Babcock Issues Reports on BellSouth and SBC Communications GREENWICH, Conn., Oct. 27 /PRNewswire/ -- The Babcock Group LLC today issued reports on the third quarter results for BellSouth Corporation and SBC Communications Inc. Interested parties are encouraged to contact The Babcock Group for full copies of the reports. The following points outline the key takeaways from The First Mile Bulletin on each company. * The Bells were able to deliver sequential revenue growth on a consolidated basis thanks to aggressive sales of long distance, DSL, and wireless services that offset the decline of each company's local services business. * While BellSouth and SBC cumulatively lost 1.3 million retail local access lines to the weak economy, competition, and substitution during 3Q03, they more than offset those losses by adding 3.9 million revenue generating units (RGUs) in long distance, DSL, and wireless. * The Bells have had success in slowing local market share gains by competitive carriers in markets where the Bells are able to offer long distance service on a bundled basis. BellSouth and SBC each saw lines lost to UNE-P decline over the past two quarters. * The rapid and successful entry of the Bells into the long distance market highlights the ongoing need for UNE-P as a device to maintain competitive balance and consumer choice in the industry as the major long distance carriers enter the local market. * The Bells are leading the industry with respect to bundling and marketing innovation - a trend we have not witnessed in the past. CLECs, IXCs and Cable MSOs focused on the mass market find themselves in catch-up mode trying to compete with Bell bundles. * 4Q03 will be a critical period for the Bells as competitive activity from AT&T, MCI, and Sprint will escalate as a result of expanded local rollout plans that were announced following the FCC's Triennial Review Order. * 2004 will be interesting to watch in order to determine whether the much-publicized threats from Cable Telephony and Voice Over Internet Protocol (VoIP) technologies actually materialize as competitive forces. The Babcock Group LLC publishes The First Mile Bulletin reports in order to provide its corporate clients in the communications sector with timely updates on key events and issues in the telecommunications industry. The First Mile Bulletin focuses on competitive, regulatory, and strategic issues in its coverage of companies in the telecommunications industry. For further information on The First Mile Bulletin, please contact: DATASOURCE: The Babcock Group LLC CONTACT: Rich Lukaj of The Babcock Group LLC, +1-203-422-0932

Copyright