22nd Mar 2006 16:34
Bellsouth Corp22 March 2006 FOR IMMEDIATE RELEASE Media Contact:Jeff [email protected] BellSouth's Ackerman Delivers Keynote at TELECOMNEXT Conference -- Proposed AT&T BellSouth Merger Will Create A New Company For A New Day In Telecom - LAS VEGAS - March 22, 2006 - BellSouth Corporation (NYSE: BLS) chairman and CEODuane Ackerman discussed the planned combination of AT&T and BellSouth as acritical next step in the communications industry during his speech today at theinaugural TELECOMNEXT conference. He asserted that the merger will combine thestrengths of two of the industry's best companies, uniquely positioned toprovide customers the newest technologies. He also noted that in order tomaintain the pro-innovation momentum that exists in the communications sector,policymakers must keep the Internet free from regulation. "After a decade of change and turmoil, we now know that we are at the beginningof a great new day for communications in America," Ackerman stated. "To helpturn that promise into reality, AT&T and BellSouth are joining together tocreate a new company for this new day." Ackerman believes that the industry's direction is now clear as service deliveryis shifting from wireline to wireless and from narrowband to IP broadband. Thisongoing shift has resulted in true convergence, which is allowing providers todeliver services to customers with more speed, simplicity and reliability. "Our charge as providers is to create easy-to-use products that manage thecomplexity of technology so users don't have to," Ackerman stated. "BellSouthhas focused on getting the network ready for whatever customers want to do.We've built one of the most advanced fiber and DSL networks in the industry.Fifty percent of our households will have access to 12 to 24 megabits of speedby the end of 2007. That translates into 70 percent of the households in our top30 markets." As the broadband industry continues to evolve, the appetite for bandwidth andthe pace of technology will continue to grow, and speed, security andreliability will become increasingly important. To be successful, Ackerman said,providers must build next generation networks that can handle the huge flows ofdata and develop integrated capabilities to bring it all together for customersin a way that is profitable for shareholders. "This is a capital-intensive business and bringing it all together for customerswill take a smart investment strategy. The challenge for communicationscompanies is that as the life cycle of technology has sped up, so has the cyclefor a return on investment," Ackerman said. "The combination of AT&T andBellSouth creates economies of scale that will enable us to invest in newtechnology and benefit from the substantial cost-efficiencies the mergercreates." According to Ackerman, investors will benefit from the substantialcost-efficiencies the merger will create by combining the innovative culture ofAT&T with BellSouth's state-of-the-art fiber and DSL networks, and customerswill see faster and more economic deployment of next-generation IP networks.Businesses stand to gain from the combination of AT&T's national and globalnetwork and BellSouth's local expertise. In addition, government, includingmilitary and national security agencies, will have a U.S.-based provider ofintegrated services to respond to their needs anywhere in the world. Ackerman also noted that if America wants an ever-expanding Internet, providersmust be able to manage their networks according to the needs of customers. "Let me be clear," he said. "Managing our networks is not about controllingwhere people go on the Internet. Why would we want to violate our customers'trust? It wouldn't take long for the market to punish us." The issue, he said, is about managing the growing volumes of data oncommunications networks and about ensuring the quality of service a customerpaid for. It is about delivering the greatest Internet experience to thegreatest number of people for the lowest cost. "The business models underlying capital-intensive networks, whether its telecom,cable or electric power, have always used differentiated pricing, based on arange of customer needs," Ackerman noted. "And that business model needs toapply to new technology. If we continue to lead communications policy into thefuture, we will create an Internet that is more open and more affordable formore people. And we will have the capital to make sure that the sun keepsrising on American innovation." About BellSouth BellSouth Corporation is a Fortune 100 communications company headquartered inAtlanta, Georgia. BellSouth has joint control and 40 percent ownership ofCingular Wireless, the nation's largest wireless voice and data provider with54.1 million customers. Backed by award-winning customer service, BellSouthoffers the most comprehensive and innovative package of voice and data servicesavailable in the market. Through BellSouth Answers(R), residential and smallbusiness customers can bundle their local and long distance service with dial-upand high-speed DSL Internet access, satellite television and Cingular(R)Wireless service. For businesses, BellSouth provides secure, reliable local andlong distance voice and data networking solutions. BellSouth also offers printand online directory advertising through The Real Yellow Pages(R) andYELLOWPAGES.COMTM from BellSouth. BellSouth believes that diversity and fostering an inclusive environment arecritical in maintaining a competitive advantage in today's global marketplace. ### NOTE: In connection with the proposed merger, AT&T intends to file aregistration statement on Form S-4, including a joint proxy statement of AT&Tand BellSouth, and AT&T and BellSouth will file other materials with theSecurities and Exchange Commission (the "SEC"). Investors are urged to read theregistration statement, including the joint proxy statement (and all amendmentsand supplements to it) and other materials when they become available becausethey contain important information. Investors will be able to obtain freecopies of the registration and joint proxy statement, when they becomesavailable, as well as other filings containing information about AT&T andBellSouth, without charge, at the SEC's Web site (www.sec.gov). Copies of AT&T'sfilings may also be obtained for free from AT&T at AT&T's Web site (www.att.com)or by directing a request to AT&T Inc. Stockholder Services, 175 E. Houston, SanAntonio, Texas 78205. Copies of BellSouth's filings may be obtained withoutcharge from BellSouth at BellSouth's Web site (www.bellsouth.com) or bydirecting a request to BellSouth at Investor Relations, 1155 Peachtree Street,Atlanta, Georgia 30309. AT&T, BellSouth and their respective directors and executive officers and othermembers of management and employees are potential participants in thesolicitation of proxies in respect of the proposed merger. Informationregarding AT&T's directors and executive officers is available in AT&T's 2005Annual Report on Form 10-K filed with the SEC on March 1, 2006 and AT&T's proxystatement for its 2006 annual meeting of stockholders, filed with the SEC onMarch 10, 2006, and information regarding BellSouth's directors and executiveofficers is available in BellSouth's 2005Annual Report on Form 10-K filed withthe SEC on February 28, 2006 and BellSouth's proxy statement for its 2006 annualmeeting of shareholders, filed with the SEC on March 3, 2006. Additionalinformation regarding the interests of such potential participants will beincluded in the registration and joint proxy statement, and the other relevantdocuments filed with the SEC when they become available. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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