BellSouth Updates Plans for Restructuring its Video Entertainment Service
Company Reaches Agreement with EchoStar's DISH Network
For Immediate Release:
December 19, 2000
ATLANTA, GA - BellSouth (NYSE: BLS) today announced that it will focus its
entertainment business on its fiber optic-based wireline video operations. The
company has reached agreement with EchoStar's Network to offer a special video
service package, beginning in January, to BellSouth's current single-family
residential customers with wireless video service (video signal received through
an antenna).
Today's announcement affects only wireless video customers. Those customers who
receive video services through BellSouth's fiber-based operations will not be
affected.
"We intend to make the transition as simple as possible for customers," said
Bill Smith, executive vice president - Network Services and chief technology
officer. "It's important for our customers to understand that until the
transition to DISH Network is complete sometime next year, BellSouth will
continue to make its wireless video service available to current customers."
This move was made to better align resources with BellSouth's strategic
priorities in broadband services, wireless and international operations.
BellSouth's broadband business priorities include the accelerated rollout of
DSL, e-center services, Web hosting, and Internet platform (IP) services
applications. Sales of BellSouth's DSL service and other high-speed access
products jumped more than 80 percent in the third quarter and the company
expects to triple its DSL customers from about 200,000 by year end to 600,000 by
end of year 2001.
BellSouth will recognize total after-tax restructuring charges of between $350
million and $375 million in connection with this announcement. It is expected
that a significant portion of the total cost will be recognized in the fourth
quarter of 2000, when the restructuring activities began, with the remainder
being recognized during 2001, as the wireless video operations undergo
transition. Customers may find information about BellSouth's video entertainment
service at www.bellsouth.com.
About BellSouth Corporation
BellSouth Corporation (NYSE: BLS) is an integrated communications services
company headquartered in Atlanta, GA serving more than 41 million customers in
the United States and 16 other countries. BellSouth, consistently recognized for
customer satisfaction, provides residential, business and wholesale customers
with integrated voice, video and data services to meet their communications
needs. BellSouth is a Fortune 100 company with total revenues exceeding $26
billion.
About Cingular Wireless (a joint venture with SBC Communications)
Through Cingular Wireless, the nation's second largest wireless company,
BellSouth provides innovative wireless voice and data services. Cingular
Wireless serves 19 million subscribers and reaches 190 million potential
customers with a full set of services, including interactive messaging in
addition to attractive national rate plans and bundles of other communications
services.
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For more information, contact:
Jeff Battcher
BellSouth Corporation
(404) 713-0274
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.
