SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 22, 1998
BELLSOUTH CORPORATION
(Exact name of registrant as specified in its charter)
Georgia 1-8607 58-1533433
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
1155 Peachtree Street, N. E., Atlanta, Georgia 30309-3610
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(404) 249-2000
Item 5. Other Events
Fourth Quarter 1997 Earnings
On January 22, 1998, BellSouth announced earnings for the fourth
quarter of 1997. See Exhibit 99 for a complete copy of the
related press release.
1997-1998 Earnings Growth
BellSouth believes that normalized earnings growth could be in
the low double digits through 1998. This forward-looking
statement is based on a number of assumptions including, but not
limited to: (1) economic growth and demand for wireline and
wireless communications services continues in BellSouth's service
territories; (2) BellSouth Telecommunications, Inc. is successful
in furthering its cost reduction efforts; (3) the final
resolution of the access reform and universal service orders of
the FCC (and the resultant customer impacts) is reasonably revenue
neutral; (4) local wireline and wireless service competition
does not have significantly increasing adverse impact on
earnings through 1998; (5) BellSouth's expectations as to the cost
and success of its efforts for year 2000 compliance, including the
success of its key suppliers and customers, are reasonably
accurate; and (6) the current level of economic, monetary and
political stability continues in foreign countries in which
BellSouth has significant investments or operations. Any developments
significantly deviating from these assumptions could cause
actual results to differ materially from those in the above
forward-looking statements.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit No.
99 Press Release - Fourth Quarter 1997 Earnings
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
BELLSOUTH CORPORATION
By: /s/ W.Patrick Shannon
W. Patrick Shannon
Vice President and Controller
January 22, 1998
EXHIBIT 99
ATLANTA BellSouth Corporation (NYSE: BLS) reported 12.5 percent
growth in earnings per share (EPS) for the fourth quarter of the
year, excluding special items. It was the fifth year in a row of
improved operating results for BellSouth. For the full year, EPS
improved 12.3 percent, excluding special items which increased
reported EPS by 45 cents.
Fourth quarter EPS was a record 72 cents in 1997, not including a
gain of 2 cents on the sale of BellSouth's interest in Bellcore, a
telecommunications research company, and a charge of 1 cent for
retiring long-term debt early. EPS in the fourth quarter of 1996
was 64 cents.
"Our earnings momentum continues to be a direct result of executing
our three strategies," said Duane Ackerman, BellSouth's chairman and
chief executive officer. "By focusing on what our customers need,
we're driving record growth in our nine-state telecommunications
region, growing our domestic wireless business profitably, and
expanding our international businesses, primarily in Latin America.
That focus and execution result in continued strength in earnings."
For the fourth year in a row, BellSouth set a record for the number
of new access lines. Growth was driven by continued success in
marketing additional lines and by a strong regional economy in the
South. The company added 1,066,000 lines in 1997, including an
unprecedented 233,000 during the fourth quarter. The 4.8 percent
annual growth in total access lines is the highest for any calendar
year in the company's history.
Residential lines grew 4.6 percent in 1997, also a record pace, and
business lines grew 5.3 percent to more than 7,088,000. The
company's 15.8 million residential lines include nearly 1.9 million
additional lines. Promotions keying on customers' demands for
Internet access, children's phones, fax machines and other work-at-
home tools have helped boost the penetration of additional lines to
about one in every seven BellSouth residential customers.
Sales of BellSouth's telephone calling features continued to grow
rapidly. Revenues from services such as Caller ID Deluxe and
MemoryCall(SM) service voice messaging were $346 million in the
fourth quarter of 1997, up 20 percent from the same three months
of 1996. For the full year, calling feature revenue grew 24 percent
to $1.3 billion in 1997.
With demand for sophisticated, secure data services exploding in all
market segments, BellSouth tailors more than 80 of these products to
the special needs of large and small businesses, as well as to consumers.
Revenues from BellSouth's digital services for business customers were
$1.3 billion in 1997, up 27 percent from 1996.
BellSouth's wireless customer base worldwide grew by 33 percent during
1997. In the U.S., the company's cellular and PCS businesses added
149,000 customers during the fourth quarter, and ended the year with
4.2 million. For the year, BellSouth's domestic wireless operations
grew by 550,000 customers, or 15 percent.
