1. Welcome

2. eworks Seminar Series The n e twork: Building the Foundation for eBusiness Chris Parsons Senior Vice President Business Development and Strategy

3. Interactions e Business At Work Internet At Home - “e-me” New Industries It’s about Transformations Applications n e tworks e-Government Digital Economy e-Commerce n e tworked Economy

4. Internet Traffic doubles every 100 days Internet Traffic doubles every 100 days Over 100 million Internet users in North America Over 100 million Internet users in North America 10 million people in U.S. and Canada bought something online last year 10 million people in U.S. and Canada bought something online last year Consumer online spending is expected to be $184 billion by 2004 Consumer online spending is expected to be $184 billion by 2004 Internet Adoption Rates

5. BellSouth - A Significant Opportunity Traditional Telco Services $290 B Value-added e -Services $286 B $290 B $??? B Exchanges Internal Opportunity - e tize BellSouth

6. “Clicks and Mortar” beat “Bricks and Mortar” ‘97 Market Cap (“bricks & mortar” focus) $6B ‘00 Market Cap (“clicks & mortar” focus) $31B

7. e Business e Business Focus

8. The Mother of Disruptive Technologies Technology Explodes Cost of Technology Is Reduced Driving Major Realignments New Applications -Increased Bandwidth The n e twork is the Business The n e twork becomes the Transformation Catalyst Top 2 challenges Business /IT executives must face with e Business: SecuritySecurity More Network to Manage / AccessMore Network to Manage / Access CIO Magazine - May 2000)

9. Then e twork The n e twork Customer Interaction Solutions network Consulting Services Web Enablement n e twork Applications Platform & Enablers Managed n e twork Solutions n e twork Infrastructure enterprise extended enterprise extended enterprise industry community consumer

10. HH HHHHHH HH CentralOfficesCentralOffices NOCNOC SONETSONET CallCentersCallCenters BMFsBMFs Frame Relay ATM ADSL w/VoIP IBC IP-VPN Access Wireless Security Services Professional Services Wireless Applications Messaging Storage e Business Platform Hosting Services Hosting Centers n e twork Assets n e twork Services - New Model “The n e twork is the Business” ASPs ISPs SIs ISVs

11. BellSouth e Business Centers are World-Class Data Center facilities, within which customer web server systems reside…..currently hosting 10,000 customers Stay Tuned ! BellSouth e Business Centers

12. Wireless Think Wireless

13. Partner Aggressively Your Blueprint !

14. Supplier Service Customer Service Employee Service “ e -tize” BellSouth Investments Required …….Enable BellSouth

15. Attack the disruption - Opportunities Exist! BellSouth Exchange Initiatives Nortel BellSouth & Other Telcos BellSouth Small Business Customers BellSouth Advertising & Publishing State & Local Governments BellSouth International Telecom Industry Exchange BellSouth PurchaseWise Lucent Cisco Nortel Computer Products Office Supplies Government Exchange Global Exchanges Business Tax Services Government Suppliers Agency Support Services International Manufacturers Import/Export Services GlobalTrade

16. Opportunity or Threat e Attack the Disruption Leverage Your Assets Act and Adjust Learn Quickly Think Partnerships “The n e twork is the Business” “It’s economic Darwinism in Action”