washington, D.C. 20036.

A list of BellSouth Media Relations Contacts is available in the Corporate Information Center.

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