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BellSouth facing discount inquiry.(South Florida Sun-Sentinel)

Knight Ridder/Tribune News Service

| March 29, 2002 | Ostrow, Nicole | COPYRIGHT 2002 McClatchy-Tribune Information Services. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

FORT LAUDERDALE, Fla. _ The Florida Attorney General's Office is investigating a discount program that BellSouth Corp. offers to business customers who are about to switch or have switched to one of its competitors.

The move by the Attorney General earlier this year followed an investigation into a similar discount program in Tennessee. That investigation was launched last October. The Florida Attorney General's Office issued a subpoena in January asking BellSouth to provide it with documents the company submitted in the Tennessee case.

Florida regulators began looking into BellSouth's discount program in February. Florida Digital Network Inc., which filed a complaint with the state Public Service Commission, said the program allows BellSouth to price below what its competitors can charge.

Orlando-based Florida Digital also alleged that the program is only offered in areas of the state where competition exists, so business customers in noncompetitive areas can't choose the plan.

BellSouth spokesman Spero Canton said its discount programs comply with Florida law.

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