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BellSouth Statement on Cost Recovery

    ATLANTA, Aug. 25 /PRNewswire/ -- Today, BellSouth announced that it is
immediately eliminating a fee assessed on its DSL Internet services. As
described on BellSouth's website, the broadband fee was designed to recover
a number of costs remaining from previous regulatory obligations and other
network expenses that increase the cost of the Internet services we provide
to consumers. Since the FCC eliminated the continuing applicability of many
of these regulations, BellSouth has been able to provide a greater variety
of Internet services to consumers, to which consumers have responded
enthusiastically, and has signed over 300 contracts to provide independent
Internet service providers with wholesale DSL services.
    The vast majority of BellSouth's DSL Internet service customers will
see this change on their bills within a week, although it will take up to
six weeks to implement this change for all of BellSouth's DSL Internet
service customers. Any payments attributable to this fee will be credited
back to August 16, 2006.


SOURCE BellSouth Corporation




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    CONTACT:
    Joe Chandler, Director - Media Relations of
    BellSouth Corporation, +1-404-829-8700, or
    joe.chandler@bellsouth.com