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):
July 21, 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
Second Quarter 1998 Earnings
On July 21, 1998, BellSouth announced earnings for the second quarter
of 1998. See Exhibit 99 for a complete copy of the related press
release.
1998 Earnings Growth
BellSouth believes that normalized earnings growth could be in the
mid-teens through 1998. This forward-looking statement is based on
a number of assumptions including, but not limited to: (1)
continued economic growth and demand for BellSouth's services;
(2) continued monetary and political stability where BellSouth
conducts its international operations; (3) the reasonable accuracy
of BellSouth's expectations of costs and recoveries with respect
to access reform, universal service and interconnection; (4) the
reasonable accuracy of BellSouth's estimate of the impact of
competition in its markets; and (5) satisfactory identification
and completion of Year 2000 software revisions by BellSouth and
entities with which it does business. Any developments significantly
deviating from these assumptions could cause actual results to
differ materially from those in the above forward-looking statement.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit No.
99 Press Release - Second Quarter 1998 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
July 21, 1998
Earnings Release
July 21, 1998
FOR MORE INFORMATION FOR IMMEDIATE RELEASE
Tim Klein (404-249-4135) July 21, 1998
Al Schweitzer (404-249-2832)
BellSouth Increases EPS 15.5% in Second Quarter
International customers increase 69% as Brazil starts operations;
Data and digital services revenues surge 44% to $432 million
ATLANTA - With consolidated revenues growing to a record
$5.7 billion, and data and digital services revenues surging
44 percent to $432 million, BellSouth Corporation (NYSE:
BLS) reported second quarter diluted earnings per share
(EPS) of 82 cents. This is an increase of 15.5 percent
compared to 71 cents (before a one-time charge of 5 cents)
in the second quarter of 1997.
"We're generating solid growth across all areas of our
business," said Duane Ackerman, chairman and chief executive
officer. "Our core telecommunications business is showing
excellent growth in data services for business customers,
and in additional lines and calling features for consumers.
We continue to drive strong growth and profitability in our
domestic wireless business. And our position in
international markets is getting even stronger, setting the
stage for future earnings growth."
BellSouth's international operations made a major
contribution to the company's performance in the second
quarter. Since June 30, 1997, international customers
increased by 975,000, or 69 percent, boosted by the
inauguration of service in Brazil in May 1998. Since
BellSouth's consortium began operations in Sao Paulo,
thousands of customers per day are purchasing wireless
phones and service from BellSouth. In its domestic cellular
and PCS markets, BellSouth added 563,000 customers, for 14.2
percent annual growth. In all, BellSouth's wireless
businesses now serve more than 6.9 million customers worldwide.
The second quarter provided further evidence of the shift in
the business market away from traditional analog voice
switched access lines to data circuits and other digital
services. BellSouth markets a complete array of these high-
speed connection, networking and Internet services to large
business and government customers, and to other
telecommunications carriers. Data and digital services
revenues jumped to $432 million in the second quarter of
1998, a 44 percent increase compared to $300 million in the
same three months a year earlier. This growth is in
addition to gains in traditional business access lines,
which increased 3.9 percent compared to the same quarter of
1997.
In residential services, BellSouth grew access lines at 4.3
percent. The company's 16.2 million residential access
lines now include 2.1 million additional lines that
customers use for Internet services such as
BellSouth.net(SM), children's phones, fax machines,
telecommuting and work-at-home tools. Traditional
residential and business access lines in total grew 4.2
percent to 23.7 million.
BellSouth's calling features continued to generate revenue
growth. Revenues from services such as Caller ID Deluxe,
Call Return and MemoryCall(r) service voice messaging were
$392 million in the second quarter of 1998, up 19 percent
from the same three months of 1997. Caller ID Deluxe grew
37 percent and now is used by more than 5.3 million
customers. Call Waiting Deluxe soared 215 percent to more
than 1.8 million features.
BellSouth's Complete Choice(r) packages, which combine basic
telephone service with any or all of more than 20 calling
features, are now used by more than 2.9 million residential
customers, nearly doubling in the past year. BellSouth
strengthened the Complete Choice product line this year with
the addition of Complete Choice Multi-Line service and
Complete Choice with Cellular.
Net income in the second quarter of 1998 was $818 million,
an increase of 16.7 percent compared to $701 million (before
the one-time charge of $47 million) in the same quarter a
year ago. The one-time charge related to a regulatory
settlement in South Carolina.
Reported revenues and expenses include certain domestic and
international wireless operations that were not consolidated
last year. If these operations had been consolidated in
1997, and excluding the effect of the one-time charge,
revenue growth in the second quarter of 1998 would have been
10.1 percent, and expenses would have increased 9.8 percent.