In BellSouth's 13 international cellular markets, customers more than
doubled for the year, growing 107 percent to 1,882,000. BellSouth
passed the million customer milestone in Latin America, where
customers increased 131 percent.
BellSouth's fourth quarter consolidated revenues of $5.6 billion
increased 10.9 percent compared with the same quarter of 1996.
Total operating expenses increased 7.9 percent. These results
include for the first time certain international operations that
previously had been reflected only in other income. As a result,
fourth quarter revenue and expense growth rates increased by
approximately 2 to 3 percentage points.
Net income in the fourth quarter was $729 million, including $23
million from the gain on the Bellcore sale, partially offset by a
charge of $9 million for retiring the debt. Net income in the
fourth quarter a year ago was $633 million.
For the year, BellSouth's revenues of $20.6 billion were up 8.0
percent compared with 1996. Total operating expenses increased
6.5 percent, as the company's telephone operations moved to the
top of the industry in employee productivity.
Excluding special items in both years, EPS in 1997 was $2.84,
compared with $2.53 in 1996. Including the special items,
reported EPS was $3.29 in 1997, compared with $2.88 in the
previous year. Net income excluding special items was $2.8
billion in 1997 compared to $2.5 billion in 1996. Reported
net income in 1997 was $3.3 billion versus $2.9 billion in 1996.
BellSouth is a $20 billion communications services company. It
provides telecommunications, wireless communications, directory
advertising and publishing, video, Internet and information
services to more than 29 million customers in 20 countries worldwide.
NOTE: For more information about BellSouth, visit the BellSouth Web
page at http://www.bellsouth.com. BellSouth news releases dating
back one year are available by fax at no charge by calling
1-800-758-5804, ext. 095650.
PRELIMINARY
January 22, 1998
BELLSOUTH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
For the Three For the
Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
(Unaudit (Unaudit (Unaudit
ed) ed) ed)
Operating Revenues:
Network and related
services
Local service $ 2,184 $ 2,070 $ 8,499 $ 8,082
Interstate access 912 881 3,673 3,553
Intrastate access 209 185 810 812
Toll 185 194 734 794
Wireless communications 1,046 760 3,555 2,799
Directory advertising
and publishing 707 642 1,934 1,742
Other services 357 318 1,356 1,258
Total Operating Revenues 5,600 5,050 20,561 19,040
Operating Expenses:
Cost of services and
products 1,730 1,589 6,254 6,072
Depreciation and
amortization 1,025 959 3,964 3,719
Selling, general and
administrative 1,392 1,295 4,967 4,470
Total Operating Expenses 4,147 3,843 15,185 14,261
Operating Income 1,453 1,207 5,376 4,779
Interest Expense 196 190 761 721
Gain on Sales of
Operations -- -- 787 442
Other Income(Expense),net (27) 24 19 108
Income Before Income
Taxes and Extraordinary 1,230 1,041 5,421 4,608
Loss
Provision for Income
Taxes 492 408 2,151 1,745
Income Before
Extraordinary Loss 738 633 3,270 2,863
Extraordinary Loss on
Early Extinguishment of
Debt, net of tax (9) -- (9) --
Net Income $ 729 $ 633 $ 3,261 $ 2,863
PRELIMINARY
January 22, 1998
BELLSOUTH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Continued)
(In Millions, Except Per Share Amounts)
For the Three For the
Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
(Unaudit (Unaudit (Unaudit
ed) ed) ed)
Weighted Average Common
Shares Outstanding
Basic 992 993 992 994
Diluted 995 995 995 996
Dividends Declared Per
Common Share $ .36 $ .36 $ 1.44 $ 1.44
Earnings Per Share:
Basic
Income Before
Extraordinary Loss $ .74 $ .64 $ 3.30 $ 2.88
Extraordinary Loss on
Early Extinguishment of
Debt, net of tax (.01) -- (.01) --
Net Income $ .73 $ .64 $ 3.29 $ 2.88
Diluted
Income Before
Extraordinary Loss $ .74 $ .64 $ 3.29 $ 2.87
Extraordinary Loss on
Early Extinguishment of
Debt, net of tax (.01) -- (.01) --
Net Income $ .73 $ .64 $ 3.28 $ 2.87
PRELIMINARY
