BellSouth expands high-speed Internet service

By Staff
from staff and wire reports
June 27, 2003
JACKSON Taking advantage of tax credits and sales tax exemptions offered under a new state law, BellSouth Corp. announced Thursday that it will extend its high-speed Internet service to every area of the state by year's end.
In doing so, the regional Bell company will offer the first high-speed Internet access to many rural areas of the state under the Mississippi Broadband Technology Development Act.
Investment tax credits of 5 percent to 15 percent over 10 years and sales tax exemptions of 50 percent to 100 percent are offered, with the most lucrative incentives paid for extending service to less-populous areas. Broadband service providers have been reluctant to extend service to rural areas because there are fewer potential subscribers.
Nationwide, high-speed Internet users have been selecting cable modems at double the rate they choose the Bells' broadband service. But the Bells have been racing to catch up.
Currently, BellSouth offers DSL, or digital-subscriber-line service through 116 of its 203 central offices in Mississippi. Without the tax incentive, BellSouth would have spent about $3 million a year over three to four years to extend the service statewide. But now, it will spend $10 million and finish the job by the end of the year.
We're nearly tripling our investment to $10 million,'' said BellSouth-Mississippi president John McCullouch said. This is a result of the bill passed this year.''
The tax incentives would be less effective in encouraging cable companies to extend their service because cable companies can only go into areas where they have a contract to operate. For instance, Time Warner Cable which offers high-speed Internet service in every area where it offers cable television service has service franchises to operate in only two areas of Mississippi: The Jackson metropolitan area and in northwest Mississippi.
BellSouth's DSL service will carry a price tag of $45.95 to $49.95 for residential customers, with the lower amount for customers who have purchased the most extensive local phone service package from BellSouth.
Small business subscribers will pay $79.95.
The company said it would nearly triple its investment in the high-speed DSL service as it adds 87 additional 87 offices throughout the state.
BellSouth currently offers DSL through 116 of its 203 central offices.
The expanded DSL deployment is being funded through a reallocation of funds from BellSouth's capital investment program and through tax incentives granted under Mississippi's new Broadband Technology Development law.
BellSouth FastAccess® DSL service is BellSouth's high speed Internet access service that uses DSL and works at speeds up to 50 times faster than a 28.8k dial-up modem. Large data files such as audio clips, research documents, product literature, and patient records can be downloaded or transferred in seconds rather than minutes. Consumers can make travel reservations online, and small businesses can conduct electronic sales via the Internet in seconds.