BellSouth is a $21 billion communications services company.
It provides telecommunications, wireless communications,
cable and digital TV, directory advertising and publishing,
and Internet and data services to nearly 31 million
customers in 20 countries worldwide.
NOTE: For more information about BellSouth Corporation,
visit the BellSouth Web page at http://www.bellsouth.com/
PRELIMINARY
July 21, 1998
BELLSOUTH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
1998 1997 1998 1997
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Operating Revenues:
Network and related
services
Local service $ 2,345 $ 2,068 $ 4,607 $ 4,172
Interstate access 960 928 1,905 1,845
Intrastate access 200 186 406 404
Toll 177 186 352 360
Wireless communications 1,173 815 2,289 1,580
Directory advertising
and publishing 419 400 781 761
Other services 390 340 750 646
Total Operating Revenues 5,664 4,923 11,090 9,768
Operating Expenses:
Cost of services and
products 1,743 1,536 3,410 2,958
Depreciation and
amortization 1,074 977 2,117 1,937
Selling, general and
administrative 1,413 1,186 2,675 2,296
Total Operating Expenses 4,230 3,699 8,202 7,191
Operating Income 1,434 1,224 2,888 2,577
Interest Expense 203 187 393 370
Gain on Sale of
Operations -- -- 155 --
Other Income, net 118 33 146 26
Income Before Income
Taxes 1,349 1,070 2,796 2,233
Provision for Income
Taxes 531 416 1,086 886
Net Income $ 818 $ 654 $ 1,710 $ 1,347
Weighted Average Common
Shares Outstanding:
Basic 989 992 990 992
Diluted 995 994 996 994
Dividends Declared Per
Common Share $ .36 $ .36 $ .72 $ .72
Earnings Per Share:
Basic $ .83 $ .66 $ 1.73 $ 1.36
Diluted $ .82 $ .66 $ 1.72 $ 1.36
PRELIMINARY
July 21, 1998
BELLSOUTH CORPORATION
EARNINGS SUMMARY
(Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
1998 1997 1998 1997
Net Income
Reported Net Income $ 818 $ 654 $1,710 $1,347
Gain from Additional Proceeds on
Sale of ITT World Directories(a) -- -- (96) --
South Carolina Regulatory
Settlement(b) -- 47 -- 47
Adjusted Net Income $ 818 $ 701 $1,614 $1,394
Diluted Earnings Per Share
Reported Earnings Per Share $ .82 $ .66 $ 1.72 $ 1.36
Gain from Additional Proceeds on
Sale of ITT World Directories(a) -- -- (.10) --
South Carolina Regulatory
Settlement(b) -- .05 -- .05
Adjusted Earnings Per Share (c) $ .82 $ .71 $ 1.62 $ 1.40
(a) Represents the after-tax gain associated with additional proceeds
received on the July 1997 sale of ITT World Directories. The pre-tax
gain related to the proceeds was $155.
(b) Represents the after-tax effect of a regulatory settlement in
South Carolina which occurred in second quarter 1997.
(c) Earnings Per Share for the six months ended June 30, 1997 does
not sum due to rounding.
PRELIMINARY
July 21, 1998
BELLSOUTH CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions, Except Per Share Amounts)
June 30, December 31,
1998 1997
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 2,222 $ 2,570
Temporary cash investments 94 17
Accounts receivable, net of
allowance for uncollectibles
of $263 and $246 4,167 4,750
Material and supplies 423 393
Other current assets 483 387
Total Current Assets 7,389 8,117
Investments and Advances 2,762 2,675
Property, Plant and Equipment:
Property, plant and equipment 56,182 53,828
Accumulated depreciation 32,705 30,967
Property, plant and
equipment, net 23,477 22,861
Deferred Charges and Other
Assets 936 702
Intangible Assets, net 2,957 1,946
Total Assets $ 37,521 $ 36,301
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Debt maturing within one year $ 3,082 $ 3,706
Accounts payable 1,665 1,825
Other current liabilities 3,345 3,252
Total Current Liabilities 8,092 8,783
Long-Term Debt 8,535 7,348
Deferred Credits and Other
Liabilities:
Accumulated deferred income
taxes 2,048 2,023
Unamortized investment tax
credits 190 213
Other liabilities and
deferred credits 2,813 2,769
Total Deferred Credits and
Other Liabilities 5,051 5,005
Shareholders' Equity:
Common stock, $1 par value 1,010 1,010
Paid-in capital 7,783 7,714
Retained earnings 8,383 7,382
Accumulated other
comprehensive income 5 36
Shares held in trust and
treasury (968) (575)
Guarantee of ESOP debt (370) (402)
Total Shareholders' Equity 15,843 15,165
Total Liabilities and
Shareholders' Equity $ 37,521 $ 36,301
PRELIMINARY
July 21, 1998
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Three Months Three Months
Ended Ended
June 30, June 30,
1998 1997
Earnings per share:
Basic $ .83 $ .66(a)
Diluted $ .82 $ .66(a)
Return on average common
equity (annualized) 20.2% 18.8%
Return on average total
capital(annualized) 14.0% 13.3%
Weighted average common shares
outstanding (millions)
Basic 989 992
Diluted 995 994
Dividends per share $ .36 $ .36
Property additions (millions) $ 1,168 $ 1,114
At June 30,
1998 1997
Common shares outstanding
(millions) 986 993
Debt ratio 42.2% 41.8%
Total employees 86,188 82,969
(a) Includes an after-tax charge of $47 ($.05 per share) related to a
regulatory settlement in South Carolina.