January 22, 1998
BELLSOUTH CORPORATION
EARNINGS SUMMARY
(Unaudited)
For the Three For the
Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
Net Income
Reported Net Income $ 729 $ 633 $ 3,261 $ 2,863
Gain on Sale of Optus
Communications(a) -- -- (352) --
Gain on Sale of ITT World
Directories(a) -- -- (128) --
Gain on Sale of Bellcore (a) (23) -- (23) --
South Carolina Regulatory
Settlement(b) -- -- 47 --
Extraordinary Loss on Early
Extinguishment of Debt(c) 9 -- 9 --
Gain on Sale of Paging
Subsidiary(d) -- -- -- (344)
Adjusted Net Income $ 715 $ 633 $ 2,814 $ 2,519
Basic Earnings Per Share
Reported Earnings Per Share $ .73 $ .64 $ 3.29 $ 2.88
Gain on Sale of Optus
Communications(a) -- -- (.35) --
Gain on Sale of ITT World
Directories(a) -- -- (.13) --
Gain on Sale of Bellcore (a) (.02) -- (.02) --
South Carolina Regulatory
Settlement(b) -- -- .05 --
Extraordinary Loss on Early
Extinguishment of Debt(c) .01 -- .01 --
Gain on Sale of Paging
Subsidiary(d) -- -- -- (.35)
Adjusted Earnings Per Share(e) $ .72 $ .64 $ 2.84 $ 2.53
(a) Represents the after-tax gains on the sales of Optus
Communications, ITT World Directories and Bellcore, respectively.
The pre-tax gains on the sales were $578, $209 and $38,
respectively.
(b) Represents the after-tax effect of a regulatory settlement in
South Carolina which occurred in second quarter 1997.
(c) Represents losses incurred in connection with the early
redemption of certain debt issues in fourth quarter 1997.
(d) Represents the after-tax gain on the sale of BellSouth's paging
business which occurred in first quarter 1996. The pre-tax gain on
the sale was $442.
(e) Adjusted earnings per share for the year ended December 31, 1997
does not sum due to rounding.
PRELIMINARY
January 22, 1998
BELLSOUTH CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions, Except Per Share Amounts)
December 31, December 31,
1997 1996
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 2,526 $ 1,178
Temporary cash investments 17 51
Accounts receivable, net of
allowance for uncollectibles
of $246 and $180 4,750 4,087
Material and supplies 393 451
Other current assets 436 531
Total Current Assets 8,122 6,298
Investments and Advances 2,675 2,430
Property, Plant and Equipment:
Property, Plant and Equipment 53,828 50,059
Accumulated Depreciation 30,967 28,234
Property, Plant and
Equipment, Net 22,861 21,825
Deferred Charges and Other
Assets 702 610
Intangible Assets, net 1,946 1,405
Total Assets $ 36,306 $ 32,568
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Debt maturing within one year $ 3,695 $ 2,124
Accounts payable 1,830 1,446
Other current liabilities 3,252 2,871
Total Current Liabilities 8,777 6,441
Long-Term Debt 7,359 8,116
Deferred Credits and Other
Liabilities:
Accumulated deferred income
taxes 2,023 1,899
Unamortized investment tax
credits 213 278
Other liabilities and
deferred credits 2,769 2,585
Total Deferred Credits and
Other Liabilities 5,005 4,762
Shareholders' Equity:
Common stock, $1 par value 1,010 1,009
Paid-in capital 7,750 7,697
Retained earnings 7,382 5,541
Shares held in trust and
treasury (575) (532)
Guarantee of ESOP debt (402) (466)
Total Shareholders' Equity 15,165 13,249
Total Liabilities and
Shareholders' Equity $ 36,306 $ 32,568
PRELIMINARY
January 22, 1998
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Three Months Three Months
Ended Ended
December 31, December 31,
1997 1996
Earnings per share:
Basic and Diluted $ .73(a) $ .64
Return on average common
equity (annualized) 19.3%(b) 19.1%
Return on average total
capital(annualized) 13.9%(c) 13.4%
Weighted average common shares
outstanding (millions)
Basic 992 993
Diluted 995 995
Dividends per share $ .36 $ .36
Property additions (millions) $ 1,473 $ 1,162
At December 31,
1997 1996
Common shares outstanding
(millions) 992 991
Debt ratio 42.1% 43.5%
Total employees 81,000 81,241
(a) Includes an after-tax gain of $23 ($.02 per share) from the sale
of Bellcore as well as an after-tax loss of $9 ($.01 per share)
related to the early retirement of certain debt issues.
