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

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.

"Competition was started in the telecommunications business so consumers could have better prices not so competitors could proceed without competition," he said, adding that BellSouth must give its competitors a 45-day notice of planned promotions.

"What other industry has to give competitors 45 days notice before they do a promotion plan?" he asked.