PRELIMINARY
July 21, 1998
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Six Months Six Months
Ended Ended
June 30, June 30,
1998 1997
Earnings per share:
Basic $ 1.73 (a) $ 1.36 (d)
Diluted $ 1.72 (a) $ 1.36 (d)
Return on average common
equity (annualized) 21.6% (b) 19.6%
Return on average total
capital(annualized) 14.7% (c) 13.8%
Weighted average common shares
outstanding (millions)
Basic 990 992
Diluted 996 994
Dividends per share $ .72 $ .72
Property additions (millions) $ 2,401 $ 2,015
(a) Includes an after-tax gain of $96 ($.10 per share) related to
additional proceeds from the sale of ITT World Directories.
(b) After adjusting net income for the gain from additional proceeds
on ITT World Directories, Return on average common equity was 20.4%.
(c) After adjusting net income for the gain from additional proceeds
on ITT World Directories, Return on average total capital was 14.0%.
(d) Includes an after-tax charge of $47 ($.05 per share) related to a
regulatory settlement in South Carolina.
PRELIMINARY
July 21, 1998
BELLSOUTH TELECOMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Millions)
For the For the
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
(Unaudit (Unaudit (Unaudit (Unaudit
ed) ed) ed) ed)
Operating Revenues:
Local service $ 2,345 $ 2,068 $ 4,607 $ 4,172
Interstate access 960 928 1,905 1,845
Intrastate access 200 186 406 404
Toll 177 186 352 360
Other 454 386 886 778
Total Operating Revenues 4,136 3,754 8,156 7,559
Operating Expenses:
Cost of services and
products 1,381 1,292 2,717 2,497
Depreciation and
amortization 836 826 1,662 1,645
Selling, general and
administrative 740 654 1,375 1,284
Total Operating Expenses 2,957 2,772 5,754 5,426
Operating Income 1,179 982 2,402 2,133
Interest Expense 144 134 277 268
Other Income
(Expense), net 2 (1) 4 1
Income Before Income
Taxes 1,037 847 2,129 1,866
Provision for Income
Taxes 393 316 802 702
Net Income $ 644 $ 531 $ 1,327 $ 1,164
PRELIMINARY
July 21, 1998
BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Three Months Three Months
Ended Ended
June 30, June 30,
1998 1997
Property additions (millions) $ 844 $ 844
Access minutes of use
(millions):
Interstate 19,804 18,552
Intrastate 6,436 5,873
IntraLATA toll messages 201 232
(millions)
At June 30,
1998 1997
Debt ratio 48.6% 48.2%
Telephone employees 59,700 62,779
Network access lines in
service (thousands) 23,660 22,717
Six Months Six Months
Ended Ended
June 30, June 30,
1998 1997
Property additions (millions) $1,698 $1,576
Access minutes of use
(millions):
Interstate 38,802 36,273
Intrastate 12,520 11,425
IntraLATA toll messages 402 462
(millions)
PRELIMINARY
July 21, 1998
BELLSOUTH CORPORATION
CELLULAR OPERATING INFORMATION (UNAUDITED) (7)
($ IN THOUSANDS, Second Second
EXCEPT Quarter Quarter
PER CUSTOMER NOTES 1998 1997 % Change
INFORMATION)
DOMESTIC OPERATIONS
Cellular (1), (4) $ 642,966 $ 625,731 2.8%
Revenues,
net
Operating (1) 347,164 340,961 1.8%
Expenses
Depreciation (1) 109,195 92,545 18.0%
Expense
Amortization of
Intangibles (1) 19,830 18,333 8.2%
(including
goodwill)
Total (1) 476,189 451,839 5.4%
Operating
Expenses
Operating (1) 166,777 173,892 -4.1%
Income
Other Expenses (1) 67,728 77,423 -12.5%
(includes
interest
and taxes)
Net Income (1) $ 99,049 $ 96,469 2.7%
Operating Cash (1), (6) $ 295,802 $ 284,770 3.9%
Flow
Cash Operating (1), (6) 46.01% 45.51% 1.1%
Margin
DOMESTIC CELLULAR DATA
Population (11)