(b) After adjusting net income for the gain on sale of Bellcore as
well as the loss on early retirement of debt, Return on average
common equity was 19.0%.
(c) After adjusting net income for the gain on sale of Bellcore as
well as the loss on early retirement of debt, Return on average
total capital was 13.7%.
PRELIMINARY
January 22, 1998
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Year Ended Year Ended
December 31, December 31,
1997 1996
Earnings per share:
Basic $ 3.29 (a) $ 2.88(b)
Diluted $ 3.28 (a) $ 2.87(b)
Return on average common
equity 22.8%(c) 22.4%(e)
Return on average total
capital 15.8%(d) 15.0%(f)
Weighted average common shares
outstanding (millions):
Basic 992 994
Diluted 995 996
Dividends per share $ 1.44 $ 1.44
Property additions (millions) $4,737 $4,386
(a) Includes after-tax gains of $352 ($.35 per share), $128 ($.13 per
share) and $23 ($.02 per share) from sales of Optus Communications,
ITT World Directories and Bellcore, respectively. Also includes an
after-tax charge of $47 ($.05 per share) related to a regulatory
settlement in South Carolina as well as an after-tax loss of $9
($.01 per share) related to the early retirement of certain debt
issues.
(b) Includes an after-tax gain of $344 ($.35 per share) from sale of
BellSouth's paging business.
(c) After adjusting net income for the gains on sales of Optus
Communications, ITT World Directories and Bellcore as well as the
impact of the South Carolina regulatory settlement and the loss on
early retirement of debt, Return on average common equity was 19.7%.
(d) After adjusting net income for the gains on sales of Optus
Communications, ITT World Directories and Bellcore as well as the
impact of the South Carolina regulatory settlement and the loss on
early retirement of debt, Return on average total capital was 14.0%.
(e) After adjusting net income for the gain on sale of BellSouth's
paging business, Return on average common equity was 19.7%.
(f) After adjusting net income for the gain on sale of BellSouth's
paging business, Return on average total capital was 13.5%.
PRELIMINARY
January 22, 1998
BELLSOUTH TELECOMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Millions)
For the For the
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
(Unaudit (Unaudit (Unaudit
ed) ed) ed)
Operating Revenues:
Local service $ 2,184 $ 2,070 $ 8,499 $ 8,082
Interstate access 912 881 3,673 3,553
Intrastate access 209 185 810 812
Toll 185 194 734 794
Other 424 386 1,630 1,535
Total Operating Revenues 3,914 3,716 15,346 14,776
Operating Expenses:
Cost of services and
products 1,303 1,279 5,119 5,133
Depreciation and
amortization 850 828 3,332 3,255
Selling, general and
administrative 692 760 2,707 2,681
Total Operating Expenses 2,845 2,867 11,158 11,069
Operating Income 1,069 849 4,188 3,707
Interest Expense 133 142 534 552
Other Income, net 37 3 41 20
Income Before Income
Taxes and Extraordinary 973 710 3,695 3,175
Loss
Provision for Income
Taxes 350 251 1,372 1,170
Income Before
Extraordinary Loss 623 459 2,323 2,005
Extraordinary Loss on
Early Extinguishment of
Debt, net of tax (9) -- (9) --
Net Income $ 614 $ 459 $ 2,314 $ 2,005
PRELIMINARY
January 22, 1998
BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Three Months Three Months
Ended Ended
December 31, December 31,
1997 1996
Property additions (millions) $ 890 $ 790
Access minutes of use
(millions):
Interstate 18,838 17,217
Intrastate 6,083 5,469
