January 24, 2002 -- A group of competitive local exchange carriers (CLECs), along with leading long distance providers, issued a proposal yesterday to the Federal Communications Commission (FCC) designed to improve provisioning of special access facilities by incumbent local exchange carriers (ILECs), including BellSouth (NYSE: BLS). The unification of key players in the competitive telecommunications industry behind this proposal reflects the critical importance of special access provisioning to end users, competitors, and the economy as a whole.

"The intent of the Telecommunications Act of 1996 was about choice-giving the consumer a choice in telecommunications services and providers. Companies like NewSouth must have access to Bell's facilities to provide these services. With BellSouth getting closer to receiving long distance approval in the Southern states, they will have further incentive to discriminate in favor of their own affiliates and retail customers. It is critical that the FCC adopt these performance standards to ensure that NewSouth receives service in a timely manner," commented Jake Jennings, Vice President of Regulatory Affairs for NewSouth Communications.

Along with NewSouth Communications, XO Communications (OTC Bulletin Board: XOXO), WorldCom (Nasdaq-NM: WCOM), Cable & Wireless, Focal Communications Corporation (Nasdaq-NM: FCOM), AT&T (NYSE: T), the Association for Local Telecommunications Services (ALTS), and the Competitive Telecommunications Association (CompTel), filed in support of the proposal.

The proposal calls for a clear, concise list of 11 measurements, or performance standards, that will improve ILECs provisioning of special access while deterring the ILEC's ability to unfairly treat competitors. These measurements represent a "win-win" for all carriers, with consumers being the biggest winner. The measurements provide regulators with the ability to monitor the monopoly-competitor relationship, while enabling CLECs to seek the kind of enforcement relief encouraged by the FCC. The action yesterday followed NewSouth's participation in a CEO Roundtable with the FCC in July 2001 to address market penetration issues for CLECs. The primary focus of the roundtable was to establish regulatory clarity and the need for enforcement of existing telecommunications laws.

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