Served:
Control Basis (2) 50,517,000 52,196,000 -3.2%
Equity Basis (3) 40,709,000 40,671,000 .1%
Customers Served:
Control Basis (2), (8) 5,222,000 4,836,000 8.0%
Equity Basis (3), (8) 4,400,000 3,901,000 12.8%
Average Monthly (5) $ 46 $ 52 -11.5%
Service Revenue
per Customer
Penetration Rate (3) 10.81% 9.60% 12.6%
Property, plant (1) $3,857,697 $3,403,676 13.3%
and equipment
PRELIMINARY
July 21, 1998
BELLSOUTH CORPORATION
CELLULAR OPERATING INFORMATION (UNAUDITED) (7)
($ IN THOUSANDS, Second Second
EXCEPT Quarter Quarter
PER CUSTOMER NOTES 1998 1997 % Change
INFORMATION)
DOMESTIC PCS DATA
Population (11)
Served:
Control Basis (2) 25,096,000 24,032,000 4.4%
Equity Basis (3) 20,432,000 19,428,000 5.2%
Customers Served:
Control Basis (2) 205,000 106,000 93.4%
Equity Basis (3) 129,000 65,000 98.5%
SELECTED INTERNATIONAL OPERATING DATA (9),(10)
Cellular Revenues (1) $ 472,166 $ 319,999 47.6%
Population Served:
Control Basis (2) 88,100,000 68,900,000 27.9%
Equity Basis (3) 100,766,000 68,558,000 47.0%
Cellular Customers Served:
Control Basis (2) 2,226,000 1,304,000 70.7%
Equity Basis (3) 2,390,000 1,415,000 68.9%
Penetration Rate (3),(10) 3.00% 2.06% 45.6%
SELECTED LATIN AMERICA INFORMATION (10)
Cellular Revenues (1) $ 309,866 $ 186,100 66.5%
Net Earnings from (1) $ (2,660) $ 11,287 --
Operations
Operating Cash (1), (6) $ 99,308 $ 55,670 78.4%
Flow
Cash Operating (1), (6) 32.05% 29.91% 7.2%
Margin
Population Served:
Control Basis (2) 84,400,000 65,300,000 29.2%
Equity Basis (3) 73,918,000 42,066,000 75.7%
Customers Served:
Control Basis (2) 2,113,000 1,233,000 71.4%
Equity Basis (3) 1,407,000 743,000 89.4%
Average Monthly
Service Revenue (5) $ 72 $ 83 -13.3%
Per Customer
Penetration Rate (3),(10) 2.68% 1.77% 51.4%
PRELIMINARY
July 21, 1998
BELLSOUTH CORPORATION
CELLULAR OPERATING INFORMATION (UNAUDITED) (7)
($ IN THOUSANDS,
EXCEPT Year-to-Date Year-to-Date
PER CUSTOMER NOTES 1998 1997 % Change
INFORMATION)
DOMESTIC OPERATIONS
Cellular (1), (4) $1,278,135 $1,213,885 5.3%
Revenues, net
Operating (1) 694,715 702,818 -1.2%
Expenses
Depreciation (1) 217,249 181,899 19.4%
Expense
Amortization of (1) 39,606 36,838 7.5%
Intangibles
(including
goodwill)
Total (1) 951,570 921,555 3.3%
Operating
Expenses
Operating (1) 326,565 292,330 11.7%
Income
Other Expenses (1) 135,108 134,064 .8%
(includes
interest
and taxes)
Net Income (1) $ 191,457 $ 158,266 21.0%
Operating Cash (1), (6) $583,420 $511,067 14.2%
Flow
Cash Operating (1), (6) 45.65% 42.10% 8.4%
Margin
DOMESTIC CELLULAR DATA
Average Monthly
Service Revenue (5) $ 46 $ 52 -11.5%
per Customer
SELECTED INTERNATIONAL OPERATING DATA (9),(10)
Cellular Revenues (1) $ 900,642 $ 584,105 54.2%
SELECTED LATIN AMERICA INFORMATION (10)
Cellular Revenues (1) $ 585,268 $ 327,523 78.7%
Net Earnings from (1) 22,192 28,420 -21.9%
Operations
Operating Cash (1),(6) 183,704 107,685 70.6%
Flow
Cash Operating (1),(6) 31.39% 32.88% -4.5%
Margin
Average Monthly (5) $ 72 $ 83 -13.3%
Service Revenue
Per Customer
PRELIMINARY
July 21, 1998
BellSouth Corporation
Schedule of International Customers and POPS by Country (000's)
Second Quarter 1998
-----------------------------------------
Customers POPS
-------------------- -------------------
Equity Equity
Country Company Weighted Control Weighted Control
-------- --------- --------- -------- -------- --------
Argentina CRM 461 709 8,515 13,100
Chile BellSouth
Chile 151 151 7,400 7,400
