Interconnection Services Executive Overview Product Plan September 22, 2000

1. BellSouth Interconnection Services Private/Proprietary: No disclosure outside BellSouth except by written agreement. Interconnection Services Executive Overview Product Plan September 22, 2000

2. Organization Chart Interconnection Services Marketing

3. AIN Opportunities • 2001 Product Plan

4. Data Products

5. Professional Service Opportunities • Total Potential Revenue Impact by 2002: $170 Million Note: Although some of the services listed are currently being offered, the increased revenue projections are due to expanding to new markets and/or regions (nation-wide).

6. Switched Access MSNS • Introduction of Managed Shared Network Service (MSNS) for Switched Dedicated Transport Target Market: Existing SPA MSNS Customers particularly CLECS Approximate Incremental Revenue Over Five Years $12M • Projected Rollout: 3Q01 • Preemptive offering to pending 319 rulings *Assumes SWA MSNS rates equal SPA MSNS rates

7. Pricing Flexibility • Provides for contract tariffs by Metropolitan Statistical Areas (MSAs) Service Features to Qualifying MSAs Dedicated Transport Special Access to POP Channel Terminations to End Users Projected 5-Year Incremental Revenue $293M

8. OC192 Service • Provides SPA Point to Point OC192 Service via a dedicated ring Target Market: Large and emerging IXC and Wireless Customers Approximate Incremental Revenue Over Five Years $192M • Product Rollout to account teams began 9/18/00 • Product introduction addresses potential UNE loss and utilization of dry fiber

9. LAN Channel Interfaces Enhancement • Enhancement to SPA Point to Point Service and dedicated rings for LAN Channel Interface Service • Supports transport of 10, 100 & Gigabit Ethernet • Projected productrollout: 3Q01 Approximate Incremental Revenue Over Five Years $8.6M

10. BellSouth Capacity Service (BCS) BellSouth Capacity Service (BCS) is a preemptive move to lessen the potential erosion of revenues of some of our SPA & SWA services to UNEs. • BCS features include: • Provides for the combination of multi-jurisdictional traffic over the same facilities • Similar service & characteristics as traditional SPA/SWA offerings Five Year Revenue Projection $696M

11. DWDM Service • Enhancement to SPA Point to Point Service and dedicated rings for Dedicated Ring Services • Offers DWDM service for Special Access transport of Optical Wavelengths at OC12, OC48, OC192 • Projected productrollout: 3Q01 Approximate Incremental Revenue Over Five Years $170M

12. SPA DS1 ASIP Phase I Integration • Provides improved service delivery by adding service due date predictability Target Market: SPA DS1 Subscribers • Planned tariff effective date: 10/17/00 • Phase II is planned and on the IRB agenda Benefits • Sustained SPA DS1 Growth • New Revenues by modifying Service Charges • Improve CDDD Metrics

13. 2001 UNE Product Priorities 251,252,&271 • Cohesive Compliance • UNE 319 Remand Order • FCC Collocation Order • KPMG Third Party Testing • E-tize customer interfaces • Collocation e-application • Mechanized Loop Make-up • Electronic Ordering • Value-add to add margin • Pre-Packaged, Market-Priced Product Bundles • IntraLATA toll with UNE-P

14. 2001 UNE Product Initiatives • We’re not just about mandates anymore!

15. Access Service Improvement Plan ASIP Phase I- BellSouth SPA DS1 • Flexible Service Intervals • BellSouth SPA DS1 (Guaranteed 5 Business Day Interval for addresses in the Facility Availability Database (FAS) • BellSouth SPA DS1 8 Business Day Interval (CDDD = CDD where facilities are available for customer addresses not in FAS • BellSouth SPA DS1 ($200/day/circuit service advancement charge) for service intervals less than the standard • BellSouth SPA DS1 20% credit on non-recurring charges for 16 business day or longer service intervals • Electronic Ordering Options: • Web-based with pre-validation and order processing via Common Access Front End • Host-to-Host Real Time Connection for Pre-Validation via EAO • More Efficient Ordering Requirements • Same Day Service (“O” Day ) for Telecommunication Service Priority (TSP) emergencies only • Orders must be delivered before 3:00 PM EST(includes batch files) • FOC After Facility Verification (No Technician availability checks) • Must provide premise access until 9 PM Local time for intervals less than five days • Circuit testing results provided via WEB, FAX etc. and then posted complete • Additional Dispatch charge $150/occurrence for customer missed appointments when a technician has been dispatched

16. Access Service Improvement Plan The desired outcome of ASIP Phase I… • Improve CDDD performance • Focus on “Fiber On-Premise” Network • Drive customer behavior toward longer intervals • Improve FOC Response Interval CDD CDDD The goal of BellSouth’s service delivery improvement effort is to both consistently deliver when we say we will and to commit to deliver when the customer asks for it.

17. Access Service Improvement Plan Planned Tariff Revisions: • Introduction of the Dispatch Charge • $150/occurrence for customer missed appointments. • Modifications of tariff regulations for the Short Interval Charge for DS0 & DS1 services • Introduction of the Service Date Advancement Charge for DS0 & DS1 services • $200/day/circuit for each day BellSouth improves the due date from the standard interval. • Modifications of tariff regulations for Service Installation Guarantee • SIG will not apply to service advancements • Introduction of credit for long intervals • 20% credit on non-recurring charges for requested service intervals of 16 business days or greater

18. Access Service Improvement Plan Customer Ordering Requirements • Customers have the option to check addresses in FAS for 5 day service interval availability • Customers will receive confirmation note “9PM ACCESS REQUIRED” for intervals less than 5 business days • Customers will receive confirmation note “SERVICE ADVANCEMENT CHARGE WILL APPLY”