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Bellsouth To Expand High-Speed Internet Service To Entire State

Posted on: Saturday, 28 June 2003, 06:00 CDT

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 becomes the first high- speed Internet service provider to take advantage of a new tax incentive package approved by the Legislature earlier this year.

The Mississippi Broadband Technology Development Act is designed to encourage Internet service providers to extend broadband service to more rural areas of the state.

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.

"In Mississippi, we are truly closing the digital divide," said Gov. Ronnie Musgrove, who stood next to BellSouth-Mississippi President John McCullouch as McCullouch announced the expanded service.

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," McCullouch said. "This is a result of the bill passed this year."

The 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.

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