Ecuador BellSouth
Ecuador 53 87 7,462 12,200
Nicaragua BellSouth
Nicaragua 10 11 2,581 2,900
Panama BSC Panama 13 - 1,135 -
Peru Tele 2000 103 175 4,133 7,000
Interior - - 10,037 17,000
Uruguay Abiatar 20 43 966 2,100
Venezuela Telcel 537 937 13,010 22,700
Brazil Region 1-
Sao Paulo 59 - 7,374 -
Region 10 - - 11,305 -
------ ------ ------- ------
Subtotal Latin America 1,407 2,113 73,918 84,400
------ ------ ------- ------
Denmark DMT 273 - 2,465 -
Germany E-Plus 308 - 18,545 -
Israel Cellcom 324 - 2,085 -
India Skycell 5 - 1,348 -
New Zealand BSNZ 73 113 2,405 3,700
------ ------ ------- ------
Subtotal other 983 113 26,848 3,700
------ ------ ------- ------
Total International 2,390 2,226 100,766 88,100
====== ====== ======= ======
PRELIMINARY
July 21, 1998
BellSouth Corporation
Schedule of International Customers and POPS by Country (000's)
Second Quarter 1997
-----------------------------------------
Customers POPS
-------------------- -------------------
Equity Equity
Country Company Weighted Control Weighted Control
-------- --------- --------- -------- -------- --------
Argentina CRM 240 401 7,863 13,100
Chile BellSouth
Chile 115 115 7,200 7,200
Ecuador BellSouth
Ecuador 21 34 7,157 11,700
Nicaragua BellSouth
Nicaragua 5 6 2,400 2,700
Panama BSC Panama 4 - 1,079 -
Peru Tele 2000 36 61 4,109 7,000
Interior - - - -
Uruguay Abiatar 12 35 595 1,700
Venezuela Telcel 310 581 11,663 21,900
Brazil Region 1-
Sao Paulo - - - -
Region 10 - - - -
------ ------ ------ ------
Subtotal Latin America 743 1,233 42,066 65,300
------ ------ ------ ------
Denmark DMT 250 - 2,418 -
Germany E-Plus 131 - 18,388 -
Israel Cellcom 240 - 1,998 -
India Skycell 5 - 1,348 -
New Zealand BSNZ 46 71 2,340 3,600
------ ------ ------ ------
Subtotal other 672 71 26,492 3,600
------ ------ ------ ------
Total International 1,415 1,304 68,558 68,900
====== ====== ====== ======
PRELIMINARY
July 21, 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. Revenues and customers associated with the Sao Paulo,
Brazil market, which launched service in mid-May 1998, are excluded
from the Latin America calculations.
(6) Operating cash flow represents operating income before
depreciation and amortization.
(7) The income statement and balance sheet information are for the
periods ended May 31, 1998 and 1997. The domestic customer numbers
presented above are as of June 30, 1998 and 1997 and international
customer numbers are as of May 31, 1998 and 1997.
(8) As information, domestic cellular customers served on a control
basis for the periods ended May 31, 1998 and 1997 were 5,167,000 and
4,786,000 respectively. On an equity basis, domestic cellular
customers served for the same periods were 4,355,000 and 3,885,000
respectively.
(9) BellSouth sold its investment in Optus during the third quarter
of 1997. Previously reported data for 1997 has been restated to
exclude Optus.
(10) For second quarter 1998, no financial or customer information
related to the newly acquired licenses in Brazil Region 10 and Peru
Interior is included, and the penetration rate calculation excludes
these population amounts.
(11) Coverage areas for certain BellSouth Domestic Cellular and PCS
licenses overlap each other. If these categories were combined for
reporting purposes, second quarter 1998 total population served would
be reduced by 642,000 (control basis) and 830,000 (equity basis) for
the overlap.