IntraLATA toll messages 208 231
(millions)
At December 31,
1997 1996
Debt ratio 48.3% 49.4%
Telephone employees 57,619 62,425
Network access lines in
service (thousands) 23,201 22,135
Year Ended Year Ended
December 31, December 31,
1997 1996
Property additions (millions) $ 3,429 $ 3,232
Access minutes of use
(millions):
Interstate 73,634 67,690
Intrastate 23,472 21,171
IntraLATA toll messages
(millions) 894 1,023
PRELIMINARY
January 22, 1998
BELLSOUTH CORPORATION
CELLULAR OPERATING INFORMATION (UNAUDITED) (7)
($ IN THOUSANDS, EXCEPT Fourth Fourth
PER CUSTOMER Quarter Quarter
INFORMATION) NOTES 1997 1996 % Change
DOMESTIC OPERATIONS
Cellular Revenues, (1), (4) $ 647,227 $ 607,690 6.5%
net
Operating Expenses (1) 342,507 347,188 -1.3%
Depreciation (1) 106,772 82,690 29.1%
Expense
Amortization of
Intangibles (1) 19,251 16,853 14.2%
(including
goodwill)
Total Operating (1) 468,530 446,731 4.9%
Expenses
Operating Income (1) 178,697 160,959 11.0%
Other Expenses (1) 76,429 73,393 4.1%
(includes interest
and taxes)
Net Income (1) $ 102,268 $ 87,566 16.8%
Operating Cash (1), (6) $ 304,720 $ 260,502 17.0%
Flow
Cash Operating (1), (6) 47.08% 42.87% 9.8%
Margin
DOMESTIC CELLULAR DATA
Population Served: (12)
Control Basis (2) 50,149,000 51,978,000 -3.5%
Equity Basis (3) 40,235,000 40,696,000 -1.1%
Customers Served:
Control Basis (2), (8) 4,900,000 4,460,000 9.9%
Equity Basis (3), (8) 4,105,000 3,612,000 13.6%
Average Monthly (5) $ 50 $ 56 -10.7%
Service Revenue per
Customer
Penetration Rate (3) 10.2% 8.9% 14.6%
Property, plant (1) $3,614,925 $3,145,949 14.9%
and equipment
PRELIMINARY
January 22, 1998
BELLSOUTH CORPORATION
CELLULAR OPERATING INFORMATION (UNAUDITED) (7)
($ IN THOUSANDS, Fourth Fourth
EXCEPT PER CUSTOMER Quarter Quarter
INFORMATION) NOTES 1997 1996 % Change
DOMESTIC PCS DATA
Population Served: (12)
Control Basis (2),(9) 25,096,000 12,226,000 105.3%
Equity Basis (3),(9) 20,432,000 8,063,000 153.4%
Customers Served:
Control Basis (2) 141,000 51,000 176.5%
Equity Basis (3) 88,000 31,000 183.9%
SELECTED INTERNATIONAL OPERATING DATA (10),(11)
Cellular Revenues (1) $ 409,003 $ 229,373 78.3%
Population Served:
Control Basis (2) 68,900,000 46,800,000 47.2%
Equity Basis (3) 88,878,000 53,280,000 66.8%
Cellular Customers (3) 1,882,000 911,000 106.6%
Served - Equity
Basis
Penetration Rate (3),(11) 2.68% 1.71% 56.7%
SELECTED LATIN AMERICA INFORMATION (11)
Cellular Revenues (1) $ 260,210 $ 131,830 97.4%
Net Earnings from (1) -3,059 11,090 -127.6%
Operations
Operating Cash (1), (6) 62,482 46,584 34.1%
Flow
Cash Operating (1), (6) 24.01% 35.34% -32.1%
Margin
Population Served- (3) 62,386,000 27,988,000 122.9%
Equity Basis
Customers Served- (3) 1,074,000 464,000 131.5%
Equity Basis
Average Monthly
Service Revenue (5) $ 82 $ 90 -8.9%
Per Customer
Penetration Rate (3),(11) 2.45% 1.66% 47.6%
PRELIMINARY
January 22, 1998
BELLSOUTH CORPORATION
CELLULAR OPERATING INFORMATION (UNAUDITED) (7)
($ IN THOUSANDS,
EXCEPT PER CUSTOMER Year-to-Date Year-to-Date
INFORMATION) NOTES 1997 1996 % Change
DOMESTIC OPERATIONS
Cellular Revenues, (1), (4) $2,520,101 $2,312,289 9.0%
net
Operating Expenses (1) 1,363,373 1,308,178 4.2%
Depreciation (1) 387,142 298,647 29.6%
Expense
Amortization of (1) 74,370 65,759 13.1%
Intangibles
(including
goodwill)
Total (1) 1,824,885 1,672,584 9.1%
Operating
Expenses
Operating (1) 695,216 639,705 8.7%
Income
Other Expenses (1) 301,583 276,708 9.0%
(includes
interest
and taxes)
Net Income (1) $ 393,633 $ 362,997 8.4%
Operating Cash (1), (6) $1,156,728 $1,004,111 15.2%
Flow
Cash Operating (1), (6) 45.90% 43.42% 5.7%
Margin
DOMESTIC CELLULAR DATA
Average Monthly
Service Revenue (5) $ 51 $ 57 -10.5%
per Customer
SELECTED INTERNATIONAL OPERATING DATA (10),(11)
Cellular Revenues (1) $ 1,350,437 $ 765,535 76.4%
SELECTED LATIN AMERICA INFORMATION (11)
Cellular Revenues (1) $ 794,221 $ 454,968 74.6%
Net Earnings from (1) 31,085 59,732 -48.0%
Operations
Operating Cash (1),(6) 223,321 175,268 27.4%
Flow
Cash Operating (1),(6) 28.12% 38.52% -27.0%
Margin
Average Monthly (5) $ 82 $ 87 -5.7%
Service Revenue
Per Customer
PRELIMINARY
January 22, 1998
NOTES
(1) The presentation of selected income statement and balance sheet
information is based on BellSouth's ownership percentage for all
domestic and international cellular subsidiaries and affiliates,
whether or not consolidated for financial statement presentation
purposes. Gains/losses from the sale of properties and other unusual
items are not included in net income. Financial information for
Domestic Cellular Operations does not include PCS.
(2) Includes 100% of population/customers served in markets where
BellSouth has operating control and/or BellSouth ownership exceeds
50%; excludes population/customers served for markets where BellSouth
does not have operating control and ownership is less than 50%.
(3) Includes population/customers served based on BellSouth's
ownership percentage in all markets served.
(4) Included in revenues is equipment revenue net of cost.
(5) Includes local service revenue, which consists of charges for
cellular air-time service, long distance, and access billed by a
carrier for services in its market. Excluded are roaming charges,
toll charges, taxes on service revenues, equipment sales, installation
and repair revenues.
(6) Operating cash flow represents operating income before
depreciation and amortization.
(7) The income statement and balance sheet information are for the
periods ended November 30, 1997 and 1996. The domestic customer
numbers presented above are as of December 31, 1997 and 1996 and
international customer numbers are as of November 30, 1997 and 1996.
(8) As information, domestic cellular customers served on a control
basis for the periods ended November 30, 1997 and 1996 were 4,793,000
and 4,298,000 respectively. On an equity basis, domestic cellular
customers served for the same periods were 4,016,000 and 3,486,000
respectively.
(9) For Domestic PCS, fourth quarter 1997 population served, control
and equity basis, includes 12,713,000 for Basic Trading Area licenses
won at auction in January 1997.
(10) BellSouth sold its investment in Optus during the third quarter
of 1997. Previously reported data for 1997 and 1996 have been
restated to exclude Optus.
(11) Population served for fourth quarter 1997 includes 18,553,000
(equity basis) for recently acquired licenses in Brazil. No
financial or customer information is reflected in the fourth
quarter or year-to-date totals. The calculation of the
international penetration rates excludes the population for
this market.
(12) Coverage areas for certain BellSouth Domestic Cellular and PCS
licenses overlap each other. If these categories were combined for
reporting purposes, fourth quarter 1997 total population served would
be reduced by 428,000 (control basis) and 830,000 (equity basis) for
the overlap.